Introducing Our New Real Estate Company!

"In the coming months, there will be an opportunity to 'wedge' real estate. Through HouseHack™ - we can do it together, at scale."

3 Simple Steps to get Founder Shares

($1=$1 valuation)

1. Get your Accredited Investor Letter FAST here.

2. Click "Apply to Invest" below.

3. Sign & wire by November 30, 2022 for the largest benefits.

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MEET KEVIN HAS BEEN FEATURED IN THE FOLLOWING PUBLICATIONS FOR VARIOUS ENDEAVORS:

The Opportunity

Residential real estate — the world’s largest asset class.

Home sales have already started dropping, inventory is rising, and the percentage of active listings with price drops has skyrocketed.

Now, prices are falling.

Using our own formula and experience, we are uniquely positioned to capitalize on this opportunity. We're inviting accredited investors to join us. In the future, we hope to accept non-accredited investors. The company will be valued at "Asset Value Raised," aka cash. That is, if we raise $100m, the valuation will be $100m. This is unusual. Most operating companies in real estate trade for AT LEAST 2.17x book (see $INVH on Yahoo Finance, checked 9-8-2022). If we traded for 2.17x with $100m in assets, we'd be worth $217 million. That means you might be getting a wedge deal ON your HouseHack investment.

With our fundraising today, we'll be ready to buy the dip in late 2022 and beyond.

Why Now?

The FASTEST monthly decline for real estate prices during the Great Recession was 1.9%. As of August 2022, we’re already down 5.2% from a March peak. That’s about 1% per month and may likely accelerate as mortgage rates retrace higher, now back over 6%. That's 3.5% higher than in December, which reduces purchasing power by about 35%! Think about that: most buyers can now ONLY afford homes 35% CHEAPER!

Mortgage rates are increasing fast. For non-cash buyers, every 1% increase in the mortgage rate decreases buying power by about 10%. This leads to an opportunity that disproportionately benefits investors over the typical "home buyer."

A buyer with a $2,000/month mortgage budget can afford a 30-year fixed loan of $500,000 at 2.5% interest but only a $313,000 loan at 6%. That's 37% LESS!

This leads to an incredible buying opportunity for investors well prepared with cash, like us.

"Mortgage applications fall to fresh 22-year low." - FOX Business

Lennar, the Second Largest Home Builder, Shares Insights on Worsening Conditions.

Many "Zoomtowns" Are Seeing Major Declines

"Fear has crept into the housing market, replacing the can't lose optimism..." - Bloomberg

We expected this to come. Kevin sold nearly all his properties starting in January 2022 as he prepared to buy the dip. He was one of the earliest to ring the alarm bells, get out, and raise money to invest himself in this SAME opportunity and at the same valuation: $1:$1.

While mortgage rates created the catalyst, this may snowball into bigger and bigger issues for the housing market as inventory rises, fear sets in, and prices continue to fall.

  • Big builders are slowing housing starts and are frantically increasing sales incentives. This temporary injections of builders contributing incentives like rate reductions or builder credits artificially props up prices, hoping to minimize fear.
  • Redfin and Zillow are slashing their holdings.
  • OpenDoor is dramatically cutting offering prices on home purchases and in many cases is making no offer at all.
  • Percentages of active listings with price drops are spiking.
  • "The purchase index dropped 2% from the previous week and was down 21% from a year ago, and refinances fell 3% over the week — down a whopping 83% from the same period in 2021." - Fox Business, 8/24/22

Headlines From Major Publications May Increase Selling Pressure

"From a business cycle standpoint, this difficult correction should put the housing market back into better balance." - Jerome Powell, Chair of the Federal Reserve

Meet HouseHack

HouseHack will:

1. Buy under-market wedge deals identified through our connections, our already-built AI wedge finder, and our research.

2. Fix them up using our market-tested "uniform."

3. Rent them out to qualified short-, medium-, and long-term tenants.

In the future, we plan to expand the development of industry-disrupting software suites to help us more efficiently scale.

  • Rental Renovations AI + Augmented Reality
  • WedgeFinder Artificial Intelligence
  • TenantScoring Artificial Intelligence
  • Short, Long, and Flex-Term Rental Platform & Manager

While these may be offered through subscription-based licensing (SaaS), we are first and foremost focused on taking advantage of the market crash/opportunity in front of us. This is the low-hanging fruit. We'll focus on software in time, not initially. As an investor, you'll have the diversification of real estate equity via wedge deals, real estate cashflow, and the potential software growth as we expand and compete with OpenDoor, RoofStock, Redfin, Vacasa, and more.

