Max Nussenbaum, co-founder of property management startup Castle, explains the company's subscription-based pricing model for residential real estate landlords.
0:00 / 0:05exact quote · 5.5s
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“We charge a flat fee of 79 dollars per month per rental unit. So it's just a basic subscription service.”
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More from Max Nussenbaum
Insight
Nussenbaum: Co-founder equity shouldn't be measured by individual contributions
“I don't feel that the equity split should necessarily be like, oh, you look at exactly what each of us is bringing to the table and then we measure it out exactly right. Like number one, you, this is going to be like a long journey and you can't always predict…”
Max NussenbaumJul 4, 2016▶ 21:59EP 345: Replacing Property Managers With $79 Flat Fee, $31k in MRR with Max Nussenbaum of EnterCastle.com
AssertionSupported
Nussenbaum: Traditional property managers effectively charge 12% to 13% monthly
“So a typical property manager does charge an average of 10% a month. They also charge one month's rent to place a tenant. They also usually charge a fee to get started, a fee to renew a lease, and a markup on maintenance. So generally we find that the average …”
Max NussenbaumJul 4, 2016▶ 4:05EP 345: Replacing Property Managers With $79 Flat Fee, $31k in MRR with Max Nussenbaum of EnterCastle.com
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Nussenbaum: 1,000-Square-Foot Detroit Homes Cost $40k and Rent for $800 Monthly
“So if you look at like a typical Detroit property, you can easily get, you know, a three bedroom, thousand square foot brick home for 40,000 dollars all in, and that home might rent for 800 dollars a month.”
Max NussenbaumJul 4, 2016▶ 13:46EP 345: Replacing Property Managers With $79 Flat Fee, $31k in MRR with Max Nussenbaum of EnterCastle.com
AssertionSupported
Nussenbaum: Y Combinator strongly encourages even co-founder equity splits
“Yeah, YC strongly encourages even or close to even.”
Max NussenbaumJul 4, 2016▶ 21:20EP 345: Replacing Property Managers With $79 Flat Fee, $31k in MRR with Max Nussenbaum of EnterCastle.com
AssertionNot checkable as stated
Nussenbaum: Castle reached $31,000 in monthly recurring revenue
“Last month it was 31,000, but, and that's like the core metric we target.”
Max NussenbaumJul 4, 2016▶ 7:01EP 345: Replacing Property Managers With $79 Flat Fee, $31k in MRR with Max Nussenbaum of EnterCastle.com
AssertionSupported
Nussenbaum: Residential Mortgages Generally Require at Least $50k to $60k Purchase Price
“Usually you need to be around 50 or 60 K purchase price before you can get financing for a property. And so you have to be able to just do an all cash purchase.”
Max NussenbaumJul 4, 2016▶ 14:26EP 345: Replacing Property Managers With $79 Flat Fee, $31k in MRR with Max Nussenbaum of EnterCastle.com
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