We've raised $27m in our First round
Unlike traditional private placements, HouseHack™ is raising money, for now, exclusively from course members of our founder, at just a $1 = $1 valuation**.
It is not unusual for startups to raise $50m at a $400m-800m valuation. That means every $1 you invest is diluted DAY ONE down to 12.5 or 6.25 CENTS. That means over 87% of your investment is paying for the brand, idea, and people. At HouseHack™ and as a reward to early supporters, Kevin is offering shares at a $1 to $1 valuation**.
This means you're essentially paying $0 for today’s ideas, talent, and business.
Our Goal:
$1 Billion IPO valuation
our vision
To take distressed, unlivable properties and turn them into cash flow.
Our plan is by leveraging cash and going 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 and exchanges via MiniFunds™, we believe we'll be able to create cash flow.
our CASH FLOW
plan
HOW WE PLAN TO TURN REAL ESTATE INTO CASH FLOW
01.
Buy what we believe are distressed and unlivable properties.
02.
Renovate with what we believe are cost-effective and can possibly increase rental income and asset value based on Kevin's experience.
03.
Rent out properties for consistent, long-term revenues and retain management in-house. Our goal is to maximize the revenue of each property by ensuring the most profitable rental model is applied.
04.
Roll the properties at their new market value via MiniFunds™ to fund managers, institutions, or via exchanges for cash flow while retaining management.
05.
We plan for this process to generate an ongoing cycle as we are able to rinse and repeat the cash flow plan.
introducing
MiniFunds™
MiniFunds™ is HouseHack's method of converting equity into cash flow.
Through MiniFunds™ we plan to roll quality properties with our professional management in place into CASH FLOW by providing low-risk, stable yields to institutions, fund managers, and investors directly or on exchange via MiniFunds™.
the story of Kevin Paffrath
It all started 12 years ago. Kevin was a college kid trying to figure out how to build wealth. His minimum wage jobs as a smoothie maker at Jamba Juice and a server at Red Robin just weren't cutting it.
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 to become incredibly hard-working.
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 about real estate to provide more value.
He soon realized that to find the best deals as an investor, you need to look where other people 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 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 would sell at.
Our wedge model in action
A $500k fixer-upper in a $700k neighborhood might take $50k to fix up.
That's a total cost of $550k to bring the potential property value near $700k.
That difference of $150k is the "wedge."
So now, even if prices of homes were to fall by 20%, we have the potential to still end up on top if we needed to sell.
Kevin rinsed and repeated this process of acquiring wedge deals -- and instead of flipping them for sale, he would rent them out to qualified tenants.
After purchasing 26 properties and renting them out, Kevin never had an eviction.
He found a sweet spot of renting to qualified tenants and ensuring his properties had quality property management.
Come January 2022, Kevin felt a shift in the market and sold nearly all his properties as he prepared to buy the dip. He was one of the earliest to ring the alarm bells, get out, and prepare to...
...Acquire Wedge Deals At Scale & CASH FLOW with the Power Of MiniFunds™.
Our plan is to leverage Kevin'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 cash flow potential of rolling them into MiniFunds™.
We're now open to all investors*.
Click below to join us.
MEET HOUSEHACK
We plan to take distressed, unlivable properties and turn them into cash flow.
Once we acquire and stabilize below-market value and unlivable properties, we plan to retain management and strategically roll the properties at their new market value via MiniFunds™ to fund managers, institutions, or via exchanges, allowing us to rinse and repeat the Wedge-Deal Cash Flow Plan.
Now Open: Invest at our $1-$1** round before we close.
our team is ready
After selling over $150,000,000 in real estate and transacting over 200 individual deals - many of which with renovations and rentals often featuring our in-house construction team, we believe we're ready to scale our own formula.
We hope you join us.
License tests Kevin has passed:
Real Estate Agent; Real Estate Broker; California General B Contractor License; NASAA Series 65, Investment Advisor Representative; FAA Drone Pilot; and Mortgage Loan Originator (Lender.)
