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You may know The Property Brothers from their popular reality TV series. Well, now the Canadian siblings are embarking on a new venture to invest in entrepreneurs making moves in the housing industry. They're partnering up with Groundbreak Ventures to launch something called the Healthy Home Innovation Fund. The fund hopes to back companies finding innovative solutions that prioritize sustainability, affordability, adaptivity and connectivity in the market. Joining us now for more are the Property brother That's a lot activities the Property Drew and Jonathan Scott, co founders of Scott Brothers Global. So tell us about these activities. To you and Jonathan, what do people want and how do you get how do you give it to them cost effectively?

You may know The Property Brothers from their popular reality TV series. Well, now the Canadian siblings are embarking on a new venture to invest in entrepreneurs making moves in the housing industry. They're partnering up with Groundbreak Ventures to launch something called the Healthy Home Innovation Fund. The fund hopes to back companies finding innovative solutions that prioritize sustainability, affordability, adaptivity and connectivity in the market. Joining us now for more are the Property brother That's a lot activities the Property Drew and Jonathan Scott, co founders of Scott Brothers Global. So tell us about these activities. To you and Jonathan, what do people want and how do you get how do you give it to them cost effectively?

Well, I think the biggest thing is we're in a period right now where there's so much incredible innovation that is going to transform not only how our homes operate, how we you know, secure our homes, and also the transacting within a home while you're renovating, buying and selling. So we're looking for from series to a series A right down to seed. We're looking for any companies that are providing a service or a technology that we think we can get behind and amplify. And that's why we've got a lot of interest from investors who are coming as well, saying we know there's something here that's got a lot of opportunity to grow, and we're just trying to find something unique that nobody else has touched on yet. Yeah, the main thing actually is, you know, we're looking to raise eighty five million, and that's that's just to be able to purchase and renovate Michael Jordan's house.

Well, I think the biggest thing is we're in a period right now where there's so much incredible innovation that is going to transform not only how our homes operate, how we you know, secure our homes, and also the transacting within a home while you're renovating, buying and selling. So we're looking for from series to a series A right down to seed. We're looking for any companies that are providing a service or a technology that we think we can get behind and amplify. And that's why we've got a lot of interest from investors who are coming as well, saying we know there's something here that's got a lot of opportunity to grow, and we're just trying to find something unique that nobody else has touched on yet. Yeah, the main thing actually is, you know, we're looking to raise eighty five million, and that's that's just to be able to purchase and renovate Michael Jordan's house.

That was the main reason for the E's that fine.

That was the main reason for the E's that fine.

I think, like John was saying, for us, you know, we've already we've always put family first, and we're really interested in finding ways to make homes more affordable, have the homework for people instead of them having to work so.

I think, like John was saying, for us, you know, we've already we've always put family first, and we're really interested in finding ways to make homes more affordable, have the homework for people instead of them having to work so.

Hard to afford to live where they are.

Hard to afford to live where they are.

So, whether we looking at sustainability or adaptivity or connectivity, there are so many ways for us to bring new innovation to the market and then utilize our face and our brand, which is a household name when it comes to home renovation design, to really help these new companies scale up. And I'm excited this is a new venture for us. So that's why we look for the best of the best partners with Groundbreak for sure.

So, whether we looking at sustainability or adaptivity or connectivity, there are so many ways for us to bring new innovation to the market and then utilize our face and our brand, which is a household name when it comes to home renovation design, to really help these new companies scale up. And I'm excited this is a new venture for us. So that's why we look for the best of the best partners with Groundbreak for sure.

For sure, Well you're looking to raise eighty five million dollars and put that to work. And I mean there must be so many candidates out there working on solutions to the home for example, and not just the big players that we all know. You know, why would they not to be rude, but why would they need seed money at this point if it's something that's that can generate money on its own.

For sure, Well you're looking to raise eighty five million dollars and put that to work. And I mean there must be so many candidates out there working on solutions to the home for example, and not just the big players that we all know. You know, why would they not to be rude, but why would they need seed money at this point if it's something that's that can generate money on its own.

Yeah, Well again we're looking, well, there's a lot of information out there that just hasn't seen the light of day. Or even looking at geokermal as an example, it's not cost effective right now.

Yeah, Well again we're looking, well, there's a lot of information out there that just hasn't seen the light of day. Or even looking at geokermal as an example, it's not cost effective right now.

