Zeehaus Inc.

Real Estate Equity Sharing Marketplace

Zeehaus Inc.

Real Estate Equity Sharing Marketplace

San Francisco, CA
Real Estate
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 believe that real estate investing and home ownership should be for everyone. Zeehaus reduces the cost of buying and investing in homes, so that more people can benefit and enter the marketplace.

$276,001

raised
540
Investors
$7.2M
Valuation
$0.60
Price per Share
$240.00
Min. Investment
Common
Shares Offered
Equity
Offering Type
$535K
Offering Max
28
Days Left

$276,001

raised
540
Investors
$7.2M
Valuation
$0.60
Price per Share
$240.00
Min. Investment
Common
Shares Offered
Equity
Offering Type
$535K
Offering Max
28
Days Left

Bonus Rewards

Get rewarded for investing more into Zeehaus Inc.

$240+
Investment
StartEngine Owner’s Bonus
This offering is eligible for the StartEngine Owner’s 10% Bonus program. For details on this program, please see the Offering Summary section below.
$240+
Investment
All Investor Owners Club
Early access to real estate investment opportunities before general public
$500+
Investment
First Volume Tier
$500 (5% bonus shares)
$1,000+
Investment
Second Volume Tier
$1,000 (10% bonus shares)
$2,500+
Investment
Third Volume Tier
$2,500+ (15% bonus shares)
$5,000+
Investment
Fourth Volume Tier
$5,000+ (20% bonus shares)
$10,000+
Investment
Fifth Volume Tier
$10,000 (30% bonus shares)

Reasons to Invest

With our last equity crowdfunding campaign in 2018, we captured over $260,000+ from hundreds of investors.
We were the 2018 Top Pick for TechCrunch Disrupt San Francisco and have a patent for equity sharing homeownership pending.
Proprietary equity sharing technology applies to a market of over 124M homeowners, with a potential to disrupt the real estate market.

“We cut real-estate into bite-sized chunks everyone can afford!”

The Problem


With economic downturns ahead, only the wealthy can afford to buy a home

Buying and renting is becoming increasingly difficult and many buyers can’t even afford the required minimum 20% down payment for a house. In our opinion, this 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.

The Solution


Equity sharing enables more affordable home-buying and gives opportunities to investors

Zeehaus 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 the homebuyers. To solve the complexity of buying, funding, and managing a significant number of co-owners, Zeehaus has developed a proprietary fractional ownership platform, helping buyers achieve homeownership by putting down 5% and sharing expenses with investors. Investors are able to claim ownership of a property by buying tradable shares virtually (at $100 increments), as each property is registered, tokenized and titled, and each investor’s ownership is recorded on the blockchain.

The Market


While real estate is traditionally a safe investment, personal incomes are strapped

Millennials, who now represent the largest group of homebuyers today, struggle to afford the down payment required to purchase a home. With the changing market dynamics and the number of investors looking for stable investment options, Zeehaus is poised to meet the needs of today’s residential real estate market.

Sources: i. Statista ; ii. Pew Charitable Trusts; iii. Fund Managers Survey 2018 ; iv. National Association of Real Estate Investment Trusts ; v. National Association of Realtors ; vi. Rental income based on minimum rental payment buyers are required to pay investors, as set by the Zeehaus portal

Before the COVID-19 pandemics, new home sales had been expected to average to a seasonally adjusted 764,000, while existing home sales had also been expected to average around 5.77 million units (seasonally adjusted) in 2020 (source). According to the National Association of Realtors, roughly 15% of new properties in the US have a price greater than $500K. The median price for properties in California is $615K, which means more than half of the properties sold for more than $615K. While the market is expected to slow down significantly in 2020, economists are expecting a rebound in 2021

 

Our Traction


After a previous successful crowdfunding campaign, we are ready to create the future of real estate

With our last equity crowdfunding campaign in 2018, we captured over $260,000+  from hundreds of  investors. Zeehaus has created a virtual platform that enables a simple “Click & Purchase” model for investors to purchase “shares” of residential properties, distribute rental income, and trade “shares” on the blockchain securely at a very low cost. 


