When you are investing in a BRXS Properties property, you are directly financing the acquisition of that property. The total investment amount required to acquire the property, equals the total investments (to be) raised from investors on our platform through issuing BRXS Properties notes.
Buying a property is much more than covering the purchase price. We also need to consider the property’s tax burden, notary and broker fees, possible renovations, and setting aside cash reserves for the unexpected.
Total investment = Property Price + Closing costs + Fees + Cash reserves + Renovation - Mortgage
- Property price: The price we agreed with the seller to buy the property for.
- Closing Costs: All costs incurred in purchasing a property such as real estate transfer tax and notary fees.
- BRXS fees: A fee for BRXS Properties for all efforts related to sourcing, acquiring & preparing the property.
- Cash reserves: Cash reserves function as a buffer for any unexpected events like emergency repairs or vacancy. When a property is sold the remaining cash reserves are also distributed to all investors. In some cases, upfront cash reserves are higher to account for some renovations needed to prepare the property for rental.
- Renovations: The cost of any renovations we estimate will be needed to make to property ready for rental. In some cases, this can be zero if the property is already in very good condition.
- Mortgage: A loan received from the bank to purchase the property. The mortgage amount can vary from property to property and is usually between 50% to 70% on the value of the property. All mortgages are interest-only mortgages so there is no repayment of principal. Not all properties have mortgages, and most of our recent properties have no mortgage.
# BRXS notes = Total investment / Original note value
The total investment divided by the original note value (set at €100 in most properties) provides the number of BRXS notes issued in a given property. The number of BRXS Properties notes in a given property, stays unchanged over time from the original number of notes.
These notes give investors the right to an interest payment directly correlated to the net rental income and their share of the property appreciation on the long term.
You can find a detailed overview of the total investment amount and financing on each specific property page and the property documents.