Join us in unlocking the next phase.
Accredited Investors | $2 Per Share
Round Closes May 1st @ 11:59pm PT
Our founder has been featured on:
*This is an image of a HouseHack property.
We’ve Raised Over $40m and Built our Foundations.
We've built the foundation of our model: to buy what we believe to be under-market-value real estate, improve the properties to increase potential asset value, and rent out for cash flow.
Now, we believe we're ready for the next phase: to package these properties into MiniFunds™ to unlock revenue and grow the company.
Potential Wedge Generated in 6 months: $4m*
Review HouseHack properties and their potential wedges below. We’re currently in two separate states & eight cities.
Our average single unit deal is over $132,000 per wedge*
Property
Purchase Price
Reno Costs
Total In
Est. New Value*
Wedge
Property 1
$605,000
$55,901
$660,901
$775,000
$114,098
Property 2
$608,400
$70,000**
$678,400
$800,000
$121,600
Property 3
$537,995
$90,000**
$627,995
$750,000
$122,005
Property 4
$550,000
$60,000**
$610,000
$725,000
$115,000
Property 5
$681,000
$51,617
$732,617
$825,000
$92,382
Property 6
$684,000
$46,337
$730,337
$875,000
$144,662
Property 7
$15,700,000
$10,201
$15,710,201
$17,900,000
$2,189,798
Property 8
$1,000,000
$77,881
$1,077,881
$1,280,000
$202,118
Property 9
$320,000
$420
$320,420
$400,000
$79,580
Property 10
$512,000
$69,150
$581,150
$665,000
$83,849
Property 11
$475,000
$66,709
$541,709
$630,000
$88,290
Property 12
$452,000
$63,023
$515,023
$605,000
$89,976
Property 13
$936,000
$61,383
$997,383
$1,280,000
$282,616
Property 14
$515,000
$80,308
$595,308
$730,000
$134,691
Property 15
$507,000
$81,412
$588,412
$770,000
$181,587
Totals
$24,083,395
$884,346
$24,967,741
$29,010,000
$4,042,258
*Based on estimated after-repair value of publicly available, sold-comps. Subject to future audit/independent verification. All images below are HouseHack Properties.
**These properties are still being renovated. These amounts are the final estimated renovation costs.
Buy shares for $2 per share.
Invest $100,000 or More
And receive warrants to have the option to exercise an additional 50% of your investment at $2 per share after January 1, 2026 whenever we decide to call for warrant redemption.
HouseHack Before & Afters
These properties were efficiently renovated and placed on the market within months.
Our Vision
Our plan is to utilize cash and go after deals others ignore. We look to acquire great deals that after being fixed up, we believe could have a healthy margin of positive asset value.
By rolling these properties to institutional investors or affiliates, we believe we'll be able to accelerate operating cash flow.
Note: There are always market, tenant, geographic, and other risks. At this time, the company intends to reinvest operating cash flow. References to cash flow on this website or otherwise, should not be construed as implying dividends or distributions to investors at this time. Although the company may decide to offer dividends, distributions, or repurchase shares in the future, that is not the company's present intention. Instead, the company intends to continue growing its business by reinvesting.
The Next Phase: MiniFunds™
MiniFunds™ is HouseHack's strategy to potentially convert equity into operating cash flow.
One of the liquidation strategies that HouseHack plans to implement is taking renovated properties, bundling them together, and selling them at current market value to investors and institutions via various investment vehicles (i.e., publicly listed REITs, pension funds, hedge funds, etc.).
Through MiniFunds™, we plan to roll quality properties with our professional management team in place into potential operating CASH FLOW by providing low-risk, stable yields to institutions, fund managers, exchanges, and affiliates via MiniFunds™.
This "UNLOCKS OUR WEDGE.” Remember, HouseHack wants to find opportunities and wedges. However, once we find a set of wedges, we’re stuck - unless we can find EVEN MORE wedges by unlocking the value and cash in our first wedge.
More cycles of MiniFunds™ = more potential cashflow.
Note: As of February 2024, we have yet to and cannot guarantee we will be able to create MiniFunds™ or implement this strategy to recapture capital and potential appreciation for operating cash flow. This could be via a future-qualified, publicly listed vehicle to be determined in the future, which creates increased risk as it has not been done yet.
Our Cash Flow Plan
Please see “Risk Factors” in our PPM for details on the risks associated with our plan.
01
Buy Wedge Deals
Buy what we believe are distressed and unlivable properties. If the market falls, our wedge could compress, but our goal is to maximize the wedge in turbulent times.
