Ownable

Author

This document is created by Jatin

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Purpose

Image of Properties

For Us

• Do Good:
  • Incentive alignment with tenants (property care, rent, maintenance).
  • Premium rent over market price.
  • Lower vacancy with tenant interest.
  • Potential government support.
  • Streamlined exit with a potential buyer pool from tenants.
  • Promote ownership and grant opportunities – Wall Street Single Family Residences.

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For Tenants

• Savings Match:
  • Cash match of $5,000 – $10,000.
• Build Financial Stability:
  • Coaching, financial reporting, credit history building, and savings.
• Long-Term Generational Wealth:
  • Through property ownership.
• Move-In Flexibility:
  • Reduces moving expenses.
• Try Before You Buy:
  • Experience the neighborhood, lifestyle, and expenses before purchase.
• Exposure to Market Upside:
  • Access equity gains before ownership.

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For Investors

• Return on asset-backed risk profiles.
• Align investments with social good initiatives.
• Investments in affordable housing projects backed by city initiatives.
• Asymmetric upside by investing in a hybrid operating company/property company model.

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Roadmap

1. Marketplace Platform:

   • Eliminate traditional buying/selling brokers to reduce fees.
   • Build a vetted buyer pool.
   • Streamline the selling process to lower commissions from 9% to 4%.

2. Tech-Enabled Management:

   • Rental and listing portals for properties purchased.
   • Partnerships with mortgage lenders and insurance companies to reduce friction.

3. Government Partnerships:

   • Work with Chicago Housing Trust and the Department of Housing for accessibility and government backing.
   • Increase overall housing stock.

4. Mortgage Safety Measures:

   • Introduce forbearance options for larger safety nets.

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Business Model

Proposition of Profit

1. Example Investment:

   • VC fund provides $5M.
   • Ownable buys 16 properties for $4.8M, with $200K in closing costs.
   • Rent collected: $2,500 per unit × 18 months × 16 units = $720,000.

2. Revenue from Mortgages:

   • 16 mortgages issued as servicer.
   • Revenue from interest (0.04 compounded) + loan origination fees.

3. Additional Revenue:

   • Profit per property sale ($5K per property × 16 properties) = $80,000.
   • Sale commission on mortgages (1% – 3% of value) = $50K – $75K.

4. Total Profit:

   • Estimated $905K minus operating expenses.

Additional Income Streams

• 15% commission on insurance and contractor work.
• Materials assurance and dedicated market brokers.

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