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GET A PIECE OF ZEEHAUS
A Digital Platform for Real Estate Equity Sharing
Zeehaus is an easy-to-use web platform designed to pair homebuyers who cannot afford a down payment with investors hoping to profit from future home appreciation, recently launched for properties in the San Francisco Bay Area.
$44,148.94 Raised
REASONS TO INVEST
By combining owner-occupied homes with digital investment properties via our equity sharing platform, we aim to provide a sustainable solution to housing affordability, one of the biggest problems facing our young generation.
Our proprietary equity sharing technology applies to a market of over 142 million homes and 124 million homeowners, with a potential to disrupt the entire real estate market.*
Since our last raise of over $1,000,000, we have completed digital development and publicly launched our patented platform, as well as added two senior team members to support our launch.
the pitch
Zeehaus is an online platform that makes buying a home more affordable through a process called equity sharing, which connects homebuyers with investors who buy shares of the property and collect ‘rent’ from homebuyers. We are reducing the cost of buying and investing in homes so that more people can benefit and enter the marketplace. After our last raise of $1 million from over 1,500 investors, we completed and launched our platform in the San Francisco Bay Area, and now we are ready to expand.
Since Our Last Raise
Real Estate Investing and Home Ownership for Everyone
At Zeehaus, we have created a way to lower the barrier to homeownership for young buyers so that they can buy a home with only 5% equity. We believe equity sharing can solve the housing crisis by pairing homebuyers who do not want a mortgage with investors hoping to profit from future home appreciation.
Our patented platform provides the organizational structure and legal documentation to facilitate equity sharing between homebuyers and investors and manages these relationships over time. We generate revenue primarily through management fees, investor fees, referral fees, and funding and application fees. With our platform launched in the San Francisco Bay Area, patented technology, and a strategic partnership with realtor.com, we are prepared to provide real solutions to the multi-billion housing industry.
The Problem & Our Solution
Enabling More Affordable Home-Buying While Creating Opportunities for Investors
With sky-high mortgage rates, property values, and inflation, many prospective homebuyers can’t even afford the required minimum 20% down payment for a house (source). Meanwhile, large private equity funds are gobbling up one third of all residential properties and turning them into rental homes (source, source). Even mobile homes cannot escape their assault on the housing market (source). This further reduces housing supplies while filling up the bank accounts of these big investment firms.
Amid property value correction combined with high mortgage rates, aspirant homebuyers can’t access mortgage loans, leaving only the wealthy to afford a home. Homebuyers who are able to purchase homes with a mortgage during this time face a higher risk of seeing their loans underwater.
In our opinion, this also poses a problem for real estate investors, most of whom find it too risky to put all of their money into one property. It is very difficult to invest in properties and earn a steady rental income, as there are often significant fees and carrying costs to buy & sell properties.
(source)
Protecting the American Dream of Home Ownership
After years of learning, research, and development, we have launched our proprietary fractional ownership enabling homebuyers to buy a home with 5% ownership with potentially lower housing payments and share equity with investors, while the platform takes care of complexities such as legal documents, funding, management of ownership, and property sale. Our simple “Click & Purchase” model allows investors to purchase “shares” of residential properties, receive rental income, and trade “shares” on the blockchain securely at a very low cost.
Buyers achieve homeownership with just 5% equity without a mortgage and sharing expenses with investors. They can then purchase 1% in additional ownership equity yearly for the first five years, with the goal of getting a mortgage loan to buy out the property.
Investors then claim ownership of a property by buying tradable shares virtually (at $100 increments) as each property is registered and titled. Each investor’s proof of ownership is recorded on the blockchain.
The Market & Our Traction
Transforming a Major Market after Two Previous Successful Raises
We are poised to solve a major market problem for Generation Z and Millennials. Gen Z is quickly becoming the biggest buyers who want to purchase a house, but yet they only make up just 9% of property markets (source). Millennials now represent the largest group of homebuyers today but struggle to afford the down payment required to purchase a home (source).
