Nes.city: necessity to eliminate rent

A network of rent-to-own shared equity properties, offering liquid equity transferring as if the tenant is investing into a 'green REIT' fund, which will crowdfund sustainable urban development in communities. The root problem is wealth inequality, poverty, and all other urban problems which stem from them, including crime, low education, and of course high housing costs.

Our solution is a platform that allows real estate developers to transition to a lease-to-own shared economy, allow users to manage their equity & finances, to partner with community organizations & Corporate employers for Social Responsibility programs to include shared value equity benefits, changing the way philanthropy & CSR invest in communities.

A paradigm shift in society in real estate has the potential to change the lives of billions of people globally, and transition our lives towards a world of abundance.

The biggest root problem that causes a majority of challenges in the world: inequality of wealth, inability to gain equity in real estate. Most urban problems originate due to the lack of via financial stability. From crime, health to education, we see the current societal standard of renting as an extractive, almost colonialistic way, of pure profit from resource-scarce communities, offering them no other option. At least 1/3rd the population in the world will be stuck for a majority of their lives giving 1/4th-1/2th their monthly income to others just to put a roof over their head, while the majority of them are already living paycheck to paycheck, not even putting into savings 10% of their income. 

Plus, most of this renting population is unable to get a mortgage, but housing prices are so high in most urban city centers, even a mortgage wouldn't help them if they even have the chance to afford paying 2x the cost of the home for the next 30 years of their lives.

Segregation happens via real estate, bad policies are created because people who are living paycheck to paycheck cannot do enough research or understand, and these policies are environmental too.

TAM: 1/3rd of the world is renting homes

SAM: Even though 80% of americans are living paycheck to paycheck, 100 million are living "near-poverty", only 43 million are in relative poverty.

And these people are living in affordable housing, which 90% of the case is still rental units (besides the lucky few who can "afford" a mortgage (which has them still pay 2x for a home over 30 years)

So when we give them the opportunity to convert a % of their monthly expenses on housing into their future wealth, it gives them the opportunity to consider more on the terms of their financial well-being, and to even invest into their neighborhood/community via a pay-for-success model (in this case, we are also serving municipalities)

But to really understand their needs individually, we need to discuss & collaborate with community organizations on the ground, as each suburb has their own specific problems that just wealth inequality itself won't solve.

First of all a platform for managing digital assets, finances, a map of locations that are being leased-to-own, and a view of "opportunities": neighborhood projects, side gigs, learning opportunities, and events. But the bigger vision is a global network of rent-to-own properties, offering liquid equity transferring. 

This will be as if the tenant is investing into a 'green REIT' fund, which we will use the crowdfund purchasing new properties, or reinvesting into sustainable urban development, and social entrepreneurs. The vision is to make a new type of bank persay, that offers an AirBnB+WeWork but connected with more community initiatives, like co-living spaces do, however we want to focus on spurring economic development and sustainability for low-medium income communities.

We're changing the paradigm of real estate, turning tenants into co-investors, while changing corporate social responsibility from just being a face to giving them the ability to really eliminate poverty.

In the startup world, there are at least 10+ other startups 'reinventing' rent-to-own as fintech companies sharing equity, helping with mortgages, downpayments, etc. There are plenty of real estate crowdfunding websites, and 10+ ones using blockchain/crypto tokenization. And of course there are too many NGOs around the world who help with affordable housing, but then again 90% of "affordable housing" is still just more rental properties, improving the quality of life with better appliances, but it isn't really solving the issue of wealth generation.

Economics of rent is supply and demand, more housing available prices drop, so technically landlords can decrease the current prices, though most of the time raise the price more based on what their neighbors are charging than actual costs. We’re saying keep charging this 'rent' but convert 10% of the profit towards equity, and use this equity to crowdfund a building that you and the tenant can co-own.

Almost none of our competitors have the same vision as us to eliminate 'rent' from the world, as no one sees the need for equity to be transferred to different properties, instead of just settling down into one location for 20+ years.

Our shared equity vision has the potential to work with higher educational institutions, NGOs, and municipalities, changing the way halfway homes, orphanages, and even pension funds operate.

It will start off as a platform:

Leverage simple algorithms to track equity growth, land appreciation value, & profits gained, while allowing the tenants to reinvest some of the equity they have gained into their community, with the goal to improve the quality of their neighborhood, while perhaps getting rewarded by the municipality or impact investors/foundations on a pay-for-success partnership scheme.

Eventually we will scale to leverage blockchain, for smart contracts, transparency, & immutability, because we all know there is a lot of corruption in real estate. Also, machine learning/AI could analyze properties that could be leveraged to maximize a return while managing the needs of residents & employers, and further integrate more shared equity growth and distributions of wealth.

Super long-term, we could partner w/ IoT into apartments to scan them and notify the tenants which areas are in need of repair or could be upgraded to improve the quality of life and land value. This will of course integrate crowdsourcing, and not just machine learning, to create a sense of community. Our CTO even wants to implement the token economy, security tokens and utility tokens, but this is to be discussed when we have more advisers and a legal team.