[Note: Currently active licenses include Real Estate Broker, Series 65, and Series 7.
This offering is not being provided as financial advice through Kevin's advisor licenses. Please read our offering circular thoroughly before choosing to invest in HouseHack.
Market Opportunity
Our ambitious goal is to generate a recurring annual cash flow of $50m by IPO and grow from there.
At $50m recurring annual cash flow, HouseHack hopes to go public at a 20x multiple ( $1 Billion ).
Our ambitious goal is to be IPO'ing as soon as 2027-2030.
Our aspiration? To beat BlackRock.
$104.4 Billion Market Cap NYSE: BLK
Our process
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 written offers are signed off on by our founder after he personally verifies values and estimates.
After making cash offers on unlivable homes, we leverage Meet Kevin’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. Yet, time and time again, HouseHack WINS the deal while maintaining a wedge.
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. 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
We believe investors in HouseHack may be able to provide their portfolio with Real Estate exposure without many of the headaches and risks of managing properties themselves, such as:
Invest now while our "Founder's Round Valuation"** is available.
This round is limited in the amount we can raise. Once that amount has been reached, we will have to close the round.
Our approach
Potential Path To Revenue
We know the 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 we also plan on being more profitable. That's because we plan to avoid the 5-10% in selling fees as we do not plan to be flipping. That could 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 an active reach of millions on social media, we have the advantage of being able to tap into our own built-in community to source properties by building partnerships with agents, lenders, and contractors - as well as finding tenants and future investors.
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 substantially, and increase our profit per deal. Think about that: a landlord who helps tenants build wealth. This is the type of goodwill and forward-thinking America needs. As a bonus, this could also increase tenant satisfaction and longevity while minimizing property damage and screening risk.
Leveraging MiniFunds™
Through MiniFunds™ we plan to roll quality properties with our professional management in place into cash flow by providing low-risk, stable yields to institutions, fund managers, and investors directly or on exchange via MiniFunds™.
This round is limited in the amount we can raise. Once that amount has been reached, we will have to close the round.
Add real estate exposure to your portfolio the "Meet Kevin way," but with the benefits of scale. You may get exposure to many different types of properties, short-, medium-, and long-term tenants, and different locations while using our expertise to get these under market value when possible.
You'll own HouseHack (the business) by investing at our "Founder's Round Valuation."** If we can reach even 5% of the market cap of top leaders, this could be an incredible growth opportunity. The companies we've talked about on this page represent nearly $50b in valuation. We may likely be starting at under 0.1% of that.
The valuation and structure for this round is made to reward our community. At this time, there is no typical dilution built-in to inflate the valuation for the company resources, the opportunity, or our expertise. What is raised will be roughly the valuation we sell shares for ($1=$1.)**
We want our HouseHack investor community to be tight-knit. We may have ongoing investor benefits which may include private events and experiences with Kevin Paffrath and the HouseHack team.
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If you're interested in investing in HouseHack, click on the INVEST button. You'll have a few documents to approve and sign. After funding your investment, you'll obtain your stock issuance details electronically and access to our investment portal. After funding your investment, our team will review your application and may ask for additional documents to approve your investment.
SUMMARY
The Meet Kevin Model
We’ve already proven the wedge-deal-to-rental model can be successful and now we hope to have the benefits and cost savings of economies of scale.
Unique Advantages
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.
Large and Inefficient Market
This could be a multi-trillion dollar market with only a minority of investors.
Opportune Market Cycle
With high interest rates we believe we are well positioned with the cost benefits and negotiating power of buying in cash.
My dream for HouseHack is not just to build a successful business, but to shape it into a multi-billion-dollar powerhouse. Then, hopefully IPO with substantial cash flow, rewarding all our early investors.
I hope you consider joining us.
- "Meet Kevin" Paffrath
