My fund, get a term sheet in 24 hours: https://founderpath.com/ PadSplit CEO Atticus LeBlanc rents furnished rooms for under $30 a night, has 25,000 of them filled tonight, and owns none of the real estate. The co-living marketplace grew from 82 units at the end of 2018 to 34,000 today, pushes over $250M a year in rent through the platform at an 8% take rate, and has grown 70% a year for three straight years. He raised $40M in equity after 76 of 77 investors passed on his Series B, just closed a credit facility with ORIX, and says “hell no” to a $150M all-cash offer. Nathan Latka breaks down the marketplace business model, the real estate investing yields behind it, and how to negotiate debt vs equity. 📌 Get software benchmarks and revenue data at https://getlatka.com/companies/padsplit 0:00 Intro How did 82 rooms become 34,000? 2:07 68,000 site visits a month, 66 domain rating 2:59 82 units in 2018 to 34,000 today, zero owned 4:06 Why this isn’t Airbnb (under $30/night) What do the unit economics look like? 5:31 9.5-month average stay, one tenant 17 years 7:05 Rooms refill in 8 days (apartments take weeks) 7:37 First 10 days of rent, then 8% forever How much money does PadSplit make? 8:19 The $60,000/day math 8:43 $250M a year through the platform 8:55 70% growth, 3 years straight Should he own the real estate? 12:09 Why rolling up the homes doesn’t work 12:56 The crowdfunding fund buying PadSplit homes 13:48 Airbnb vs WeWork vs Invitation Homes How did he fund it? 15:41 77 VC meetings, 1 yes 16:20 How to negotiate a debt deal 17:54 16 public BDCs, $30B lent, rates 11.4% to 9.2% Would he sell for $150M? 18:52 Why ORIX got the deal 19:58 240 employees, 100 in customer service 21:50 “$150M all cash? Hell no.” 📅 Weekly interviews every Tuesday. Subscribe on YouTube: https://www.youtube.com/@NathanLatkawatch?sub_confirmation=1 Subscribe on iTunes: https://podcasts.apple.com/us/podcast/top-founders/id1023761733 Subscribe on Spotify: https://open.spotify.com/show/3AA9buFn8oxJf8WSDOUks5 Looking for funding? Visit https://founderpath.com/