저자: Kevin · 외국인
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모건스탠리 분석을 인용해 금리가 2027년까지 높게 유지되고 주택 공급이 경직되어 집값 하락 가능성은 낮다고 주장. 2027년 이후 주택금리 하락과 2027~2032년 부동산 붐을 본인 견해로 제시. 자사 AI 부동산 툴과 회사 실적(영업현금흐름 플러스, MAU 108% 증가)을 소개.
다듬은 글
Morgan Stanley answers the question people are asking themselves about the housing market. Will there be a major reset in the housing market? Will housing prices become more affordable? And will people finally have the opportunity to buy real estate at a reasonable price according to their income? This is the first institutional analysis of the housing market in America that I have seen in quite a while.
Otherwise, I just see little snippets, like Goldman Sachs or UBS, telling us something like, " Hey, the housing market in the United States seems better than in China or the United Kingdom." OK. Thank you. Morgan Stanley's analysis goes much deeper. In addition to analyzing Morgan Stanley's housing forecasts, at the end of the video I will also give a demo of our real estate AI and tell you about my startup Houselife, also known as ReInvest .
So, I'm going to talk about how our artificial intelligence works, and about its state-of-the-art prototype, which is now available to people who subscribe to it. And I can't wait to show it to you. But first, let's focus on what people are here for, and that's Morgan Stanley's housing forecast. So, Morgan Stanley says that first-time home buyers regularly face a difficult path to homeownership.
And the data suggests that nothing is changing right now in terms of the age at which people buy a home. They are still buying their first home at around 36 years old. This is roughly the current age for a first-time home buyer. However, where they shop is changing. And this is because of the availability of housing.
First-time home buyers, who may or may not be wealthier, are starting to move into lower- income neighborhoods. This is what Morgan Stanley calls “ buying demand.” They say people who have the money to buy a house are now looking for a more affordable location rather than hoping that house prices will come down.
Unfortunately, this then squeezes buyers in these low- income areas, leading to greater concentrations of poverty or even lower income in other areas. The concentration of poverty is a topic we have regularly discussed on this channel. This is a Harvard study that shows us that when services become more expensive in one area or the cost of living increases in a certain area, people move to a more affordable location.
But the problem is that when people concentrate in a more accessible area, the resources in that area become depleted. Schools, police, fire service, medical services, and the quality of these services is declining. With a decline in the quality of education, healthcare, or policing, you potentially face a vicious cycle of worse services because now people are either dying or not getting enough education.
And unfortunately, you get an even worse poverty situation. This is the Harvard thesis about the concentration of poverty. And the Morgan family is essentially saying, "Yeah, now people with more money are leaving, well, let's just move to areas that are more affordable." And they seem to be crowding out people who would be hoping to buy a home in the area and replacing those people with themselves.
All of this comes against the numerous risks currently occurring in the market. Number one, higher rates for a longer term. Morgan Stanley believes that interest rates will remain higher through 2027, and that we really won't see mortgage rates fall below 6% until then, and we really shouldn't expect anything better than 5 1/2% anytime soon.
By the way, this is actually fundamental to my real estate thesis. My thesis on real estate and the reason I started my real estate company House Act, now known as Reinvest, frankly, is that rates were going to skyrocket in 2022 , and I thought, " Well, no one's going to want to buy real estate during that time." So let's start a company and buy real estate when people don't want it because we don't see house prices falling.
We're actually just seeing housing prices rise, so we're not taking homes away from anyone else. We will buy a home for renovation that we can renovate, resell, and rent to other successful tenants. So we are essentially providing housing or developing housing, right? But my thesis is that it will take 10 years from 2022 to lower interest rates.
Everything always takes longer than we expect, and that's disappointing, but that's been my thesis, and so far, I think it's somewhat consistent with what Morgan Stanley is saying. Don't expect interest rates to go down, well, to be honest , housing interest rates until 2027. I personally believe that this trend will continue starting in 2027.