We have developed our initial platform, and it is currently available only for users to sign up and explore. We expect to launch the platform for beta in late July, 2020. We then expect to roll out a total of seven digital real estate dashboards: Agent, Buyer, Issuer, Investor, Homeowner, and Admin in late August, 2020, with the Seller Dashboard being deployed in September 2020.

Right now, we are ready to launch our digital 'Agent platform’ that integrates the property listing, referral, digital calendar, and transaction platform with our proprietary Equity Sharing ownership platform. 


*Image is from actual Zeehaus Agent platform currently in beta testing.

We are also ready to launch our equity sharing platform, which will enable homebuyers to buy a home with 5% ownership and share equity with investors, while the platform takes care of complexities such as legal documents, funding, management of ownership, and property sale.


*Image is from actual Zeehaus Investor platform currently in beta testing.

What We Do


Equity sharing to simplify the home buying process

Zeehaus is an easy-to-use web platform designed to pair homebuyers who do not want a mortgage, with investors hoping to profit from future home appreciation. This type of arrangement is called equity sharing. Zeehaus also provides the organizational structure and legal documentation for the relationships between homebuyers and investors, and manages these relationships throughout the equity share.

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. Anyone seeking funds for a home purchase may post an equity sharing opportunity on Zeehaus if he/she supplies all required information and follows Zeehaus’ guidelines. 

The Business Model


Low overhead costs and a variety of revenue streams

We operate utilizing the following streams of revenue:

  • Referral fee: 

    • Agent platform enables Zeehaus to make money from referrals

    • We plan to charge a 'finder's fee' when introducing buyers & sellers to real estate agents while providing rebates of the closing costs to buyers. 

  • Funding and application fee:

    • Each property public-funded as equity sharing will generate a processing fee between $800 to $2,000, depending on the amount of the funding and property price.

  • Trustee fee:

    • A service fee will be charged to the buyer for the Trustee's service, and this job will be performed by a Zeehaus affiliate.

  • Management fee:

    • Our primary source of revenue will be a management fee, based on a percentage (10-15%) of the monthly rent a homebuyer pays to the investors.

We plan to keep our operating expenses low, with the majority of platform operations being automated online or via email. This will enable Zeehaus to launch with low overhead without a large team, and we believe allow the company to weather the economic cycles better than most startups.

How We Are Different


One of the first and only companies with a platform of our kind

We believe Zeehaus is the first and only platform to invest in residential properties virtually like stocks, with an end-to-end platform. We think we are the first to market and the only ‘true’ equity sharing platform with “published patent,” that helps both investors looking for real estate and homebuyers looking for more affordable options. Our platform's goal is to solve the housing crisis, enabling young millennials and others to buy a home with just 5% equity. Because our platform is entirely online, it also allows investors to sell property shares completely remotely and with the click of a button. We believe Zeehaus presents an economically viable option to support homebuyers by lowering housing costs for homebuyers and providing a solution to the housing crisis, without the constraint of government funding, subsidy, or complex process.

  • Homebuyer needs a smaller amount of capital for down payment, starting at 5% of property value.

  • Lower monthly payment than mortgage loan, by sharing the cost of property taxes and insurance.*

  • Eliminate closing costs through partnerships and reimbursements from real estate agents.

  • Eligible for buy-out using a traditional mortgage in three years.


*The homebuyer is required to pay rents and property expenses. However, the monthly payment does not include any additional amount towards buying equity from investors. The homebuyer can purchase property shares from investors, which will reduce the monthly rent according to the percentage of property shares.


  • Diversification: Low minimum investments allow investors to potentially diversify across multiple properties and locations.

  • Transparency: High degree transparency into real estate ownership compared to typical real estate funds.

  • Tax benefits: No transfer tax when transferring fractional ownership.

  • Liquidity: Investors could potentially transfer fractional ownership by trading it on the Zeehaus platform without having to sell the whole property.

  • Coins backed by real properties: All proceeds from the coin sale are used to purchase real estate only, so all coins are guaranteed to purchase shares of a property.

  • Flexible & low-volatility: Zeehaus Coins can be used to purchase shares of any available properties on Zeehaus, based on latest exchange rate.

  • Help homebuyers achieve homeownership: Support homeowners by lowering housing costs for homebuyers and providing a solution to the housing crisis.

