REITs vs. fractional real estate explained. See how debt-free, property-level transparency gives investors more control and confidence.
For decades, REITs have been the default approach for individual investors to gain exposure to real estate without owning property outright. REITs offer liquidity and diversification. However, most REITs also require something many modern investors are increasingly uncomfortable with: blind trust.
When you buy into a REIT, you are investing into a portfolio of properties you will likely never see or fully understand at the individual asset level.
Fractional real estate investing takes a fundamentally different approach. It is built on property-specific transparency and choice. Instead of investing in a "black-box" portfolio or a basket of properties, investors can see exactly which property they are investing in, where it is located, and how it is expected to perform. That distinction is not cosmetic. Having detail and specificity changes how investors think, decide, and engage with real estate altogether.
When you invest into a REIT, you are not actually buying a property. You are purchasing a percentage of ownership in a corporation. This structural difference creates a massive transparency gap in what you are legally allowed to observe and track as an investor.
REITs operate under SEC Regulation S-K Item 102, which only requires the disclosure of properties that are "material" to the company. In a multi-billion dollar portfolio, an individual house or warehouse is almost never material to the overall balance sheet. Because of this, REITs can legally aggregate and hide their reporting. You may see a line item for a "Regional Portfolio," but the specific street addresses, occupancy hurdles, and individual P&Ls remain internal to management.
Fractional real estate through Realbricks upends this archaic approach. Every individual offering is tied to a specific property. Because the investment is for that asset alone, every detail becomes material. In the Realbricks Offering Circular, you are not getting a corporate summary. You are getting the ground truth of the specific property. This includes the exact location, date of construction, the local market risks, and the direct cash flow.
Transparency is not just about knowing the address and rental income over the last year. It is also about knowing the capital structure. Most REITs and traditional fractional investment platforms rely heavily on debt. Debt introduces possible interest rate risk fluctuations and foreclosure risk into the portfolio. These variables are beyond the control of the individual investor and often cannot see clearly in a consolidated financial statement.
Realbricks utilizes a Contingency-to-Closing model. Properties are secured under contract and only finalized once they are 100% funded by the community. This ensures the property enters the Realbricks portfolio with a 0% Loan-to-Value (LTV) ratio.
For the investor, this transparency is absolute. You can rest assured knowing that 100% of the net operating income is available for distribution because there is no senior lender taking a cut. You do not have to worry about fluctuating interest rates or a bank foreclosing on the asset. The mysterious "black box" of corporate debt is replaced by the simple clarity of 100% equity ownership. You can see this model in action by browsing current initial offerings on our platform.
When investors can see individual properties and their debt-free status, the psychology of the investment shifts. They stop guessing.
Instead of asking whether they should place their trust in a multi-billion dollar corporation to manage its debt, they can instead start asking whether they believe in a specific home at a specific price. This shift leads to:
Unlimited choice without filtering or curation creates confusion rather than empowerment. That is where a pre-vetted marketplace matters.
At Realbricks, all properties are screened before they ever reach the platform. They are evaluated based on market stability, property characteristics, and rigorous underwriting discipline. This creates a "Guided Autonomy" model. Investors can focus on markets they believe in, such as Omaha, Nebraska or Princeton, Texas, and build a portfolio intentionally.
By using the Realbricks Market, you are constructing your own real estate fund. It is a fund that reflects your strategy rather than a CEO's strategy. You can learn more about how this works in our investor library.
REITs did not solve the problem of real estate access. They simply turned commoditized real estate into a financial product. They gave the public a way to trade a ticker symbol, but in exchange, they took away the investor’s ability to dig into and learn more about the physical properties they actually own.
Fractional real estate is the first true evolution of direct ownership for the modern age. Our model is helping solve the problem of asymmetric information. For investors who want to know exactly what they are investing in and want the security of a debt-free asset, property-level transparency is not just a luxury.
It is the whole point.
Stop investing in a mysterious black box you know nothing about and instead start building a portfolio of properties you can actually observe and verify. Join a community of thousands of investors who prioritize transparency, debt-free security, and direct ownership.
Explore current debt-free offerings on the Realbricks Marketplace
For a full breakdown of property-specific disclosures and risks, view our SEC Offering Circular for Neptune REM, LLC
Disclaimer: Investing in real estate involves risks, including the potential loss of capital. This content is for informational purposes only and is not intended as investment advice. Investors should perform their own research and consult with financial professionals before making investment decisions.
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Terra Mint Group, Corp ("Terra Mint"), as the Managing Member of Neptune REM, LLC ("Neptune") operates the RealBricks.com website (the "Site") and is not a broker-dealer or investment advisor. All securities related activity is conducted through Dalmore Group LLC, a registered broker-dealer and member of FINRA/SIPC, located at 525 Green Pl. Woodmere, NY 11598. You can review the brokercheck for Dalmore. An up-to-date Dalmore Form CRS is available.
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Property information shown has been provided from various sources, which can include the seller and/or public records. It is believed reliable but not guaranteed and should not be relied upon without independent verification.
Disclaimer: Images, Information and Floor Plan and Measurements are approximate and are for illustrative purposes only. We make no guarantee, warranty or representation as to the accuracy and completeness of the floor plans, measurements and or any information provided. You or your advisers should conduct a careful, independent investigation of the property to determine to your satisfaction as to the suitability of the property for your space requirements. All pricing and availability is subject to change. The information is to be used as a point of reference and not a binding agreement.
