Question here is how is House Hack different from Grant Cardone All right, massively different. First of all, Grant Cardone's business is coward on Capital is a syndication and syndications. What they do is they're really a partnership so you identify a property General Generally and there have been some allegations of this and I've seen some numbers around this, but I Don't want to confirm that this is the case. but there have been some ideas that uh, maybe, uh, Cardone will buy a let's say 20 million dollar apartment building and then sell it to his own company for 23 million dollars and sort of pocket the difference and you can kind of scale that numbers I don't know.

Uh, now it's that's okay to do if you're improving the condition of the property. but if you're really doing nothing other than putting your brand on it, probably not the best argument for suggesting the property's value just increased because you just put your name on it. But anyway, that aside, those are just some allegations. We don't know if those are those are absolutely true.

If that happens all the time, we don't know. But the point is, let's say then you have this 23 million dollar building and then you buy it as a partnership. You buy it as a partnership. Then you get distributions.

so you get depreciation. You have to deal with the tax. uh, that you have to get your K1 and your distribution letter. You have to deal with, uh, the fact that you're a partner essentially so you.

It complicates your taxes a little bit. But the big thing that you. want to remember with a syndication is you're usually a partner, a limited partner, and you're looking at, uh, probably somewhere between, uh, well, the traditional institutional model is what's called, um, a 2 and 20. So like, you'll see like two percent asset under management fee and then you'll see a 20 take from the manager.

So that could be like the Cardone in this example on any kind of appreciation that occurs on the property or extra cash flow above a certain point. In the case of Cardone I Believe the fees are about one percent for the asset, but he takes somewhere between 30 to 35 percent of the appreciation and the cash flow above a certain point. The fees are very, very high in my opinion for the personal investor. And what this really is is it's a way to invest in real estate without you having to do anything, right? That's really what that is, that's not necessarily bad.

I Personally think syndications are extremely expensive, but hey, maybe if you could find somebody who can promise you a really good deal or or whatever, you actually think it's a good deal. Fantastic House Hack is not you. Investing in real estate is completely different and so I'm not even competing in the syndication space. So in my opinion, these are so different, it's not like one versus the other even though you're asking that question.

I Think that's because people are like, oh, you both promote stuff on YouTube like okay, that's fine. Uh, but but the similarities really stop there because Househack My real estate startup uh, is a company that really wants to create. Uh, and we've got a path for this and all the details on our slide deck and everything will be coming out for our reg. A fundraise probably between April to June I'm hoping for May maybe even April if we can get it out.

we're already raising money from accredited investors to learn more at Househack.com non-accredited coming up. but uh, really, the goal is, how can we make House Hack the Vanguard of real estate? In other words, rather than making money off of people's fees, we're trying to eliminate or map massively reduce fees that exist in real estate. And there are ways we can do that by arbitraging, uh, basically fixer-uppers what I call Wedge deals and actually adding value to them, stabilizing them, and then figuring out from there, how can we take portfolios whether they're multi-family or single family and give people an opportunity to invest in them at basically potentially low to no fees That's essentially becoming the Vanguard of real estate or the Robin Hood if you will of real estate, right? Commission free trading, right? That kind of idea. So House Hack is a company that is you're investing in.

So you're investing in stock in a company. It's not. It's not ownership in real estate, it's ownership in a company. And the company is creating a platform for making investing in real estate low fee and extremely accessible.

That's what Househack is now. House Hack will own real estate bare minimum. We think we would be like in Invitation Homes where we could just buy real estate and huddle it. That was sort of the original uh idea.

As like the bare minimum? That's that's already easy enough in my opinion. Knock on wood hashtag? No guarantees. But but we think we can actually take that idea and expand it even more. And instead of being a company that potentially trades for two times book, we think we could be a company that trades for.

you know, 10 20 times book depending on what kind of platform we could create. Uh, so we're really excited about that. But but as you can see from my definition, we're not a syndication. It's it's a company.