  • Invest in rental properties virtually: Coins can be used to purchase property shares on the Zeehaus portal or sold freely at latest coin price.

In addition to our proprietary real estate platform, we plan to launch a digital currency used to enable investors to buy property shares. Coin holders can also sell the coins at exchanges. ** Investor fundings for real estate purchases will initially come from sales of Zeehaus Coins, which is a digital currency that integrates with the proprietary platform and enables investors to buy shares of properties on Zeehaus.


** We aim to get Zeehaus coins listed on digital currency exchange but there is no guarantee that would occur. Zeehaus coins are not investment of Zeehaus stocks. When the coins are sold back to Zeehaus, the coin price is determined by the average price deriving from the total assets backing the Zeehaus coins, not the market price on any exchange.

The Vision


The future of real estate

Our goal at Zeehaus is to be the one-stop shop and data-driven platform for all things related to residential real estate, including property listings, rehab/flip properties, agent advertising and mortgage referral. 


Zeehaus will launch its Equity Sharing platform and start the purchase program in September 2020 for properties in the San Francisco Bay Area and Los Angeles. Next, we plan to expand to the Dallas, Phoenix, and Seattle areas in mid-2021, and New York, Oregon, Nevada, and Colorado in late 2021.


To launch Zeehaus Coins, we will work with our partner financial institution holding money exchange licenses and start accepting Zeehaus Coins as payment tools for buying property shares on the Zeehaus portal.


One future opportunity that we are considering is blockchain ownership, as we hope to record the entire property title on the blockchain, in order to further streamline and lower the costs of property transactions when governments start to recognize blockchain as a legal way to hold real assets.

Our Team


A small, close-knit group of dedicated experts 

Zeehaus was founded by Justin Lee, with the help of advisors and experts in equity sharing ownership and real estate laws, Andy Sirkin and Lisa Swanson. Justin has over 15 years of experience developing large-scale enterprise applications and platforms and working as a real estate agent in California. The tight-knit team consists of highly devoted top engineers who are experts at web development and blockchain, as well as experts in real estate and fractional ownership. Our team has been hard at work for the past several years ensuring that all support and operation resources are ready and in place, as soon as we hit go.

Why Invest


The future of the residential real estate market starts with us

We believe Zeehaus represents the future of real estate, providing an innovative new way to both solve the housing crisis and allow investors to profit virtually. We understand the challenges that homebuyers face today and we have made it our priority to offer the younger generations a better, safer way to buy their future homes.


Our virtual platform, which enables investors to buy and sell shares of properties in multiple locations, we believe will present a huge business opportunity for the Zeehaus fractional ownership model. Digital assets backed by residential properties can completely revolutionize the way that homes are purchased and sold. The real estate market has never seen anything quite like this and we are ready to make our mark!

Offering Summary


Company

:

Zeehaus Inc.

Corporate Address

:

1390 Market St Suite 200, San Francisco, CA 94102

Offering Minimum

:

$9,999.60

Offering Maximum

:

$534,999.60

Minimum Investment Amount

(per investor)

:

$240.00











Terms


Offering Type

:

Equity

Security Name

:

Common Stock

Minimum Number of Shares Offered

:

16,666

Maximum Number of Shares Offered

:

891,666

Price per Share

:

$0.60

Pre-Money Valuation

:

$7,200,000.00











*Maximum Number of Shares Offered subject to adjustment for bonus shares. See Bonus info below.

Voting Rights 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.

