INVEST IN ZEEHAUS TODAY!
A Digital Platform for Real Estate Equity Sharing
$51,512.36 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
VALUATION
$11.18M
AMOUNT RAISED
$51,512.36
Breakdown
MIN INVESTMENT
$269.18
MAX INVESTMENT
$617,998.58
MIN NUMBER OF SHARES OFFERED
11,627
OFFERING TYPE
Equity
ASSET TYPE
PREFERRED
SHARES OFFERED
Common Stock
MAX NUMBER OF SHARES OFFERED
718,603
Maximum Number of Shares Offered subject to adjustment for bonus shares
Company | : | Zeehaus Inc. |
Corporate Address | : | 1390 Market St Suite 200, San Francisco, CA 94102 |
Offering Minimum | : | $9,999.22 |
Offering Maximum | : | $617,998.58 |
Minimum Investment Amount(per investor) | : | $269.18 |
Terms
Offering Type | : | Equity |
Security Name | : | Common Stock |
Minimum Number of Shares Offered | : | 11,627 |
Maximum Number of Shares Offered | : | 718,603 |
Price per Share | : | $0.86 |
Pre-Money Valuation | : | $11,184,699.04 |
*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
03.10.23
Zeehaus platform & mobile app updates
First, we want to thank our investor community who created an account on Zeehaus and provided valuable feedback, as we were able to make a few fixes and improvements in the past 3 weeks since we launched the platform, and we are hopeful that we will be able to start welcoming more users.
We also want to provide an update about our mobile app and business model.
1) Updated Mobile App released: We want to let everyone know that our updated mobile app version has been published. With all the updates and features released recently on the main platform, we spent the last 3 weeks reviewing the mobile responsive and UI and addressing the feedback from our investors. We are happy to say that our Zeehaus mobile app version 3.0 is released for iOS and Android. We are making a few UI & performance improvements.
2) To provide a bit more clarity on our business model and value proposition:
Zeehaus is the first platform that enables everyone to invest in owner-occupied residential homes ("equity sharing property"), in $100 increments, in multiple locations using our simple, secure, and proprietary platform.
- Each equity sharing property has a keyholder (homebuyer) who has a vested interest will take better care of the properties
- Investors in equity sharing properties do not need to worry about tenants not properly maintaining rental or vacation properties or real estate funds that lack transparency.
At the same time, Zeehaus helps pair investors with homebuyers who are priced out of buying a home due to high down payments and sky-high mortgage rates!
Our revenue streams: We wanted to summarize revenue streams (10 years is the typical ownership term) of the property purchase, ownership management, trading of property shares, and sale of properties.
- Buyer & management fee:
- Our primary source of revenue will be a monthly recurring management fee, based on a percentage (15%) of the monthly payment a homebuyer pays to investors, for the entire 10 years of equity sharing ownership.
- Investor administrative fee:
- Another key source of revenue will be a small processing fee charged to real estate investors. We charge a fee when investors buy or sell shares, starting at $12, each time property shares are invested or sold.
- Zeehaus Crowdfunding investors receive no-fee real estate investments between 1 year and to lifetime.
- Application & processing fee:
- Each equity sharing property will generate a one-time processing fee between $1,800 to $3,000 (paid by the homebuyer).
To illustrate our revenue model in a simple graphic, please see below for a $1M equity sharing property with key revenues from Buyer Application fee, Monthly Service fee & Investor administrative fee being the key revenue components. Note that this model is future projection, not guarantee, and many factors will impact the Zeehaus revenue and profit.
3) Crowdfunding: Our StartEngine crowdfunding will end the 2nd week of April and there will be no extension planned. For those of you who is participating in this offering, we thank you for your trust and support in our business and mission. We hope to make our company more valuable and have more exciting progress the next time we raise funds privately and/or publicly.
4) We also want to provide a quick summary of our initial strategy. Currently we are not actively marketing our company as our focus initially is to grow organically through working with institutional investors, local reporters, and various local communities, such as schools and EMS services. We plan to start managing our social media channels in the near future, as soon as we start getting some momentum. As some of you might notice, we have a limited number of properties available to real estate investors on our platform, so we are working to secure property funding with institutional investors, VC's, and take on additional homebuyers. We hope to increase the value of Zeehaus once that happens. If we have any updates before the campaign ends in mid-April, we will post it here.
