Exposing the Home Price Great Reset

[00:02] that people have about the housing market. Will there be a great reset in the housing market? Will home prices become more affordable and will people finally have the chance to buy real estate at a reasonable price relative to

[00:18] their incomes? This is the first institutional breakdown on housing in America that I've seen in quite a while. Otherwise, I just see small little snippets like a Goldman Sachs or UBS telling us something like, "Hey, the

[00:33] housing market in the United States seems better than that of China or the United Kingdom." Alrighty then. Thanks. Morgan Stanley's breakdown goes a lot deeper. In addition to breaking down Morgan Stanley's

[00:47] to breaking down Morgan Stanley's housing predictions, I'm also going to, at the end of the video, provide a demo of our real estate artificial intelligence and give you an update on my startup, Housack, also

[01:06] artificial intelligence works and the very very bleeding edge prototype of it that is available now to people who have signed up for it and I can't wait to show it to you. But first, let's focus on what people are here for and that is

[01:21] Morgan Stanley's prediction on housing. So, Morgan Stanley says that first-time homebuyers have regularly been facing a tough path to homeownership. And the data says that right now nothing is changing in terms of what age people are

[01:36] buying a home at. They're still buying their first home at about 36 years old. That's roughly the current age for a first-time homebuyer. However, what's changing is where they're buying and

[01:50] that's because of housing affordability. First-time homebuyers who might be wealthier or or not are starting to move towards or or not are starting to move towards lower income areas. This is what Morgan

[02:03] Stanley calls demand re-sorting. They're saying people who have money to buy a house are now looking for more affordability in location rather than hoping that home prices are going to come down. That unfortunately then

[02:17] squeezes buyers in those lower income areas leading to more of a concentration areas leading to more of a concentration of poverty or even lower income in other areas. Concentration of poverty is a topic we've talked about regularly on

[02:31] this channel. It is from a Harvard study that tells us as services become more expensive in one area or the cost of living goes up in an area, people will move to a more affordable location. But the problem with that is as people

[02:44] concentrate in a more affordable area, resources in that area get strained. resources in that area get strained. Schools, police, fire, medical services, and the quality of those services declines. As the quality of education or

[02:57] health care or policing declines, you potentially end up with a doom loop of worse services because now people are either dying or they're not getting

[03:09] educated as well and unfortunately you get an even worse poverty situation. That's the Harvard thesis on the concentration of poverty and Morgan Stanley's basically coming out and saying, "Yeah, now people with

[03:22] just move to areas that are more affordable and they're kind of squeezing out the people who would hope to buy a home in that area themselves. This is all challenged by multiple risks

[03:37] that are happening in the market right now. Number one, higher rates for longer. Morgan Stanley thinks that interest rates are going to stay higher throughout 2027 and that we really won't see interest rates come under 6% for a

[03:51] shouldn't be expecting anything better than 5 and 1/2% anytime soon. Now, as a sidebar, this is actually fundamental to my real estate thesis. My real estate

[04:03] thesis, and the reason I started my real estate company House Hack, now known as >> [laughter] >> is frankly because in 2022, rates skyrocketed, and I thought, "Well, nobody's going to want to buy

[04:16] real estate during this time. So, let's start a company and buy real estate when people are not because we don't see home prices coming down. We actually just see home prices going up. And so, we don't take homes away from anybody else. We'll

[04:31] buy fixer-uppers that we can fix up and renovate and turn around and rent out to well, tenants. So, we're basically providing housing or developing housing, right?" But my thesis is that it will take 10 years to get interest rates down

[04:47] from 2022. Everything always takes longer than we expect, and it's frustrating, but it's been my thesis. And so far, I think is saying, don't expect interest rates to come down on

[05:02] uh well, frankly, into home interest rates until 2027. I personally think that trend will continue starting in 2027 throughout 2032. And by 2032, home

[05:15] interest rates will actually be lower than what they've ever been before. That's my thesis. That's my opinion. Could be wrong about that, but we'll So, going back to Morgan Stanley. Morgan Stanley also says, "Not only we have