During and through 2032, housing interest rates will actually be lower than ever before. This is my thesis. This is my opinion. Maybe I'm wrong, but we'll see. So, going back to Morgan Stanley, Morgan Stanley is also saying that we're not only going to have higher interest rates for longer over the next year and a half and even beyond that.
Again , I think they will continue to decline after 2027. So I agree, but I think after that they will come down and that will continue to support house prices and we will actually potentially see a really big boom in house prices. That's why this decade is so crucial, because between 22 and 32, I think that's where you want to buy to start the journey before the rocket ship takes off, so to speak.
This is my thesis , of course, not guaranteed financial advice, but Morgan Stanley says that baby boomers are entering a real estate buying phase, and there are a lot of boomers. So the result of this is a high demand for real estate, and this demand for real estate with limited supply drives up prices, especially when it's so difficult to change state and local permits.
This is a fact. I ran for governor on the premise of simplifying state and local housing permits because I knew we needed better housing. And you know what? The more real estate you own in democratically governed regions, the harder it is to build real estate and the more your real estate value increases.
Guarantees. Just look at Austin, Texas as a perfect example. In fact, this is exactly what we predicted back in 2022: prices would fall in Texas, while prices would rise in other areas, especially liberal ones . And that's exactly what happened. In California and Manhattan, prices rose, while in Austin, Texas, prices fell by about 25% from their peak.
Again, I want to make it clear so we are certain. I do n't think big investors or anyone else, and I think we're small fish in the sea, should be competing with home buyers, but someone has to clean up this kind of junk. This is just an example of one of the properties we bought and completely renovated.
I mean, it's terrible. There, you know, a lot of blackness everywhere, dirt and grime. I mean, no one wants to live in this. It was a treasure house. I mean, you could see the outline of the furniture, and they probably didn't even know it was there because it was all covered in furniture, although I'm sure you could smell it.
Uh, I definitely felt it when I walked through the house without furniture. But, I mean, you know, these are properties that people need to renovate and, uh, in my opinion, properties that people can add value to and that they can build their net worth on. Well, it's similar. My house wasn't that bad, but it was similar to the one I bought when I first started working in real estate.
My first house did n't even have kitchen cabinets. This one had kitchen cabinets. Now we've gotten rid of those kitchen cabinets. And obviously you can see that after the real estate happened, it's absolutely wonderful. But here we took a house that was unlivable and actually added to the housing stock with a high-quality product.
Brand new kitchen cabinets, new appliances, lighting, flooring, paint, baseboards, curtains, doors, plumbing, uh, whatever. You know, bathrooms, whatever. They are wonderful now. Okay, okay. So less about that. Let's focus more on Morgan Stanley. Morgan Stanley also says climate risks are driving up insurance premiums and making it harder to buy a home.
So now you have a combination of higher rates over the longer term, baby boomers entering the buying phase, complex state and local permitting, and climate risks driving up insurance premiums. All of this makes the growth of accessibility very, very slow. And that 's why Morgan Stanley says that because of these elements, there is more upward pressure on home prices and less downward pressure.
In fact, what limits the decline are several factors. First, there is a lack of compelling reasons to sell due to what is known as the lock-in effect. If you have a mortgage at 2 and 12%, why are you going to sell? We already know this thesis, so we're not going to beat a dead horse, but it does reduce the available supply.
To be fair, stocks are rising. Morgan Stanley also acknowledges this, but they are starting from a very, very low and depressing level. And right now we are still at a depressed level of inventory compared to where we have been historically. And we know what happens when supplies are low and availability drops sharply.
We don't necessarily see prices falling. In fact, in 2022, when supplies were low and availability plummeted as rates skyrocketed, we simply saw prices hit new high after new high. And the reason is that, according to Morgan Stanley, you need people who are willing to sell at lower prices to bring prices down.
