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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 own

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 :)

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 :)