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hey make sure to go to hous hack.com 2024 to meet me at the road show it's going on now what even is a house hack what is the easiest elevator pitch of a way to describe house hack and then what is going on in this photo well first let's start with a simple elevator pitch just to make this as simple as possible imagine house hack is the Robin Hood of real estate so think fintech think app think create of services then imagine mini funds are like stocks that trade on Robin Hood and so house hack creates the platform and stabilizes real estate and creates the mini funds that can be bought and sold and invested into individually and house act does all that with zero fee how does house hack make money well it buys broken fix rppers and sells them for a their market value as verified by an independent board looking at comps so now all of a sudden what you actually have is a very basic concept you have a fintech where one business is taking poopy doopy assets and turning them into quality assets and once they're quality assets they can be divided up into little slic people can invest into we call those mini funds and how do people invest well they could potentially in the future use let's say a house hack software where people can select which mini fund do I want to invest in or they just invest directly through their own broker but the idea is house hack is creating a way for people to invest in real estate for zero fee just like Robin Hood helped people invest in stocks for zero commissions house Haack is doing that with zero fees in real estate we're doing that by getting a good deal on the buy that's it I think that's an easy elevator pitch and hopefully makes it a lot simpler to understand and then of course that begs the question is well you know does house hack actually operate any kind of software and the answer to that is yes we are not only building our own property management Suite because well certainly we talked about this with our Silicon Valley friends over here yesterday but think about this property management company that uh uh well property management software company called buildium raised money at uh a 700 million to over a billion doll valuation in the Years just before covid uh with 177,000 properties using the buildium software we think to oursel well gosh I mean if we make house hacks sort of that Robinhood of real estate we're going to have access to so much more real estate we'll have cycled through so much more real estate that we need to have our own property management Suite as well and so that is what we're building we're building our own management app so that we don't have to rely on another company and we can build it out the way we want and then streamline exactly how we screen tenants conduct preventative maintenance and of course conduct repairs or Renovations on properties that's all a big deal for us so uh for us a house hack is really the start of everything it's the beginning of everything for making real estate accessible to normal people uh and when I say normal people I mean I think most normal people in the long-term may not be able to afford a home and I think that's terrible I think people should be able to buy real EST state but the reality is whether it's regulation the market interest rates qualifying credit tightness the the BS of uh that you have to go through with you know inspections and and viewings and picking a property and title and inspections and and you know uh repairs and contractor negotiations it's a lot so for us we think at some point the burden of all of that will just become too great for people to do and the cost benefit of it will be less unless people are getting good deals like wedge deals but that's hard for a normal family to to do so a normal family might end up just renting unfortunately I think we're going in that direction where less people will own real estate and so we want to be ahead of that curve where we're basically creating the Robin Hood of real estate that lets people get into real estate for zero feet but in this case we're not just trading stocks for zero fee what we're doing is we're also creating the product so we're sort of the service provider hey pick your zero fee mini fund which real estate investment would you like you want a zero fee investment into short-term rentals want a zero fee investment into Furniture uh or or furnished rentals zero fee investment into commercial real estate Warehouse uh or long-term rentals whatever obviously right now we're starting with single families and multifamilies right we're starting small and in one part of the country and we're taking advantage of tax preferred options like Delaware statutory trusts which would allow people to 1031 into our mini funds uh and get essentially tax preferred yield uh on their investment now obviously talk to a CPA about how dsts work but that means you could 1031 out of real estate you own and manage and into a zero fee slice of real estate that we've stabilized that's really amazing obviously email us at IR house.com for more information on that it's a little bit more complicated and we're just trying to make this as simple as possible but in the long term that's the vision is look here we made you a whole menu of different real estate options you could choose to invest in all with zero fee why because you're just paying fair market value for the asset well you'd be paying probably fair market value at any other real estate investment anyway the difference is other companies are charging fees now of course always compare yourself when you get a subscription agreement go through it read what the fees are read uh what what other Investments are charging you and make a comparison I I you know this isn't obviously any kind of personalized advice to tell you how to invest or whatever it's just simply to show you a little bit of