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V O L . X X X N O. V § 2 M A R C H 4 , 2 0 2 4 18 I N N OVAT I O N H ousing has become increas- ingly unaffordable for many Americans, contributing to record homelessness and myriad economic challenges for government and businesses. "Housing instability, especially for … those making less than 50% of the area median income, is the largest silent pandemic that we have in this country today," says Brian Bagdasarian, co-founder and CEO of Portland- based Simply Homes. Bagdasarian sees an opportunity to help solve the problem while earn- ing a healthy return in a segment of the housing market that most insti- tutional investors have ignored. But making it work requires automa- tion, he says. at's where Simply Homes comes in. e company, launched in 2020 by Bagdasarian and Chief Operating Offi- cer Robert Kavanaugh, has developed a technology platform that uses machine learning to do just that. "It allows us to identify proac- tively, underwrite, price and acquire properties in a very efficient man- ner," Bagdasarian says. "Just on the underwriting alone, it consolidates three to five days of work down to about 90 seconds." Simply Homes operates as two distinct units: an operating company that hosts the technology platform and buys, renovates and rents out homes, and a property company that holds the real estate portfolio. It uses local, third- party property management firms to manage the properties. Investor interest Late last year, Simply Homes secured $22 million in funding for opera- tions and real estate acquisitions. The financing was led by Gutter Capital and Watchung Capital, with participation from Village Global, Ambush Capital, RavenOne Ven- tures and others. "Simply Homes has developed an impressive technology platform to help unlock capital like ours for the betterment of underserved commu- nities and families," Tom Stults, man- aging partner of Watchung Capital, said at the time of the investment. "We believe our partnership with Simply is an exciting opportunity to do well by doing good." Already active in Pittsburgh, Cleveland and Indianapolis, Simply Homes will expand into additional markets across the Midwest in 2024. e company aims to help families in need achieve housing stability in those communities by offering safe, renovated, affordable rental properties. How it works Many technology-focused institu- tional homebuyers have struggled or folded recently because of higher interest rates and other factors. Bag- dasarian says Simply Homes has been less affected by those market forces because it factored in the possibil- ity of high interest rates early in the company's conception. C O N T I N U E D O N PA G E 2 0 » F O C U S Not so simple P H O T O / T I M G R E E N WAY Brian Bagdasarian, co-founder and CEO of Portland-based Simply Homes, looks to segments of the home market that other investors have ignored. Simply Homes simplyhomes.com / Portland What it does: Uses AI tools to find, acquire, renovate and rent out affordable housing Founded: 2020 Co-founders: CEO Brian Bagdasarian; COO Robert Kavanaugh Employees: 16 Portfolio size: 150 homes We're not a flipper. We hold onto our stock. — Brian Bagdasarian Simply Homes Simply Homes uses AI tools to boost affordable housing B y J . C r a i g A n d e r s o n

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