SP

SplitBrick Financial Model

• Users propose properties; other users bid collectively via a crowdfunding algorithm that discovers market price in real time ("ISO" - Initial SplitBrick Offering).
• Platform acquires the property; each property is held in its own LLC; ownership is pro-rata to Bricks held.
• Owners can trade Bricks (planned feature, pending legal completion) and govern properties via weighted democratic voting.
• Integrated with Plaid (banking verification) and Dwolla (transfers); 2FA via email/authenticator.
• Value prop vs. alternatives: lower fees than RealT/Here/Landa; full property-choice autonomy; no accredited-investor requirement.

• 23% of Americans say real estate is the best way to grow personal wealth, yet only 12% actually invest in it.
• 40% of Americans have no financial investments; of those: 47% cite lack of funds, 19% don't know how to invest, 16% fear risk.
• 14.1M individual landlords own 1–4 units in the US (2018 data) - SplitBrick's target supply-side.
• No explicit TAM/SAM/SOM dollar figures in deck.

All fees are on a per-property basis:

• Onboarding Fee: 5% of property acquisition price (charged at ISO close).
• Profit Sharing Fee: 10% of net rental income/profits distributed to owners.
• Trading Commission: 1% per Brick trade (feature not yet live, pending legal).
• Annual AUM Fee: 0%.
• Gross Revenue Fee: 0%.
• Offboarding Fee: 0%.

Revenue events per property lifecycle: (1) acquisition → onboarding fee; (2) ongoing rental income → profit-share; (3) secondary Brick trading → commission.

• Revenue: $0 (no live transactions; MVP only).
• Email signup list: 96 prospective investors acquired via landing page (2022 Q3).
• Total invested by co-founders: $205k (bootstrapped from savings).
• MVP web + mobile platforms completed 2023 Q2.
• Demo data visible in app screenshots (NAV $1,935,890.81; sample properties in Philadelphia, Miami, Inglewood, Houston) - these appear to be test/demo data, not live AUM.

• No CAC or LTV figures in deck.
• Implied gross margin structure:
• Onboarding: 5% of property value (likely near-100% gross margin after due-diligence/legal cost).
• Profit share: 10% of net rental income distributed (platform skims before payout).
• Property manager fee shown in demo: 10% of gross rent; this is passed through to the elected property manager, not retained by SplitBrick.
• No explicit CAC, LTV, or payback period stated.

Competitors named: RealT, Here, Landa. SplitBrick differentiators:

• Crowd-sourced property selection (vs. sponsor-curated at competitors).
• Democratic governance / voting rights (vs. no autonomy at competitors).
• Lower fee stack: 0% AUM, 0% gross revenue, 0% offboarding vs. RealT (1%/2%/10%) and Here (1%/25%/N/A).
• Real-time market price discovery algorithm for valuation (claimed novel).
• Open to non-accredited investors (vs. some competitors restricting to accredited).

Team:

• Veb Anand (co-founder): CS + Business Economics, Caltech 2019; data science/software dev at analytics startup; equities analyst at hedge fund ($48B AUM).
• Pedro Ojeda (co-founder): Bioengineering Caltech + Immunology Harvard; founder of consulting firm; private real estate developer.
• James Fox (engineer): CS, University of Nebraska 2020; full-stack dev (BuilderTrend, Ideal Industries, QSRSoft).
• Maria Ojeda (legal): JD + LLM in Real Property Development, University of Miami; real estate acquisition/leasing counsel.

Funding ask:

• Target: ~$200k seed round.
• Use of funds: ~1 year runway + accelerated marketing ($5–10k) + legal work to enable Brick trading.
• Current burn: ~$160k/yr (1 FT dev $120k + legal/accounting ~$12k + other ~$15k + $0 marketing).
• Total self-funded to date: $205k.

• Archetype + why: Marketplace / platform P&L model. SplitBrick earns transaction fees on property acquisitions (onboarding) and a revenue-share on rental income, plus future trading commissions. This is closest to a real-estate marketplace with a recurring revenue tail (profit-share) per property on platform. Not SaaS (no subscription), not a REIT (they don't hold assets on balance sheet long-term in their own right), not a 3-statement operating model at this stage. A marketplace GMV model (total property value onboarded = GMV; fees = take rate) is the right frame.

• Forecast horizon & granularity: 5 years (2024–2028), monthly for Year 1 (pre-revenue ramp), annual thereafter. Company is pre-revenue so early months are burn-only.

• Key drivers & assumptions:
• Number of properties onboarded per month - start 0, ramp to 1–2/month by end of Year 1 post-marketing spend; rationale: 96 interested investors on list, single team, legal complexity limits throughput.
• Average property acquisition value (AUM per property) - $500k–$1M; rationale: demo properties in deck range from $289k to $4.2M market cap; mid-market single-family/condo likely target for MVP.
• Onboarding fee rate: 5% of acquisition price.
• Average gross annual rent per property - 6–8% of property value (cap rate); rationale: demo properties show cap rates of 1%–13%, with a mid-market assumption of 6%.
• Profit-share fee rate: 10% of net rental income; net rental income after property manager (10% of gross) and taxes/misc expenses.
• Trading commission: 1% per Brick trade - zero revenue until legal processes complete (Year 2+); trading volume 5–15% of Bricks outstanding per year.
• Brick price per property: property value / number of Bricks issued; deck demo shows 1,250–10,000 Bricks per property.
• Burn rate: $160k/yr fixed; add $5–10k marketing starting Year 1; headcount scale +1 dev in Year 2 at ~$120k, +marketing hire in Year 3.
• Raise: $200k seed; no mention of equity terms or valuation.
• Customer acquisition: email-list conversion (96 leads) → first ISO backers; organic + paid social thereafter; CAC not in deck.
• Churn / re-investment rate: low churn given illiquid positions until trading enabled; model as stickiness proxy.

• Scenarios (Base / Bull / Bear - which variables flex):
• Base: 1 property/month by Month 12; avg $600k property value; trading enabled Year 2.
• Bull: 3 properties/month by Month 12; avg $800k; faster legal resolution; trading live Year 1 H2.
• Bear: Legal delays push trading to Year 3; only 0.5 properties/month; burn exceeds $200k raise, requiring bridge.

• Required sheets / outputs:

1. Assumptions - all drivers with Base/Bull/Bear toggles.
2. Property Pipeline - monthly new properties onboarded, cumulative AUM on platform.
3. Revenue Build - onboarding fee revenue, profit-share revenue, trading commission revenue, total net revenue.
4. Opex / Burn - headcount, legal, marketing, other; total monthly burn.
5. P&L - Revenue less Opex; path to breakeven.
6. Cash / Runway - starting cash ($200k raise), monthly net cash flow, months of runway.
7. Dashboard - KPIs: properties on platform, total AUM, monthly revenue, gross margin, runway.