[05:29] higher interest rates for longer over this next sort of year and a half period and even thereafter." Again, I think they'll keep going down after 2027, so I agree, but I think they'll go lower after that, and that'll keep supporting

[05:41] potentially see a really big boom in home prices. That's why this decade is so crucial because between 22 and 32, I think that's where you want to buy to get on the ride before the rocket ship takes off so to speak. It's my thesis,

[05:55] obviously. But Morgan Stanley says that boomer children are entering the buying phase of real estate and there are a lot of boomers, so the result of that is you have a lot of demand for properties. And that demand for properties with a

[06:10] limited supply drives up prices, especially when state and local permitting is so hard to change. This is a fact. I ran for governor on the premise of streamlining state and local permitting for housing because I

[06:23] knew we needed better housing and guess what? The more you own real estate in democratically led regions, the harder it is to build real estate and the more your real estate values tend to go up. Guarantees. Just look at Austin, Texas

[06:38] as a perfect example. In fact, that's what we predicted back in 2022 that Texas would see prices fall and other areas, especially those liberal areas, would actually see prices rise. That's exactly what has happened. California

[06:52] and Manhattan have seen prices go up while Austin, Texas has seen prices come Now, again, I want to be really clear just to separate ourselves. I don't think, you know, big investors or whatever and I think we're a small

[07:05] fish in the sea should compete with home buyers. But somebody needs to clean crap like this up. This is just an example of one of the properties that we bought and totally renovated. I mean, this is

[07:17] nasty. There's, you know, a bunch of black all over the place and grime and this. It was a hoarder house. I mean, you can see the outline of the furniture and they probably didn't even know all this was here because it was all covered

[07:31] up by furniture, although I'm sure you could smell it. Uh I certainly could without the furniture there, but I mean, you know, these are the kind of properties that people need to fix up and uh in my opinion the kinds of

[07:44] properties that people can add value to and build their people can add value to and build their net worth on. Now, this is similar my that I bought when I first started in real estate. My very first home didn't

[07:57] even have kitchen cabinets. This one had kitchen cabinets. Now, we got rid of those kitchen cabinets and obviously you can see the after of the property is absolutely beautiful but this is where we've taken a home that was not livable

[08:10] and we've actually added to the housing stock with a high-quality product. Brand new kitchen cabinets, new appliances, lighting, flooring, paint, baseboards,

[08:22] lighting, flooring, paint, baseboards, window shades, doors, plumbing fixtures, whatever, you know, the bathrooms, you name it. They're gorgeous now. Okay, good. So, less on that, let's focus more on Morgan Stanley. Morgan Stanley also

[08:35] says that climate risks are raising insurance premiums and making it more challenging to buy a home. So, you've got a combination now of higher rates Boomer children entering the buying phase, state and local permitting being

[08:49] hard, and climate risks raising insurance premiums. All of that makes increases in affordability really, really slow. And that's why Morgan Stanley says there is more pressure to the upside on home

[09:05] prices because of those elements and less pressure on the downside. In fact, what's limiting the downside are a few factors. Number one, the lack are a few factors. Number one, the lack of a well, reason to sell. Thanks to

[09:19] what's known as the lock-in effect. If you have a 2 and 1/2% mortgage, why are thesis so we're not going to beat a dead horse but that reduces inventory is rising. Morgan Stanley admits this as well but

[09:33] it's coming off of very, very low and depressed levels and we're still on a depressed inventory level now compared to where we have been historically. And we know what happens when inventory is low and affordability plummets, we don't

[09:49] necessarily see prices go down. In fact, in 2022 when inventory was low and affordability plummeted when rates got jacked up, we just saw prices hit new high after new high after new high. And the reason is Morgan Stanley says

[10:03] you need people who are willing to sell at lower prices for prices to come down. And the reason you saw that in 2008 was because you saw distress. more than they can afford. They did not have the ability to repay. They were

[10:19] borrowing with a variable rate loans that started at a zero or negative that started at a zero or negative interest rate and then reset 5 6 7% higher. That sort of distress leads to