Forward Looking Projections

THE OFFERING MATERIALS MAY CONTAIN FORWARD-LOOKING STATEMENTS AND INFORMATION RELATING TO, AMONG OTHER THINGS, THE COMPANY, ITS BUSINESS PLAN AND STRATEGY, AND ITS INDUSTRY. THESE FORWARD-LOOKING STATEMENTS ARE BASED ON THE BELIEFS OF, ASSUMPTIONS MADE BY, AND INFORMATION CURRENTLY AVAILABLE TO THE COMPANY’S MANAGEMENT. WHEN USED IN THE OFFERING MATERIALS, THE WORDS “ESTIMATE,” “PROJECT,” “BELIEVE,” “ANTICIPATE,” “INTEND,” “EXPECT” AND SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY FORWARD-LOOKING STATEMENTS, WHICH CONSTITUTE FORWARD LOOKING STATEMENTS. THESE STATEMENTS REFLECT MANAGEMENT’S CURRENT VIEWS WITH RESPECT TO FUTURE EVENTS AND ARE SUBJECT TO RISKS AND UNCERTAINTIES THAT COULD CAUSE THE COMPANY’S ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE CONTAINED IN THE FORWARD-LOOKING STATEMENTS. INVESTORS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THESE FORWARD-LOOKING STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE ON WHICH THEY ARE MADE. THE COMPANY DOES NOT UNDERTAKE ANY OBLIGATION TO REVISE OR UPDATE THESE FORWARD-LOOKING STATEMENTS TO REFLECT EVENTS OR CIRCUMSTANCES AFTER SUCH DATE OR TO REFLECT THE OCCURRENCE OF UNANTICIPATED EVENTS.

Investment Incentives and Bonuses*

All Investor Owners Club:

  • Early access to real estate investment opportunities before general public

Early Bird:

  • First 72 hours - Friends and Family Early Birds | 15% bonus shares
  • Next 7 days - Early Bird Bonus | 10% bonus shares

Volume:

  • $500 (5% bonus shares)
  • $1,000 (10% bonus shares)
  • $2,500+ (15% bonus shares)
  • $5,000+ (20% bonus shares)
  • $10,000 (30% bonus shares)

The 10% Bonus for StartEngine Shareholders

Zeehaus, Inc. 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 $.60/ share, you will receive 110 shares of Common Stock, meaning you'll own 110 shares for $60. 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 investors 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 cancelled or fail.

Investors will only receive a single bonus, which will be the highest bonus rate they are eligible for.

*All perks occur when the offering is completed.

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: Any expense labeled “Travel and Entertainment”.

Show More
Most recent fiscal year-end:
Prior fiscal year-end:
Total Assets
$80,117.00 USD
$149,048.00 USD
Cash And Cash Equivalents
$80,117.00 USD
$149,048.00 USD
Accounts Receivable
$0.00 USD
$0.00 USD
Short Term Debt
$1,378.00 USD
$9,193.00 USD
Long Term Debt
$242,927.00 USD
$242,927.00 USD
Revenues And Sales
$0.00 USD
$0.00 USD
Costs Of Goods Sold
$0.00 USD
$0.00 USD
Taxes Paid
$0.00 USD
$0.00 USD
Net Income
-$243,021.00 USD
-$279,206.00 USD

Risks

A crowdfunding investment involves risk. You should not invest any funds in this offering unless you can afford to lose your entire investment. In making an investment decision, investors must rely on their own examination of the issuer and the terms of the offering, including the merits and risks involved. These securities have not been recommended or approved by any federal or state securities commission or regulatory authority. Furthermore, these authorities have not passed upon the accuracy or adequacy of this document. The U.S. Securities and Exchange Commission does not pass upon the merits of any securities offered or the terms of the offering, nor does it pass upon the accuracy or completeness of any offering document or literature. These securities are offered under an exemption from registration; however, the U.S. Securities and Exchange Commission has not made an independent determination that these securities are exempt from registration.


Updates

Notice of Material Change in Offering

about 1 month ago

[The following is an automated notice from the StartEngine team].

Hello! Recently, a change was made to the Zeehaus Inc. offering. Here's an excerpt describing the specifics of the change:


Zeehaus Inc. extended the length of their campaign.


When live offerings undergo changes like these on StartEngine, the SEC requires that certain investments be reconfirmed. If your investment requires reconfirmation, you will be contacted by StartEngine via email with further instructions.

Notice of Material Change in Offering

3 months ago

[The following is an automated notice from the StartEngine team].

Hello! Recently, a change was made to the Zeehaus Inc. offering. Here's an excerpt describing the specifics of the change:


Extended length of campaign.


When live offerings undergo changes like these on StartEngine, the SEC requires that certain investments be reconfirmed. If your investment requires reconfirmation, you will be contacted by StartEngine via email with further instructions.