5) Competitions. To help understand how Zeehaus is differentiated from other real estate models, we would like to quickly highlight a couple of key things:
Other fractional ownership platforms, real estate companies, or funds focus on buying a large number of rental or vacation properties, leasing them out, and collecting rents & management fees while taking on responsibilities of significant labor, overheads, uncertainty, and costs in property management and maintenance.
Real estate companies generally focus on earning management fees for the properties they acquire and manage, such as "American Homes 4 Rent" which is a publicly traded REIT. However, significant overheads and maintenance costs are involved in buying, renting, maintaining, managing, and selling for these tenants occupied properties.
Different from competitors and other fractional ownership platforms, Zeehaus has the potential to scale faster and help connect buyers and investors to buy properties without managing or maintaining properties, while real estate investors can invest in a property occupied by homeowners while helping someone buy a home at the same time!
1031-Exchange: While we are done with development, there are still some improvements we are looking to add. For example, we have not enable the 1031-Exchange feature. There are some investors who are inquiring about if current owners of investment properties looking to sell and invest again on Zeehaus.com through 1031-Exchange. So, we wanted to let the community know that this is a feature we are going to make available in the near future, as that will be an attractive option for a significant group of current real estate investors for Zeehaus.
02.17.23
Zeehaus Launch Day is Here!
Hi Everyone!
Justin here, Founder and CEO of Zeehaus.
I would like to make two exciting announcements!
First, we're so excited to be raising on StartEngine and are thrilled for what the future holds.
Second, our digital real estate platform is now live after years of research, learning, and development!
A quick intro about Zeehaus. We are a digital real estate platform that connects homebuyers with real estate investors, who can invest digitally in owner-occupied homes in 100 increments and help a young homebuyer achieve homeownership, without a mortgage! We hope to offer a real and sustainable solution to the housing crisis leveraging our patented platform.
Our team has put a ton of effort into this campaign and into the development and launch of our proprietary real estate platform, and we're excited to see the fruit of our hard work come to life.
Right now, I just want to extend a virtual 'thank you' to all who have invested in our company so far! After all, Zeehaus depends on the support of the crowd to be a successful business, so we want to crowd-source our business, not just crowdfund it!
We will be sharing more about our services, technology, and business via our campaign page updates in the coming weeks...so please stay tuned!
If you have a moment, we also invite you to open an account on Zeehaus.com and you will be able to start exploring the full functionalities of our amazing digital platform. A small number of estate investment opportunities will be available for browsing, and we are just getting started.
We hope that you will consider being part of our mission to make investing and buying a home more affordable and easier!
Please share our campaign with your friends and family!
Finally, we have plans set in place to be responsive to our investor community and address feedback and questions promptly on the StartEngine platform. All new offering related questions can be directed to StartEngine.
Regards,
Justin Lee
Founder & CEO
Stack Owner's Bonus & Rewards!
Members get an extra 10% shares in addition to rewards below!
REWARDS
$269
Earn 10% Bonus Shares
Earn 10% bonus shares in this investment and all eligible investments for an entire year. If you are not already an Owners bonus holder, you can join now, for $275, billed annually.
$500
Tier 1
$500 (5% bonus shares) and no-fee property investment on Zeehaus.com for 1 year
$1,000
Tier 2
$1,000 (10% bonus shares) and no-fee property investment on Zeehaus.com for 2 years
$2,500
Tier 3
$2,500+ (15% bonus shares) and no-fee property investment on Zeehaus.com for 3 years
$5,000
Tier 4
$5,000+ (20% bonus shares) and no-fee property investment on Zeehaus.com for 6 years
$10,000
Tier 5
$10,000 (30% bonus shares) and no-fee property investment on Zeehaus.com for 10 years
$25,000
Tier 6
$25,000 (30% bonus shares) and no-fee property investment on Zeehaus.com for life
JOIN THE DISCUSSION
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HOW INVESTING WORKS
Cancel anytime before 48 hours before a rolling close or the offering end date.
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With Regulation A+, a non-accredited investor can only invest a maximum of 10% of their annual income or 10% of their net worth per year, whichever is greater. There are no restrictions for accredited investors.
With Regulation Crowdfunding, non-accredited investors with an annual income or net worth less than $124,000, are limited to invest a maximum of 5% of the greater of those two amounts. For those with an annual income and net worth greater than $124,000, he/she is limited to investing 10% of the greater of the two amounts.
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