[10:33] foreclosures and short sales. Today, lending standards are too strong. House Hack, for example, is in its application phase for its mortgage loan originator license, which means yeah, I had to pass the MLO test. No problem,

[10:47] I've done it in the past. I did it again this year for House Hack. And lending standards have only gotten even stronger since the last time I took the MLO test then. >> [laughter]

[11:01] >> So you've got this vicious cycle, unfortunately, of housing for affordability getting worse, not better. And Morgan Stanley calls this a vicious cycle that is actually reducing fertility in America. It is hurting the

[11:14] goods economy, and rates will stay above 6% until the end of 2027. And even though income growth is slightly outpacing home appreciation right now, home prices are well supported. And there's a real challenge

[11:30] to expect any acceleration of affordability anytime soon. So, bottom line, don't expect a great reset in home prices. Don't expect a housing crash. If anything, it's just going to keep getting worse. The housing

[11:42] market is going to reset to higher expectations of affordability. People are going to just move and concentrate to poorer areas. And home prices home prices to come down. It's more about who's going to buy and where are

[11:59] I'm a big fan of don't wait to buy real estate, buy real estate and wait. And so, in honor of this, we've put together our real estate AI product to help people find where deals are good deals so you don't get ripped off. Nobody

[12:14] likes being ripped off. So, inside of the Meet Kevin app, uh which we're House Hack owns it, you've obviously got the data tab and we've got two little housing and the stock tab. You'll actually see some of these Morgan

[12:29] Stanley notes and the link to this Morgan Stanley podcast right here on the data tab. If you click the data tab, you can also see a list of the videos that I've made recently. You can see the daily wealth posts or you can also see

[12:43] investor updates like our updates on House Hack. So, they're posted there. app, you can download it on the Apple or Android app store. You can even use the desktop version of this app after you've logged in on this app. Just use your

[12:56] same email and then go to app.meetkevin.com. Now, what's really cool about this is if you jump into the little home section and you look at a particular zip code, which in this case I've got a zip code

[13:10] here in Denver, 80222. Uh I've got these two properties here that I'd like to look at. And so, this is the Reinvest Homes AI. It's basically a tool that's trying to evaluate, hey, what do we think the after repair value

[13:27] What do we think it's going to cost you to renovate the property, and is it a good deal or not? All right, this is just an example of how this could work. This would be an example of Denver. We can also go to saved, and I've got a

[13:42] bunch of different listings over here. We could even put in any kind of zip code we want, whether it's Florida, or it's matter. So, what I'd like to do is just go through some of these, and do a

[13:55] little bit of analysis on some of these. You can see they're sorted by best to worst deal, right? $96,000 gain, $50,000 gain, whatever. Let's look at these two going to look at this. We're going to look at Fairfield, California,

[14:09] listings. Keep in mind, when you're looking at listings, you can save them, or you can reject them. You can click on the little arrows to see the different listing to actually get sent over to, you know, Redfin or Zillow, or whatever,

[14:23] right? But, what I'd like to do is take a peek at evaluating these two properties. So, we're going to go ahead and pull up on the desktop the individual property, and we're going to see how good or bad the AI performed.

[14:38] Now, I want to be clear about this. This is super early beta. So, what that means is, think about it like FSD the first time it hit the highway in 2017. This is time it hit the highway in 2017. This is super early. This is our proprietary AI.

[14:51] Like, we trained it. I trained it with obviously the team working on tuning the weights and building it together. So, it's The goal is to take my brain and the way I see real estate comps, and put it into AI. And then, over time,

[15:04] download this app. You can buy it by going to househack.com. Right now, you which is kind of cool. And you can use that app and find the best deals in your area. Now, obviously, you have to verify the comps. So, I see

[15:18] verify how much it's going to cost to renovate, right? You can't solely rely doing an inspection with you. That's obvious. But, let's take a look at this and let's see how decent or not we're doing. So, here's a 1984 property in

[15:34] Fairfield, California listed for 525. It's probably a three, two and a half bath, 1980 square feet. We've got carpet, old kitchen, the carpet's coming up over here, two-story, wallpaper,