So there's a lot.

So there's a lot.

There's a lot that is technology, a lot that's sustainably based or you know, looking at net zero construction that doesn't have the money to grow. And so we are looking at our strategic partnerships as well with our fund and LPs, you know, whether it's insurance, banking, developers, builders, you name it to be a part of this because this is something that can help their businesses thrive as well. What's interesting as well is we have a situation unlike anyone else out there where we're in people's living rooms across the country in eighty plus million homes a year with our shows, and we get feedback, real time feedback from all of our audience. Drew and I received half a million messages a week each from fans saying, here's what I need at home. Here are the problems we're encountering. I wish there was a solution for that. In the same boat, we have technology companies, engineers who've created technologies reach out to us as a first step before they've even gone to look for funding because they have an idea. So we really get an inside scoop as to where trends are going when it comes to the home space.

There's a lot that is technology, a lot that's sustainably based or you know, looking at net zero construction that doesn't have the money to grow. And so we are looking at our strategic partnerships as well with our fund and LPs, you know, whether it's insurance, banking, developers, builders, you name it to be a part of this because this is something that can help their businesses thrive as well. What's interesting as well is we have a situation unlike anyone else out there where we're in people's living rooms across the country in eighty plus million homes a year with our shows, and we get feedback, real time feedback from all of our audience. Drew and I received half a million messages a week each from fans saying, here's what I need at home. Here are the problems we're encountering. I wish there was a solution for that. In the same boat, we have technology companies, engineers who've created technologies reach out to us as a first step before they've even gone to look for funding because they have an idea. So we really get an inside scoop as to where trends are going when it comes to the home space.

And we've had a lot.

And we've had a lot.

Of incredible partners as well who have brought us companies where they think they see the opportunity for us to amplify the message and the product that they have in a way that they couldn't do if they just went to the open market.

Of incredible partners as well who have brought us companies where they think they see the opportunity for us to amplify the message and the product that they have in a way that they couldn't do if they just went to the open market.

So Jonathan, on that point, and first of all, thank you for one of you shaving so I can tell you to a part. But Jonathan that on that point, when we talk about sort of what people are looking to do for their community. Obviously, I'm sure you know, affordable housing or more affordable housing is a big issue in a lot of Marcus, certainly out there in California where you guys are based here. Some of the ideas that you're expecting to generate, or maybe some of the ideas you've already gotten, are they targeting that as well? Is that something specific?

So Jonathan, on that point, and first of all, thank you for one of you shaving so I can tell you to a part. But Jonathan that on that point, when we talk about sort of what people are looking to do for their community. Obviously, I'm sure you know, affordable housing or more affordable housing is a big issue in a lot of Marcus, certainly out there in California where you guys are based here. Some of the ideas that you're expecting to generate, or maybe some of the ideas you've already gotten, are they targeting that as well? Is that something specific?

One hundred percent.

One hundred percent.

So one of the companies that we've acquired is a company focused solely on ADU construction and multi family construction to offset the housing crisis. What we see out there, and Drew and I are both the same. We're total data nerds. We dig in and we want to find out what's causing the problem and what's a realistic solution. Most of the offerings out there are total crap. Either the product is going to fall apart, they're overcharging community, and a lot of communities really want to spend to find a solution for the housing crisis. So we're trying to dig in and find out what's going to be good for business, what's going to be good for communities, but ultimately what's going to actually solve the problem. Because we've been waiting too long for someone to actually do something that's going to be effective. Well on that baty you look here in California. One issue here is the cost. Even if you're looking for housing trying to help people up the street, just a very basic, basic, small signal room bedroom unit, the cost is over eight hundred thousand dollars.

So one of the companies that we've acquired is a company focused solely on ADU construction and multi family construction to offset the housing crisis. What we see out there, and Drew and I are both the same. We're total data nerds. We dig in and we want to find out what's causing the problem and what's a realistic solution. Most of the offerings out there are total crap. Either the product is going to fall apart, they're overcharging community, and a lot of communities really want to spend to find a solution for the housing crisis. So we're trying to dig in and find out what's going to be good for business, what's going to be good for communities, but ultimately what's going to actually solve the problem. Because we've been waiting too long for someone to actually do something that's going to be effective. Well on that baty you look here in California. One issue here is the cost. Even if you're looking for housing trying to help people up the street, just a very basic, basic, small signal room bedroom unit, the cost is over eight hundred thousand dollars.

