HONE Total STR Tier 1 - Split Ownership
The in depth breakdown
- Annual Return: 13.5%
- Average Earnings: $105.28/m
- Min. Investment: $9300
- T1 Total STR fee: 33% of Profit
- Project Proposal
- Total STR Community
- 5 Year Term
The MXD Vision
This is our masterplan
HONE Total STR >>>
SOL Modular >>>
MXD Interplanetary
HONE Total STR >>>
HONE is about experiences of honestly great design and making them available to more people. So how do we do that? How do we scale thoughtful designed experiences?
Tiny Homes; home design honed down to it’s fundamentals. With tiny homes we can design every element, vertically integrate the design and construction, and manufacture with high quality. But how do we incentivize building with maximum focus of great design at the same time as minimizing costs?
Total STR; Tiny homes as short-term rental investment assets.
SOL Modular >>>
If HONE is a success then SOL is the next step. SOL is about real solutions that are genuine, powerful, and sustainable. Solutions for homes that are great and affordable for everyone.
With HONE’s success we will have a working tiny home production line, expertise in innovative building, and the manufacturing facilities and equipment to build real modular homes at scale.
MXD Interplanetary
Why did we do any of this? Well the wide spread of excellent design of course. We’d like to be the leader in innovative great design that isn’t held back by poor home building practices.
We intend to be the Apple or Tesla of the home and living products market and blow away the likes of Ikea.
Products that can be affordable but not cheap, great but not luxuries. Good design that everyone has access to.
The Numbers
Average Income: $3000/m, $36,000/yr
Expenses: $800/m
Net Profit: $2200/m, $26,000/yr
Tiny Home Build Cost: $80,000
Tiny Home Margin: $19,000
Total Tiny Home Cost: $99,000
Fund Raise Due Diligence: $5000
Fund Raise Fee: $9600 (7% of funds raised)
Legal Fees: $10,000 (3,000 in future)
HST (13%): $12,870
Total Cost $137,000 (130,000)
T1 Total STR Fee (33%): $726/m
Total Payouts: $1474/m, $17,688/yr
ROI: 7.35yr, 13.5%/yr
Payout Earnings (At Min Investment): $105.28/m, $1263/yr
Investments over $10,000 require buyer to be an Accredited investor
Minimum Investment: $9300 (130,000/14)
Maximum Members: 14
Maximum Investment: $65,000
Minimum Members: 2
Investment Exit
5 Year Term - The investment term is 5 years. At the end of the term all investors will have the option to exit from the investment or reinvest. If the investor chooses to exit; their shares will become available for auction to other investors. MonX Design will also have the option to purchase shares or purchase the tiny home.
At Anytime - Members will have the option to auction their shares to new members or sell their shares back to MonX Design (at the current market share price) for a fee of 2.5%. At the beginning of a project there will be 6 month freeze on all share resales, this is to ensure the original funds for the building process will be there from construction start to finish.
Depreciation
We are highly confident in our homes. So much so that we only see our tiny homes depreciating by 3-5% per year which we believe will be equal or less than inflation. We are confident that our homes will be worth about the same in the terms of USD or CAD within the exit period of your investment. On top of that we work strategically to create the potential for your tiny home to improve in value - strategies include limiting the run of each model, unique details incorporated in each build, or endless focus on building with durability and repairability in mind.
Maintenance Fund
About $2000 (~2%) of the tiny home's value is taken from our Total STR fee and put towards the Maintenance Fund. This fund holds an amount for each year to pay for maintenance. Any funds not used during the year period will be held in the fund for future maintenance or upgrades. At the end of a project's 5 year term these funds will be made available to the members to cover potential depreciation that may have occurred during the project's term.
Projects Outline
Standard Tiny Home for Total STR projects will be the HONE Basic:
Total Cost 99,000 + HST = $111,870
Build Cost: $80,000, MXD Margin: $19,000
The HONE Basic is the newest version of our tiny home design honed for short-term rental business strategies. The exact details of this model will be released soon.
Lease Terms: 5 Year Term
Lease+Utilities: $600/m
Supplies Cost: $100/m
Location: Fermanagh Farms, 4023 3rd Line, Schomberg, ON
Legal structure:
The split ownership program will use a corporate fundraising structure to facilitate the ownership of the members. Members will buy the amount of shares that they desire; for the first project these shares should add up to an investment of $9,300 or more, allowing a maximum of 14 members to join the project.
Tier 1 vs Tier 2
T1 Total STR Fee: 33% of Net Profit, Avg. $726/m, $8712/yr
T2 Total STR Fee: 25% of Net Profit, Avg $550/m, $6600/yr
Management: $300/m, $3600/yr
Maintenance: $2000/yr
T2 Total Costs: $5600/yr
T2 Other/Margin: $1000/yr
T1 Accounting: $1000/yr
T1 Corporate Management: $1000/yr
T1 Total Costs: $7600/yr
T1 Other/Margin: $1112/yr
We use a fee structure based on net profit of the project so that we align ourselves effectively with our investors. The 33% fee on net profit is about equivalent to a 24% fee on rental income, for comparison the average short-term rental management fee is sometimes cited as 28% on rental income. Included in our fee is also the costs of managing the legal structure of the split-ownership program.