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Market Opportunity

The market has highly-valued companies, with what we believe, are little actual competitive advantages. Most of these firms just buy market-value real estate and rent them out. Your classic: landlord who does little. This isn't fair to investors OR tenants.

Yelp and other review sites are littered with negative reviews by their tenants who have been subject to poor management.

Starwood Waypoint filed eviction notices on more than 30 percent of tenants, while Invitation Homes filed notices on nearly 15 percent, according to Reuters. In contrast, Kevin Paffrath has NEVER had an eviction. Tenants are our most-important asset; prioritizing their happiness leads to less turnover, lower costs, and fewer re-renovation expenses.

We believe there is an open opportunity to gain market share with a superior deal-making, deal-finding, renovation, and management experience.

Leveraging AI, software, short-term rentals, and medium-term rentals - we have massive potential: brought to you in this seed-round opportunity with a $1:$1 valuation.

$13 Billion Market Cap | NYSE: AMH

(as of 6/1/2022)


$23 Billion Market Cap | NYSE: INVH
(as of 6/1/2022)

Potential SaaS Upside

As we execute our core 5-stage model, we expect to develop our own software slowly and steadily. These tools will be used to support our current operations and may later be leveraged into Software as a Service (SaaS) offerings for recurring cash flow. To be clear, HouseHack is NOT intended to be a negative cash flowing, tech startup. 2023-2024 will likely be solely focused on buying wedge deals and stabilizing them.

Competitors in Software:

1. Vacasa - $1.9b public valuation -  A vacation rental management company that provides property management services. We plan to have our own branded short and medium-term rental platform in the future (likely 2025+).

2. Yardi and Appfolio - $1b valuation each - Property management software for long-term tenants, which we expect to build in the future (likely 2025+).

3. OpenDoor - $2.8b public valuation - Simplifying the buying and selling process through software. We expect to provide a better value for sellers than Opendoor day one, since we are not flippers. Regarding OpenDoor, we believe we can and will compete with them DAY ONE.

Our real-estate-first approach will allow us to build next-level projects, first for our own use to maximize efficiency, and then as potential SaaS offerings. This not only benefits ROI but also allows us to be more competitive on day 1 with our WedgeFinder software already in use.

Why You?

What It Means To You As An Investor

Through HouseHack, investors will be diversifying their portfolio with Real Estate exposure without the headaches and risk of:

  • Identifying profitable deals, working with lenders, agents, and financing from acquisition to disposition.
  • Property management, evictions, collections, damage.
  • Renovation risk, managing contractors, pulling permits, coordinating construction, and finding people to work with.
  • Finding and qualifying tenants, getting them to pay on time, and dealing with countless inquiries and issues.
  • Legal liability and insurance-claim disputes and processes.
  • Tax headaches from cost segregation, depreciation, 1031 exchanges, repairs vs capital improvements, short-term vs long-term gain.
  • Market-timing and high tenant-vacancy risk.

We're not a syndication or a REIT - we're a Real Estate Company.

Instead of investing in a syndication, which is often designed to make the promoter (the face of the business) rich or allow them to front run your deals (buy them alone and sell them to the syndication for more), HouseHack is designed to give ALL the benefits of a promoter to the investor. The investor is the partner, not the product as is in a syndication.

Also, many syndications and REITs are incentivized to deploy cash, even at ABOVE market prices, and wait. It's a use-it-or-lose-it approach (REITs have legal requirements to deploy or return cash. Syndications either deploy cash or close a fund offering unfilled). HouseHack is different. We have no pressure to deploy cash at inopportune times - we can wait for what we believe to be the right market signals to invest. We are incentivized to buy BELOW market value, build equity, build cashflow, and reduce risk. We'll do so by scaling all 3: short, medium, and long-term rentals with single-family and multi-family properties. And, in the future, license suites of real estate software.

Highly Investor-Benefited Valuation Structure

To give the most value to our investors and do our best for our community, the HouseHack seed round won't have an inflated valuation or any initial dilution. Have you heard of WeWork? Their founder, via Flow, just reportedly raised over $350 MILLION at a valuation OVER $1 BILLION. That means investors reportedly paid at least $2.85 for each $1 invested into the Flow startup. Here, you're able to invest $1 for $1. The shares Kevin Paffrath buys will cost the same as the shares you buy $1 = $1. That means, if we raise $100 million and of that Kevin invests $10 million, the company will be valued at $100m and Kevin will own 10%. Why? The more we can raise today, the more we can beat OpenDoor, Redfin, RoofStock, and others at scale.