That's something that we're cracking.

That's something that we're cracking.

The housing prices is a massive issue all across North America, and so that is one of our verticals to really strongly focus and we have strong relationships whether it's federal, state or regional here to help work on that specifically. So I'm excited again with this panelized system that can come into a new way of building your home at an affordable rate that's still a solid home. It's not something that feels cheap, thin walls, it's a real home, but it can bring that price point way down.

The housing prices is a massive issue all across North America, and so that is one of our verticals to really strongly focus and we have strong relationships whether it's federal, state or regional here to help work on that specifically. So I'm excited again with this panelized system that can come into a new way of building your home at an affordable rate that's still a solid home. It's not something that feels cheap, thin walls, it's a real home, but it can bring that price point way down.

I am curious and drew on that point. And this is a broader question just about kind of the state of the home building market, home renovation market, if you will. We saw prices really get distorted because of the pandemic prices for supplies that is has that kind of right size itself I mean, is it I guess more normalized and what we saw prior to the pandemic.

I am curious and drew on that point. And this is a broader question just about kind of the state of the home building market, home renovation market, if you will. We saw prices really get distorted because of the pandemic prices for supplies that is has that kind of right size itself I mean, is it I guess more normalized and what we saw prior to the pandemic.

I guess it depends what you're looking at for your materials. Some in some ways it's normalized. Its timelines are the thing too. The timelines were ridiculous for you know, even just ordering windows, our timeline was ten times longer than what it used to take. It's not just that though, which you know, you're well aware, the cost of debt is so high as well, and it's so hard for a family to look at getting a home or renovating a home because when you have expensive materials, long time delays and you have expensive debt is just a losing recipe. So this listening too is we're seeing a lot of the delays coming from labor shortages as well. There's just too much work happening and not enough people that can sustain the workforce. So we're going to see and we've already started to see a real surge in the trades as well. People can come out of college and be making a six figure salary right off the bat, and so I think that's a huge thing too, Balancing the jobs out there with the technologies that are coming in to make life a little healthier at home.

I guess it depends what you're looking at for your materials. Some in some ways it's normalized. Its timelines are the thing too. The timelines were ridiculous for you know, even just ordering windows, our timeline was ten times longer than what it used to take. It's not just that though, which you know, you're well aware, the cost of debt is so high as well, and it's so hard for a family to look at getting a home or renovating a home because when you have expensive materials, long time delays and you have expensive debt is just a losing recipe. So this listening too is we're seeing a lot of the delays coming from labor shortages as well. There's just too much work happening and not enough people that can sustain the workforce. So we're going to see and we've already started to see a real surge in the trades as well. People can come out of college and be making a six figure salary right off the bat, and so I think that's a huge thing too, Balancing the jobs out there with the technologies that are coming in to make life a little healthier at home.

Jonathan, One of the small things that people are starting to look for the newer things. I mean, it used to be that the kitchen was all important, or that extra bathroom or that rainforest shower. What are the next things that we will be wanting in our homes. Yeah, everyone likes the rainforest, so I guess I don't know rainforce without the buzz.

Jonathan, One of the small things that people are starting to look for the newer things. I mean, it used to be that the kitchen was all important, or that extra bathroom or that rainforest shower. What are the next things that we will be wanting in our homes. Yeah, everyone likes the rainforest, so I guess I don't know rainforce without the buzz.

Technology is everything.

Technology is everything.

But we're noticing is there's going to be a real shift toward things like leak detection and AI driven leaked detection. Because water is getting more expensive, the quality of air and water at home is going to be incredibly important as well. As homes are moving toward an electrified system. It's much more efficient and the data that comes off of that as well can preemptively catch anything like an appliance breaking down or you know, something that could cause you a more expensive problem. So technology is like smart electrical panels, leak detection. These are all things that are really really high on our radar because they're actually going to help people in the their budgets at home, but they're also going to make life easier.

But we're noticing is there's going to be a real shift toward things like leak detection and AI driven leaked detection. Because water is getting more expensive, the quality of air and water at home is going to be incredibly important as well. As homes are moving toward an electrified system. It's much more efficient and the data that comes off of that as well can preemptively catch anything like an appliance breaking down or you know, something that could cause you a more expensive problem. So technology is like smart electrical panels, leak detection. These are all things that are really really high on our radar because they're actually going to help people in the their budgets at home, but they're also going to make life easier.

