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Debt outside of mortgages has increased. Housing prices have increased. People are marrying later and renting longer. It seems like there needs to be a new s

Debt outside of mortgages has increased. Housing prices have increased. People are marrying later and renting longer. It seems like there needs to be a new solution between the mortgage and being a tenant that allows for freer movement and yet the building of ownership / investment in a place over time. Here’s what we’re working on towards that end. https://www.konarahomes.com/ https://www.konarahomes.com/ Looking for partners to solve this very important and difficult problem.

deleted 6y ago
[deleted]
TedDoesntTalk 6y ago
It looks like a good idea, but since it’s both new and different for most Americans, how do we know we’re not getting scammed? Do we hire real estate attorneys to decipher the contact to explain the risks? For example, what if I’ve bought into your system for 8 years, then your company goes under? Where does my equity go? (This is just one risk example to which I don’t have the answer)
- Artistry121 6y ago
  Good questions. Not getting scammed - you may want to hire a lawyer to review any long term contract but the ownership right now is structured like a stock ownership with a vesting schedule - the ownership being tied as shadow equity in the property itself while you live there and then as you move into other properties being tied to the value of the whole portfolio. It gets tricky in assigning ownership in a durable way. That's a key problem we're trying to solve.
  - TedDoesntTalk 6y ago
    > It gets tricky in assigning ownership in a durable way Who decides when properties should be sold? Seems like there might be contention around that. In traditional real estate, I own my property equity without having to pay marketing costs, executive salaries, payroll/wage taxes, employment benefits, ongoing legal and accounting fees, and everything else required to run a business. How can you cover such costs without significantly diluting the equity I earn as I rent? I’m not saying you can’t, I’m genuinely curious.
    - Artistry121 6y ago
      We would decide to sell properties if there were no one who wanted to live in them. But generally we don't expect to sell properties - we expect them to provide value and cash flow over time. We expect the value of the network to grow as the amount of properties in it grows. As you have bought in over decades the cash generated from properties you previously lived/invested in, return on investment of the portfolio will end up lowering your monthly costs similar to how paying off a house would. In traditional real estate, you own your property equity after paying realtor fees, marketing costs for mortgage companies, bank executive salaries, payroll/wages for realtors, banks, property management or the equivalent cost of fixing your own home. We can cut out a lot of the costs of agents, a lot of the time and costs related to mortgages and find a price point that sits between rent and mortgages without a down payment. We also have far less marketing costs in the long run as our tenants have a built in incentive to stay in our network / buy houses through us apartments won't have. If we can beat renting and people can build investment in our system when they're in the rental phase of their life they'll have built up an un-vested equity portion worth a significant amount of money. Imagine living in this system for your college years and a few years after - 7-8 years - across a few different properties. You'd have probably over $10k equity built up - depending on a few factors. If they leave our system or don't continue financing through us they'll lose that and have to choose between a large downpayment and high realtor costs OR renting without building equity. There's a sweet spot there. Apartment complexes make lots of money, mortgage companies make lots of money, banks make lots of money, realtors make lots of money. A company that streamlines these will make enough money and provide a better, more flexible experience. Their margin is our opportunity :)
ngngngng 6y ago
Socialist Twitter would absolutely love this. We could also use the solution that's worked before and works now in certain places, build enough housing that housing costs are not artificially and immorally inflated so everyone can afford a modest house, even on low wages.
carapace 6y ago
This looks very interesting. FWIW let the "unit" be a whole neighborhood. Living neighborhoods: https://www.livingneighborhoods.org/ht-0/bln-exp.htm https://www.livingneighborhoods.org/ht-0/bln-exp.htm And integrate regenerative food forests. See Village Homes in Davis, model eco-suburb ( https://en.wikipedia.org/wiki/Village_Homes https://en.wikipedia.org/wiki/Village_Homes ) Add carbon-neutral small-scale integrated alcohol fuel production ( http://alcoholcanbeagas.com http://alcoholcanbeagas.com ) - - - - My mom lives in a neighborhood that was all built together at the same time, it's owned and operated by a corporation. There are a few downsides but the upsides are enormous: - No wires. All that was run underground. It's so worth it. You can't understand how ugly and nasty the wires are until you've lived without them. - Central laundry on each block. High efficiency machines. Regular maintenance (although by a contractor, and they are sometimes slow to respond.) - Infinite hot water. The hot water heater is industrial, huge, it never runs out! - On call professional maintenance staff! Plugged sink or toilet? One call to the office and the guy will be there later that day. Included in the rent. - Parking space included in the small parking lots & garages. - Outdoor maintenance, landscaping, yardwork, repainting, repairing the roofs, etc. All of that is taken care of. A good management company is IMO a better bet than going it alone.
- Artistry121 6y ago
  Would love to hear more about your experience. Can you email "websitename"@gmail.com
  - Artistry121 6y ago
    Also, its very important that we can also partner with or be a good management company. That's actually where we've started as we figure out the rest of this. We manage 33 tenants / units currently.
    - carapace 6y ago
      > We manage 33 tenants / units currently. That's outstanding! konarahomes, yeah? Will do. I signed up for your newsletter already this morning. I'm not a domain expert in real estate, urban design, or regenerative agriculture (I took a Permaculture certification class from "Farmer Dave" Bloom, the "Alcohol can be a Gas" guy, but that's about it) but I'm really passionate about the subject. If I had the capital I would buy some raw land (preferably damaged-but-not-a-superfund-site rather than pristine wilderness) and create something like Village Homes, sell or lease the units, and repeat. I'm sure demand would be high. Village Homes sold every unit before they finished building, and there's a wait list.

