Mansion Group Inc. was founded by John Sutton in 2019. During his time at Red Ventures, John had become an avid real estate investor and had seen how broken the real estate space was for both single-family renters but also how inaccessible real estate investments were to the very people who used the product: on the investment side you had months-long application processes to get rental loans, high down-payments, no-data on other single-family rentals, banks not understanding short-term rental opportunities, and most things still done on paper. On the guest experience side, you had 90% of the rentals still run by mom & pop landlords or outsourced to local real estate agents for management, no technology to improve the experience, and most ignoring consumer experience to nickel & dime their tenants because their real clients were the investors. So he founded Mansion Group to create the inspired hospitality experience that creates long-term affinity AND provides access to the investment opportunities he knew the average consumer was missing out on.

At Mansion Group, we believe the next generation of companies are ones where users are transformed into owners. Mansion Group began its journey as a tech-enabled hospitality brand operating short-term rentals in Tier 2 cities for high-net-worth real estate investors before recognizing the massive opportunity to help unlock the $4.7 trillion dollar single-family rental industry for the next generation of investors, by turning our guests into owners.

Real Estate investing has traditionally been available to only the few high-net worth individuals and the process for any retail investor to gain access to the best assets is broken. We are on a mission to simplify real estate investing and give you the ability to participate in one of the best wealth-building tools on the planet through the click of a button, without any of the hassles of traditional real estate transactions or property management.

Mansion is democratizing single-family real estate investing to unlock a once unattainable asset class. Introducing ownership to the Mansion platform unlocks access to wealth creation for the average investor and a more significant affinity for the Mansion guest experience. A win-win-win. Through the Mansion platform, Mansion is the consumer hospitality brand + the consumer investment platform + the real estate brokerage for the digitally native.

The Full Real-Estate Stack

Living, investing, and ownership made simple and enjoyable for everyone, that's our mission and our passion. We launched with the core technologies needed to acquire strong-performing real estate assets and to operate a successful hospitality business for single-family rental homes, including proprietary property management system, direct booking and payments systems, data monitoring and machine learning systems to surface new home opportunities, and our own iOS & Android mobile apps for our guests to utilize for home access, concierge services, special offers, future bookings and more.

In 2022, we added our in-house furniture brand & design studio to offer upscale furnishings and interior design services to everyone under our "Mansion District" brand, while also creating healthier margins for our single-family rental homes which were all professionally designed and furnished historically by third parties. We also created and registered our in-house real estate brokerage for North Carolina to enable us to capture more margin on our real estate purchases and to begin thinking through products to assist our members in buying and selling.

In early 2023, we will launch Mansion Invest, our fractional real estate investment platform to enable anyone to own a share of upscale single-family rental homes and participate in cash-flows and home price movement over time.

In 2024, we hope to focus on two major areas of evolution. First, launching Mansion Hotels for Groups, small 5-10 unit complexes that operate under Hotel permits to allow for entry into destination markets where STR restrictions prohibit rentals (providing for a unique supply < demand opportunity). Second, we will work to integrate an ATS solution to provide for liquidity for our Mansion Invest members. A strong ATS partner will enable us to allow our investors to trade their shares of our assets on their timelines.

The Team & How We're Different

The Mansion team is a group of passionate technologies, marketers, investors and builders who are seeking to build a product we love and solve important jobs to be done by our consumers. We have an un-relenting drive to makes things better every day and believe it shows in our product and in our early results.

So that's the high-level overview. Want to dive deeper? We've had our team add every detail we could think of below, but if you have a question, please ask us in the Q&A section here on WeFunder and we will get back to you.

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A New Real Estate Brand for a New Generation

Mansion aspires to be more than an investment brand for single family rental homes, but to enable a new lifestyle for a growing audience of tech-forward real estate lovers and explorers. A business that brings simplicity, style and technology to the single family real estate space...starting with living, now investing, and growing into adjacent areas like design, buying, selling and more.

Opportunity: Why Single-Family Home Rentals?

Most aren't aware that the Single-Family Rental real estate market in the US is comprised of 14MM+ housing units strong and growing. Institutional investors steered clear of single-family rentals generally until Blackstone and Invitation Homes came on the scene after the 2008 housing collapse. Large investors saw operational complexity that would eat into their margins, but as technology has improved and marketplaces like AirBnB have come on the scene, single-family home rentals now present one of the best returns in the real estate space and large funds are rushing in. Mansion began by representing high-net-worth individual real estate investors before recognizing an opportunity to leverage our passion for consumer technology to bring this asset class to retail investors through an experience they are familiar with...think Zillow+AirBnb+Robinhood.

Earn Money while you sleep.