No Traditional "Dilution" At Raise

Investors will not be paying any typical "premium valuation" for our expertise, team, resources, or the potential of this opportunity.


Shares Kevin purchases himself are at the same valuation as all other investors in the seed round. This means he is paying just as much to buy shares as you would as an investor.

$0 Initial Salary To Kevin Paffrath

To align shareholder interests and maximize growth, Kevin Paffrath will not take an initial salary or bonuses. Kevin and early employees/board members are expected to receive stock options ONLY at IPO/upon IPO-like sale event.

There is no traditional "dilution" usually found in seed rounds. Instead, key-people like our founder, Kevin, are only compensated after an IPO or IPO-like sale event.

The Earlier You Sign, the More Call-Style Options You Get FREE!

The earlier you fund, the more FREE warrants (similar to stock options) you receive. These warrants will allow you to, in the future, invest more at the SEED-ROUND valuation ($1=$1).

This is an optional increase in the future of your investment at the same valuation if we have a "Second-Seed" call. You are NOT obligated to utilize these options and they will expire 60 days after the second-seed round begins. Investors who have funded before certain deadlines will have the benefit of participating in the second-seed round and purchase additional shares based on how early they funded.


For example, if you invest $300,000 before November 30th, you'd have the option to invest an additional $120,000 (40%) at the $1=$1 valuation in the second-seed round. If you invested $50,000 on November 15th, you'd have the option to invest an additional $20,000 (40%) at the original seed-round valuation, in the future.

Additionally, if you are a course member of Kevin Paffrath’s, you'll have the ability to add another 10% to the table above. So, if you invested $300,000 before November 30th, you'd have the option to invest an additional total of $150,000 (50%) at the $1=$1 valuation.

View Kevin's Courses

Kevin Has Committed To Personally Invest $1,000,000 at $1=$1.

Kevin's investment will be at the same valuation you're receiving! That's why we call these shares "Founder Shares." Kevin's shares, however, will be different in that they will have voting rights.

INVEST IN HOUSEHACK

Ready To Join Meet Kevin And The HouseHack Team?

Invest now while our Seed Round is open.

This may be the only time we raise funds before our IPO.

Apply To Invest

A Better Model.

Clear Path To Revenue

We know the model. Now it's time to grow. With scale, we can likely have significantly 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 homebuyers unlikely aware of how to "wedge" real estate, significantly reducing our competition and hopefully increasing our returns.

Higher Margins For All.

Our wedge-deal-to-rental model allows us to potentially pay sellers more as we can acquire deals at profitable prices, while still beating flippers or iBuyers.

This may give us an incredibly large pool of properties to acquire as every owner that sells to Redfin or OpenDoor may benefit by selling to us instead. This is a win-win. More money for sellers. More assets for HouseHack. More quality properties for tenants.

We plan to be more competitive for sellers, while also being more profitable. That's because we won't have 5-10% in selling fees to deal with. That's another $25,000-$50,000 of margin on a $500,000 property. This structure can make deal sourcing easier. We also expect to support the agent and wholesaling community with potential commission bonuses to build critical front-line relationships.

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 buy homes 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 company America needs.

As a bonus, this could increase tenant satisfaction, minimize property damage, and increase tenant longevity. Quality tenants and timely-paying tenants may also be encouraged to move to other HouseHack rentals, minimizing screening risk and streamline tenant moves.

Tax Advantages.

We’ll have the option of using section 1031 tax-deferred, like-kind exchanges to defer taxes and increase shareholder value. Though deferred, some consider this tax-free (delayed) equity appreciation. We can also, at scale, implement IRS section 179, which allows accelerated depreciation through cost segregation.

If none of the above sounds familiar, just know that we will prioritize using every tax-advantage strategy we can to benefit shareholders.

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Learn how you can capitalize on the changing tide with us.

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3 Main Reasons To Invest

1

"100% Hands-Off" Diversification With Real Estate

Add real estate exposure to your portfolio the "Meet Kevin way," but with the benefit of scale for even more diversification. You can 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.

2

Growth Potential With Seed Round Valuation

You'll own HouseHack (the business) by investing in our Seed Round. If we can reach even 5% of the market cap of top leaders there is an incredible growth opportunity. The companies we've talked about on this page represent nearly $50b in valuation. We may likely be starting at well under 1% of that.

3

No Typical "Dilution"

The valuation and structure for our Seed Round are 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 what we sell shares for. $1=$1.

Investors With Benefits

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.

