Learn about fractional real estate investing on the Realbricks platform, including how to invest using the platform, how Realbricks evaluates potential investment opportunities, information about potential distributions, and tax considerations for investors.
Fractional real estate investing uses a different structure than traditional real estate investing, allowing multiple investors to hold interests associated with a single property rather than requiring one investor to purchase the entire property.
With fractional real estate, investors can gain exposure to a specific property through an ownership interest in the entity that owns it. The structure, investment minimum, distribution terms, fees, and other conditions depend on the offering. This comprehensive guide covers how fractional real estate investing works on the Realbricks platform, including how to invest using the platform, how Realbricks evaluates potential investment opportunities, information about potential distributions, and tax considerations for investors.
Realbricks’ mission is to help more people participate in real estate investing by providing transparent, accessible investment opportunities designed to support long-term financial goals. Through the Realbricks platform, investors are able to access fractional ownership opportunities involving single-family rental properties.
When Realbricks acquires a home, that property is placed into its own separate legal entity. The investment opportunity for that property is then divided into ownership interests, or shares, priced at $10 per share. Realbricks provides a platform where eligible non-accredited and accredited investors can explore SEC-qualified offerings that provide ownership interests in the entity that owns a real estate asset. By offering fractional ownership interests, the platform is designed to reduce certain barriers associated with traditional real estate investing while providing access through a streamlined digital experience.
When you invest, you are purchasing these shares in the entity that owns the property. You do not directly own the home, your name is not placed on the property title, and you do not have direct ownership of the physical real estate. Instead, you own an interest in the legal entity that owns that specific property, along with other investors who purchase interests in the same series.
Here, fractional means that many investors each own a fraction of the total interest in the property. The minimum investment amount is $100, subject to the terms of each offering. Investors should review the offering documents for each property before making an investment decision.
The Realbricks investment process is designed to allow investors to review individual offerings and manage their investments through the platform.
Need help? Watch our quick video tutorial for a step-by-step guide on how to make your first investment.
Realbricks evaluates a range of market and property characteristics when considering potential real estate investments. The process is intended to provide a consistent framework for evaluating potential offerings. It does not guarantee a property's future performance.
Factors considered may include:
Historical information can provide context when evaluating a property, but it does not predict future results.
The platform emphasizes long-term ownership, transparent property information, and a straightforward investment structure rather than short-term trading activity. Our guiding principles influence how properties are acquired, structured, and managed before they become available through SEC-qualified offerings on the Realbricks marketplace.
Properties acquired without mortgage financing. When Realbricks acquires a home, the entity that owns the property holds the title free of mortgage debt at the time of the offering. This structure means there is no mortgage lender with a lien against the property. Investors can purchase ownership interests in available Realbricks offerings knowing that the property was acquired without leverage. While the absence of property-level debt may reduce certain financing-related risks, investors remain subject to a variety of other risks, including property-specific, operational, market, regulatory, and liquidity risks. Learn more about why this matters for investors.
Professionally Managed Properties: Realbricks oversees property management for the properties associated with offerings on the platform. With this approach, investors are not responsible for the day-to-day tasks such as coordinating repairs, responding to tenant maintenance requests, or managing leasing activities. Instead, they can monitor property updates and review information provided through the Realbricks platform while maintaining ownership interests in the entity associated with the offering.
Accessible investment minimums. Shares are currently offered at $10 per share, with a $100 minimum investment. A young investor hoping to gain exposure to real estate investing may be using the Realbricks platform alongside an experienced investor who is hoping to diversify their portfolio. Providing accessible, transparent investment opportunities is our mission. This structure is intended to allow investors with different investing backgrounds and investment priorities to participate in SEC-qualified offerings. Investors should consider their own financial circumstances, investment objectives, and risk tolerance before investing.
Customer Support: Realbricks provides customer support for questions related to account access, platform functionality, transactions, and general information. Support may be available through online chat, automated assistance, and scheduled one-on-one meetings. Customer service can help investors understand how to use the platform and locate information about an offering. Support does not constitute personalized investment, legal, or tax advice. Investors should review the applicable offering documents and consult qualified professionals when they need advice specific to their circumstances.
