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How the company operates
1 min read
Sources:
Form 1-A, Kevin's account, Kevin's account (Sept 29, 2026)
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Short answer
Slowly, on purpose, and with paperwork. Kevin buys where permits are slow because the delay protects existing values, and accepts the delay on his own projects as the price of it. At the end of the third quarter of 2026 one property, a beach or waterfront house that will be the company’s first and only planned vacation rental, had just received permits for a complete renovation and will likely add an accessory dwelling unit. Tenant screening is rigid: full credit, background and eviction checks, identity verification on a video call, job references, Social Security documentation, and tax returns or income statements. 123
Permit philosophy: Slow is good (delay protects what the company already owns)
Permitted, Q3 2026: 1 renovation (waterfront; first planned vacation rental; ADU likely)
Screening: Video ID + full checks (credit, background, eviction, income, references)
Permits
Kevin’s account
Kevin prefers municipalities that are very slow at approving building permits, even for things the state is mandating, such as accessory dwelling units. When the state says permits get done in 60 days, local municipalities often drag them out for years. Those are built-in put options granted by the city. As of the end of the third quarter of 2026, there is one vacation rental that just received permits for its complete renovation. It will likely also be getting an accessory dwelling unit added. This is beach or waterfront real estate, and it would represent the first vacation rental for the company, and the only currently planned vacation rental. 3
The offering circular lists ADU and construction delays among the risks that could impair results; Kevin’s position is that the same delays, applied to everyone else, are the moat. The company renovates through subcontractors after the 2017 lesson about in-house crews. 12
Tenants
Kevin’s account
We maintain rigid credit screening and identity verification processes, including video calls with our in-house property management, full credit, background and eviction checks, job references, Social Security documentation, tax returns or income statements, and more. We are exceptionally thorough, in our opinion. 4
That is the 700-plus credit standard from the landlord-influencer page, applied. California fair-housing and rent rules govern how criteria are applied; the company’s screening is applied to every applicant alike, by Lauren Paffrath’s in-house team.
What is still missing
A count of properties in permitting or renovation today and a typical purchase-to-rent timeline. Those will be added as the company reports them.
The company buys where permits are slow, waits out its own permits, and screens tenants like a lender. The first vacation rental just cleared the permit desk. 34
Simply put
✅ Permits
➡️ Cities that take years to approve building are good for owners of existing houses. Kevin buys there on purpose.
➡️ That means his own projects wait too. A waterfront house just got its renovation permit and will likely get an ADU.
✅ Tenants
➡️ Video call to verify identity. Full credit, background and eviction checks. Job references. Social Security documents. Tax returns or pay statements.
✅ Still to add
➡️ How many properties are in the permit queue today, and typical purchase-to-rent timelines.
Sources
Form 1-A, Risk Factors (delays in ADU or construction projects; regulatory changes; vacancies) Open the filing
Kevin's account, Housing, the core thesis: “an arbitrage bet that California housing will remain incompetent” Read the excerpt
Kevin's account (Sept 29, 2026), Question 77 (permits; the vacation rental; ADU) Read the excerpt
Kevin's account (Sept 29, 2026), Question 79 (tenant screening) Read the excerpt