90% of affordable housing is still rental units, improving the quality of life for tenants, but not helping them actually gain wealth. We are bringing real impact to the world of real estate, with the goal to eliminate poverty.

Most deaths in the US are in low-income urban areas. The worst education, test scores, health, and drug abuse, also are in low-income areas, where there is not only a correlation, but causation, that wealth inequality is directly tied to these outcomes. Even relocating someone in poverty into a medium income area can improve these results exponentially. 

Simply changing the mindset of people that they are no longer a tenant wasting half their income getting someone else rich, into being an investor in their housing, and into their neighborhood, could have exponential results. 

No one yet, still a platform developing it's MVP. We are talking to 2 affordable housing developers to create a POC, each with thousands of homes they are managing. 1 NGO within their network has helped over 1 million youths with entrepreneurial & finance education.

in 1 year we could serve maybe 50,000 people after we get funding, moving past POC/Pilots towards full implementation.

in 5 years we could serve 10,000,000 people realistically if we can create the coalition and leverage the funding available in opportunity zones.

1 year: finish the platform, be implemented with many affordable housing developers, municipalities, and talks with corporations via CSR benefits programs.

Year 5: Manage our own 1,000 properties leveraging our network so 10,000 people can be growing their equity and be turned from a tenant into a co-investor, while our affordable housing/municipality partners would have 10,000,000 people understanding our vision and working towards it.

In 10 years we could be serving over 100,000,000 if we can get as many other NGOs involved to create a global coalition and pool our resources to solve this root problem.In 10 years we could be serving over 100,000,000 if we can get as many other NGOs involved to create a global coalition and pool our resources to solve this root problem.

Greed.

Potentially regulations regarding taxes & investment for a tenant.

Sudden burst of construction, creating so much supply of housing that there is no demand and all housing is affordable.

Even AirBnB was kicked out of cities..

And climate change might make a muck of our vision.. 

Hard work, create a coalition.

We have an NGO registered.

We will have to set up multiple offices because of our current HQ is in Israel and some countries, people, and organizations are against this country, including many UN bodies.

1 full-time - the founder.

1 part-time co-founder - The CTO

1 part-time advisor

And a bunch of other potential co-founders who still haven't gotten back to me about working on this together :(

Because no one else in the world wants to do this.

I have failed a few startups, and have risen in the bizdev ranks in startups over 10 years now.

Have mentored startups at hackathons, competitions, and mostly focused on social impact.

Talking to many organizations, no LOI yet.

Corporations that showed some initial interest: Coca Cola, Target

NGOs that we are talking with slowly: GroundedSolutions

Our business model will start off B2B, offering a SaaS platform for affordable housing developers to transition from either offering rental properties or mortgages, to something in between, the rent-to-own space with shared equity.

From there, we will raise money to finance our own property ownership, mostly from impact investors and affordable housing developers, and of course Opportunity Zone funds, and technically be B2C, offering affordable housing to tenants, but would work with NGOs, foundations, & municipalities, so to a certain degree, we will also be B2G2C(affordable housing with governments), B2F2C(affordable housing w/ foundations/ngos), B2U2C(student housing), B2B2C(CSR benefits).

Initial fundraising for our startup would be via venture capital, grants, and selling our platform as mentioned above. However to be sustainable, we would need to transition into property management and ownership.

We will raise investment capital to invest in real estate, while the monthly tenants' payments would normally pay off the initial investment, as well as towards operation fees, technically we will use the money to invest in more properties.

Eventually after 10 years we expect our amount of properties to perhaps double, and within that time we will have sold off some of the properties and split the appreciation between stakeholders involved.

We also will have some co-working spaces, and offer help to small business owners with loans, or startups with equity, and in this capacity will have the potential to make some exits.

Perhaps finding the right co-founding team for starters.. funding could help with that. Even being listed on the site could be a huge help with getting the ball rolling in getting grass roots movements to start, to pique people's interest that we can eliminate rent. 

Obviously mentorship, technical expertise, media and conference exposure, and business and entrepreneurship training is more than always welcome.

All of the above obviously, but I think "legal" isn't enough when sometimes there are government regulations which might be barriers, especially when considering someone wants to scale globally.

There is even a new type of technology sector that works on this: regtech, or regulation tech. It is legal yes, but it's more than just legal. 

I need a coalition to create the change... from financial institutions, impact investors, NGOs, municipalities, real estate developers, philanthropic foundations, family offices, to universities, pension funds, community colleges, home owners' associations, and did I forget to mention major corporations that invest in CSR?

We eventually need to create a fund and start purchasing real estate, then offer it as rent-to-own, while sharing the equity and the costs. 

We would use the prize money to further fund our development, and expand our team to discuss with more impact investors, municipalities, foundations, & NGOs the benefits of eliminating rent, to eliminate poverty. We will need to spur a grassroots movement to inspire community organizations, like greenpeace was able to do.