the vision of house Haack and I was thinking about this a lot yesterday after our event I'll play a little bit of this event uh this was sack and San Jose H they actually let us out on the tarmac which was pretty cool but uh you know we're able to chat and answer people's questions and uh discuss everything that people have questions or concerns or interest about when it comes to to house hack or investing in house Haack it's pretty awesome people are wonderful people have great questions and it made me think okay there's there's probably an easier way to explain uh the difference uh between house Haack and mini funds so house hack should be like Robin Hood think like a growth investment and then many funds think okay just some slice of a company or an investment that I can invest into on Robin Hood so when you go here we'll do it together we'll pull it up really quick we'll pull up let's just go uh we'll go with uh Robin Hood app Robin Hood app okay great and we'll just grab some images on Google gole a little disclaimer here of course so here's Robin Hood so think house hack is like the provider of this app but it's also the provider of the underlying baskets that you could buy shares in those underlying baskets are the mini funds that's the you know single family Florida fund the multif family Texas fund whatever and each of those have no fee to invest in and then you could Click on each of them and go do I want to invest in that at that price you know that fair market value do I agree that that's the fair market value whatever and uh and then really house hack does something that nobody's done before and they're able to create this system without having to deal with real estate commissions between when we acquire property and roll it to the mini funds or all of the other headaches so again very simply house hack we think we think this is not a guarantee right so remember an investment comes with risk and every investment should be uh preceded by you reading the subscription agreement or the private placement memorandum or Frank Frankly both of those so we think there's Robin Hood which is like house hack which is fintech and provider of a zero fee product and we think of this as also being able to potentially in the future license out a property management Suite like a build DM or our wedge finder those are all the house tax stack so if we do a property management play or uh something with the wedge finder that we own the wedge finder AI uh those are things that are all house hack IP and so that's why we're raising money at $2 a share which we think aligns with the $2 per Book value that you see at American homes for rent and Invitation Homes because that's our bare minimum in my opinion they're operating real estate companies okay cool but that's where they stop so in my opinion so they stop at $2 a share because they're operating real estate companies and they grow that that base of real estate investing fantastic we're an operating real estate company that wants to evolve into basically being this cash flowing fex stack that's the hope uh is that we can gain cash flow by Rolling properties over to the mini funds at a profit determined by a an independent majority independent board and then potentially license some of our property management software or otherwise in the future and in the longer term while also having a platform where people can go oh yeah yeah yeah I want to invest in that kind of real estate or that kind of real estate that kind of real estate so even though we're we are a real estate company we buy real estate because we roll it we're constantly and in perpetuity buying New Deals we're recognizing those wedges over and over and over again see that's one of the fun things I think about wedge deals is if somebody gave you $8 million tomorrow and you found a $10 million deal uh that you got for eight that means you profited $ million but what do you do then you can just sit around and forever say hey I made 2 million on 8 mil that's great but you got to be able to repeat the cycle so how does house hack repeat the cycle by offering those zero fee mini funds so that hopefully is a better primer uh make sure to come to our road show or remember to mark your calendar for May 1st for the deadline to invest in house Haack if you are interested and of course after you read the subscription agreement and become aware of any risks associated with making an investment thanks so much we'll see see you soon goodbye why not advertise these things that you told us here I feel like nobody else knows about this we'll we'll try a little advertising and see how it goes congratulations man you have done so much people love you people look up to you Kevin PA there financial analyst and YouTuber meet Kevin always great to get your take even though I'm a licensed financial adviser licensed real estate broker and becoming a stock broker this video is not personalized advice for you it is not tax legal or otherwise personalized advice tailor to you this video provides generalized perspective information and commentary any third party content I show shall not be deemed endorsed by me this video is not and shall never be deemed reasonably sufficient information for the purposes of evaluating a security or investment decision any links or promoted products are either paid affiliations or products or Services we may benefit from I also personally operate an actively managed ETF I may personally hold or otherwise hold long or short positions in various Securities potentially including those mentioned in this video however I have no relationship to any issuer other than house act nor am I presently acting as a market maker make sure if you're considering investing in housec to always read the PPM at house .c

Channel: Meet Kevin

Views: 24,425

Keywords: househack

Id: zrlJwt-uSP0

Length: 11min 30sec (690 seconds)

Published: Wed Apr 24 2024