And on top of that, for example, battery walls at home.

And on top of that, for example, battery walls at home.

Solar is amazing and people are shifting and regulation is also making people shift away from gas. But if you don't have battery backup, you're really missing out on a lot of opportunity to offset your costs at home and protect your family. So there's so much excited about I would definitely say that that's another reason we're excited to start allocating funds from our.

Solar is amazing and people are shifting and regulation is also making people shift away from gas. But if you don't have battery backup, you're really missing out on a lot of opportunity to offset your costs at home and protect your family. So there's so much excited about I would definitely say that that's another reason we're excited to start allocating funds from our.

Fun Yeah, and this is a great idea. And I'm just looking through kind of all these materials and preparing for this, and I really wish you guys the best. I do kind of want to end on a liner note. You were joking a little bit earlier, Drew about the Michael Jordan property. I don't even know how many square feet that is. You can see that you can build a lot of affordable homes just out of that property. But I mean, for those of us who've watched you and seen you guys, you know, you know, tear up these homes and turn them into something better. How do you deal with a home that is constructed so specifically just one person's taste and then have to put that home back on the market and make it. I guess palatable to someone else or to the masses, if you will.

Fun Yeah, and this is a great idea. And I'm just looking through kind of all these materials and preparing for this, and I really wish you guys the best. I do kind of want to end on a liner note. You were joking a little bit earlier, Drew about the Michael Jordan property. I don't even know how many square feet that is. You can see that you can build a lot of affordable homes just out of that property. But I mean, for those of us who've watched you and seen you guys, you know, you know, tear up these homes and turn them into something better. How do you deal with a home that is constructed so specifically just one person's taste and then have to put that home back on the market and make it. I guess palatable to someone else or to the masses, if you will.

You know, it's the one thing we tell clients all the time, for twenty years working with clients who've been saying the same thing. It's great if you have something you personally really love, but you always have to think as though you may have to sell this house. What if your family grows you need a bigger home, or what if you your job transfers you to a different city. Always think of what if you had to move so that secret man cave that you want and the secret panel in your wall or the basketball court in the basement. I always bug my friend Michael Boublay because he dug out in his basement and put in a full hockey rank in his basement.

You know, it's the one thing we tell clients all the time, for twenty years working with clients who've been saying the same thing. It's great if you have something you personally really love, but you always have to think as though you may have to sell this house. What if your family grows you need a bigger home, or what if you your job transfers you to a different city. Always think of what if you had to move so that secret man cave that you want and the secret panel in your wall or the basketball court in the basement. I always bug my friend Michael Boublay because he dug out in his basement and put in a full hockey rank in his basement.

He will never see that value back again.

He will never see that value back again.

But it's up to them if somebody wants to possibly throw that money away. You know, Michael Jordan makes enough to be able to be okay to walk away from a few million.

But it's up to them if somebody wants to possibly throw that money away. You know, Michael Jordan makes enough to be able to be okay to walk away from a few million.

It's just it's a decision you have to make.

It's just it's a decision you have to make.

An easy way to remember is we always tell people the more bold you go with an idea in design, at home or in construction, the more bold you go, the faster, it's going to go out of style, and so just be prepared.

An easy way to remember is we always tell people the more bold you go with an idea in design, at home or in construction, the more bold you go, the faster, it's going to go out of style, and so just be prepared.

That you're going to spend on it again.

That you're going to spend on it again.

Yeah, the full.

Yeah, the full.

Basketball court in the basement is pretty bold.

Basketball court in the basement is pretty bold.

Yeah, that's the great wooden floors though.

Yeah, that's the great wooden floors though.

Yeah.

Yeah.

Absolutely.

Absolutely.

I guess if you have their kind of money, you know, I guess it doesn't matter here. Why not put a hockey rink in your basement or a basketball court? Maybe one day I'll get there. Hey, thanks to both of you, guys, really appreciate you join us. Drew and Jonathan Scott of course, the co founders of Scott Brothers Global. Of course HGTV stars as well.

I guess if you have their kind of money, you know, I guess it doesn't matter here. Why not put a hockey rink in your basement or a basketball court? Maybe one day I'll get there. Hey, thanks to both of you, guys, really appreciate you join us. Drew and Jonathan Scott of course, the co founders of Scott Brothers Global. Of course HGTV stars as well.