a serious update on my housing startup

Elijah writes lets effin go I'm excited

to see when househack buys and where it

buys so I have a house hack update for

you and it's uh I'm not going to go into

every single detail but it's going to be

a little bit of of a shocker I think our

goal is not uh has has been revised

let's be clear about that it's been

revised uh from from what our initial

plans were which was uh basically by

amazing properties huddle and and do

what we can to basically expand our

ownership of real estate in the style of

let's say an Invitation Homes a black

stone

you name it is something in that

direction what we've actually found is

that is uh that is the low hanging fruit

that is potentially the I I mean I hate

to say and this is not to be offensive

to American homes for rent or Invitation

Homes or whatever

that's the bare minimum that we're

expecting for househack is is to

basically operate like that which those

companies trade for two to 2.4 times

book depending on on where the stock

market is at the time uh you know house

hack right now is open for investors who

are accredited at uh at a one-to-one

ratio which is basically a massive

discount to what what you would normally

expect for a uh a normal sort of real

estate holding company

but uh again we realized that that is

the low hanging fruit uh and I'm a I'm a

big fan of constantly revising some

people like to say flip-flopping I like

to say revising and optimizing towards

the most profitable structure I am a

massive fan of minimal risk and massive

cash flow at businesses cash flow I want

more cash flow and ultimately more cash

flow is really really good for uh for

not only the company but for employees

and investors because more cash flow

means more company BuyBacks more

dividends Warren Buffett just had a

phenomenal piece on how great BuyBacks

are for for companies and anybody to

riding BuyBacks is uh you know either

economically illiterate or basically

aligned with a political agenda

and so what we've done is we've revised

uh substantially the the upper tier goal

of what househack could achieve and uh

I'll give a few samples but basically it

starts with the idea of how can you

become the essentially Robin Hood of

real estate uh and how or or and put

another way the Vanguard of real estate

right think of uh think of Vanguard as

low-cost uh Index Fund investing of your

choice think of Robin Hood as a

commission free investing into stocks

how can we create that sort of company

with house hack and that starts by

buying real estate but it doesn't have

to have to end at buying real estate so

what we finally found is really Us

shopping for Real Estate is just phase

one of of essentially our own you know

dare I borrow the term from Elon the

initial master a plan of a quote unquote

of house hack which if the initial plan

is hey great you know we raise money one

to one a worst case scenario we're

valued like uh like the competitors at a

at a two two and a half to one ratio wow

that's a 2X one and a half X right

that's our thesis now I want to be very

clear about that uh this is a startup

this video is not a solicitation you

invest in any startup you could lose all

your money right things could go wrong

you got to read solicitations before you

invest don't invest blindly okay all

that we know that okay I'm just giving

sort of my opinion my thesis right now

of of our vision so my vision is that's

sort of like again bare minimum that's

like the low hanging fruit like stuff

would have to go really wrong to fail at

that uh to basically fail at competing

with The Invitation Homes or whatever

because we can buy amazing properties in

great areas manage them relatively

easily and just the equity we build

alone should should be very very

valuable but we're realizing the systems

that we have and the tools that we have

or or the the software stack that we're

building whether that's in Property

Management

renovation deal finding or or even the

referral Network for deal finding that

we're building out these these the the

software stack alone not something that

you want to become reliant on right you

don't want to pull off an open door

where you blindly hire people to buy

stuff off your software stack and then

you in like an idiotic way basically a

knock on the door of bankruptcy but then

again that's because the risk management

policies at Open Door trash you know I

was just in uh insane where was I was in

Colorado Springs I go through an Open

Door listing and what do I find I find

dead rats find like let me put it this

way out of the hundreds of homes that

I've just been in in the last few months

every single Open Door listing that I've

been in which is probably about 10.