6 million real estate properties are sold yearly in the US, at an average price of $543,000. At an estimated revenue per property of $3,600, our total attainable market is valued at $216 billion. We plan to focus on the top 50% of the properties with prices, translating to a SAM (Serviceable Available Market) of at least $108 billion.
With our last equity crowdfunding campaign in 2021, we raised over $1,000,000 from 1,500+ investors. Since then, we completed our virtual end-to-end real estate platform, which enables equity sharing while taking care of the complexity of buying, funding, structuring legal ownership, managing a large number of co-owners, and selling. We received the US patent for our equity sharing technology and buy-sell-own process in 2022.
*Image is from actual Zeehaus buyer platform.
We have already launched our platform for properties in the San Francisco Bay Area. We also established a key partnership with realtor.com, delivering us active listing data for properties throughout the country, allowing us to simplify the buying and investing process, providing another potential revenue source through referrals, and driving traffic to our website.
Why Invest
Building the Future of Real Estate
Our goal is to be the one-stop shop and data-driven platform for all things related to residential real estate, including property listings, agent advertising and mortgage referral. We believe Zeehaus is the first and only platform to invest in residential properties virtually like stocks using a patented end-to-end platform.
Our Secret Sauce, Property Managed by Buyers: Our primary revenue model is similar to popular short-term rental websites but for Long-Term Ownership. Zeehaus can earn management fees by charging a percentage of monthly payments without having to “manage the property” physically or being responsible for property maintenance, as all equity sharing properties are owner-occupied and also investment properties, at the same time.
Since our last raise, we launched Equity Sharing platform for properties in the San Francisco Bay Area. Next, we plan to expand to Dallas, Santa Fe, NM, and Los Angeles soon after. We hope to expand into Phoenix and Seattle areas in 2023, with New York, Oregon, Nevada, and Colorado also being in the targeted areas.
We have prioritized offering younger generations economically viable homebuying support by providing a solution to the housing crisis without the constraint of government funding, subsidy, or complex process that allows investors to profit virtually. Join us as we shape the future of real estate.
ABOUT
HEADQUARTERS
1390 Market St Suite 200
San Francisco, CA 94102
WEBSITE
View Site
Zeehaus is an easy-to-use web platform designed to pair homebuyers who cannot afford a down payment with investors hoping to profit from future home appreciation, recently launched for properties in the San Francisco Bay Area.
TEAM
Justin Lee
CEO
Karl Schutte
Head of Finance (Consultant)
Jeff Lim
Head of Strategy (Consultant)
Taylor Devine
Advisor
Andy Sirkin
Legal Counsel & Equity Sharing Expert
Abhijeet Mistra
Engineering Lead Consultant
Matt Ciantar
Advisor
Vincent Chang
Advisor
TERMS
Zeehaus
Overview
PRICE PER SHARE
$0.86
DEADLINE
Apr. 19, 2023 at 6:59 AM UTC
VALUATION
$11.18M
FUNDING GOAL
$10k - $618k
Breakdown
MIN INVESTMENT
$269.18
MAX INVESTMENT
$617,998.58
MIN NUMBER OF SHARES OFFERED
11,627
MAX NUMBER OF SHARES OFFERED
718,603
OFFERING TYPE
Equity
ASSET TYPE
Preferred Stock
SHARES OFFERED
Common Stock
Maximum Number of Shares Offered subject to adjustment for bonus shares
*Maximum number of shares offered subject to adjustment for bonus shares. See Bonus info below.