[15:46] acoustic ceiling, missing light bulbs. Everything's pretty freaking original to '84. So, I'll probably have copper plumbing. I'll have a good foundation, a three-wire electrical system. So, and the roof looks decent from here. So, I'm

[16:02] much. Given it's a two-story, I don't see any particular, you know, any things that are screaming they're major additions to this property. what we're looking at, but none of this looks like it was added on to. This

[16:16] looks like the original floor plan of the property. Okay, great. So, let's now run some comps on it. And anybody can do this, right? Let's go take that address through Zillow. And we'll go to the mapped area. So,

[16:30] we'll leave one open over here on the actual listing, just in case we have to refer to any of the details. And then over here, we'll just go to the map. We'll zoom in a little bit. Let's remove boundary here. Let's go do a

[16:44] filter of square footage. Just show me anything above 1,500 and I probably I'm not going to have to go above 2,750. And let's also filter down by more recent here. Let's do the last 90 days

[16:58] to start with and see what we have. All right. We could even go, That's what an appraiser's going to do. Okay, cool. 6 months. So, this property is on Lighthouse Court.

[17:12] Just looking for where it is for sale so I could see it. It is right here. Ah, it's a little close to the freeway, which I don't love. It's on a cul-de-sac over here, so not ideal. That's going to be a little bit punishing to our value,

[17:28] keep that in mind. It could be as much as, you know, 5 to 7% being next to the freeway. So, I don't love that location. I probably wouldn't buy it because of that location. Uh but, let's see what we've got on valuations. And then that

[17:43] way, keep this in mind, the AI has not yet, and this is on our road map, yet, and this is on our road map, incorporated red flags like busy roads. Highways are coming in our next update, which that's why I say like this is the

[17:56] worst version of the app we're going to see here, right? But, let's take a look well, what you know, was it close? Like, let's say it wasn't next to the highway, right? Is like, does the app function? Okay, so what do we have over here?

[18:09] Well, I've got a comp right here that sold in January, 650, 2,000 square feet, pretty similar, actually. Let's see when it was built. This was built in '88, so within 4 years of age. I've got about 100 more square feet over here, so I'll

[18:24] 100 more square feet over here, so I'll adjust maybe 10K or so. And pretty close in location to our subject property. I've got another one cuz we're over here off of Lighthouse

[18:37] Court. I've got another one right here that appears to be off of Vista Grande, which is a little busier neighborhood road, certainly not a highway. This one was about 300 square feet smaller, that's going to add about

[18:50] to our to our comps. Puts us at about a 7,000 square foot lot with our original deal looking like it's sitting at a 7,800

[19:02] square foot lot, so pretty much the same thing. Slightly newer neighborhood over here, but 300 square feet smaller, so maybe that's about a 670 comp. So, I've maybe that's about a 670 comp. So, I've got about a 650, uh 6 call it 640, 670.

[19:15] it's going to comp out to about from March, it'll comp out to about 630, 630, but much smaller lot. So, I'm going to add in probably about 15k again. Uh I'll take that to about 645, you know, 650, somewhere in that range.

[19:32] listings I'm not actually seeing what the condition of them is. Given that they're all pretty much in a similar range here, it doesn't look like we have any crazy outliers that are selling super low because uh they're they're

[19:45] fixers. And we can see the description over here suggests uh we've got talk about space and cozy, laminate flooring. So, it's not going to be your peak market, you know? Peak market is usually

[19:58] when you see somebody that says, "Hey, recently remodeled uh You know what? We could actually Oh, yeah, remodeled kitchen. This could be good. Sometimes what you'll find is realtor.com will give you better photos.

[20:11] Oh, yeah, here we go. 75 photos on this puppy. Let's go. So, this might be the top of market right here. Uh nope.