02
Renovate them via our Formula
Renovate with what we believe are cost-effective strategies that can possibly increase rental income and asset value based on our founder's experience.
03
Rent them out
Rent out properties for consistent, long-term revenues and retain management in-house. Our goal is to maximize the revenue of each property by implementing efficient rental strategies for each market.
04
Roll to Cash Flow with MiniFunds™
Roll the properties at their new market value via MiniFunds™ to fund managers, institutions, and potentially the public via exchanges or affiliates for operating cash flow. We will aim to retain management of the properties to keep costs low.
05
Receive Original Capital & Appreciated Value Back
Our goal is for this process to generate an ongoing cycle as we are able to rinse and repeat the cash flow plan.
The Story of Kevin Paffrath
And laying the foundations for HouseHack...
Kevin moved to the U.S. from Germany as a child, with a thick German accent, into a family navigating its way through the challenges of assimilation and financial instability. He watched his parents struggle to learn English and to make ends meet as they moved from one apartment to another. The "dot-com" recession hit hard, causing his father's business to collapse and leading to his parents' divorce. His family lost their home, car, and had to move cities, tearing him away from childhood friends. With no local family stateside for support, he was now torn between two broken households.
These experiences didn't break him; they built him. They lit a fire under him and created an incredible work ethic.
While in college, he turned his focus to real estate. He learned everything he could and eventually would become an agent, then a broker, and even a licensed loan officer. He wanted to know everything he could about real estate to provide more value.
He soon realized that to find deals as an investor, he had to look where other people usually weren't.
Homebuyers were busy finding move-in-ready homes - they didn't want to deal with renovations, and they were turned off by simple cosmetic fixes like popcorn ceilings and shag carpets.
Many investors weren't focused on single-family homes either, as they were too busy competing with other investors trying to get diversification with multi-family.
Kevin realized if he got enough single-family homes, he would have diversification too. So, he started buying homes one by one and focused on properties that he believed sold for less than the neighborhood average because of mostly cosmetic issues. He believed that because of the advantages of buying under-market properties that weren’t hard to fix up, he was able to create a sort of buffer, or “wedge".
This "wedge" is the difference in the cost to buy a home and renovate it compared to the price it could potentially sell at based on local market and neighborhood conditions.
The Wedge in Action
This is how we believe the wedge model should work:
- $500k fixer-upper in a
- $700k neighborhood takes
- $50k to fix up.
Total cost: $550k
Potential value: $700k.
The $150k spread is the "wedge".
If home values fell by 20%, we have the potential to still end up on top if we needed to sell.
We aim to acquire wedge deals at scale & cash flow with the power of MiniFunds™.
Our plan is to leverage our founder's tested wedge-deal-to-rental model and accelerate it with the advantages of buying properties with cash, the cost benefits of economies of scale, and the operating cash flow potential of packaging and selling them to affiliates and/or third parties via MiniFunds™.
Note: If the market declines more than the value of the wedge, there may be a loss of principal in the investment. There are also other factors, such as potential tenant eviction or disasters which could affect the value of a property/wedge. Please read our "Risk Factors" in our PPM for more details.
QUICK MESSAGE FROM OUR FOUNDER
Hey, it’s Kevin Paffrath. It’s really important you read our Private Placement Memorandum to understand what an investment in HouseHack means. While we have goals, hopes, and dreams, it’s important to remember that’s what these are now. There’s a lot of hard work, effort, and dedication that’s going to be required between now and then. And, while we’re up for the challenge, it’s exactly that: a challenge.
Things could go great, or they could not. While I will not stop trying to make HouseHack a great success, there will always be risk. Risks of accidents, mistakes, failures, market movements, or otherwise. It’s worth remembering that I started as a real estate agent, worked in property management, and became a real estate broker. I’ve renovated properties and managed/coordinated their renovations, and I am very familiar with the process, however, that experience has been limited geographically, and there may be risks in expanding to other regions. I also have little experience in working with institutions to bundle and sell real estate to them, so while we have hopes and goals with MiniFunds™, we cannot guarantee our plans will work. In discussions, we hope they will, but as we all know: talk is cheap.
In evaluating your investment, remember that I’m not your personal financial advisor. I might be very excited about this, but I’m also the founder - so it’s very important to balance my enthusiasm with what’s right for you. Only you and your own advisors can make that determination after properly balancing the risks of investing. Thanks so much for considering an investment into HouseHack. ~"Meet Kevin” Paffrath
HouseHack Renovations
HouseHack aims at efficiently renovating properties to increase asset values.