Passive income is one of the great wonders of the World...that plus compounding appreciation is why we believe real estate investing is an opportunity EVERYONE should have access to. Mansion has created unique approaches to home acquisitions plus technology led operations that lead to outsized returns. Mansion focuses on Tier 2 cities where we see a blend of tourism, migration, remote workers, and longer-term rentals that lead to stable revenues and long-term appreciation.

Rent, Invest, Own your real estate experience.

Mansion has a track record of success, but what makes us different is our aspirations of becoming the primary real estate relationship for our customers. Just as a bank aspires to be the primary financial relationship owner, Mansion will over time aim to expand on our rental and investment offerings to offer buying, selling, services, insurances and more.

Mansion Has a History...of 5-Star Reviews

Don't take our word for it, check out our history of over 1,600 5-star reviews (not everyone leaves a review unfortunately, but of those that do love us...85% leave a 5-star overall rating for us and it's only getting better at over 87% in 2022). We've hosted over 10,200 nights since we began this journey in 2019 across our portfolio, so to say we are experienced compared to our peers in this space I think would be an understatement. We've dealt with many of the craziness that comes with operating rental homes, but we've also developed the systems and technologies to ensure the bad things happen less often to us and to our guests and that we amplify the things people love...from the little gifts we leave behind to pet policies to our privacy-conscious sound monitors.

There's a reason short-term rentals (we call them "flexible rentals" fyi given a large percentage of our stays are over 30 days) are one of the hottest categories in the real estate investment space...the returns are outstanding compared to the revenues of long-term rentals. BUT, above and beyond the typical returns, based on AirDNA data, Mansion delivers over 45% higher revenues than even their systems predict for similar homes.

The "Mansion Invest" App Experience

The core of our business in 2023 is "Mansion Invest", our fractional real estate investment & ownership platform. Working to qualify with the SEC in Q1 2023 with CrowdCheck as our SEC lawyers & Dalmore Group as our registered Broker Dealer, our platform will enable investors to buy shares of our existing portfolio of SFR homes that are already operating (with real cash-flows to show) at launch. Mansion Invest is more than just the front-end, we are developing a platform that will allow for any real estate asset to be fractionalized and offered to investors. Want to learn more about the structure of a Series LLC and how it works? Let us know your questions here in the comments.

The Economics of Mansion Group

NOTE: These economics are estimates of future revenue streams based on assumed performance and expenses. Historical performance is not a guarantee of future returns.

Mansion is able to drive revenue throughout the lifetime of the customer's relationship with real estate.

Mansion and it's dedicated team has been creating meaningful revenue from the member experience from Day 1 by delivering World-Class products, 5-Star hospitality, and innovative business models to a target audience. We believe the foundation of a lifetime relationship begins and ends with delivering a consistently amazing experience.

Unique to our strategy, Mansion is vertically integrating the real estate experience. By starting with renters, turning them into investors, creating relationship to turn renters into buyers, and even providing goods and services to create the Mansion touch in our members eventual forever homes. Mansion will become the Real Estate brand of the Future.

Here are a few various revenue streams today and into the future:

Revenue from Mansion Invest Investors >

1. Acquisition Premium on Initial Offerings (ranging from 5-15% of the Total Asset Value of the offering…example, the total asset value of 922 Westbrook may be $850k before offering fees…Mansion would charge $42.5k to $127.5k.
2. ONE-TIME Mansion Founding Member Fees: Mansion plans to offer memberships that provide for early access to offerings and for discounted stays on the Mansion platform for $299 per year. These will be limited to 500 spots.
3. Mansion Memberships: Mansion is contemplating offering annual memberships at various levels that would encourage higher investments and/or more frequent stays in our properties. These are still in development.
4. AUM Fee on assets under management. Likely to range from 1%-2% annually, depending on the offering. This revenue stream is intended to offset costs to service investors.
5. FUTURE: Transaction fees TBD% on trades facilitated as secondary trades/offerings. This functionality is to be built in 2023/2024.

Forward looking projections cannot be guaranteed.

Revenues from Mansion Brokerage Buying & Selling of Real Estate>

1. Buyer Broker Commission on purchases of new assets for offerings. Likely to range from 2-3% Gross Commissions depending on the seller.
2. Seller Broker Commission on assets we decide to liquidate based on market signal and performance. Likely to be pre-agreed at the property level at 2-3%.
3. Buyer & Seller Broker Commissions from member homes. This is an area we are exploring launching in 2023 given we operate a licensed real estate brokerage, we can assist our members in buying or selling personal homes as well.

Forward looking projections cannot be guaranteed.

