What is REP status for real estate investors?

Real Estate Professional (REP) status is an IRS designation that allows real estate investors to deduct rental losses against ordinary income without passive activity limitations. To qualify, you must spend more than 750 hours per year in real estate activities and more time in real estate than any other profession.

How does Nestworthy help with IRS audits?

Nestworthy creates audit-ready documentation by AI-validating every REP hour entry, cross-referencing activities with bank transactions via Plaid, generating credibility scores, and producing CPA-ready reports. Every entry is timestamped and immutable, creating a defensible record.

What is the 750-hour material participation test?

The 750-hour test is one of the IRS requirements for Real Estate Professional status. You must spend at least 750 hours per year materially participating in real estate trades or businesses. Nestworthy tracks your pace toward this threshold and flags risks in real time.

Can Nestworthy connect to my bank account?

Yes. Nestworthy uses Plaid to securely connect to over 12,000 banks. Transactions auto-import and AI matches them to your REP activities, creating corroborated evidence that strengthens your audit defense.

How does AI-validated REP tracking work?

When you log REP hours via voice or text, Nestworthy's AI categorizes the activity, assigns a credibility score from 0 to 100, detects potential backfill risks, and cross-references the entry against your bank transactions and documents for corroboration.

Is my financial data secure on Nestworthy?

Nestworthy uses enterprise-grade security infrastructure. Bank connections are handled through Plaid's encrypted system, and all data is encrypted at rest and in transit. We never store your banking credentials.

SMS Messaging Policy

How we use SMS

Transactional messages for Nestworthy account holders: one-time verification codes for authentication, and account notifications about activity on the user's own account (a message or approval request from their property manager, a rent payment confirmation, a maintenance update, or a security alert). Sent only to users who have explicitly requested or enabled them — never marketing, never unsolicited.

Last updated: June 2026. Operated by Nestworthy Inc., a Delaware c corporation.

How to opt in

SMS is opt-in and only goes to Nestworthy account holders for their own account. There are two ways to opt in:

Account notifications — in the app, go to Settings → Notifications (or a property manager’s Alerts panel), enter your own mobile number, and turn on the “Text me (SMS)” toggle.
Verification codes (2FA) — request a code on the sign-in / portal verification screen, or enable SMS two-factor authentication in Settings → Security.

We never collect phone numbers from anonymous visitors and never text third parties. Reply STOP to opt out or HELP for help at any time. Msg & data rates may apply.

Who sends these messages

All SMS messages sent through the Nestworthy platform are sent by Nestworthy Inc. via Twilio Inc., our SMS sub-processor. Messages originate from a 10DLC long code registered to Nestworthy Inc. under A2P 10DLC campaigns with The Campaign Registry. We operate two registered campaigns: a “Two-Factor Authentication (2FA)” campaign for verification codes, and an “Account Notification” campaign for transactional alerts about a user’s own account.

Types of messages we send

We operate as a transactional message program — no promotional, marketing, or unsolicited messages of any kind. Under our current A2P 10DLC campaigns with The Campaign Registry, we are approved to send only the message types below:

Verification codes
Example: “Your Nestworthy verification code: 123456. Code expires in 10 minutes. Don't share this code.”
When sent: Sent when a user explicitly requests a code: (a) a tenant on the tenant-portal verify screen taps "Text me a code", (b) a landlord with SMS-based two-factor authentication enabled signs in, (c) a user requests an account-recovery code, or (d) a user confirms a sensitive account change. SMS is never sent without a deliberate user-initiated action immediately preceding it.
Account notifications
Example: “Nestworthy: New message from your property manager regarding your property. Open Nestworthy to view. Reply STOP to unsubscribe, HELP for help.”
When sent: Sent to a Nestworthy account holder about activity on their OWN account: a new message or approval request from their property manager, a rent payment confirmation, a maintenance request update, or a security alert (e.g. a portal opened from a new device). The account holder opts in by entering their own mobile number in Settings → Notifications (and the property-manager Alerts panel) and enabling the "Text me (SMS)" toggle. No third-party numbers; owner-to-self notifications only.

Message frequency

Recurring but low-volume. Verification codes are one message per user-initiated action. Account notifications are event-driven — sent only when something happens on the user's own account. Typical users receive fewer than 5 SMS messages per month.

How users opt in

End users opt in via explicit, deliberate paths: (1) TENANTS receive a unique portal URL from their landlord and on the verification screen tap "Text me a code" to request the SMS; (2) LANDLORDS optionally enable SMS-based two-factor authentication from Account Settings → Security and confirm with a verification code; and (3) ACCOUNT HOLDERS opt in to account notifications from within their authenticated account (Settings → Notifications, and the property-manager Alerts panel) by entering their own mobile number and enabling the "Text me (SMS)" toggle. All users agree to our Terms of Service and Privacy Policy at sign-up. SMS is sent only after one of these deliberate user-initiated actions — no public form on nestworthy.ai collects phone numbers from anonymous visitors, and Nestworthy never sends to third-party numbers.

Specifically: the platform never collects a phone number from anonymous web visitors. Phone numbers are entered either (a) by an account holder for themselves — in Settings → Notifications, where they turn on the “Text me (SMS)” toggle to receive account notifications about their own account — or (b) by an account holder for a specific recipient role (tenant, contractor, advisor), where the recipient receives the first SMS only after the account holder explicitly triggers an invite or verification flow.

How users opt out — STOP keyword

Reply STOP (or CANCEL, END, QUIT, UNSUBSCRIBE, REVOKE, STOPALL, OPTOUT) to any message to opt out. The phone number is immediately removed from the messaging list and a final confirmation message is sent. Reply START to re-subscribe. Reply HELP or INFO for support.

Reply STOP (or any of CANCEL, END, QUIT, UNSUBSCRIBE, REVOKE, STOPALL, OPTOUT) to any Nestworthy SMS message to immediately stop receiving messages. You will receive one final confirmation message:

You have successfully been unsubscribed. You will not receive any more messages from this number. Reply START to resubscribe.

Reply START to re-subscribe at any time.

HELP keyword

Reply HELP or INFO to any Nestworthy SMS message and you will receive a reply with our support contact information:

Reply STOP to unsubscribe. Msg&Data Rates May Apply.

For account-specific help that doesn't fit in an SMS response, email admin@nestworthy.ai.

Message and data rates

Standard message and data rates may apply. Carriers may charge for SMS messages.

Carrier disclosure

Carrier delivery is not guaranteed. Nestworthy Inc. and the wireless carriers (AT&T, T-Mobile, Verizon, etc.) are not responsible for delayed or undelivered messages.

Privacy and data handling

Phone numbers collected for SMS purposes are used only to send the messages described above. We do not sell, share, or transfer phone numbers or message content to third parties for marketing purposes. Full data handling details are in our Privacy Policy, including the SMS Verification Data section.

For data-subject access or deletion requests, email admin@nestworthy.ai.

Nestworthy is operated by Nestworthy Inc., a Delaware c corporation based in Plano, TX, United States. For questions about this policy contact admin@nestworthy.ai.