WEST DES MOINES, Iowa — HUDU takes people looking to do odd jobs and matches them up with those who need them done. This time, though, it’s HUDU that’s the homeowner. The company closed on a house in West Des Moines just last week.
“The idea is to list and award every project through the platform,” says HUDU founder, Derreck Stratton, “have doers come in at every single stage—from the cleaning, to the demo, the electrical, the painting…”
Those who sign up to do the various jobs listed on the HUDU are known as “doers” and so far, the doers have done a lot.
“Less than 24 hours and the whole entire kitchen was gone, I was like ‘where’d everything go?’” says HUDU CFO, Mike Kentfield. “These doers are moving fast, they’re hard workers, and they’re averaging $50-$60 an hour on the platform.”
HUDU doers choose their work through a wide array of odd jobs posted by “listers.” While most work on the projects during after hours and weekends, some have done so well with HUDU they’ve quit their full-time jobs.
On this house, HUDU will use some of its best doers, but has also opened up some jobs to new applicants who’ll be trying the app for the first time.
“We want it to be very authentic,” says Stratton. “This is our primary expansion strategy: we’ll go into a new market, we’ll buy a house, we’ll fix it up, and when we’re done we’ll sell it for exactly what we’ve got into it.”
And that’s the real gem to the story. HUDU paid $180,000 for this 1,200-square-foot home in West Des Moines. When they go to sell it, they’ll add only the cost of the work by the doers (who also provide the materials). Since that will make for a house priced well below market value, HUDU will invite prospective buyers to apply for the chance to purchase it.
And there’s more:
“This isn’t going to be your standard flip house,” Stratton says. “This is going to be a house with high-quality finishes, we’re going to build technology into the house, it’s going to be a starter home with ‘Forever Home’ potential.”
HUDU says the neighborhood is very curious and several neighbors have been following the renovations through HUDU’s social media feeds. In doing so, they’re watching the app work in real time.
“There are so many things that you can do on this platform,” says Kentfield. “Once you use it, you’ll never stop. It’s just changing that habit of going online and saying ‘Hey, who do you know that can do this?’ And then you’ve got to vet them all out and get them all over to bid on it.”
Once listers settle on a doer, they pay for the project in full, but that money is held in escrow. Only after the project is finished and approved by the lister/homeowner is it released to the doer.
“It’s a safe transaction,” says Kentfield.
What also seems safe—at this point—is Stratton’s bet that this home will be finished quickly. He says the doers have been working all day, every day.
“Our bet was 69 days start to finish,” he laughs. “April 22nd is our deadline on this house. I think we’ll come in under it. There’s a bottle of bourbon on the line.”
Leave a Reply