It's a totally separate. It's totally different. It's more. It's much more similar to if Vanguard were public you investing in Vanguard than it is you investing in a partnership on some real estate building where a promoter puts their name on it and takes you know a 30 fee or whatever.

Uh, very, very different from that. So hopefully that gives a little bit of clarity because uh, while I'm not providing all the details yet, Uh, because we're working those through to make sure we have a very, very clear set of messaging for you And and not only uh, uh, SEC reviewed, but attorney approved marketing and pamphlets and and you know, projections. We haven't released projections before and and this time we will. So all of the people who are accredited who have been investing uh, we've been very clear, like there are no projections.

We we don't. We don't know, we're so early. We don't know. Now those people who've been investing early, they get a benefit they've been getting basically free call options.

not really call options you could read the PPM to understand what they are, but basically like warrants which are like call options on a company for free for investing earlier. Uh, and we're raising money at a one-to-one valuation. So there's there's you know, in my opinion, you're at a position where there's zero dilution day one, with the exception of sort of minor little fees or whatever uh for for filing fees or whatever. Uh, but uh, well.

the beauty about that is my opinion is, look, you know. the basic idea is that if a company sells for one times book, there's really no value that you're even putting on the company. You're just basically raising cash, which is phenomenal. It's a great way to get in as an investor and we're going to maintain that one-to-one ratio for uh for for the reg.

A There's no company dilution like usually people put in. you know, 10 bucks into a company that represents nine dollars for the company and the idea and one dollar for the actual cash the company gets. That's called dilution right? That's like you raise 20 million dollars at a 200 million dollar valuation. you know ninety percent of that just went to sort of brand and the idea.

in this case 100 goes to cash with house hack which we think is wonderful. Uh and and it's the biggest thank you that we could give to our the people who watch us on. YouTube So for us us we look at not only the valuation we were raising at but also with the future. What the future could be is is really phenomenal.

I Mean again, no guarantees but a one-to-one valuation. Worst case scenario should have we think at least double to be like a worst case scenario with sort of like Invitation Homes or whatever where you buy and huddle real estate because they sell for you know, depending on where the market is somewhere around two times a book. but if you actually create a a platform a technology, you create sort of that Vanguard of real estate, it can be substantially higher than that. What that is we don't know because it hasn't been done before, you know.

And then and then people are like oh, how is this different from from like Zillow or open door I mean in my opinion, massively different as well. I'll just very briefly explain that we're not flipping homes on the market. We're not reselling homes with agents. We're not.

You know, we're buying homes with agents and wholesalers. Anyone who wants to sell us, send us deals is fine. The United States has become very, very small by the way. After flying around, as much as we have been, we're going to Florida this week to explore Florida real estate.

We're going to have a very Diversified portfolio of real estate that we're going to use as sort of the basis for the platform we're creating. But we're not trying to flip homes. uh, in the way that Zillow or opened or do where I mean just watch some of my videos from Househack where we walk through Open Door listings and you just have this complete embarrassment of a property listing. We don't want to put properties on the market.

We don't want to deal with that. We want to buy properties, rent them out, stabilize them, and then use that as a basis for how can we create the Vanguard of real estate? Now we have a path for that. Obviously, no guarantees, but we are creating something that hasn't been created before, so we're very excited about that. Yeah, obviously there's there's risk with any kind of uh investment.

but yeah, I Want to make that clear because I think the most common questions I get are when can non-accredited investors invest and we're thinking between April and uh June Hopefully April that's the goal, but it just depends on when the SEC review goes through uh and uh. and then by that point we'll have uh, we'll have a lot more information as well, but that gives you at least some differences. Somebody here asked what happened to the AI software. Yeah, so look in my opinion, AI is like a buzzword that that people use.

Every company should be using AI so we don't develop the actual AI right? That's what Google does like. We use Google as the basis for our Ai and then we use Google's basis. It's kind of like using the API from chat GPT which we could use as well and using that as the basis for building your own tools on that. and so we have that right.