Revenue from Mansion Life Property Management of Homes under Management >

1. Arbitrage on Fixed Price Master Leases (deprecating) these leases of non-Mansion owned homes will likely continue as is, transferred over to Mansion Properties. Expected gross margins of 30-40% on revenues. These homes represented the test bed foundation on which Mansion creating over $1MM in ARR to build and fund the platform development.
2. Fixed Percent Property Management Fee where Mansion Life will charge a 15-25% property management fee on net revenues (revenues net of taxes and platform/cc fees) for every property on the platform.

Revenue from Mansion District Interiors/Furnishings >

1. The margin on Retail Sales of furnishings & design services. Expected gross margins of 45%. Target Retail store sales/revenues for Store 1 in CLT is $1MM annually.
2. The margin on Mansion Group Sales of furnishings and services rendered intra-company will target 25% margins, providing a significant discount to our investors for high-quality goods and providing a margin to Mansion District/the Group.

The margin on MansionDistrict.com E-commerce Sales is unknown but will play a key role in growth in 2023 and beyond for the Mansion District business unit.

Forward looking projections cannot be guaranteed.

The History & Opportunity

Looking back at the history of real estate ownership, the American Dream hasn't changed materially since the early 1900's. The 30-year fixed rate mortgage and Fannie Mae were the origins of the system of home ownership that exists today. Save up for your down payment, qualify based on debt-to-income ratios, and buy your first "starter" home to start your journey to real estate based wealth creation...BUT, times are different today. Mansion believes we have created a brand and experience that can jumpstart this journey while also enabling the lifestyle the next generation desires.

The Traditional Path to Home Ownership is Challenged.

Record high home prices. Rising interest rates. Increasing lending standards. All challenge the average consumer home buyer when buying even their primary home...but the idea of having the ability to buy an investment property historically was unattainable or even unthinkable to 90% of the population. All real estate businesses may be challenged by high home prices and high interest rates, but through more sophisticated analytics, portfolio operations, and cash-flow based lending...Mansion believes it can create high-yielding real estate assets that through it's unique platform can be made available to investors of all sizes and income levels.

How we live today is changing.

The other trend often not discussed is HOW we live today. Post-covid the rise of the Digital Nomad only increased. In 2021 over 15.5M people classified themselves as "Digital Nomads" or workers who worked remotely AND moved frequently. Flexibility and convenience became key to this generation, but so did style and enablement of lifestyle. Mansion's investments in design, flexible leases, and hospitality have created a perfect environment for the remote worker of tomorrow, while our platform allows those who stay with us to also create wealth through real estate investments.

Creating a product of true ownership.

At Mansion, we believe that creating a new generation of owners isn't just part of the business model, it's a key to building a business for the next generation of consumers, employees, and investors. By creating a path to ownership in our homes through Mansion Invest, Mansion guests get to feel the emotional and financial connection to a property. They can invite their friends to "stay in their rental homes", they can vacation at homes they have investments in, but most importantly they can feel the sense of pride that comes from ownership.

Building on these core emotions are key to our success, but success in real estate also relies heavily on timing, which we must not ignore to be successful. Despite many headwinds for consumers in real estate in 2022 & 2023 coming off of multiple years of hyper-growth & appreciation in the single family real estate market, we believe the current environment is ripe for success of investors in single-family real estate, with a few key factors creating tail-winds.

Remote work is leading to less interest in the traditional sense of "ownership" and to higher demand for spaces conducive to live & work.

Other Corporate-owned REITs have focused down market and ignored consumer experience, leading to an opening in the market for a brand focused on hospitality and a consistently great experience.

Housing prices peaked in 2021, driven down in 2022 and beyond by slowing buyer demand caused by increasing mortgage rates. Though price appreciation over the long-term is key to real estate investing success, our investments and buying approach will allow us to take advantage of this down turn to buy when the average consumer cannot.

What we do.

Mansion believes many may attempt to build a great property management platform, or a product for single-family rental investing, or a new digital brokerage...but consumers who choose to rent, invest, and eventually own are likely the same customer...just at different stages in their real estate lifecycle. Our goal is to nurture our relationship with our customers and continually create compelling digital products that deliver meaningful value to them and their real estate journey.

Today, Mansion can be defined somewhat simply as:

1. Mansion Acquires Homes through a data-based approached and a disciplined financial model. Using our in-house brokerage to create margin for the parent company and using our in-house furniture & interior design brand "Mansion | District" to style the homes.
2. Mansion operates those homes as single-family rentals through it's licensed property management entities in each state. Integrating it's suite of smart home solutions plus it's in-house property management technology that is linked to its existing guest app "Mansion Life" (on iOS and Android app stores).
3. Mansion syndicates "offerings" for investors to buy shares of individual LLCs under RegA that hold the real estate assets and receive the cash-flows from the operations after fees and expenses.