And the reason you saw this in 2008 was because you saw a predicament. A difficult situation because people borrowed more than they could afford. They had no way to repay the debt. They borrowed on variable- rate loans that started at zero or negative interest rates and then increased to 5, 6, 7%. This predicament leads to foreclosures and short sales.
Today, lending standards are too strict. House Hack, for example, is in the process of applying for a mortgage loan officer license , which means that yes, I had to pass the MLO test. No problem. I've been through this in the past. I did it again this year for House Hack. And lending standards have become even stronger since I last took the MLO test around 2016.
And then it was difficult. So unfortunately you have this vicious cycle where housing affordability is getting worse, not better. And Morgan Stanley calls it a vicious cycle that is actually reducing the birth rate in America. This is hurting the commodity economy, and rates will remain above 6 % until the end of 2027.
And while income growth is currently slightly outpacing housing value growth, home prices are well supported and there is a real challenge in expecting any acceleration in affordability anytime soon. So , ultimately, don't expect a significant drop in housing prices. Don't expect a housing market crash.
Even if something happens, the situation will only get worse. The housing market will reboot to higher affordability expectations. People will simply move away and focus on poorer areas and housing prices. It's not about waiting for housing prices to fall. It's more a matter of who will buy and where.
I am a big fan of the principle "don't delay buying real estate , buy real estate and wait." And so, in honor of that, we created our real estate AI product to help people find great deals so you don't get ripped off. Nobody likes to be ripped off . So in the Meet Kevin app, which we're renaming the Reinvest app because it's owned by Houseack, you obviously have a Data tab, and we have two little terminals here on the top right, a Housing tab and a Stocks tab.
You actually see some of these Morgan Stanley notes and a link to this Morgan Stanley podcast right here on the Data tab. If you click on the "Data" tab, you can also see a list of videos I've recently made. You can view daily wealth posts or investor updates, such as updates on real estate hacking attacks.
So they are published there. So , if you don't have the Meet Kevin app, you can download it from the Apple or Android app store. You can even use the desktop version of this app after logging into this app. Just use your email address and go to app.mmeke.com. What's really cool is that if you go to the "homes" section and look at a specific zip code, which in this case I have a zip code here in Denver, 80LE2.
I have these two properties that I would like to consider. So, this is artificial intelligence for home reinvestment. This is essentially a tool that tries to estimate what we think the value of the property will be after renovation? How much do we think it will cost you to renovate your property? And is it a good deal or not?
Okay, this is just an example of how it can work. This would be an example of Denver. We could also go to " saved". And I have a bunch of different ads here. We can even enter any zip code we want, whether it's Florida or California, San Diego , it doesn't matter. So, I'd like to just go over some of them and analyze some of them a little bit.
You can see that they are sorted from best to worst deal, right? A profit of $96,000, a profit of $50,000, whatever. Let's look at these two from the lower limit. So , we'll look into this. We will consider Fairfield, California. Uh, and we'll look at these two ads. Keep in mind that when you review ads, you can either keep them or reject them.
You can click on the little arrows to see different images, or you can click on the ad to actually go to, you know, Red Fin or Zillow or wherever, right? But, uh, I'd like to take a look at the valuation of these two properties. So we're going to display a single real estate object on the desktop, and we're going to see how well or poorly the artificial intelligence worked.
Now I want to clarify this. This is a super early beta version. So that means imagine the FSD when it first hit the highway in 2017. This is a super early version. This is our own AI. We taught him. I trained him, obviously , along with the team that worked on setting up the scales and assembling him.
So the goal is to take my brain and how I see real estate listings and put that into AI, and then eventually, anyone anywhere in the country will be able to download this app. You can buy it at houseack.com. Right now you can still get lifetime access to it, which is pretty cool. And you can use this app and find the best deals in your area.
Now, obviously, you need to check out the offers. So I see this as a tool to get started. You want to check how much the repair will cost, right? You cannot rely solely on this because we do not conduct a review with you. This is obvious. But let's look at it and see how decently we're doing. So here's a 1984 property in Fairfield, California, listed for sale at number 525.
