2 min read
Sources:
Form 1-SA, Form 1-K, Kevin's account, Form 1-A, his own videos
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Short answer
Two numbers, and they measure different things. The filings carry the portfolio at cost: $65,880,838 before depreciation and $63,082,646 net at June 30, 2026, across 38 properties bought with no bank debt. Kevin’s estimate of market value is about $85 million. The offering circular says management believes market value may exceed carrying value, which is what the wedge strategy is designed to produce, but no appraisal of the whole portfolio has been published. Print both, and know which one you are looking at. 123
Real estate at cost: $65.9M (June 30, 2026, Form 1-SA)
Net of depreciation: $63.1M (the balance-sheet figure)
Kevin's market estimate: ~$85M (his ballpark, not audited or appraised)
Properties: 38 (32 houses, 4 multifamily with 63 units plus 1 commercial, 2 lots)
The record
At June 30, 2026 the Form 1-SA carried real estate at a cost of $65,880,838 and, net of accumulated depreciation, $63,082,646. The Form 1-K for 2025 put the acquisition cost at about $59.1 million plus about $2.8 million of renovations across 37 properties at year end; the count reached 38 by June 2026, with 32 single-family rentals, four multifamily buildings holding 63 apartments and a commercial unit, and two development lots. None of it carries a mortgage. 124
Under GAAP, real estate is held at cost and depreciated. It is written down if impaired. It is never written up. So the balance sheet can only ever show what the company paid, less depreciation, no matter what the buildings would fetch.
Kevin’s estimate
Kevin’s account
I say Reinvest owns about $85 million of real estate. That is my ballpark current estimate of property market value, not the GAAP cost basis in the filings. Present the two numbers side by side. 3
The offering circular supports the direction, not the number: management believes market value may exceed carrying value, and the factors the Board weighed in setting the the offering price price included the discount the properties were bought at and their growth since. No portfolio-wide appraisal has been published. 4
Why the gap exists on purpose
The company’s strategy is the wedge: buy a fixer below market, renovate, and target about 20% of equity at completion. If that works, every purchase creates value on day one that GAAP cannot record and that is not taxed until sale. Kevin calls it the invisible equity cushion. It is also why gains from buying well never appear as revenue, a point covered in its own note. The two individual appraisals that do exist, for properties the company bought from Kevin and an affiliate, came in above the prices paid. 34
How to hold the two numbers
Use $63 million when you want what the auditors will stand behind. Use $85 million as the founder’s opinion of what the strategy has produced, and discount it as you see fit.
In his own videos
Book says $63 million. Kevin says about $85 million. The gap is the equity the company believes it bought below market, and it will not show up in any filing until a property is sold. 13
Simply put
✅ The two numbers
➡️ The filings show what the company paid, minus wear and tear: about $63 million.
➡️ Kevin thinks the buildings would sell for about $85 million today. That is his estimate.
✅ Why they differ
➡️ Accounting rules keep real estate at cost. It is never marked up, only down.
➡️ The whole strategy is to buy below market and fix. If that worked, the buildings are worth more than book. If it did not, they are not.
➡️ No one has published an appraisal of the whole portfolio. Two individual appraisals for insider deals exist.
✅ What it means for investors
➡️ The share price in the 2026 offering statement was set partly on the belief that the buildings are worth more than book.
➡️ Book value per share was $0.83 at the end of 2025. Kevin's estimate would add roughly $22 million to that. Neither is a market price.
Sources
Form 1-SA, Balance sheet, June 30, 2026 (real estate at cost $65,880,838; net $63,082,646) Open the filing
Form 1-K, Business, portfolio (37 properties at December 31, 2025; about $59.1M acquisition cost plus about $2.8M renovations); company summary of 38 properties at June 2026 Open the filing
Kevin's account, The numbers: “I say Reinvest owns about $85 million of real estate. That's my ballpark current estimate of property market value, not the GAAP cost basis in the filings.” Read the excerpt
Form 1-A, Business (management believes market value may exceed carrying value; no bank or mortgage debt) Open the filing
Kevin on YouTube, "Iran Delays, Ship Attacked - Stock Anxiety, Oil Up." (2026-09-23), at 20:34: “rents on like whatever it is 85 million roughly market value real estate, you know that pays for a lot of bills” Watch from 20:34
Kevin on YouTube, "WTF just Happened" (2026-09-23), at 10:00: “the rent that we get from the $85 million market value of the property” Watch from 10:00