We need to petition governments to create legislation that creates a new type of REIT, that allows tenants in the buildings to take place and that the profits can go towards purchasing more properties, in order to eliminate homelessness, and reduce the price of housing for refugees, veterans, people in poverty, etc. 

We would use an AI/machine learning to analyze which properties throughout the US Opportunity Zones are the best to purchase to facilitate our next step in reducing 1/3rd of traffic on roads:

An AI algorithm that learns where certain people are interested in living, as well as their employer wants to be located, and to figure the best place for employees to move to to maximize their own personal income with still being able to bike to work. This relocation could also potentially be to other cities.

We would use the prize money to further fund our development, and expand our team to discuss with more impact investors, municipalities, foundations, & NGOs the benefits of eliminating rent, to eliminate poverty. We will need to spur a grassroots movement to inspire community organizations, like greenpeace was able to do.

We envision our platform being a go-to so municipalities can crowdsource ideas together with NGOs and neighborhoods, to improve them together, and sooner than the current standards. Even now a days, a pothole can be left in the street for months in many cities. 

We need to petition governments to create legislation that creates a new type of REIT, that allows tenants in the buildings to take place and that the profits can go towards purchasing more properties, in order to eliminate homelessness, and reduce the price of housing for refugees, veterans, people in poverty, etc.

When there is no poverty, there will be exponentially less barriers for minorities or people still in low-moderate income communities to pursue higher education.

Single mothers already get stipends for rent, but why not for rent-to-own? We suggest mini funds for rent-to-own networks of properties, and communities, of women supporting women, so they can co-invest in housing together, to even use one of the apartments as a co-working space, or a day care.

We would use the prize money to further fund our development, and expand our team to discuss with more impact investors, municipalities, foundations, & NGOs the benefits of eliminating rent, to eliminate poverty. We will need to spur a grassroots movement to inspire community organizations, like greenpeace was able to do.

We need to petition governments to create legislation that creates a new type of REIT, that allows tenants in the buildings to take place and that the profits can go towards purchasing more properties, in order to eliminate homelessness, and reduce the price of housing for refugees, veterans, people in poverty, etc.

We would use the prize money to further fund our development, and expand our team to discuss with more impact investors, municipalities, foundations, & NGOs the benefits of eliminating rent, to eliminate poverty. We will need to spur a grassroots movement to inspire community organizations, like greenpeace was able to do. Even refugees should be given the opportunity to start building their wealth while renting, to eventually be able to transfer it to their future home they own somewhere in the world.

We need to petition governments to create legislation that creates a new type of REIT, that allows tenants in the buildings to take place and that the profits can go towards purchasing more properties, in order to eliminate homelessness, and reduce the price of housing for refugees, veterans, people in poverty, etc.

We would use the prize money to further fund our development, and expand our team to discuss with more impact investors, municipalities, foundations, & NGOs the benefits of eliminating rent, to eliminate poverty. We will need to spur a grassroots movement to inspire community organizations, like greenpeace was able to do.

We need to petition governments to create legislation that creates a new type of REIT, that allows tenants in the buildings to take place and that the profits can go towards purchasing more properties, in order to eliminate homelessness, and reduce the price of housing for refugees, veterans, people in poverty, etc. 

We envision our platform being a go-to so municipalities can crowdsource ideas together with NGOs and neighborhoods, to improve them together, and sooner than the current standards. Even now a days, a pothole can be left in the street for months in many cities. 

We would use an AI to analyze which properties throughout the US Opportunity Zones are the best to purchase to facilitate our next step in reducing 1/3rd of traffic on roads:

An AI algorithm that learns where certain people are interested in living, as well as their employer wants to be located, and to figure the best place for employees to move to to maximize their own personal income with still being able to bike to work. This relocation could also potentially be to other cities.

We would use the prize money to further fund our development, and expand our team to discuss with more impact investors, municipalities, foundations, & NGOs the benefits of eliminating rent, to eliminate poverty. We will need to spur a grassroots movement to inspire community organizations, like greenpeace was able to do.

We envision our platform being a go-to so municipalities can crowdsource ideas together with NGOs and neighborhoods, to improve them together, and sooner than the current standards. Even now a days, a pothole can be left in the street for months in many cities. 

We need to petition governments to create legislation that creates a new type of REIT, that allows tenants in the buildings to convert a % of their rent towards equity in the REIT, and so a larger % of the profits can go towards purchasing more properties, in order to eliminate homelessness, and reduce the price of housing for refugees, veterans, people in poverty, etc.

Eliminating poverty will reduce crime exponentially, including gun-related violence.

Research shows a majority of gun ownership is in rural areas, while more than 70% of murders occur in less than 10% of the country, concentrated in low-income urban areas. A lot if this does has some drug-related causes, which again can be sourced to wealth inequality, low education, and neighborhood conflict.

We will leverage this data, and the prize money to further fund our development, and expand our team to discuss with more impact investors, municipalities, foundations, & NGOs the benefits of eliminating rent, to eliminate poverty specifically in these areas first, and find a way to relocate people with a history of violence to rural areas in a rent-to-own home with a stable job.