It's probably 32 1/2 baths, 1,980 square feet. We have carpeting, an old kitchen . The carpet is coming up here. Two-Tory wallpaper, acoustic ceiling, missing light bulbs. Everything is quite original, like in '84 . So, I'll probably have copper plumbing. I will have a good foundation, a three-wire electrical system.
So, the roof looks decent from here. So I won't have to spend too much. Uh, considering it's a two-story house, I don't see anything special, you know, anything that's impressive. There are significant additions to this property. Uh, sometimes additions can distort what we're looking at a little, but none of it looks like it was added.
This looks like the original floor plan of the house. Okay, great. So, uh , let's do some comparisons now. And anyone can do it, right ? Let's take this address and go there. We'll just check it out on Zillow and go to the area marked on the map. So we'll leave one open here on the list itself, just in case we need to refer to any details.
Uh, and then here, we'll just go to the map. We'll zoom in a little . Let's, uh, remove the boundaries here. Let's make a filter by area. Just show me everything above 1500. And I probably won't look above 2750. And let's also filter by newer here. Let's start with the last 90 days and see what we have.
Good. Uh, we could even go, you know what? Let's move on to the last 6 months. This is what the appraiser will do. Okay, great. 6 months. So, this property is on Lighthouse Court. Uh, just looking for where it's sold so I can see it. She's right here. Uh, it's a bit close to the freeway, which I do n't like.
This is a dead end. So not ideal. This will obviously make our cost a little worse. So we will have to take that into account. It can be 5 to 7% if it is near a freeway. So I don't like this location. I probably wouldn't buy it because of the location. Uh, but let's see what grades we have. And then, so, keep this in mind: AI has not yet included, and this is on our roadmap, red flags like busy roads .
Highways will be coming in our next update , so I'm saying this is the worst version of the app we'll see here, right? But let's take a look to get an idea of what, you know, was close? For example, it wasn't next to a freeway, right? Like, is the app working properly? So what do we have here? Well, I have a plot here that was sold in January.
650 by 2000 sq. m. feet. Quite similar actually. Let's see when it was built. This area was built in 1988. So for 4 years I have, um, about 100 more square feet here. So I'll add maybe 10 thousand. And it's located quite close, um, to our, um, property. I have another one, because we are here, near Lighthouse Court.
I have another one that seems to be near Vista Grande, it's a slightly busier road in the area, definitely not a highway. This one was about 300 feet shorter. This will add approximately 30 thousand. You know, quick calculations to our, um, to our precincts. It turns out that it is a plot of about 7,000 square feet, whereas our original deal looked like it was worth 7,800 pounds.
So, almost the same. A slightly newer area here, but 300 square feet smaller. So maybe it's about $670. I have about 650, well, let's call it 640-670. And this one is a little bigger. So from March it will increase to around 630-630, but a much smaller area. So I'll probably add about 15 thousand again.
Uh, I'll get it to about 645, you know, 650 somewhere in that range. Uh, obviously I can't really see what state some of these closed ads are in, considering they're all in about the same range here. It looks like we don't have some crazy emissions being sold at a really low price because, uh, it's renovation work.
And we can see that the description here hints at, uh, that we're talking about space and cozy laminate flooring. Uh, so this won't be your peak market. You know, the peak of the market usually comes when you see someone and they say, "Hey, they recently renovated." Well, great. You know what? We could actually...Oh, yes.
Renovated kitchen. This could be good. Sometimes you will find better photos on realtor.com. Oh, yes. Let's go. 75 photos of this puppy. Let's go. So, this might be the best market here. Oh, yes. Let's go. Well, no. There's still carpet there. Okay, don't pay attention. In the best market. The floor is good.