Foundations
After Kevin selling over $150,000,000 in real estate and transacting over 200 individual deals as a real estate agent and broker- many with renovations and rentals often featuring our in-house construction team–we believe we're ready to scale our formula.
And, we have already begun.
[Note: Currently active licenses include Real Estate Broker, Series 7, Series 63, Series 65, Series 27, and Series 24. This offering is not being provided as financial advice through Kevin's adviser licenses. Please read our offering circular thoroughly before choosing to invest in HouseHack.] We believe that though he may not use the licenses per se in his affiliation with us, the licenses Kevin has passed and the knowledge he has acquired through them will assist him in developing the company.
License tests Kevin has passed:
Real Estate Agent; Real Estate Broker; California General B Contractor License; Series 7; Series 63; Series 65; Series 27; Series 24; FAA Drone Pilot; and Mortgage Loan Originator (Lender.)
Our Process
How We Find Deals
We work with agents, wholesalers, and sellers directly who send us deals. Then, we make competitive cash offers on the deals we love. We also use MLS access when available, online sources, and our proprietary Wedge-AI App to maximize our efficiency in finding deals. At this point, all acquired properties are signed off on by our founder after he personally verifies values and estimates prior to closing.
How We Inspect Deals
After making cash offers on what we believe to be below-market properties, we leverage our founder’s experience in construction, real estate renovations, and wedge deal work to inspect roofs, electrical systems, sewer lines, foundations, moisture, attics, crawlspaces, and more. (HouseHack owns a complete inspection kit including sewer-inspection camera, FLIR camera, and more). We believe this makes us FAST and competitive.
Often, we believe we can use our competitive edge and speed to beat other offers. Many of the “wedge” deals HouseHack has locked in have had multiple offers. Sellers frequently select us because of our speed with inspections, prompt removal of contingency, and speed in closing. However, and obviously, there can be no guarantee that we are always or will continue to be successful.
Yet, time and time again, we are often able to secure the deal while maintaining the wedge in the property.
How We Manage Deals
We are professional property managers at heart. Prioritizing working for who we call our customers–our contractors, vendors, and our tenants–reminds us real estate is a people business. Of course, that does mean there is a risk that people may not want to do business with us, which of course we would want to minimize. We believe we can make real estate a win-win and be a substantially better landlord, asset manager, and fund manager.
“Hands-Off” Real Estate Exposure
With the S&P near all-time highs, we believe many investors may want to provide their portfolio with more Real Estate exposure.
An investment in HouseHack helps investors avoid many of the headaches and risks of managing properties themselves, such as:
- Identifying and financing profitable deals from acquisition to disposition and working with lenders and agents.
- Handling property management, evictions, collections, and damage.
- Finding and qualifying tenants, ensuring timely payment, and handling numerous inquiries and issues.
- Navigating legal liabilities, insurance-claim disputes, and processing.
- Navigating tax complexities like cost segregation, depreciation, 1031 exchanges, categorizing repairs vs. capital improvements, and differentiating short-term vs. long-term gain.
- Dealing with market timing and high tenant-vacancy risk.
- Managing renovation risks, contractors, permits, construction coordination, and workforce engagement.
Invest With Us
Our Model
Potential Path To Revenue
We have started to implement our model. Now it's time to grow. With scale, we believe we can have better margins than a small-time investor.
Less-Competitive Arena
Only around 20% of single-family home buyers are investors. This means most buyers are unlikely aware of how to "wedge" real estate, significantly reducing our competition and hopefully increasing our returns.
Higher Margins For All
We plan to be more competitive, while also aiming to be more profitable. That's because we plan to avoid the up to 5-10% in selling fees as our strategy involves rolling properties to a potential investment vehicle rather than quickly flipping them. That could potentially be another $25,000-$50,000 of margin on a $500,000 property. This structure can make deal sourcing easier.
2-Million Community Bonus
With our founder having an active reach of millions on social media, we believe we have the advantage of being able to tap into our own built-in community to source deals and build partnerships with agents, lenders, and contractors - as well as source tenants and future investors.
This is a unique and valuable advantage.
