How SRT Brain CEO Nochum Rabin grew SRT Brain to $30K revenue and 12 customers in 2022.

Str BR brain helps you understand when you buy or when you want to buy a short-term rental what you can pay for it what the returns could look like he's put in 340 000 bucks of his own money into this business spent 160 000 so far building the MVP he now has 12 customers you know doing about 2 000 bucks a month in Revenue just getting going he's boots dropped it team of three him and his co-part as him and his partner and then a developer they've got out there in Italy building building building hoping to ramp up here to go from 12 customers to 2000 with paid ads and some other tactics we'll see what happens hey folks my guest today is a note drum Robin He is building Str brain stands for short-term rental brand where you can gain access to underwriting with real-time data nation wide no subscription needed they help you become a better short-term rental investor no to be ready to take us to the top absolutely all right so real quick is are people if people want to buy a short-term rental put on Airbnb they'll use you to find it or they use you after they purchase to manage the short-term rental that's a great question so that's twofold is twofold either you could buy a property and then see how much is the going rate in the area but really we like to focus on if you're looking to buy a property for basically a Zillow and a short-term underwriting platform so you know that you want to buy a house for short-term rentals right near your house you want to see how much it's going to make prior to you buying it you're going to go on to the site you're we're going to run you an underwriting in literally 10 seconds and you'll have that share with your friends family co-workers investors Etc so I find something on your site and it's a house that's going to cost me 500k right next to where I live and I click a button that says purchase this and you say wait do you want to see what your mortgage could look like and and you're I can say yes and then you're going to show me like amortization table immediately similar to that it's it's you can go onto our website find a house right next to you for 500 Grand that's for sale for 500 Grand you can see all the property details for free then there is a purchase button when what's going to happen when you press that purchase button it's gonna unlock your income your projected income expenses average daily rental and all things spent all the expenses incurred with running an Airbnb many people think that Airbnb is just buy a house slap it up and that's it there's fees there's costs there's Furniture costs and it really all boils down to uh cash on cash for a cap rate basis so we'll give you all that in one spot and if you want to make edits yourself we give you that opportunity as well so what I just put in my address so I guess a couple a couple things here one is it free for people to sign up or is your main Revenue stream investors paying you a fee to access the data so we don't we have a subscription model but I like to tell let's say people like yourself that if you could go on a one-time basis not a city basis not a nationwide so if you see a house right next to you you're able to go there and and just buy that it's ten dollars um one time and that's it and you'll have it in your account forever but it is free to sign up okay so but but how do you view the business like all right are you are you just gonna try and get as many one-time ten dollar sales as possible or do you want to try and keep people subscribing for X dollars a month every month to access everything so we have a lot of subscribers at the moment we do have subscribers we also really like we that that's really the end goal and model so what do they pay per month on average they pay on average about 250 a month okay and what do they get for that they get uh 25 reports at a cost of close to seven dollars a month okay roughly sorry I thought you said they paid 250 bucks a month yeah I mean so they pay seven bucks a report it it ends up being that it it ends up being that 250 250 a month gets them instead of 25 reports and 10 bucks a pop they'll get about 35 reports okay got a subscription base but we're really excited because we're working with brokerages and lenders and brokerages are signing on with us to provide this for their agent so there's Mega packages as well for agents and lenders are starting to lend off of Airbnb on a purchase which they've only been doing on refi's so they're starting to do it on purchases so part of their subscription is telling their appraisers to go buy a report for to see how it could work for short-term rentals so of your occurring Revenue what percent is from brokerages and lenders paying you fee versus individual individual investors like me currently we're at about a 40 lender broker lender and brokerage we're at a 20 of individual reports and the remaining part of the subscription oh what's going on there YouTube good to see you guys now imagine this you love watching these interviews with SAS Founders but imagine if we took all of the valuation data out from over 2807 interviews I've done manually saves you a lot of time well we've done this we've built the into the beautiful interface inside of founder path check this out I'll show you how you can access this in a second but you log in you connect your stripe account you see your valuation real time you can see what it changed over the past 88 days and even set goals for evaluation this year now the secret evaluation is there's many different ways to value a SAS business so the reason you're going to see three or four different valuations inside of your founder path dashboard this is all free by the way is because depending on who's doing the buying of your SAS company you're going to get a different valuation a VC is going to pay a different valuation private Equity Firm is different if you're going to do a minority sale that's different and if you sell the whole business that's a different valuation you can see all those when I hover over here here right so the teal is what a VC would pay yellow is what private equity and red is if you sold the whole thing outright now what's cool about this is this is not built off random data again you guys hear these interviews on YouTube all these datas are built from Real Time valuation data points Founders share with us on the show so traction 1.2 million seed around 3.7 raise they sold 22 percent of their business go in here and filter by the event maybe you only want to see companies that have sold the whole business well here are a bunch that have been acquired the valuation and the multiple maybe you're going out right now and you're raising your seed round well go in here and look at all this recent seed deals that went down what they raised what valuation they raised at and what percent that they sold there's never been a larger data set of SAS valuation than what you can get now inside of founder path and we're thrilled to bring it to you all right we're gonna go back to the YouTube video here in a second but if you want to check this tool out if you want to jump in and sign up you can check it out for free to get your valuation at this link this link founderpath.com forward slash products forward slash valuations or if you go to founderpath.com and hover over products click on get your valuation here and go ahead and sign up to give it a whirl again all that valuation data live right inside the platform I hope to see you there all right let's jump back into the interview oh so okay so your total revenue is brokerages and lenders paying one time for one property is 40 percent like this is monthly right and like they pay it one time like as in last month investors are making another 20 and then your actual recurring Revenue each month that makes up about right now 40 to your total revenue correct I see I see okay that makes sense um very cool I guess put this on a timeline for me when'd you launch so we're actually still coming out of beta testing we're still really fresh off the press we've been working on it for a little bit we haven't done much marketing uh when did you write the first line of code uh we did that probably at the beginning of the year January okay interesting and so are you guys pre-revenue today so it's no it's not pre-revenue uh we're we're off the ground but as of a month ago uh Nationwide you got your first paying customers last month yes okay so what total revenue last month was 100 bucks a thousand bucks 10 000 bucks current Revenue last month was close to twenty five hundred dollars this month or this month we're looking at uh we're waiting on a few brokerages to finish up um their contracts we should be looking at about eight to ten thousand dollars this month that's great congrats on your first dollar of Revenue man that's exciting yeah all right so 2 500 a month and how many brokerages and lenders and investors and everybody else how many people are paying something currently we're working with one lender at the moment that's actually paying um and obviously we have a lot of uh meetings and relationship building to do to get more and we're working with currently one brokerage one brokerage of 60 agents and what about the rest and then the rest the rest we have I think we have about 10 10 subscribers 10 monthly subscribers so...