Real Estate Crowdfunding is the process of multiple investors coming together to buy a property. Investors receive their returns through monthly rental income and movement in house prices. This return is an equivalent percentage of the amount of the property they purchased.
Bricksave is an online investment platform for real estate, more commonly known as a Crowdfunding platform. Bricksave gives investors the ability to:
On Bricksave you can currently choose to invest in curated pre-selected properties. These are properties that Bricksave have negotiated an option to purchase at an agreed price. The funds to purchase these properties are then Crowdfunded by you and other likeminded individuals within a specified time period. Once the targeted investment amount has been reached we close the Crowdfunding and purchase the property. Each investor then receives a confirmation of their investment and the amount of the property that they own.
In addition, we provide an updated estimate of the valuation of each property on a monthly basis.
You will also receive returns based upon the rental of the property and these will be credited to your account each month and can be withdrawn at the end of each 12 month cycle.
Your investment in a property on the platform is made via the purchase of shares in a registered Company that is created for the sole purpose of purchasing the designated property.
There is a different Project LLC. for each and every property; therefore you will always know that you are investing in the exact property as chosen by you.
Your shares are held under a nominee arrangement, with the nominee being the legal shareholder of the relevant project LLC (The nominee is a Company owned solely by Bricksave). The nominee holds those shares on your behalf and you will be entitled to all the economic benefits as the ultimate beneficial owner. The purpose of this arrangement is to allow the electronic transfer of shares and for ease of administering operations as set out in the management contract.
Property purchase costs
As with buying property directly, purchase costs such as stamp duty, solicitor’s fees and survey costs are incurred. We include the unamortised amount within the estimated valuation of investments
Standard investment documents
At the point of investment you will be required to enter a set of investment documents. These are standard form for each investment and come as a share certificate showing the percentage of the building you own. Should you wish to not receive hard copies of these documents there is an option to only access these via your dashboard.
You beneficially own a portion of the individual property via the specific property LLC. Your account will be credited with a share of the dividends from the Company every month; this is in direct proportion to your ownership of the Company that owns the property.
The Dividends available to property investors are calculated as the Gross Rent collected from tenants, minus property-related costs incurred such as lettings and management fees, insurance, maintenance and corporation tax of the LLC. Under no circumstances will you be required to contribute further capital, e.g. during vacant periods or to cover defaults.
Estimates of future Dividends will be provided to you prior to you making an investment. These estimates are based on consultation with third parties, such as local estate agents and surveyors. We then apply estimates for void periods, on-going maintenance, and any other costs we envisage. Our estimates are available for review as part of the investment process. However it is important to note that this information is based on estimates and Bricksave does not provide investment advice in this regard. It may be that lower Gross Rents are secured and/or higher costs incurred.
The assistance of a neutral third party is necessary in order to secure the investments and the management of the properties. The legal necessity of a trustee facilitates the transparency given that it needs authorisation to act in any given way.
The trustee is the entity in charge of saving the money until the required amount to buy the property is raised. Once the money is gathered, the trustee buys the real estate asset.
When you buy a share in a property, you never need to worry about letting or management of properties. Bricksave takes care of this on behalf of the investors.
No, investors will not have to contribute further capital. All costs including bills and fees are funded from the Gross Rent. The risks of most large unexpected costs, such as flood or fire, are mitigated through property insurance.
We also forecast certain costs, such as upcoming roof maintenance, and either (i) raise a works provision during the initial Crowdfunding when the property is a New Listing or (ii) set aside a certain amount of the Gross Rent to deal with these costs as and when they arise. We make all of this information available to investors at the point of investment. If further information relating to costs becomes available later, we will communicate this clearly via our website so that all Investors (current and prospective) are aware.
It is possible that a cost is incurred that is larger than Gross Rent, and may be unexpected and also uninsured. In such a scenario Bricksave reserves the right to take out a loan which is secured against the property, to fund the expenditure. That loan is repaid from Gross Rent, and this impacts the investors’ returns accordingly. If this situation were to occur, the matter would be communicated clearly to existing and prospective investors alike in a clear, fair and transparent manner.
Capital appreciation or depreciation is realized when you exit your investment. There are two principle ways to exit:
1) Offer your investment for sale privately. If you wish to exit your investment then we would ask you to contact Bricksave directly, although we do not guarantee to find a buyer or facilitate your exit from the investment, until the Bricksave secondary market is live, we will try to assist you in this.
Otherwise your opportunity to exit is limited to;
2) Exit after four years at market value
On each fourth anniversary of the completion of the transaction on the platform, Bricksave will put the property on the market for sale under the following conditions:
(i) The property is inspected and valued by an independent Chartered Surveyor with reference to factors such as recent transactions and the condition of the property, adjusted for any potential liabilities that the LLC may have, such as taxation.
(ii) Once the property sale has completed investors will receive the dividend relevant to their share in the property.