[20:23] It's still got carpet. Okay, never mind on top of market. The staging's nice. kitchen remodel though, I'll give them that. still have the acoustic ceiling though, which is remarkable, and still carpet

[20:37] upstairs, and that's a statement of a shower. And we've got the delaminating uh mirrors over here. Wow. Wow, that's Uh so, maybe not top of market over here, right? So, this is going to

[20:51] reiterate that this property should be worth in excess of about $650,000 fixed if it weren't under the freaking freeway. Now, if I take a high watermark

[21:03] freeway. Now, if I take a high watermark of 670, and I take off freeway noise take off about $45,000. It's going to eat up our margins. It's going to eat up our margins. So, 670 minus $45,000

[21:18] So, 670 minus $45,000 going to drop me down to about 625. So, now let's go on over here and let's see what we got. See, the app only says see what we got. See, the app only says 615. That's actually hilarious because I

[21:32] just did all this work not even knowing what it said. And my estimate was 625. On like the high water mark, right? Adjusted for the freeway. Not bad. Now, in terms of renovation, you know, this

[21:45] property is obviously going to need a little bit of work. It's listed for 525. It's going to need It's mostly interior. I mean, I paint the outside, paint the inside. I'd probably do 10 in paint, you know, 12 in plumbing and electrical. I

[22:00] do flooring and window blinds. I use the same contractor for those. That's probably going to cost me around 16 grand. The kitchen, you know, probably six grand in countertops throughout the property. And then cuz

[22:13] I'll you know, I might throw in quartz over here. And then I could either paint or replace the cabinets, throw in appliances as well. If I paint or replace the cabinets, it's going to cost me at least six grand.

[22:27] Let's add a little bit. I got plumbing. I got Let's just put an oopsy fund in there. Let's do an oopsy fund of 20 grand. Okay? 20 for all the crap I didn't mention. That's $73,000. Cool. What does

[22:40] mention. That's $73,000. Cool. What does our app say? And the app has 615 after repair value. I'm going to go ahead and boost that to about 625. We're going to make this app so these numbers are a little bit more sticky.

[22:53] It's like really hard for me to just make it be 625. We'll adjust that. We'll just go and leave it at 625 600 for for We'll make that a little more sticky so it matches on the fives, right? Or we you could just type in a number. Uh

[23:05] purchase price, this has been on the market now. Let's go find out. much of a deal I could get on this puppy. Okay, it's been on the market for 12 days. So, I'd have to call up the agent and find out, "Hey, how many

[23:18] offers?" If they don't have any offers, let's assume they don't have offers. I might be able to get a deal on this puppy, right? So, let's go drop this puppy, right? So, let's go drop this purchase price down to I'm going to go

[23:30] 500. I'll give them the five, but I'm not going to pay much more than that. Renovation budget 74, I guess 73, so we'll just leave it. Look at that. Boom. The app is calculating an estimated gain of $50,000.

[23:45] That's pretty good. The app was within about 10,000 bucks of the after repair about 10,000 bucks of the after repair value even considering the highway, which is great. You know, even though we still have perfecting to do on our busy

[23:57] roads algorithm, which is great. And on top of that, uh we have uh you know, the market for 12 days. I think I can get this for less." The app gave me a head looking at this deal, and then I can make little adjustments here. Wow, I can

[24:13] build 50 to 51,000 dollars of equity buying this property with these parameters. If I buy and hold it, great. That's just a quick example. Well, it example. Let's do another one here really quick. What and we'll make this

[24:26] one even faster. So, what is this? 2772 total land uh in Fairfield, California. It is 1638 square feet. It's only listing a $6,000 gain, but it looks like it's pretty beat up. And how much are we budgeting for

[24:43] rental for this. It's about 300 square feet lower. Might be a little low. Let's go see where that after repair value sits. Just my initial reaction is I'm probably going to be closer to about $55,000 on this reno.

[24:58] I definitely got to paint the outside. I got to do some work on this one. So, uh okay, with that said, let's go make sure I get the right address here. This is 2772 Toland Drive. Okay, it is listed for

[25:13] 564. It's actually listed for 40 grand more than the other one. Well, probably because it's not against the freaking freeway. the freaking freeway. That's all right. So, let's go see it.