Voting Rights of Securities Sold in this Offering
Voting Proxy. Each Subscriber shall appoint the Chief Executive Officer of the Company (the “CEO”), or his or her successor, as the Subscriber’s true and lawful proxy and attorney, with the power to act alone and with full power of substitution, to, consistent with this instrument and on behalf of the Subscriber, (i) vote all Securities, (ii) give and receive notices and communications, (iii) execute any instrument or document that the CEO determines is necessary or appropriate in the exercise of its authority under this instrument, and (iv) take all actions necessary or appropriate in the judgment of the CEO for the accomplishment of the foregoing. The proxy and power granted by the Subscriber pursuant to this Section are coupled with an interest. Such proxy and power will be irrevocable. The proxy and power, so long as the Subscriber is an individual, will survive the death, incompetency and disability of the Subscriber and, so long as the Subscriber is an entity, will survive the merger or reorganization of the Subscriber or any other entity holding the Securities. However, the Proxy will terminate upon the closing of a firm-commitment underwritten public offering pursuant to an effective registration statement under the Securities Act of 1933 covering the offer and sale of Common Stock or the effectiveness of a registration statement under the Securities Exchange Act of 1934 covering the Common Stock.
Investment Incentives and Bonuses*
All Investor Owners Club: Early access to real estate investment opportunities before the general public
Loyalty Bonus: 15% Bonus Shares to Previous Investors of Zeehaus
Early Bird Bonus:
First 72 hours - Friends and Family Early Birds | 20% bonus shares
Next 7 days - Early Bird Bonus | 15% bonus shares
Volume Bonus:
$500 (5% bonus shares)
$1,000 (10% bonus shares)
$2,500+ (15% bonus shares)
$5,000+ (20% bonus shares)
$10,000 (30% bonus shares)
Investors will only receive a single bonus, which will be the highest bonus rate they are eligible for. Please note that bonus % is based on each individual investment, not cumulative investment.
Additional Bonus Offer: We plan to offer additional perks for our investors to receive no-fee real estate investments on Zeehaus.com based on cumulative investment (if you invested in Zeehaus in prior round, we will add up all of your investments to determine which tier):
>= $25,000: no-fee property investment on Zeehaus.com for life
$10,000 to $24,999: no-fee property investment on Zeehaus.com for 10 years
$5000 to $9,999: no-fee property investment on Zeehaus.com for 6 years
$2500 to $4,999: no-fee property investment on Zeehaus.com for 3 years
$1,000 to $2,499: no-fee property investment on Zeehaus.com for 2 years
<= $999: no-fee property investment on Zeehaus.com for 1 year
*In order to receive perks from an investment, one must submit a single investment in the same offering that meets the minimum perk requirement. Bonus shares from perks will not be granted if an investor submits multiple investments that, when combined, meet the perk requirement. All perks occur when the offering is completed.
The 10% StartEngine Owners' Bonus
Zeehaus will offer 10% additional bonus shares for all investments that are committed by investors that are eligible for the StartEngine Crowdfunding Inc. OWNer's bonus.
This means eligible StartEngine shareholders will receive a 10% bonus for any shares they purchase in this offering. For example, if you buy 100 shares of Common Stock at $0.86/ share, you will receive 110 shares of Common Stock, meaning you'll own 110 shares for $86. Fractional shares will not be distributed and share bonuses will be determined by rounding down to the nearest whole share.
This 10% Bonus is only valid during the investor's eligibility period. Investors eligible for this bonus will also have priority if they are on a waitlist to invest and the company surpasses its maximum funding goal. They will have the first opportunity to invest should room in the offering become available if prior investments are canceled or fail.
Investors will receive the highest single bonus they are eligible for among the bonuses based on the amount invested and the time of offering elapsed (if any). Eligible investors will also receive the Owner’s Bonus in addition to the aforementioned bonus.
Irregular Use of Proceeds
The Company might incur Irregular Use of Proceeds that may include but are not limited to the following over $10,000: Vendor payments. Salary payments made to one’s self, a friend or relative.
ALL UPDATES
REWARDS
10%
Stack Owner's Bonus & Rewards!
Members get an extra 10% shares in addition to rewards below!
Owner’s Bonus
Owner’s Bonus Members earn 10% bonus shares on top of this and all eligible investments for an entire year. Not a member? Sign up at checkout ($275/year).
JOIN THE DISCUSSION
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Kevin Walsh
8 months ago
What blockchain are you using for the transactions?
