How are properties financed?

When investing in a BRXS Properties property, investors directly finance the property acquisition through BRXS Properties notes. The total investment calculation includes:

Total investment = Property Price + Closing costs + Fees + Cash reserves + Renovation - Mortgage

These components represent:

• Property Price: The cost of purchasing the real estate
• Closing costs: Legal fees and taxes associated with the property transfer
• Fees: BRXS offering fee for sourcing and managing the property
• Cash reserves: Funds set aside for future maintenance and unexpected expenses
• Renovation: Any immediate improvements needed to optimize the property
• Mortgage: Any traditional bank financing used (subtracted from the total)

The total investment amount is then divided by the note value (typically €100) to determine the number of BRXS notes issued for that property. By purchasing these notes, investors receive rights to:

• Interest payments calculated from the net rental income
• A share of any appreciation in the property’s value upon sale

The mortgage component varies across properties, typically ranging between 50-70% of the property value when used. These are often interest-only mortgages. It’s worth noting that more recent properties in the BRXS portfolio tend to have no mortgage component.