Future Equity Potential
If deemed profitable for the company and its investors, we may offer stock in HouseHack to tenants or agents who work with us. This could increase agent-deal-finding loyalty, reduce our acquisition costs, and increase our profit per deal. We could be a landlord who helps tenants build wealth. We believe this is the type of goodwill and forward-thinking America needs. This could also increase tenant satisfaction and longevity while minimizing property damage and screening risk. For now, this is just an idea that might not happen.
Leveraging MiniFunds™
Through MiniFunds™, we plan to roll quality properties with our professional management team in place into operating cash flow by providing low-risk, stable yields to institutions, fund managers, via exchanges and affiliates.
We reserve the right to close or extend the round at anytime without advanced notice.
What’s Next?
Read our offering materials, including our PPM, and you are interested in investing in HouseHack, click here to begin the process.
Summary
The Meet Kevin Model
Our founder has already proven the wedge-deal-to-rental model can be successful in his personal holding, and now we hope to bring those potential benefits and cost savings with economies of scale.
Unique Advantages
We believe our social community, business model, and in-house proprietary AI give us extra resources our competition may not have.
Proven Team
From deal analysis and acquisition to construction and leasing, we believe our in-house team is highly experienced and has a track record of execution.
Opportune Market Cycle
With high interest rates, we believe we are well positioned with the cost benefits and negotiating power of buying properties in cash.
Frequently Asked Questions
Do I need to be an accredited investor? What does that mean?
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If I'm not based in the USA, can I still invest?
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I thought investing in HouseHack was investing in real estate? Is it not?
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Why would I invest in HouseHack vs MiniFunds?
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Is the price per share different than the last round?
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Can I invest with my IRA account?
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What do I receive after investing?
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When will this round be closed?
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Ready to invest?
Click the button below, read our offering documents, fill out the Subscription Agreement, attach the requested documents, and submit your investment application.
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Disclaimers: THIS WEBSITE MAY CONTAIN FORWARD-LOOKING STATEMENTS AND INFORMATION RELATING TO, AMONG OTHER THINGS, THE COMPANY, ITS BUSINESS PLAN AND STRATEGY, AND ITS INDUSTRY. THESE FORWARD-LOOKING STATEMENTS ARE BASED ON THE BELIEFS OF, ASSUMPTIONS MADE BY, AND INFORMATION CURRENTLY AVAILABLE TO THE COMPANY’S MANAGEMENT TEAM. WHEN USED IN THE OFFERING MATERIALS, THE WORDS “ESTIMATE,” “PROJECT,” “BELIEVE,” “ANTICIPATE,” “INTEND,” “EXPECT” AND SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY FORWARD-LOOKING STATEMENTS. THESE STATEMENTS REFLECT THE COMPANY'S MANAGEMENT TEAM’S CURRENT VIEWS WITH RESPECT TO FUTURE EVENTS AND ARE SUBJECT TO RISKS AND UNCERTAINTIES THAT COULD CAUSE THE COMPANY’S ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE CONTAINED IN THE FORWARD-LOOKING STATEMENTS. INVESTORS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THESE FORWARD-LOOKING STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE ON WHICH THEY ARE MADE. THE COMPANY DOES NOT UNDERTAKE ANY OBLIGATION TO REVISE OR UPDATE THESE FORWARD-LOOKING STATEMENTS TO REFLECT EVENTS OR CIRCUMSTANCES AFTER SUCH DATE OR TO REFLECT THE OCCURRENCE OF UNANTICIPATED EVENTS.
HOUSE HACK, INC. DOES NOT MAKE ANY EXPRESS OR IMPLIED REPRESENTATION OR WARRANTY AS TO THE ACCURACY OR COMPLETENESS OF THE INFORMATION CONTAINED ON THIS WEBSITE OR IN ANY OF THE OFFERING MATERIALS OR ADDITIONAL EVALUATION MATERIAL, WHETHER WRITTEN OR ORAL, MADE AVAILABLE IN CONNECTION WITH ANY FURTHER INVESTIGATION OF HOUSE HACK, INC. HOUSE HACK, INC. EXPRESSLY DISCLAIMS ANY AND ALL LIABILITY THAT MAY BE BASED UPON SUCH INFORMATION, ERRORS THEREIN, OR OMISSIONS THEREFROM.
