How does BRXS compare to REITs, crowdfunding, or DIY?
Category:
About BRXS
Last Updated:
BRXS offers a modern approach to real estate investing that differs from traditional methods like REITs, crowdfunding, and direct DIY purchasing. Here’s a head-to-head comparison:
Security & Risk
- REITs & Crowdfunding: With a REIT, you are an unsecured shareholder, last in line if the company fails. With traditional crowdfunding, you’re often a second-rank lender, meaning a bank has the first claim on the property in a default.
- BRXS Solution: The majority of our Notes are secured by a first-rank security right on a specific property, putting you in the strongest lender position. This right is held by an independent foundation (Stichting Zekerheden BRXS) to protect your interests, even if BRXS were to fail.
Transparency & Control
- REITs & Crowdfunding: A REIT portfolio is a black box with hundreds of properties and zero investor control. With crowdfunding, you have no say over how the third-party developer runs their project.
- BRXS Solution: With BRXS Notes, you know the exact address and details of the property your investment is financing. With BRXS Private Deals, you have ultimate control as the full legal owner, making all major decisions.
Costs & Entry Point
- Direct DIY Purchase: This route is expensive, requiring a large down payment plus a 10.4% real estate transfer tax in the Netherlands, often totaling over €100,000 in upfront cash.
- BRXS Solution: You can start investing in BRXS Notes from just €100. We embed and fractionalize the high transaction costs across all noteholders, removing the high barrier to entry.
Effort & Returns
- Direct DIY Purchase: This is a second job, requiring you to handle everything from sourcing deals to tenant maintenance.
- BRXS Solution: We offer two paths. BRXS Notes are for completely hands-off, passive income (4-6% fixed net interest + potential bonus). BRXS Private Ownership provides the high-growth potential of direct ownership, but we do the heavy lifting of sourcing, acquisition support, and property management.
At a Glance Comparison
| Feature | Publicly Traded REITs | Traditional Crowdfunding | Direct DIY Property Purchase | BRXS (Your Way) |
|---|---|---|---|---|
| Investor Control | None | None | Full Control | Your Choice: None (Notes) or Full (Private) |
| Security | None (unsecured shareholder) | Often second-rank | Direct legal title | Generally first-rank mortgage right (Notes) / Direct Title (Private) |
| Minimum Capital | Price of 1 share | €100 - €1,000 | €100,000+ | €100 (Notes) / Property Value (Private) |
| Key Risk | Stock market volatility | Developer default | Management burden | Illiquidity (but with P2P exit option for Notes) |
| Investor Effort | Very Low | Low (but high due diligence) | Very High (a second job) | Very Low (Notes) / Low-to-Medium (Private) |
For an even more detailed analysis, read our full guide: REITs vs. BRXS: A Modern Investor’s Guide.