**Investors who have made their investment before certain dates will receive option warrants**

INVEST IN HOUSEHACK

Ready To Join Meet Kevin And The HouseHack Team?

Invest now while our Seed Round is open with zero dilution.

This is the only time we plan on raising funds before our IPO.

NOTE: The HouseHack Seed Round Will Close Soon And This Page Will Be Replaced With Our Corporate Site.

How To Invest Before We Close The Offering:

Apply To Invest

1. Click the "apply to invest" button.

Fill out the form and answer some questions.

2. Upload Verification you're Accredited.

You may use investready.com or equivalent to get verified.

3. Sign a subscription agreement.

This is an agreement between you and HouseHack to buy shares of the company at the price of $1 per share.

4. Wire your funds and receive an electronic stock certificate.

After we've confirmed your status and accepted your application and funds, we will send you confirmation of your purchase and you'll receive electronic stock certificates.

Let's GO!

"This is by far my biggest and boldest venture yet. This is the legacy that we'll be leaving for our children and our children's children.

I want my community to benefit from this new chapter, and by being an investor, you will likely reap the rewards of my dedication to HouseHack™.

I hope you consider joining me by investing below."

INVEST IN HOUSEHACK

Ready To Join Meet Kevin And The HouseHack Team?

Invest now. Our Seed Round is open.

This may be the only time we raise funds before our IPO.

FAQs

Can I invest using my Traditional IRA or Roth IRA?

Check with your custodian, who may want a copy of our PPM, slide deck, etc. As long as your accredited, you should be able to. If you're investing using your Roth IRA, you could potentially grow the value of your HouseHack equity tax-free.

If I'm not based in the USA, can I still invest?

If you can get a letter verifying your status as an accredited investor at https://househack.investready.com, we should be able to accept your investment. If you wire international funds, your currency will be converted immediately and you will be given the shares for the net US Dollars received. So in short, yes, as long as you're accredited and can get a letter from investready.com, we should be able to enable you to invest with us - subject to any potential bans of such investments by your country (we have not encountered one yet).

How do I know if I'm an accredited investor?

Generally, you are an accredited investor if any of these are true:

- Annual income greater than $200k (each year for the past 2 years)
- Joint income greater than $300k (each year for the past 2 years)
- Net worth greater than $1M individually or jointly with a spouse (AFTER DEBT and excluding a primary residence, but may include retirement holdings like 401k, IRA, etc.). A credit report may be required to evaluate your outstanding debt.
-
Hold a valid Series 7, 65, or 82 license, which you may be able to receive before we close the round. Other requirements may be needed.

The best way to get accredited and the fastest way to get your investment accepted is by going to sites like verifyinvestor.com or investready.com.

What do I receive after investing?

After you've invested, we will process your investment. Note: It will take a few business days AFTER receiving a wire to send you a confirmation. Wires must be cleared before memo's and full details populate. Once they're cleared, we have to process them - and we'll do our best to do so quickly. When the round closes, you'll receive an electronic stock certificate that proves the shares you own of HouseHack.

When will the Seed Round be closed?

The opportunity to invest will not be open-ended. We will not be taking on an unlimited amount of investment. We'll only take on funds we believe we can deploy for returns within a reasonable amount of time. Therefore, the fundraising period may end soon and without notice.

Will there be an opportunity to invest later?

We're not sure. The next time you can invest might be in the event we have an IPO.

What's the tentative stock compensation plan for the team?

Watch our HouseHack investor Q&A for information here.

What's an Elevator Pitch for this Company?

Meet Kevin Paffrath created HouseHack to buy a lot of single-family homes and multi-family apartments. HouseHack wants to focus on fixer-uppers or properties we can increase the value of, day 1. While the market falls, we expect to setup in approximately 3-5 different markets throughout the country (diversified locations). Then, when the time is right, we'll start buying. We'll find those properties with our Wedge Finder AI, through agent connections, referrals, and otherwise. We plan to buy properties cash then add value / renovate them as needed by coordinating subcontractors directly. We'll manage the properties in-house. In the future, we'll refinance them and buy more. We'll take cashflow and reinvest that into opportunities (no dividends for now). In the future, we may license our internal software and sell that software as a service. We may also expand into banking and FinTech. Our CEO and founder is expected to receive no pay, salary, or bonus until IPO.

How Can HouseHack Compare?

*This is a generalization and is our opinion of the comparisons.

With our team, business model, and community we are uniquely positioned to capitalize on what might be the greatest real estate opportunity of the rest of our lives.

Share Price: $1 (no dilution)

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