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 real estate crowdfunding platform designed to make investing in residential properties around the world simple and affordable. Bricksave allows investors to:
Bricksave currently offers real estate investments in luxury residential real estate projects around the world. All properties undergo Bricksave’s full due diligence process meaning that investors are investing in institutional class real estate assets in the world leading countries and also in those currencies, mitigating local currency risk.
The properties have tenants in place from day one so as soon as an investment is complete the investor starts receiving returns.
Each investment in a property on the platform is made via the purchase of shares in a special purpose vehicle which is a registered Company, created for the sole purpose of purchasing the designated property.
There is a different structure for each and every property and depending on regulations each company owns the property through a local LLC; therefore you will always know that you are investing in the exact property as chosen by you.
You receive a rental return equivalent to the proportion of the property that you own. Every month, your Bricksave Member’s Account is credited with a share of the dividends proportionally to your ownership of the Company that owns the property.
Dividends are calculated as the Gross Rent collected from tenants, minus property-related costs (such as management fees, insurance, maintenance and taxes).
At the end of each year you then receive your annual rental returns from the property and when the property is sold at the end of the investment term you receive the additional capital gains from the sale of the property.
Yes, it is possible to purchase an entire property through the Bricksave website. If you are interested to do this please contact one of our sales team directly on [email protected] or +54 11 4872 8116.
It is possible to invest the same amount every month yes. We are working on an automated auto-invest function to allow you to do this but at the moment it will be necessary to speak to one of our sales team to set this up. Please contact [email protected] or +54 11 4872 8116.
When you buy a share in a property, you never need to worry about letting or management of the property. Bricksave's experienced team of property management agents takes care of this on behalf of the investors.
Before making an investment it is necessary to go through our KYC and AML procedures. These are internationally recognised payment requirements and are needed before we are able to receive any funds.
For this process it is necessary to complete a registration form including, date of birth, address, nationality and to upload two identification documents (passport, national ID, driving license) and confirm that you are not a politically exposed person.
It normally takes a maximum of 48 hours to process these checks and as soon as your receive the ID verification email you are free to invest.
Investments are currently only accepted via Bank Transfer for compliance reasons.
Bricksave does not charge Crowdfunders for investing. However, transactions are subject to bank transfer or credit card fees which can be seen below.
Your investment will be equal to the exact amount received.
Card payments will incur a 2.9% charge on transactions (this is capped at US$150).
Once you have made the bank transfer or credit card payment funds are received by a European Union regulated payments company, Lemonway. Lemonway hold the funds on Bricksave's behalf in an escrow account until the property has been fully funded. Once the property has been fully funded funds are then transferred to the property LLC account so that the purchase of the property can be closed.
Although we do not offer any guarantees on how long an investment will take to close, we usually expect this to take a maximum of three months, although some properties have closed within 72 hours. As soon as a property is closed the Crowdfunders who have taken part in the funding of that property will start receiving their investment returns.
On selected properties, even if a property has not been completed, we will provide all investors with immediate returns from the first month of their investment, for further information on which these properties are please consult a member of our investment team.
As soon as a property is closed, Crowdfunders will start earning instant returns on that property. If the close date of the property is not the first day of a month, returns will be issued on a pro-rata basis for that month.
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 the investment currency 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.
Dividends are paid out to crowdfunders annually from the date that each project is closed.
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.
Certain other costs, such as roof maintenance, are also forecasted and communicated via our website to investors at the point of investment. To deal with this we either (i) raise a work provision during initial crowdfunding or (ii) set aside a certain amount of Gross Rent.
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 Bricksave user.
The standard investment exit is to 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.
Real estate is inherently a long-term, illiquid investment. Bricksave is intended for investors who have a maximum time horizon of approximately four years. However, we have adopted a liquidity plan where, although not guaranteed, investors may have a chance to obtain liquidity on their investment by offering it, privately through the platform, to people who would be interested to purchase their shares.
Find out more information about our liquidity plan.
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 segregated client monies account held by a third party provider in accordance with standard banking compliance, regulatory and security rules.
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 [email protected].
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 team 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.
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.
As an investor, you should expect to receive the forecast annual rental yield as soon as the property is closed and then after four years you will receive the return from the sale of the property.
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 from 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.
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.