every single one of them is trashy

they're either dead bugs it's been on

the market for six days six months that

is it's overpriced I've seen dead rats

and Open Door listens I'm not making

this stuff up it's all on video uh you

look in the smoke detectors are beeping

or they're throwing on the floor stuff's

broken uh the the upgrades are cheesy

and crappy and and done it's it's almost

like the executives are sitting in their

pedestal in some office somewhere at

Open Door and and and they're not

actually getting on the ground and

looking at their properties now that's

not to bag on Open Door even though

that's exactly what really what it is

it's it's to send a message to the CEOs

of open door that hey y'all are failing

maybe what y'all ought to do is wake up

a little bit and or go over to view your

actual properties and see why they're

not selling see why the book value of

your properties is continuously getting

written down and maybe then you'll

realize why they're not selling right

that's that's very important so uh how

does how does househack go from

potentially the the bare minimum to

using our software stack and and of

course just just hard work and efforts

to creating potentially a a you know 10

plus billion dollar company right I mean

that that's that's the long run goal how

do we turn what we can do at househack

into something that is an order of a

magnitude better than uh what a fundrise

could provide or roof stock could

provide how can we provide something

that's in a magnitude uh a similar to

what Robin Hood did for Real Estate or

for for stocks and what Vanguard did for

ETFs how can we do that for real estate

and uh without without you know getting

too much into the weeds because uh in

the next about 60 days we'll be

releasing exactly that plan with uh sort

of an outline of exactly uh what our

plans are and sort of goal dates and

such but um that's after we get our our

sort of green light from the SEC on

raising money from non-accredited

investors right now you have to be

accredited we sort of have deadlines at

the end of each month for investing that

give you more warrants which are like

call options on the company but not

technically call options anyway uh like

today's February 27th for example one

deadline expires tomorrow uh for for

house act but either way

the the goal is how do we go from from

basic idea which which we already have

clear uh clearly established that's

that's easy mode to really actually

disrupting the real estate space in a

way that nobody has before and we think

we found the answer to that so we're

extremely excited about what we can do

with outside and the beauty is to answer

the question of oh where's househack

going to buy or what's househack going

to buy the answer is probably in the

long term uh going to be everything and

every where now we'll we'll start slowly

uh but the the long-term goal is

generating cash flow not necessarily

just uh you know buying one area and sit

there hold and twiddle our thumbs we we

think we've discovered a way to generate

massive cash flow uh it which which

would enable us to basically create the

the Robin Hood of real estate or the the

Vanguard you know ETFs of real estate

and and and that that Vision will

actually be agnostic of where or what we

buy we could buy anywhere in the United

States we could buy uh you know in in

we'd have to have a subsidiary do it

because of the new rules in Canada but

we could buy in Canada we could buy

commercial real estate we could buy

multi-family real estate it really the

product doesn't matter anymore it's kind

of like uh you know Robin Hood or

Vanguard don't tell you what to invest

in they give you the choice of what to

invest in and uh we we have uh we have a

way to do exactly that so that's really

exciting because it means you know if if

you want to invest in just multi-family

There's an opportunity to do that with

us if you want to invest in just High

cash flow single family there's a way to

do that so really we we're we're

rotating from this idea of okay how sex

is just going to buy you know 150

million dollars worth of homes uh and

and then we'll sit there and twiddle our

thumbs F that that's like to be to be

frank that's like bare minimum right uh

that's uh that's that's the fallback

plan let's put it that way uh the the

grandiose Visions we have are are much

stronger and you know I I'm not here to

suggest that uh oh uh you know it's a

guarantee oh that's it we're gonna IPO

is a Robin Hood of real estate there's a

lot of work to do and it's going to be

very very difficult it's going to

require scaling uh uh with with a lot of

of smart people and hard-working people

and and the next the next decade

hopefully less maybe seven years of

scaling will be quite challenging and uh

it'll be fun because we'll we'll be

documenting all of that uh almost all of

that on uh on YouTube here but uh yeah

so there's a sort of a long answer to

where will house hack be buying it's uh

it's actually really really uh exciting

and uh we can't wait