Yes, this is a cheaper laminate. But a nice kitchen renovation. I admit it to them . She actually looks pretty good. They still have the acoustic ceiling, which is great. And still the carpet upstairs. And this speaks of the shower. And we have , uh, mirrors here that are peeling off. Wow. Wow. This is incredible.
Eh, maybe not the best market here, right? So, this just goes to show again that this property would have been worth over $650,000 with renovations, maybe $670 if it weren't under that damn freeway . Now, if I take the $670 maximum mark and subtract the freeway noise element, I'd have to subtract about $45,000, that would eat into our margin.
So, uh, $670 minus, uh, $45,000 would bring me down to about $625. So let's go over here and see what we got. You see, the app only shows 6:15. It's actually funny because I just did all this work without even knowing what it said, and my estimate was $625, which is about the maximum mark , right? taking into account the motorway.
Not bad. As far as renovations go, you know, this property is obviously going to need a little work. Uh, this is listed for sale for 525. It will need , uh, mostly interior trim . I mean, I paint outside, I paint inside. I would probably do 10 and paint, you know, 12 for plumbing and electrical. I do flooring and blinds.
Uh , I use the same contractor for this. This will probably cost me about 16 grand. Uh, the kitchen, you know, probably six grand on the countertops throughout the building. And then, since I, you know, I can add, um, quartz plaster here. And then I could either paint or replace the cabinets. Add more household appliances .
If I paint or replace the cabinets, it will cost me at least six grand. Uh, let's add a little. I have plumbing. I have, uh, let's just create a reserve fund. Let's create a reserve fund of 20 thousand. Good. 20 for all that nonsense I didn't mention. That's $73,000. Steeply. What does our app say? And the app says the cost after repair is 615.
I'm going to increase it to about 625. Uh, we're going to make this program a little more fixed. It's really hard for me to just do 625. We'll adjust that. We'll just leave it at 625600 for now. We'll make it a little more fixed so it matches the fives, right? Or you can just enter a number. Uh, the purchase price, it's already on the market.
Let's find out, because it will show me what a good deal I can get for this puppy . Okay, it's been on the market for 12 days. So I'll have to call the agent and find out: how many offers do you have? Do you have any suggestions? If they don't have any suggestions, let's assume they don't have any suggestions.
Maybe I can get a good deal on this puppy, huh? So, let's lower this purchase price to...I'm going to raise 500. I'll give him a fiver, but I'm not going to pay much more. The renovation budget is 74, I think 73. So we'll just leave it at that. Look at this. Boom. The app calculates an estimated profit of $50,000.
That's pretty good. The app was about $10,000 off the cost after repairs, even with highways, which is great, you know, although we still need to improve our algorithm on busy roads, which is great. And on top of that, uh, we have, uh, you know, the belief that it was on the market for 12 days. I think I can get it cheaper.
The app gave me a heads up that in the zip code I should be looking at this deal, and then I can make small adjustments here. Wow, I could make $50,000 to $51,000 in equity by buying this property with these parameters. If I buy and hold it , great. This is just a short example. Well, it wasn't very fast, but that's one example.
Let's do another one here really quickly. What? And we'll make this one even faster. So, what is this? 2772 Toland, uh, in Fairfield, California. It is 1638 square feet. It's listed for sale for only $6,000, but it looks pretty shabby. And what budget are we setting for this puppy? $40,000 to rent this.
It is about 300 feet lower. Maybe a little too low. Let's see what the cost will be after the repair. My first reaction is that I'll probably be closer to about $55,000 for this Renault. Those 300 feet will help me a little , but I definitely need to paint the outside. I need to work on this a little.
So, uh, okay. With that in mind, let's go. Make sure I entered the address correctly. This is 2772 Toland Drive. Okay. It is listed for sale under number 564. In fact, it is listed for 40 thousand more than the other one. Well, probably because it's not facing that damn freeway. Everything is fine. So, let's go take a look.