deleted 6y ago

[deleted]

TedDoesntTalk 6y ago

It looks like a good idea, but since it’s both new and different for most Americans, how do we know we’re not getting scammed? Do we hire real estate attorneys to decipher the contact to explain the risks? For example, what if I’ve bought into your system for 8 years, then your company goes under? Where does my equity go? (This is just one risk example to which I don’t have the answer)

Artistry121 6y ago
Good questions. Not getting scammed - you may want to hire a lawyer to review any long term contract but the ownership right now is structured like a stock ownership with a vesting schedule - the ownership being tied as shadow equity in the property itself while you live there and then as you move into other properties being tied to the value of the whole portfolio. It gets tricky in assigning ownership in a durable way. That's a key problem we're trying to solve.
- TedDoesntTalk 6y ago
  > It gets tricky in assigning ownership in a durable way Who decides when properties should be sold? Seems like there might be contention around that. In traditional real estate, I own my property equity without having to pay marketing costs, executive salaries, payroll/wage taxes, employment benefits, ongoing legal and accounting fees, and everything else required to run a business. How can you cover such costs without significantly diluting the equity I earn as I rent? I’m not saying you can’t, I’m genuinely curious.
  - Artistry121 6y ago
    We would decide to sell properties if there were no one who wanted to live in them. But generally we don't expect to sell properties - we expect them to provide value and cash flow over time. We expect the value of the network to grow as the amount of properties in it grows. As you have bought in over decades the cash generated from properties you previously lived/invested in, return on investment of the portfolio will end up lowering your monthly costs similar to how paying off a house would. In traditional real estate, you own your property equity after paying realtor fees, marketing costs for mortgage companies, bank executive salaries, payroll/wages for realtors, banks, property management or the equivalent cost of fixing your own home. We can cut out a lot of the costs of agents, a lot of the time and costs related to mortgages and find a price point that sits between rent and mortgages without a down payment. We also have far less marketing costs in the long run as our tenants have a built in incentive to stay in our network / buy houses through us apartments won't have. If we can beat renting and people can build investment in our system when they're in the rental phase of their life they'll have built up an un-vested equity portion worth a significant amount of money. Imagine living in this system for your college years and a few years after - 7-8 years - across a few different properties. You'd have probably over $10k equity built up - depending on a few factors. If they leave our system or don't continue financing through us they'll lose that and have to choose between a large downpayment and high realtor costs OR renting without building equity. There's a sweet spot there. Apartment complexes make lots of money, mortgage companies make lots of money, banks make lots of money, realtors make lots of money. A company that streamlines these will make enough money and provide a better, more flexible experience. Their margin is our opportunity :)

ngngngng 6y ago

Socialist Twitter would absolutely love this. We could also use the solution that's worked before and works now in certain places, build enough housing that housing costs are not artificially and immorally inflated so everyone can afford a modest house, even on low wages.

carapace 6y ago

This looks very interesting. FWIW let the "unit" be a whole neighborhood. Living neighborhoods: https://www.livingneighborhoods.org/ht-0/bln-exp.htm https://www.livingneighborhoods.org/ht-0/bln-exp.htm And integrate regenerative food forests. See Village Homes in Davis, model eco-suburb ( https://en.wikipedia.org/wiki/Village_Homes https://en.wikipedia.org/wiki/Village_Homes ) Add carbon-neutral small-scale integrated alcohol fuel production ( http://alcoholcanbeagas.com http://alcoholcanbeagas.com ) - - - - My mom lives in a neighborhood that was all built together at the same time, it's owned and operated by a corporation. There are a few downsides but the upsides are enormous: - No wires. All that was run underground. It's so worth it. You can't understand how ugly and nasty the wires are until you've lived without them. - Central laundry on each block. High efficiency machines. Regular maintenance (although by a contractor, and they are sometimes slow to respond.) - Infinite hot water. The hot water heater is industrial, huge, it never runs out! - On call professional maintenance staff! Plugged sink or toilet? One call to the office and the guy will be there later that day. Included in the rent. - Parking space included in the small parking lots & garages. - Outdoor maintenance, landscaping, yardwork, repainting, repairing the roofs, etc. All of that is taken care of. A good management company is IMO a better bet than going it alone.

Artistry121 6y ago
Would love to hear more about your experience. Can you email "websitename"@gmail.com
- Artistry121 6y ago
  Also, its very important that we can also partner with or be a good management company. That's actually where we've started as we figure out the rest of this. We manage 33 tenants / units currently.
  - carapace 6y ago
    > We manage 33 tenants / units currently. That's outstanding! konarahomes, yeah? Will do. I signed up for your newsletter already this morning. I'm not a domain expert in real estate, urban design, or regenerative agriculture (I took a Permaculture certification class from "Farmer Dave" Bloom, the "Alcohol can be a Gas" guy, but that's about it) but I'm really passionate about the subject. If I had the capital I would buy some raw land (preferably damaged-but-not-a-superfund-site rather than pristine wilderness) and create something like Village Homes, sell or lease the units, and repeat. I'm sure demand would be high. Village Homes sold every unit before they finished building, and there's a wait list.