For example, we have a deal finder. We call it the wedge Finder which is built on the the AI that Google has created and then we train their models to create our own. essentially AI uh based on our training. So think about it.

Kind of like you buy an Optimus robot from Tesla Uh, and then you train it to do exactly what you want. You know, maybe you just want it to sit in your office and kind of move its hand up and down I Don't know. Then it gets really good at doing that. Like what? whatever you train the AI to do is is your thing.

So that's what? we do, right? And we actually think I mean obviously every company should be thinking about this, but AI can be fantastic for preventive profit. Property Management Deal finding uh valuation I Don't think it's anywhere close to yet on valuation, but potentially could be somewhat useful. So there's a lot of work and perfecting to do for AI but that'll all happen over the next decade. You know that's not something that you have to like.

pull out of your butt today and say oh my God we got the best AI in the world. Anybody who says that today is like no, no, you're lying AI ain't that great yet? You can't do AI yet without without real, uh, human involvement anywhere near at this point. uh in in my opinion. So I'm very excited about that.

Uh, very very excited. So uh, but speaking about uh, dilution, uh I will be posting in full the boxable video today. I'm just gonna post the full interview. uh and maybe in the future I'll do sort of a more cut up version of it.

but I'm just gonna post the entire thing. It's like an hour and a half long. But I want you to pay a specific attention to though is remember how we've talked about dilution already in in this segment here. Something to to consider is is the valuation at Boxable and then you have to determine yourself.

If you think that's worth it, you know this is not me trying to like compare to Boxable I I have nothing to do with Boxable I'm not invested in not Boxable I'm not affiliate a Boxable I I was solely doing some quick valuation math. uh, and off the top of my head if I remember correctly, it was something like if you invested a million dollars into Boxable uh, today, that would be worth roughly 330 dollars of cash. So in other words you would be paying 999 777 in dilution which is basically just brand value for Boxable. Uh, because I was thinking about it I'm like, well, what if I invested a million dollars right now into Boxable Like how much cash does that get me right And yeah, okay, look straight up like to be blunt in comparison.

It shows you. If you put a million dollars into house hack, it literally equals a million dollars of cash, right? Yes, yes, I will compare like I will selflessly compare, shamelessly compare myself and say if you put a million dollars in a house hack, it equals a million dollars of cash. You pay zero for my ideas or the brand or whatever right? a little bit for like these, or like a little expenses obviously that have already been incurred duh Uh, but but there's no, there's no like brand value that is included in that. Whereas here a million dollars in a boxable equals 330 of cash and that's because they're trying.

they're raising money at like over three billion dollars of value. It's like, whoa. Okay, so you really have to believe in the idea. Uh, so so anyway, that that's sort of my thought, uh, my thesis.

So anyway, I'll post that video. uh, you know, later today. Uh, you know, maybe even this morning I'll just post it. So, so stay tuned for that.

and uh, and you'll see. how do you make money on House Hack? Yeah, fair question. Uh, somebody writes I used to work at Boxable. you're not too far off.

I won't add any commentary to that. So how do you make money on house time? Yeah, that's actually probably. uh, the thing we're most excited about. And I'm not prepared to reveal that right now because it would be somewhat anti-competitive but uh, we think there are, uh, massive opportunities for the next 20 years to milk massive amounts of cash flow while at the same time becoming the Vanguard of real estate Now, even me saying that that sounds too good to be true.

But let's just say, with the vision that we have I'm betting my entire net worth on it everything I have my car, my house, my plane, uh my net worth my stocks everything I own I am betting uh on househack because I will keep uh, you know throwing everything I have at House hack because I believe in it so much. I I Think the idea that we have at Bare Minimum is is a phenomenal uh competitor to invitationals that's like the bare minimum in my baby. That's the that's the safety net that's like that's like oh our Ambitions didn't work out. we're falling to the level of Social Security right? like I shouldn't say social Security I should say like Medicare because it's like crap we went to Poverty that's sort of the Bay Rental But but with the big visions that I have I think the investment that I'm making going all in uh, risking everything that I have for for House Hack is is because I believe the idea we have will be a multi-billion dollar idea.