3rd Product Video Update: Investor Dashboard

3 months ago

We're happy to provide a video update for the Zeehaus Investor Platform. To turn a complex equity sharing purchase with a homebuyer and other investors into a simple, secure, and digital experience, our Investor Platform enables the majority of the buying process to be done online, in one integrated and simple user interface to click and invest.

Some of the key features include:

  • Review the property listing & property data
  • Open custody account for each investor (with our banking partner)
  • Investor reviews investment, verifies identity, and transfers funds in a simple interface
  • Review property data, rent, buyer profile in a simple page
  • Proprietary click-and-invest in property shares (in increments of 100's)
  • Record property ownership on the Hyperledger blockchain
  • Manage the portfolio on the dashboard
  • Sale of fractional ownership without selling the full property

We're working hard to complete additional enhancements and fixes for the investor dashboard, as well as the buyer and agent platforms.

Additionally, we're in the process of developing our Zeehaus mobile app. Originally planned to be done after launch, we now hope to roll it out around the same time as our beta launch, as we adapt to the changing market.



Notice of Funds Disbursement

3 months ago

[The following is an automated notice from the StartEngine team].

Hello!

As you might know, Zeehaus Inc. has exceeded its minimum funding goal. When a company reaches its minimum on StartEngine, it's about to begin withdrawing funds. If you invested in Zeehaus Inc. be on the lookout for an email that describes more about the disbursement process.


This campaign will continue to accept investments until its indicated closing date.


Thanks for funding the future.

-StartEngine

2nd Product Video Update: Buyer Dashboard

4 months ago

We want to provide another video update for Zeehaus Buyer Platform.

To turn a complex equity sharing purchase for homebuyers into a digital experience, our Buyer Platform enables the majority of the buying process to be done online, in one integrated dashboard. 

2nd Video Update: Buyer Dashboard

  • Digital, rental-like application, including credit pull and payments
  • Understand equity sharing ownership, view payment comparison & calculator
  • Property viewing, invite agent, get a referral, and submit offers digitally to listing agents
  • Full transparency, collaborate with agents, trustee, with a built-in chat feature
  • Step-by-step to-do tasks and stay informed throughout the entire purchase
  • Digital calendar to schedule an initial tour, complete inspection, and final walkthrough
  • Ownership management after closing, and purchase additional property equity

The Buyer Dashboard integrates with Agent Dashboard and Investor Dashboard to provide a simple, secure, and digital process.. In addition, it supports equity sharing purchase, full property purchase as well as providing issuers to purchase rehab & flip properties.



In a couple of weeks, we will update everyone with another video demonstrating the key functions of the Investor Platform.

Quick Sneak Peak of the Zeehaus Agent Platform

4 months ago

We want to provide a quick video update that shows some of the key features for the agent platform:

  • Free lead-tracking, digital calendars for showing and inspection to minimize phone calls and save time for everyone360-view of a listing with CRM/prospects management, analytics, and insights
  • Simplify the referral process for buyers and sellers
  • One platform with an integrated live-streaming virtual tour to improve experiences, simplify virtual investing, and promote listing in an evolving market
  • Accept offers interactively and instantly with buyers/sellers



This quick video was created by Zeehaus internally. You may find some screens going a bit fast as we included several features into a short video. We will later add subtitles or voiceover, with better resolution, and produce more professional versions as product tutorials.

We will also be providing additional updates related to Buyer Dashboard and Investor Dashboard to show the buying, transacting, and investing in properties on our one-stop platform, along with our featured equity sharing ownership.

$100K raised! An update on the homeowner requirement.

5 months ago

We've reached $100K in investments and wanted to thank everyone for the support in moving us one step closer to our goal of launching our real estate platform! In the meantime, we're working hard to get our platform ready for the beta release, which we hope will bring a new way to help people buy homes and invest in real estate like never before!


As mentioned in the Q/A, based on the great feedback from many of you, we are making one change to our equity sharing ownership model by requiring the homebuyer to achieve 10% or more in equity. If the homebuyer purchases just 5% equity initially, the monthly payment will now include additional contributions, based on the original property purchase price, to gain 1% equity each year until the homeowner owns 10% equity. We hope that this provides more confidence to future real estate investors as homeowners have more equity stake while increasing the chances for homeowners to buy out the full property down the road and own the whole property.

Show More Updates End of Updates

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