[25:26] Sold. Yep, there it is. Off the freeway nicely. Okay, perfect. Let's remove the boundary. Let's go to sold around here. And this is Toland, Toland, Toland. open here. So, what do we got on this? This is a

[25:44] 7,000 sq ft lot. Yeah, it's about 8 years older. So, we're in an older hood. Not as new. It's only been on the market for 7 days. Oh, look at this. It's a bank foreclosure. How ironic. We were just talking about the lack of

[25:56] distressed sales. Well, we just found ourselves a foreclosure. Been on the minimum 7-day waiting period, so I'd have to call up the agent and see if they actually have offers on this one. Um but I'm kind of curious about this.

[26:09] Um but I'm kind of curious about this. So, let's go to sold. Again, this is a 1638 sq ft or let's go to sold. Okay. Now, oh look at that. 1638, 12 days ago, 525. Yeah, but it's also a fixer.

[26:25] Okay, so the fixers are worth about 525, and that's what it sold for. I wonder if that one resold as a flip. Nope, might be in progress. Uh oh, hold on. Let's make sure we have our square footage recalibrated here.

[26:40] There we go. And we're going to go sold. Apply. There we go. We got our filters in applied. Okay, perfect. So, what do we have in this neck of the woods over here? Well, we've got a 500

[26:55] woods over here? Well, we've got a 500 sale, a 525 sale, pretty low over here. These are This one has no details or pictures, so we can only assume that these are the fixer prices. What do we got here? March. Oh, this is neat. 625

[27:13] Zillow indicating it's a little bit of the higher end of the market. 8,700 square foot lot, that's similar built in '79, that's similar. It's about what, 80 square feet more than this one off the top of my head? Similar. 58 photos on

[27:26] realtor.com. Oh, would you look at that? Remodeled, baby. Ah, Chip and Joanna Gaines style. New flooring, updated kitchen, lighting, staging. Not

[27:39] that staging adds value. Baseboards, paint scheme. Still carpet though. New vanities in the bathroom, that's cute. And nice backyard, new concrete as well. Roof looks pretty dang good. So, 625 is the top of the market for this puppy.

[27:53] So, 625 and I got myself this uh fixer that keep looking at more comps, but there's a pretty easy high water mark, right? So, easy high water mark. Let's go back to the app.

[28:07] App tells us this is worth 611. I'm going to go to the top of the recently going to have remodeled a property like I showed you in the prior part of this video, I'm probably going to be around 625 as well. Uh renovation

[28:23] though, a little little aggressive here uh being at 40. I'm going to go closer to about 55 thousand dollars. There we go. That doesn't leave me a lot of meat on this bone. So, to me, even though this

[28:35] is an interesting one, I know I'm not going to prioritize this deal over other ones. And if you remember what this deal told me before I did any adjusting to the after repair value or the renovation budget. Before I did any of that work,

[28:48] my gain is let's say that's 6,000. Before I did any of that work, the app Before I did any of that work, the app told me $6,200. We got within $100 >> [laughter] >> That's pretty That's pretty incredible.

[29:01] Uh and so what's remarkable about this app is we actually uh have it to where it also tells us how much money you would lose if you bought deals. Uh I have to say I I made the decision for now to disable that

[29:16] because we literally have every single property that's on the market ranked. And if we don't show it, it's probably because it's negative. >> And there are a lot of negative, and I don't want to get a lot of angry phone

[29:29] calls. So we're starting with what we think are good starting points of good deals. And our algorithm's going to improve over time. It's already very good. Uh our efforts are going to improve over time. I think Not saying

[29:43] great start, and it's only going to get better from here. Now the cool thing is you can also in the app go to the investor update page, which is very exciting. So uh remember all you have to do is you just have to

[29:55] flip the terminal over, so you go from the Homes AI terminal. Uh at the very top you see it says terminal. We got the little home, and then you got stock. Go to stock. This is where we have uh equity-related updates, which includes

[30:07] equity and House Hack. So under investor updates, that's where you see data and You can see the investor updates that basically I'm about to read to you. So you can read them yourself on the Meet Kevin app. Keep in mind, if you have not

[30:23] yet used it, a lot of people are loving the desktop version of it. Just sign up on your app first on your iPhone or Android. The easiest thing to do, Google. That's what I do. That's what most

[30:36] people do. And then that way when you go log in to the online app.meetkevin.com, you can see the same stuff. You could go to the data tab, you could you know, sort for an investor updates, the data on the Morgan Stanley on housing info.