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Tonya Payne
9 months ago
I think that this idea has great merit. I'm not interested in buying into their equity, but I am interested in participating in fractional ownership of real estate. Participating in a DST without a $100k+ investment - what a great idea for us little people! However, I'm concerned because I have sent them a message through their website, and while I did receive an auto-response that they would respond in 2-3 days, I have not heard back from them, and it's been a week. My friend sent a question to them too and hasn't received a response either. His ticket number issued was only a few digits difference from mine, so it appears that they have only received a few messages. Either their message system is not working and they never got our messages, or they are not very good at customer service. Either way, I'd like for them to answer my questions, or at least respond that they can't answer them. I'm not likely to invest with someone who can't respond to messages. We have registered an account to see what kind of properties they have up, and right now there's only three. And it doesn't really look like they will be funded by the deadline listed. Really probably y'all need to answer people's questions and advertise - I only heard about this because I am subscribed to Start Engine. My two cents, worth what you paid for it.
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Dave Brown
9 months ago
Did Zeehaus hold any funds with SIVB? If so how much?
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James Pond
9 months ago
As a previous investor I suggest against anyone giving this team more funds. Their communication is unprofessional and only started again once they wanted to raise money. I’d rather see my stake go to $0 than watch others waste their money.
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Jairus McAllum
9 months ago
as a previous investor what is your time frame and plans for listing on stock market and buyout
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Timothy Archer
9 months ago
How is Zeehaus planning to attract a user base? You’re saying that the platform is now operational yet the company doesn’t seem to even have a social media presence. What’s the marketing plan to get recognition for the company?
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Paul Branham
9 months ago
As an investor from the 2020 round of funding for Zeehaus, I was justifiably concerned about how slowly things progressed, and the lack of communication as has been previously discussed. However, I have no reason to believe Justin's just blowing smoke here - for example, the filings with the USPTO are openly public and verifiable checkpoints. Anyone can look up the information and confirm that what we've been told is accurate. The website and dashboard launch went pretty much as described as well. I did keep an eye on things over the last couple of years and the updates to the website have been substantial as they prepared to launch the investor dashboard. As far as I can tell, the only mistake Zeehaus has made so far was being silent for as long as they were; they've also admitted that and pledged to do better. I'm far less interested in the mistakes people have made than I am in how they respond to them. We could also go back and forth all day about whether it would have been better to go slow and steady or build the airplane on the way down from the edge of the cliff from a growth perspective. Those are semantics that only the test of time might answer. Investors have received multiple updates in recent months and I think they're acting in a good faith effort to keep everyone informed now. If you're a prospective investor, do your due diligence as always, but I'm personally satisfied with the recent turn of events. I'm looking forward to seeing where this venture will go, and I intend to be an active user. I also think it's noteworthy that StartEngine allowed them to initiate another round of funding - they aren't an all-knowing gatekeeper by any means, but they don't let just anyone list their companies on SE. I don't believe SE would have opened up another round for Zeehaus if there were any suspicion of foul play here. Just my $0.02, take it for what it's worth. Happy investing!
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Joseph Pearce
9 months ago
When I was in college my father helped me buy a house. It was not a grand house, but a very simple house. He paid the down payment, and I paid mortgage going forward. He was on the mortgage because I did not have much credit at that point. When we sold the house a few years later, first my father recieved his down payment back, then we both split the equity in half. This set me up to purchase my next house, and set me up with financial security starting in my 20s. My dad also made a few dollars on the deal. Zeehaus is my dad for people who’s family is not in a position to help them purchase their first home or reestablish themselves. The hardest part for them is done. The technology is built. Now we get to see the business model work. That alone is worth the gamble and I just submitted my order.
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Michael Williams
9 months ago
Beware.... invested in first round and never heard from them in 3 years. Now they show up asking for money again. Do you DD.
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Crowdfunding
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Jairus McAllum
5 months ago
will the real estate collapse of San Francisco have an impact on zeehaus portfolio and ROI to investors
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