Sold Out. Yes, here it is . It went off the highway nicely. Okay, perfect. Let's remove the boundaries. Let's move on to the sold seats here. And this is Toland. Toland. Oops . We need to keep this house open. So, what do we have on this? This is a plot worth 7,000 tons. Yes, she is about 8 years older.
So, we are in an old neighborhood, not so new. It has only been on the market for 7 days. Oh , look at this. This is a bank withdrawal . What an irony. We just talked about the lack of problem sales. Well, we just found ourselves in a withdrawal. It has been on the market for 7 days. Sometimes they have a minimum 7- day waiting period.
So I would have to call the agent and see if they actually have any offers for this. Hmm, but I'm curious. So, let's move on to Souls. Again, that's 1,638 square feet. Let's move on to Souls. Good. Now, oh, look at this. 1638 12 days ago. 525. Yes, but it's also a repairman. Good. So, the repairman costs about 525.
And that's how much he was sold for. I wonder if this one was resold as a flipper. No. Maybe they're still repairing it. Uh, wait. Let's make sure we recalibrate our area. That's it. And we are going to sell. Submit an application. That's it. We applied our filters. Okay, great. So what do we have in this corner?
Well, we have a sale for 500, a sale for 525. Pretty low prices. These...This one doesn't have any details or photos. So we can only assume that these are fixed prices. What do we have here? March. Oh, that's cool. 625. Zillow indicates that this is a slightly higher end of the market. 8700 square feet of land.
It's similar. Built in 79. It's similar. How much is that approximately? 80 square feet more than this one, as I understand it. It seems so. 58 photos on realtor.com. Oh, would you look at that? Renovated baby. Oh, Chip and Joanna Gaine style. New floor. Updated kitchen. Lighting. Stand. Not that the stand adds value.
Skirting boards. Coloring scheme. Still a carpet though. New vanity tables in the bathroom. This is cute. And a nice backyard. New concrete too. The roof looks pretty good. So, 625 is the top of the market for this puppy. So, 625. And I got myself this, uh, repair tool, which we're compensating for here.
We could continue to look at more compensation, but there's a pretty easy upper limit, right? So, an easy upper limit. Let's get back to the program. The program shows us that it's worth 611. I'm going to go to the top of the market because if I were to renovate the property recently, like I showed you in the previous part of this video, I'm probably also going to be around 625.
Uh, renovations are a little aggressive here. Uh, considering I'm 40, I'm going to be closer to about $55,000. That's it. That doesn't leave me with much meat on the bone. So for me, while it's an interesting deal, I know I'm not going to prioritize this deal over others. And if you remember what this deal told me , before I made any adjustments to the after- repair cost or the repair budget, before I did any of this work, my profit is $ 6,000.
Before I did any of this work, the app showed me $6,200. We came up with an app for about $100. This is pretty incredible. Uh, and what's remarkable about this app is that we actually, uh, have one where it also shows how much money you'll lose if you buy the trades. Uh, I have to say I decided to turn that off for now because we have literally every property that's on the market that has a rating.
And if we don't show it, it's probably because it's negative. And there are many negative ones. And I don't want to get a lot of angry phone calls. So, we start with what we consider to be good starting points for profitable deals. And our algorithm will improve over time. He is already very good. Uh, our efforts will improve over time.
I'm not saying it's perfect, but I think it's a great start . It will only get better from now on. The coolest thing is that you can also go to the investor updates page in the app , which is very interesting. So, remember, all you need to do is just flip the terminal . You go from the AI terminal for houses, uh, at the very top you see that terminal " we got a little house" and then you have stocks, go to stocks.
Here we have updates related to stocks, including stocks and hack attacks. So in the “ investor updates” section, you see data, videos, and all that other stuff. You can see the investor update, which I will read to you now. So you can read them yourself in the Meet Kevin app. Keep in mind that if you haven't used it yet, many people like the desktop version.
