Fractional-Ownership Platform for Real Estate
Zeehaus is an online platform that makes buying a home more affordable.
It enables a process called equity sharing, which connects homebuyers with investors who purchase shares of properties and collect “rent” from the buyers. In doing so, this company pairs homebuyers who wouldn’t otherwise be able to afford a home with investors seeking to invest in real estate.
Sky-high mortgage rates, rising property values, and crushing inflation has kept many prospective buyers from affording a home. Even the typical twenty-percent down payment is out of reach.
At the same time, those looking to invest in real estate often don’t have the capital to purchase an entire rental property.
That’s why Zeehaus launched its proprietary fractional ownership platform. This enables users to buy a home with a five-percent initial ownership stake. Buyers can then purchase one percent in additional ownership equity every year for the first five years, with the eventual goal of receiving a mortgage to finish buying out the property.
At the same time, investors claim ownership of a property by buying tradable shares at $100 increments. This happens as each property is registered and titled. Each investor’s proof of ownership is recorded on the blockchain.
To facilitate these transactions, Zeehaus takes care of complexities like legal documents, funding, management of ownership, and property sales. The company’s “Click and Purchase” model enables investors to purchase shares of residential properties, receive rental income, and trade shares on the blockchain.
Zeehaus generates revenue primarily through management fees, investor fees, and funding/application fees. The company launched its platform in the San Francisco area and is now ready to expand. Target areas include Dallas, Santa Fe, Los Angeles, Phoenix, and Seattle.
Six million properties are sold every year in the U.S., at an average price of $543,000. At an estimated revenue per property of $3,600, Zeehaus’ total attainable market is $216 billion.
In addition to its launch, Zeehaus has a partnership with realtor.com, a property-listing website, which delivers active listing data for properties. This enables Zeehaus to simplify the buying and investing process, and create an additional revenues source through referrals.
In addition to his role with Zeehaus, Karl is a principal at Eaton Square, an M&A and capital-services provider focused on the technology and services sectors.
Previously, he was Director of Renewable Capital, a company providing debt capital and advisory service. And before that, he worked for Grant Samuel and Associates, an investment-banking company, as a debt-related advisor.
Earlier in his career, he was an associate director with Rand Merchant, a banking business. He also served as a senior manager with Nedcor Bank, working on corporate management reporting.
Karl holds a Bachelor’s degree in Accounting from the University of Witwatersrand and an MBA.
Justin has twenty years of experience in data analytics, consulting, and real estate. In addition to his role with Zeehaus, he is a licensed real estate agent.
Previously, he was a manager with Accenture, a professional-services firm. Before that, he was a stock trader with Worldco, a financial company. He began his career as an analyst with Merrill Lynch.
Justin earned a Bachelor’s degree in Electrical Engineering from Cornell.
Abhijeet has more than twenty years of experience in software development. He began his career as an associate software engineer with Dell, then was a systems engineer with Virtualwire Technologies, a wireless-services company.
He earned a Bachelor’s degree in Information Technology from Maniple Institute of Technology.