[30:49] When you click on this, what do you get? Oh, there's the podcast, it's right there. You could utilize the Alpha Wire service, which is right here, wire service on news updates. You could utilize the stock AI feature on, you

[31:02] know, what we think companies are worth, potential, you know, price targets based on PEG ratios, whatever. You can even chat with us if you have questions, this is coming soon, but in the community tab in the app,

[31:15] coming soon to the desktop app. Obviously, um that said, oh wait, invest yeah, investor updates is right here. Yeah, here. So, let's just go through it together. Look at this, we'll literally

[31:28] read it off the app right here. So, here is the House Hack update section. We have uh three components of the company that I think are really worth paying attention to. Uh the first components

[31:41] are the portions of the company that make money now. and in-house property management, which we started in 2023. When we started the company in 2022, we said we would start that in 2023, and we did.

[31:55] We did also say that we would begin developing accessory dwelling units and real estate development. We finished our first two at the beginning of this year. completed that as well. When we first started the company, we

[32:08] software and our own proprietary artificial intelligence, but we started uh the release of our House Hack early beta uh for the Homes AI software at the end of 2025. That's what you just saw

[32:23] uh here, and we just yesterday released the valuation feature, because previously, it used to just be uh it used to just sort deals by more or less likely, rather than do a budget for the renovation and what the property is

[32:38] actually uh potentially worth. If you look at the uh Alpha membership and the courses, that was acquired by House Hack and Reinvest in late 2025 for $0. Um

[32:51] Should make money in time. This is the next component for the company. So, this is one component, three tiers of the company, right? So, three tiers we see now. Next is should make more money in time. We think the Homes AI subscription

[33:05] will make a lot of money over time as we perfect it. And we think we can sell this business to business to real estate agents as well. I think it's very useful and custom branded for them, so agents can use it in a custom branded way. But,

[33:17] we'll we'll work that as we perfect the actual product. We're very, very early. The Reinvest stock uh AI subscription, tentatively late 2026 for both of these. Possible new fundraise in late 2026. No

[33:30] And this is certainly not an offering. No offering available right now. financial services. That's more like 2027 to 2028. And then of course there are always IPO goals, apps in a recession, and and you know, obviously

[33:44] investors in the company, so we can never guarantee it. Uh but these are the goals. Now, other meaningful updates worth noting that the company now operates at a positive operating cash flow. It's really started in the fourth

[33:59] and first quarter, so the fourth of 2025 and first quarter of 2026. This basically just means we collect more cash than we spend. Now, because of GAAP accounting rules, we have to butter out uh some of our uh income over 2 years

[34:13] revenues. So, in our financial statements, we have to butter those out over 2 years. So, even though we could get a million dollars in the span of 3 months in cash, we might only be able to recognize a million dollars divided by

[34:27] recognize a million dollars divided by 24, about $41,000 of that. Just as a quick example, right? Uh that's just GAAP accounting rules rule sets.

[34:39] Uh investor capital now though doesn't get burned on SG&A, R&D. We are essentially self-sustaining, which is really, really exciting and hopefully it Uh this now enables us to reinvest capital

[34:52] capital into our other ventures. Which first is first. And this is why we also renamed the company Reinvest because it's real estate first. Wedge deals, new construction development, right? New

[35:05] construction developments in the future we'll probably do even more of that. Then we reinvest into software and artificial intelligence. And then we can money into treasuries or securities, whatever, right? That's really just

[35:17] in case a good deal or an opportunity comes up. Now, each of these three sectors above here has grown meaningfully in the last year. One year ago we only had a software idea and rental properties.