So I'm I couldn't be more excited. I mean you would let me put it this way, let me put it this way: you'd have to be an idiot to spend 13 million dollars on a plane yourself and sign on that debt yourself and pay for flights yourself. For a company that is I pay all of the flights for House Hack right now. every dime of flights is paid for by Kevin So I can fly around and make sure we have the best start for House Hack.

You'd ever be an idiot to do that unless of course you thought that was going to become a multi-billion dollar company in the future. So that's what I believe. Now people say I'm crazy but then you know we'll see. Uh yeah, you can invest internationally into House Hack.

will House Hack come to North Korea Um, you know Korea hack might be a couple decades before we get there. Uh, but uh, we were. We were joking. uh about like, well, actually not really joking, but we were kind of like how can we invest in Canada now that Canada has, um, sort of banned foreign investors, we're kind of like is it time for househack.a Anyway, sorry bad joke anyway.

uh so that gives you a little bit of an update. I appreciate the question I think it's a good question. So uh, uh, there we go. Somebody says paid for by Kevin's Media Company not actually Kevin I mean that's really one nearly one in the same right? I mean if you think about it, it's my media business right now is tax is a pass-through entity.

So the money that I make from uh, you know what I think are really good programs. by the way, like it's not like like the stuff in the programs the stuff that I actually do right my stocks and psychology money group am I Real estate course but do it yourself Property Management courses. Those courses are things that I actually do and actually use to make money like that's that's the that's the basis of House Hack, right? Like you want to know the strategies house going to employ zero to million? Of course it's like a perfect way to see that. But but yeah, look, the money that I make goes into right now an S corporate structure in the future micro C Corp Media Stuff.

but it's basically a pass-through entity. So I uh, received that money and then I pay expenses, right? Uh, but uh, you know what? I don't know how much that really matters I mean you could make the argument uh, that, uh, the you know, yeah, uh, the media business covers it. Uh, you know which Which we probably should just make that argument I Could just clarify that now that yeah, the media business pays that. Uh, which Again, is the S Corp But that just means I get less pass-through money from my media business, right? So I don't know how much of a difference that really makes.

Uh, whether whether it's mediabiz or Kev because again, like I am the media Biz right? Uh, so like pretty much everything I do is is the media I don't I don't know if that matters. So uh, you know it's yeah. I mean of course, obviously it's a write-off for the media Biz right? because I make Instagram content or YouTube content. Yeah, I mean obviously there's a there's the argument that hey, well, you know the media business can operate because I'm able to be back in the studio regularly, right? I Think there's a there's a very clear argument there that the media business is only able to keep going because I'm able to fly around the way we are.

So, but I don't know that that really matters that much. Uh, Anyway, so uh, but hey, look I I'm all for transparency so we'll just make it very clear. uh. House Hack does not pay plane.

What we call it's the My S Corp is called the pathrath organization doing business as me Kevin that pays for the plane, takes the tax write-off for doing so, creates brand value or whatever you want to call it advertising value for for the channel uh, or for Instagram or whatever and maybe the programs on building your wealth and enables me to make this content. and then whatever I Get Left Over is is what I have left over now. remember I personally signed on the debt and you could look this up. Uh, you know, like my wife and my names are on it so we're on the hook for it.

But anyway, I always want to be very clear about that. Uh yeah. so we've been audited already. Uh, that's very normal when you're trying to uh file for with the SEC you have to have audited financials.

So DB McKinnon already did our first audit. Uh, but the first audit only goes through I think it's September 30th. so we are completing our next audit within the next week and that's what we're going to send to the SEC. So that way the SEC gets a full audit.

I'm not sure if it goes I think it goes through the either the end of January or the end of December but either way, Yes! obviously when you do a reggae you have audited financials. Uh so yes, they will be audited by uh by a big four auditing company. So uh, all right let's move on. Thank you for those questions.

Very very good questions. Very fair, very reasonable. I'll always answer them.