Just first sign up for your app on your iPhone or Android. The easiest way, honestly, is to log in using accounts like Apple or Google. That's exactly what I do. That's what most people do. And then when you log into the mmekee.com online application, you will see the same things . You can go to the data tab.
You can, well, you know, look at the investor update, the Morgan Stanley data on housing information. What will you get when you click on this? Oh, here's the podcast. He's right here. You can use the Alpha Wire Service, which is located right here. News message service . You can use the stock AI feature to find out what we think companies are worth, potential, price targets based on currency peg ratios, and more.
You can even chat with us if you have any questions. This will appear soon. But on the community tab in the app, it will soon appear in the desktop app. Hmm, that means: " Wait, invest." Yes, the investor update is right here. Yes, look at this. Investor updates right here. So let's just look at this together.
Look at this. We'll literally read it from the app right here. So, here is the update section on home hacking attacks. We have, uh, three components of the company that I think are really worth paying attention to. The first components are, uh, those parts of the company that are currently making money.
Uh, this is real estate leasing and property management within the company, which we started in 2023. When we founded the company in 2022, we said we would start it in 2023, and we did. We also said that we would begin developing additional residential space and real estate development. We completed the first two earlier this year .
We started in 2025, so we finished that too . When we first started the company, we didn't know we would have software and our own AI, but we started, uh, releasing an early beta version of our AI software for homes in late 2025. This is what you just saw, uh, here. And we just released the valuation feature yesterday, because before it just sorted deals by more or less probability, rather than budgeting for renovations and how much the property is actually potentially worth.
If you look at the alpha membership and courses that House Hack acquired and reinvested at the end of 2025 for $0. More about this in another video. Over time, it should make money. This is the next component for the company. So it's one component, three levels of the company, right? So, we see three levels for the company.
The first is making money now. The next one is to make more money over time. We believe that subscribing to Homes AI will bring in a lot of money over time as we improve it. And we think we can sell this business to real estate agents as well. We find this very useful and we can create a custom brand for them so agents can use it in a custom branded way .
But we will work on this as we refine the product itself. We are very, very early. Subscription for AI share reinvestment is tentatively scheduled for late 2026 for both. New funding is possible at the end of 2026. There are no guarantees, and it's definitely not an offer. The offer is currently unavailable.
Future goals, lending and housing financial services. It's more like 27 to 28. And then of course there are always IPO targets during a recession, and as you know, circumstances have to be favorable for the company's investors. Therefore, we can never guarantee this. Uh, but these are goals. Now, other important updates, uh , it's worth noting that the company is now operating with positive operating cash flow.
It really started in the fourth and first quarters. So, the fourth quarter of 2025 and the first quarter of 2026 . This essentially just means that we are getting more cash than we are spending. Now, because of GAAP accounting rules, we have to offset, uh, a portion of our, uh, revenue over two years because it's subscription-based revenue.
So, in our financial statements, we have to offset them over two years. So, even if we can get a million dollars within three months in cash, we can only recognize a million divided by 24, about $41,000. Just as a quick example, right? Uh, these are just rules for accounting for gaps, sets of rules.
Um, investors' capital is not currently being spent on SGNA's research and development. We are essentially self-sufficient, which is very interesting, and I hope it will continue to be so . Um, this now allows us to reinvest capital into our other businesses, the first of which is real estate. Real estate always comes first, and that 's why we also renamed the company to Reinvest, because real estate comes first.
Wedge deals, new construction, right? New construction projects in the future. We'll probably do more of this. Then we reinvest in software and artificial intelligence. And then we could also invest the money in Treasury bonds or securities, whatever, right? It's just money. So we have them in case a good deal or opportunity comes along.
Each of these three sectors listed above has grown significantly over the past year. A year ago, we only had the idea of software and rental properties . Today we have more built rental properties , construction in progress , software, our own artificial intelligence. I mean, at the end of last year, I think it was in my previous update here, at the end of last year, we acquired renovated, rehabilitated and leased out about 11 properties.