Living the Mansion Life (joy + ownership)

Living the Mansion Life is not about excess, but is about freedom. Freedom to move, not being burdened by coordinating bills or maintenance, having access to cleaners, pest control, dog walkers and more at your fingertips. Living in a beautifully designed and furnished home of your dreams.

Invest in what you know.

Investing in what you know is what we believe delivers value over time. That's why on our platform we allow investors to see all of the available details about a home available for investment and bring the traditional real estate "browsing" experience of a Zillow or RedFin to our consumers, but with the ability to finally own a piece of that home you've been watching & dreaming of for years.

The Financials & Projections*

Forward looking projections cannot be guaranteed.

The Models

Mansion is MUCH more than an idea like many other startups in the sector; Mansion has a proven track record of success as a property technology innovator and operator AND an existing revenue stream of over $1MM in 2022 Revenues that has proven the strong unit economics at the property level to support investor interest and our multi-business unit structure.

Co-Founder & CEO, John Sutton has invested over $2MM of his personal wealth to fund and build Mansion Group into the platform it is today and put it on it's path to long-term success. In early 2022, John met many of the executives behind Figure.com (a new approach to digital lending founded by Mike Cagney)...although Mansion has purposefully avoided raising institutional capital in order to ensure the mission can be invested in with a focus on the end consumer, Mansion raised a small amount of capital in April of 2022 on a SAFE with a $21.125MM cap from Figure executives and friends of the founders including David Wolfe, Co-Founder of Sleep brand Leesa.com.

We believe Mansion is built to create access to wealth building opportunities through real estate not accessible historically, and in that light we have made the choice as a team to seek to raise future capital from our users, retail investors, where possible to provide everyone the opportunity to build Mansion alongside us.

Projections

Our financial projections focus on creating a flywheel for the business by increasing the number of homes on the platform through new acquisitions, furnishing those homes via Mansion District, creating "mini IPOs" for the homes as offerings through Mansion Invest, and ultimately operating the homes as the property manager until disposition of the homes and returning capital plus appreciation to the investors.

In 2023, our focus is on the Mansion Invest launch and scaling to 65+ homes conservatively (with a stretch goal of getting to 100) and generating a Net Income of $1MM (meaning be PROFITABLE). Many of our competitors we believe under-estimate the operational and balance sheet risks of scaling real-world assets at a rapid pace without proper systems and learnings in place. We will stay maniacally focused on the guest/member experience, ensuring strong returns for our investors, and building the systems and technology foundations to allow us to scale into the hundreds and then thousands of homes.

One way to look at the business is through "Real Estate Assets Under Management" as you can assume that every home we add to our platform can generate income streams to Mansion in a myriad of ways. Currently, Mansion manages over $12MM in Real Estate. Our 5-year plan targets increasing "Real Estate Assets Under Management" to over $3.4BN which equates to scaling to over 3,000 homes. Audacious? Yes. Possible? Certainly (Opendoor for example purchased at its peak over 10k homes a quarter...and our CEO watched and learned as a strategy advisor to Opendoor focused on digital marketing).

Forward looking projections cannot be guaranteed.

The Architects & Relationship builders at Mansion

The team at Mansion has years of consumer product and digital marketing experience and is led by one of the industry experts in game-changing consumer propTech with our Founder & CEO John Sutton having previously built and led the digital revolution within Red Ventures, helping to turn it into the powerhouse marketing machine and multi-billion dollar business it is today, then diving in to lead the evolution into Exclusives and Digital Audience Growth at Opendoor, PLUS he led the take-private acquisition by Red Ventures+Silver Lake of Zoopla, where John sat on the board of the $3BN+ UK real estate platform.

Francisco Debs, a co-founder & our Head of Growth, spent 15 years leading data analytics & growth marketing at Red Ventures for brands like Apple, American Express, USwitch, Verizon, Frontier, and others before leaving to build the next generation ai, data, analytics, and growth marketing engine at Mansion Group.

Trevor Hutto, our Technical Co-Founder & Advisor, has developed next generation technology stacks for innovators like Nomad Health and Red Ventures before joining to lead technology at Mansion Group in 2020. Trevor continues to guide our technology strategy & decisions as an advisor.

Violeta Slabakova, our Head of Product, has led development of product experiences for top brands like Rover, Upside, and spent 2+ years at Red Ventures guiding product and marketing working directly with co-founder Dan Feldstein on special projects.

Jared Pied, our Software & Cyber Security Advisor, has led development of product experiences for top brands like GOAT sneaker marketplace, and spent 2+ years at Red Ventures leading software engineering and data projects for leading brands. Jared currently is a senior software engineer at cyber security intelligence firm Greynoise Intelligence and acts as an advisor to Mansion Group on our software engineering and cyber security efforts.