Can investors get their money back from Reinvest?

Can investors get their money back from Reinvest?

2 min read

Sources:

Form 1-A (Sept 2, 2026), library pages

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Last reviewed:

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Short answer

Not on demand. The offering circular says it plainly: there is no public market for the shares and none is expected, there is no redemption right, investors should be prepared to hold indefinitely, and each investor could lose the entire investment. The $1.90 price in the 2026 offering was set by the board, not by an appraiser, and the circular calls it arbitrary. Those are the terms, and the company does not dispute them. What it offers instead is a dated path with no promises attached: a bond valuation test in 2027, conversion of the preferred into common in 2029, and a possible listing after 2030 if the company is large enough. Anyone who may need the money back should not buy. 1

  • Redemption right: None (you cannot make the company buy you out)

  • Public market: None (and none expected, per the circular)

  • Offering price: $1.90 (set by the board; the circular calls it arbitrary)

What the circular says

The September 2, 2026 offering circular for the Series A Preferred carries four warnings, in substance: there is no public market for the shares and none is expected to develop; the shares do not provide any redemption right; investors should be prepared to hold their shares indefinitely; and each investor assumes the risk of losing the entire investment. The maximum raise is about $35 million at $1.90 a share. 1

Why the price is called arbitrary

The $1.90 was set by the board of directors. No underwriter, investment banker or independent appraiser priced it, and the circular says the price does not bear a direct relationship to book value or any established valuation metric. For reference, earlier rounds were $1.00 a share in 2022 and 2023, a 2024 round at $2.00 was later reset to $1.00, and net tangible book value was about $0.83 a share at the end of 2025. Arbitrary is the word the SEC format requires for a price no market set. It is not a confession that the price is too high, and it is not evidence that it is right. The way to judge it is against the real estate at cost, the cash on hand and the software revenue, all of which are in the filings. 12

What the company says comes next

Three dated items, none guaranteed. In the first half of 2027 an independent valuation is taken; if it puts the non-voting shares at $1.40 or more, the convertible bonds convert and their interest stops. In 2029 the preferred converts into non-voting common. The 2030 plan describes a clean cap table and a possible listing when the company is large enough. The circular says no assurance can be given on a listing, and nothing obliges the company to sell or list. 13

How to read it

This is the largest risk in the offering and the company does not argue with it. An investor is trading liquidity for a direct stake in a landlord with no mortgage and a growing software business. If that trade does not suit you, the right answer is not to buy. The money the company earns from courses and software is cash, not a promise, and whether it is enough to carry the company is tracked on the profitability page.

No redemption, no market, hold indefinitely, could lose it all, and a $1.90 price set by the board. The company does not dispute any of it. Buy only with money you can leave in for years. 1

Simply put

✅ Can you cash out?

  • ➡️ Not on demand. No buyback right, no exchange to sell on.

✅ The $1.90

  • ➡️ The board picked it. No appraiser. The filing calls it arbitrary because no market set it.

✅ What might change it

  • ➡️ A bond valuation test in 2027, preferred converts to common in 2029, a possible listing after 2030. None promised.

Sources

  1. Form 1-A offering circular dated September 2, 2026, Risk Factors and Determination of Offering Price (no public market; no redemption right; hold indefinitely; risk of losing the entire investment; $1.90 price set by the board and described as arbitrary). Open the filing

  2. Library, How was House Hack’s first valuation set? (earlier share prices and net tangible book value). Read the page

  3. Library, What happens if the bonds convert in 2027? (the $1.40 valuation test and the share count). Read the page

The Meet Kevin & Reinvest Library is published by Reinvest (House Hack, Inc.). These pages are our facts about our founder and our company, each with its source: public records, press, or Kevin Paffrath's own on-the-record account, labeled as his. They are not investment, legal or tax advice, and nothing here is an offer to sell any security. Questions about investing in Reinvest belong on the investor page and in the current offering circular on sec.gov.

This site is a factual record about Kevin Paffrath and House Hack, Inc. (dba Reinvest). It is not an offer to sell or a solicitation of an offer to buy any security; any offering by House Hack, Inc. is made only by means of an offering circular filed with the SEC. Nothing here is investment, legal or tax advice. Statements about plans, targets or expectations are forward-looking and may not occur; the filings on EDGAR (audited annual, unaudited semiannual) control where they differ from anything here.

© 2026 House Hack, Inc. dba Reinvest. A Wyoming corporation formed June 22, 2022. SEC CIK 0001945278. Regulation A, Tier 2 reporting company; annual financial statements audited under PCAOB standards (dbbmckennon for 2024 and 2025). All rights reserved. Privacy Policy · Terms of Use

The Meet Kevin & Reinvest Library is published by Reinvest (House Hack, Inc.). These pages are our facts about our founder and our company, each with its source: public records, press, or Kevin Paffrath's own on-the-record account, labeled as his. They are not investment, legal or tax advice, and nothing here is an offer to sell any security. Questions about investing in Reinvest belong on the investor page and in the current offering circular on sec.gov.

This site is a factual record about Kevin Paffrath and House Hack, Inc. (dba Reinvest). It is not an offer to sell or a solicitation of an offer to buy any security; any offering by House Hack, Inc. is made only by means of an offering circular filed with the SEC. Nothing here is investment, legal or tax advice. Statements about plans, targets or expectations are forward-looking and may not occur; the filings on EDGAR (audited annual, unaudited semiannual) control where they differ from anything here.

© 2026 House Hack, Inc. dba Reinvest. A Wyoming corporation formed June 22, 2022. SEC CIK 0001945278. Regulation A, Tier 2 reporting company; annual financial statements audited under PCAOB standards (dbbmckennon for 2024 and 2025). All rights reserved. Privacy Policy · Terms of Use

The Meet Kevin & Reinvest Library is published by Reinvest (House Hack, Inc.). These pages are our facts about our founder and our company, each with its source: public records, press, or Kevin Paffrath's own on-the-record account, labeled as his. They are not investment, legal or tax advice, and nothing here is an offer to sell any security. Questions about investing in Reinvest belong on the investor page and in the current offering circular on sec.gov.

This site is a factual record about Kevin Paffrath and House Hack, Inc. (dba Reinvest). It is not an offer to sell or a solicitation of an offer to buy any security; any offering by House Hack, Inc. is made only by means of an offering circular filed with the SEC. Nothing here is investment, legal or tax advice. Statements about plans, targets or expectations are forward-looking and may not occur; the filings on EDGAR (audited annual, unaudited semiannual) control where they differ from anything here.

© 2026 House Hack, Inc. dba Reinvest. A Wyoming corporation formed June 22, 2022. SEC CIK 0001945278. Regulation A, Tier 2 reporting company; annual financial statements audited under PCAOB standards (dbbmckennon for 2024 and 2025). All rights reserved. Privacy Policy · Terms of Use