Bricksave will administer this process and is obliged to act in the interests of investors to maximise financial return. On successful completion of the sale, all Investors in that property will be exited and net proceeds will be distributed to investors. Note that third party costs, such as legal fees, will reduce the proceeds available for distribution to investors, but Bricksave will not charge any fees or make any profit margin on the third party fees.
It should be noted that this process will take as long as required and typically the sales process is between 3-4 months. However, there is no guarantee of this as the sale could take longer.
What information is on my dashboard?
As an investor you will have access to a dashboard so that you can monitor your investments. In particular, the dashboard will provide Latest Valuations, Dividends Received, Forecast Dividends, gains / losses on property valuations and Total Returns generated since being a Property Partner user.
Investments in USD can only be accepted via Bank Transfer for compliance reasons. Investments in EUR are accepted via Bank Transfer and Debit/Credit Card.
Bricksave does not charge Crowdfunders for investing. However, transactions are subject to bank transfer fees which should be covered by the Crowdfunder. Bricksave will invest only the exact money received.
It is not possible to make withdrawals from your Bricksave account. Instead the dividends gained are applied to your account, similar to interest in a bank account, and will be paid out at the end of each 12 month period.
All payments are in USD and your bank will convert the amounts at their specified exchange rate.
In order to protect your funds, the first time you receive dividends we may verify that the account details entered belong to you. Where possible we will perform this electronically, but we may require further information such as a copy of a recent bank statement.
No, Bricksave does not pay interest on client monies (i.e. those funds that are within your account but not invested in Property).
Each property investment is separately organized from the assets and liabilities of Bricksave, as well as any other property investments on the platform.
If Bricksave were to fall into financial distress an alternative manager could be appointed to continue management of the assets in accordance with the terms of investment.
Any funds that are held in your account, but not yet invested in property, are held in a client monies bank account in accordance with standard banking compliance, regulatory and security rules. This is a separate bank account that is ring-fenced from the monies of Bricksave and will be returned to investors in the event of Bricksave falling into financial distress.
We take complaints very seriously. Please send an email to email@example.com explaining the nature of your complaint and one of our senior management team will contact you directly.
No. We and our affiliates do not make any recommendations, solicit any offers to buy or sell any securities, or provide any investment advice.
Our support team is dedicated to providing registered users with as much information as possible for their current and potential investments. We provide certain information to our registered users for investments offered on our platform to assist them in making an informed investment decision. We also provide a client dashboard that includes information such as annual and monthly financial reports, project and market updates, videos and photos and relevant legal documents for each investment. If you have any questions feel free to call us on +54 11 5983 9477 or email us at firstname.lastname@example.org.
Bricksave advises you to conduct your own legal, accounting or other due diligence review and to obtain investment and tax advice from your advisers before deciding to invest. You are solely responsible for conducting any legal, accounting or other due diligence review and should obtain investment and tax advice from your advisers before deciding to invest. Our support staff does not make any recommendations, solicit any offers to buy or sell any securities, or provide any investment advice.
Bricksave has partnered with experienced developers and operators in an effort to generate as much value as possible for each of its investment opportunities. More information about our partners can be found in the About Us section of this website.
Bricksave has no required reporting obligations, but we seek to provide you with up to date information on each of your investments. This is done through the client dashboard where investors receive periodic financial statements and investment updates including financial forecasts and returns information. More information on project reporting can be found in the offering documents for each investment.
Returns cannot be guaranteed. We can only project potential returns based on certain assumptions as well as the due diligence we and our affiliates conduct prior to purchasing a property. Each investor is required to acknowledge in our Terms of Service that investments that derive their value from real estate involve substantial risks, that such investments are not appropriate for all investors, that there can be no assurance that the investment objectives for any particular investments will be met, and that investors must be able to bear an entire loss of their investment.
Investing in real estate is risky and is often speculative in nature. For example, if an investor's return depends on unit sales or rental income to exceed the costs of development and such sales or rents do not exceed such development costs, an investor could lose his or her capital contribution and/or make no return on his or her investment. Investors should carefully read the offering documents prior to making an investment decision in order to become familiar with the details of the investment, including the potential risks. Investors should also have knowledge and experience in financial and business matters, including investments that derive their value from real estate, and should be capable of evaluating the merits and risks of any prospective investment.
Unlike many Real Estate Crowdfunding companies who have complex fee structures, Bricksave work on a one off structuring fee basis. This means that our fees are taken directly from the initial investment and then all other fees are calculated before estimated returns are given to the clients. Each property is subject to different fees so please check the individual terms and conditions for this information.
Each investment offered through Bricksave is secured by the equity interests, direct or indirect, in the underlying real estate. Prior to acquiring a property, investors’ contributions are held in escrow until Bricksave have raised enough capital to close on the property. This ensures that your investment is always secured by the actual real estate that you’re investing in. The details of this escrow arrangement are explained in the offering documents for each investment.
At this stage the investments offered are not leveraged, all properties are purchased in full at the time of funding.