NEITHER THE SECURITIES AND EXCHANGE COMMISSION ("SEC") NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED OF THESE SECURITIES OR PASSED UPON THE ADEQUACY OR ACCURACY OF THE COMPANY'S PRIVATE PLACEMENT MEMORANDUM OR OTHER OFFERING DOCUMENTS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
AN INVESTMENT IN THE COMPANY'S SECURITIES INVOLVES A HIGH DEGREE OF RISK. IN MAKING AN INVESTMENT DECISION, INVESTORS MUST RELY ON THEIR OWN EXAMINATION AND THE TERMS OF THE OFFERING, INCLUDING THE MERITS AND RISKS INVOLVED. YOU SHOULD ONLY INVEST IN THESE SECURITIES IF YOU CAN AFFORD A COMPLETE LOSS OF YOUR INVESTMENT. YOU SHOULD READ THE COMPLETE DISCUSSION OF THE RISK FACTORS SET FORTH IN THE COMPANY'S PRIVATE PLACEMENT MEMORANDUM AND OTHER OFFERING DOCUMENTS.
PROSPECTIVE INVESTORS ARE NOT TO CONSTRUE THE CONTENTS OF THIS WEBSITE OR ANY OF THE COMPANY'S OFFERING MATERIALS AS LEGAL OR TAX ADVICE. EACH PROSPECTIVE INVESTOR SHOULD CONSULT HIS OR HER OWN COUNSEL, ACCOUNTANT, AND OTHER ADVISORS AS TO LEGAL, TAX, AND RELATED MATTERS PRIOR TO PURCHASING ANY SHARES.
THE COMPANY'S PRIVATE PLACEMENT MEMORANDUM FOR THIS OFFERING CAN BE FOUND HERE.
Affiliated Business Disclosure: The officers and directors of our company, including Kevin Paffrath, are also officers, directors, managers, and/or key professionals of other entities, including securities and/or real estate entities. These persons have legal obligations with respect to those entities that are similar to their obligations to us. In the future, these persons and other affiliates of our company may organize other real estate-related, securities, or debt-related programs and acquire assets for their own account investments that may otherwise be suitable for HouseHack. Please view the Private Placement Memorandum for additional information, including disclosure on potential “Risk Factors”. Kevin Paffrath’s media company, The Paffrath Organization, DBA Meet Kevin, may use HouseHack properties as potential models or examples in his educational courses. HouseHack shall not receive any compensation for its properties being featured in said educational courses.
1. The Paffrath Organization (DBA Meet Kevin) - Ownership: 100% owned by Kevin Paffrath.
Nature of Business: An S-Corporation in California that is registered as a California real estate brokerage, also provides educational and news content on YouTube, along with online courses.
Conflict of Interest: Mr. Paffrath's focus on this business might limit his attention to his other ventures, potentially affecting their performance. Additionally, there could be a conflict in prioritizing content that promotes his other businesses, which might not always align with the educational goals of Meet Kevin.
2. House Hack, Inc. (DBA HouseHack) - Ownership: All voting shares held by Kevin Paffrath. Fundraised Reg D in 2022-2023, Reg A end of 2023.
Nature of Business: A Wyoming C-Corporation involved in real estate acquisitions, dispositions, and property management.
Conflict of Interest: Mr. Paffrath's influence could lead to biased business decisions favoring HouseHack in his educational content. Additionally, the reliance on Mr. Paffrath's personal brand for business might risk HouseHack's stability if Mr. Paffrath's reputation were compromised.
3. SuitHack, LLC - Ownership: Wholly owned by Kevin Paffrath.
Business Intent: Awaiting licensing as a broker-dealer / market maker.
Conflict of Interest: Potential conflicts arise from SuitHack promoting products that could benefit StockHack, eHack, or HouseHack.
4. eHack, LLC - Ownership: Entirely owned by Kevin Paffrath.
Future Direction: Currently provides news and potentially advertises HouseHack.
Conflict of Interest: Products by eHack endorsing HouseHack or Meet Kevin generate conflicts of interest.
5. Plato's Philosophy, LLC (DBA StockHack and StackHack) - Ownership: Entirely owned by Kevin Paffrath.
Function: Adviser to ETFs and The Meet Kevin Pricing Power ETF in addition to providing wealth management advice to clients.
Conflict of Interest: Advice given could disproportionately benefit Mr. Paffrath's interests, particularly if ETFs advised by Plato’s Philosophy are heavily influenced by Mr. Paffrath's other businesses.
Conclusion: This disclosure is intended to transparently communicate the complex web of affiliations and potential conflicts of interest surrounding Kevin Paffrath's business ventures.
Disclaimer: This document is provided for informational purposes only and is not legal advice. Recipients should consult with a qualified attorney for advice on the specific legal implications of these business relationships. Any questions should be directed to the individual entity of concern.