# SplitBrick Financial Model Fractionalized real-estate investing platform where users crowd-source property acquisitions and co-own shares ("Bricks") via per-property LLCs. - Canonical: https://finamodel.com/startups/splitbrick - Excel download: https://finamodel.com/startup-models/splitbrick.xlsx - Category: Fintech - Model type: SaaS ARR / Valuation - Funding round: Angel - Funding: $200K - Founded: 2023 - Geography: USA (any market; examples show Philadelphia, Houston, Miami, LA, Kansas City) [DECK slides 13–16]. - Customer: B2C ## About the company SplitBrick is a fractional real-estate investing platform where users crowd-source property acquisitions and co-own shares, or Bricks, through property-specific LLCs. It gives smaller investors access to direct property ownership and potential rental income. The platform earns a 5% onboarding fee at acquisition, a 10% share of net rental profits, and may add a 1% commission on future Brick trading. There is no annual AUM fee, so transaction volume and property performance drive its economics. The model should forecast properties listed and funded, average acquisition value, onboarding-fee yield, occupied rental income, property expenses, and profit-share revenue. A future secondary-market module can add trading volume and commissions, while legal, property, and investor-servicing costs remain visible. ## What's included - 5-year monthly revenue build with stage-appropriate growth assumptions - Full P&L, headcount plan, and operating-expense schedule - Cash-flow statement, runway, and burn-rate tracking - Valuation via exit multiple with a DCF cross-check - Returns analysis with MOIC and IRR - Unit economics including CAC, LTV, payback, and cohort retention ## Product & value proposition - 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. ## Market - 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. ## Revenue model 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. ## Traction & metrics - 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. ## Unit economics - 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. ## Competition / moat 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 & funding ask / use of funds **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. --- ## Recommended financial model - **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. ## Frequently asked questions ### Is the SplitBrick financial model free? Yes. The SplitBrick model is a free Excel download with live formulas. ### Can I change the assumptions? Yes. The workbook is editable and its live formulas recalculate when assumptions change.