We also significantly reduced our total asset costs (GNA). Our GNA costs went down by, uh, about 65%, between 24 and 25. The average daily usage time of our app went up 6.8x . The number of monthly active users increased by 108% . This is more than double what we had last year for our app. We're also, uh, discussing this before we get the MLO license .
We have expanded our development team. Those of you who follow our issuance frequency will have already noticed that, uh, we continue to pay interest to our bondholders, our convertible bondholders. These are the total amounts we have paid them so far. Uh , and everyone got paid. Uh , more updates to come.
Obviously, data distribution, uh , data feed rate , new construction, red flags, congested roads, golf course adjustments, a better, stronger algorithm. Today has to be the worst day, right? I can't wait to show you what happens next. Uh, that was a post I made yesterday about us launching artificial intelligence for homes that you just saw.
This is a huge milestone for us, and I am very happy about it . I also noticed that the labeling apparently didn't carry over to our web application here. So we're going to update it because, um, there should be these nice little markers that you can see right here in the app, but obviously our web app doesn't like markers yet.
But we will fix it. In any case, this is all new, and we are creating it. This is a startup , right? So what else do we have? We have, um, a reinvestment tool. We've already talked a lot about this. The investor update tool, alpha guide, erm, stock AI already covers over 2,000 stocks, and we continue to improve it for red, green, and yellow flags for government securities, which many people find very useful.
Uh, our main distribution will continue to be on real estate. I actually want to emphasize this because I think it's very valuable. We're not a startup that, when it raises money, turns around and burns it for bigger salaries or something. Actually, that's my opinion, and that's what we've been doing, and I expect that to continue.
We make money by doing what we do. We receive rent. We pay our, you know, cost of goods sold for our rent, our cost of goods sold for our software revenue, and then we have operating cash flow that we could then deploy and grow our investment purchases. So for me, it doesn't mean spending every penny and growing this company as fast as possible.
It's more of a Birkshire Hathaway model, where Birkshar has insurance free rein. We reinvest the profits from real estate and software and buy more real estate because we like the stability of real estate. We believe that this really gives us strength and moat. Obviously, anything can happen . You know, maybe there really will be a real estate market crash.
I don't know. But considering that we don't have any bank debt on any of our properties, we're not too worried about this . We are quite conservative. So our, uh, primary allocation of funds will continue to be directed toward reinvestment in real estate. A small portion of our Treasury bonds was allocated to government securities.
That's less than a million dollars today. Here are some other updates on what we've been up to . We also implemented a stock compensation plan late last year . It's worth noting that these stages don't begin until a company is worth $200 million and reaches $10 billion. So it's kind of like going to the moon, like, yeah, let's turn Houseack into a $10 billion company.
I think we could do it, but again, I don't know what the chances are, right? I hope we can do it, that's the best way to say it. I think the roadmap we have now gives me the most confidence in this than I have ever had before. When we first came up with this plan, I thought, "Dude, this is a crazy plan." I feel even more confident now than I did then.
But, let's just say, you know, there's a lot to do from now on, and there's no guarantee that we'll be able to do it . Well, yes. Uh, and yes, that's all. So I'm very happy about all of this. I hope this will be really useful for you. I mean, you got updates on the market, you got updates on how our app is doing, and you got updates on the company, all in one.
Uh, as always, thank you very much for supporting the channel. If you have any questions for us, you can post them on the community tab in the Me Kevin app. Just download the Me Kevin app, go to the community tab. We are just now starting to create it. So, you know, the user growth starts in the community tab because it's only been out for a short period of time.
Not many people are using the community tab right now, but we expect that number to grow over time. Uh, and, uh, I'll go there. I will answer your questions. You can also email us personally at [email protected] or [email protected]. It doesn't matter. This is the same place. Thank you very much for being here.
Well, almost the same place. Thank you very much for being here. Thank you all. .
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