[35:30] Today we have more rental properties, built ADUs, construction progress, software, our own proprietary AI, a lot. Uh I mean, in fact, at the end of last update over here, at the end of last year we acquired, renovated about uh and

[35:43] properties. We also substantially reduced our G&A. Our G&A cost went down from uh down about 65% between 24 and 25. Average daily time on our app has

[35:56] skyrocketed 6.8x. We have a 108% increase in monthly active users. That's more than double year-over-year on our app. We are uh also in progress in getting it

[36:10] getting the MLO licensing. We've expanded the development team. Uh those already noticed that. Uh we've continued to pay interest to our bondholders, our convertible bondholders. These are the totals we've paid so far to them.

[36:27] Uh and everybody's been paid. Uh, more updates are coming, obviously. data feed speeds, new construction, red flags, busy roads, golf course adjustments, better stronger algorithm. Today should be the worst ever, right?

[36:40] Can't wait to show you what's next. Uh, over here, this was the post I made Homes AI, which you just saw. This is a excited about. I also noticed the bullets apparently didn't transfer to

[36:54] that. Uh, because, um, it's supposed to have could see right here on the app. But apparently our web app doesn't like bullets yet, but we'll get that fixed. All right, it's all new and we're

[37:09] building it. It's a startup, right? So, what else do we have? We have, uh, the Reinvest tool. We talked a lot about that already. The Investor Update tool, that already. The Investor Update tool, the Alpha Wire, uh, the Stock AI covers

[37:21] over 2,000 stocks already and we're continuing to refine that for red flags and green flags and yellow flags for public securities, which a lot of people Uh, our primary allocation will continue to be reallocating to real estate. I

[37:34] actually want to stress that because, because I think it's so valuable. We are not a startup that when we raise money, we turn around and light it on money, we turn around and light it on fire on more salaries or more whatever.

[37:48] We actually, it, in my opinion, and this is what we've been doing and I expect it We make money with what we're doing. We get rents, we pay our, you know, cost goods sold for our software revenue. And then we have operating cash flow

[38:06] increase our purchases of investments with. So, to me, this isn't take every dime and grow this company as fast as freaking possible. It's more of a Berkshire Hathaway model, where Berkshire's got the insurance float, we

[38:21] reinvest profits from real estate and software and buy more real estate cuz we love the stability of real estate. We think that really gives us strength and Obviously, anything could happen. You know, maybe maybe there actually will be

[38:35] a real estate crash. I don't know. But given that we don't have any bank debt terribly worried about it. We're pretty dang conservative. And so our primary allocation will continue to be reinvesting to real estate. A small

[38:48] allocated to public securities. It's less than a million dollars today. Uh we did. At the end of last year, we also instituted a stock comp plan. It's worth noting that those milestones don't start until the company is worth $200 million

[39:03] and they go all the way through $10 billion. So that's sort of like the moon shot. Like, yeah, let's turn House Hack into a $10 billion company. I think we could do it. But then again, I don't know what the odds of that are,

[39:16] >> right? Like I hope we can do it is is the better way I should put it. I think the road map we have now makes me the most confident first came up with the plan, I'm like, man,

[39:28] man, this is a crazy plan. Now I feel even more confident than I did then, but let's just say, you know, there's a lot then and there's no guarantee we could pull it off. Duh.

[39:40] and yeah, that's it. So I'm really excited about helpful for you. I mean, you got an update on the market, you got an update on how our app works, and you got an update on the company all in one. Uh as

[39:54] always, thank you so much for supporting the channel. If you have any questions for us, you can post in the community tab inside the Meet Kevin app. Just community tab. We're just now starting to build it, so

[40:07] on the community tab cuz it's only been out for a short period of time. There community tab right now, but we expect it to grow over time. Uh and questions. You can also privately email us at [email protected] or

[40:23] Doesn't matter, it goes to the same place. Thanks so much for being here, well, almost the same place. Thanks so much for being here. next one. Goodbye and good luck. >> Why not advertise these things that you

[40:35] knows about this. >> We'll We'll try a little advertising and >> Congratulations, man. You have done so much. People love you. People look up to >> Kevin Paffrath there, finance columnist and YouTuber, Meet Kevin. Always great

[40:47] and YouTuber, Meet Kevin. Always great to get your take.