Investors acquire ownership interests in a company that owns real estate. Realbricks manages property acquisition, tenant placement, and ongoing property management services.
If a property is rented and generates net operating income from the lease, investors may receive distributions based on the terms of each applicable offering. Distributions, if declared, are allocated in proportion to the number of ownership interests, or shares, an investor owns. Distributions are not guaranteed and depend on factors such as whether the property is leased, rental income collected, operating expenses, reserves, and other property-level expenses.
Distributions represent a potential outcome of acquiring ownership interests in an entity that owns an income-producing residential rental property. They are not fixed payments and should not be expected in every reporting period. Investing in real estate involves uncertainty, and past or projected property performance should not be viewed as an indication of future results.
Fractional real estate investing may provide a way to gain exposure to residential rental real estate investing. Whether that approach is appropriate depends on an investor's financial objectives, risk tolerance, investment time horizon, and other personal circumstances.
For more information, read this article about How Distributions Work on Realbricks.
Through the Secondary Marketplace, investors may be able to buy and sell shares directly with other users on the platform, subject to applicable restrictions. The secondary marketplace on Realbricks requires compliance with regulations under the U.S. Securities and Exchange Commission, and we are dedicated to launching a product for our investors that is reliable and legally compliant. We are currently working to address these regulatory requirements and launch the secondary marketplace.
Note that there is no assurance that an investor would be able to sell shares if a secondary marketplace becomes available. The availability of such a marketplace, the number of participants, transaction volume, pricing, and the ability to find a buyer are uncertain. Investors should consider whether they can hold an investment for an extended period and whether they may need access to those funds before investing. Investors should not purchase an offering with the expectation that they will be able to sell their shares at a particular time or price.
Realbricks offers investments through SEC-qualified Regulation A+ offerings that are available to both eligible non-accredited and accredited investors, subject to applicable legal requirements. Securities offered through the Realbricks platform are held through an entity that owns a property. Terra Mint Group Corp. provides the property management. Broker-dealer services are provided by Dalmore Group, LLC, a registered broker-dealer. Investor funds are held in escrow through a third-party escrow provider during the investment process. Qualification by the SEC does not constitute an endorsement of the offering or a determination that the investment is appropriate for any investor.
Offering documents, including offering circulars, audited financial statements when applicable, and required SEC filings, are available to help investors understand each investment opportunity, its terms, and its associated risks. Investors can also review Realbricks' public filings with the U.S. Securities and Exchange Commission.
Real estate investing involves risk. Property performance can be affected by occupancy, rental rates, tenant turnover, maintenance and repair costs, insurance, property taxes, management expenses, local regulations, economic conditions, changes in property values, and other factors.
Liquidity is another consideration. Unlike publicly traded securities, fractional interests in individual real estate offerings may not have an established market for resale. Investors could lose some or all of their investment. Investors should consider these risks, costs, liquidity limitations, and potential investment horizon of an offering before investing .
Real estate should be understood as an investment with a long time horizon that will include fluctuations in property values over time.The value of a property may increase or decrease over time based on factors such as local market conditions, property condition, operating performance, interest rates, economic conditions, and other variables. Any potential increase in property value is not guaranteed and would generally only be realized if the property is sold or through another approved liquidity event.
Real estate investments can have tax consequences that vary based on the investment structure, investor circumstances, and applicable federal, state, and local tax rules.
Realbricks provides applicable tax reporting documents to investors as required. Tax treatment can change, and the information provided by Realbricks is not a substitute for individualized tax advice.
Investors should review their individual tax situation with a qualified tax professional to understand how these investments apply to their specific circumstances.
Depending on your activity, investors may receive one or more of the following forms from Realbricks: Form 1099-DIV, Form 1099-B, or Form 1099-MISC. Realbricks does not issue Schedule K-1 forms.
Investors should rely on the tax documents they receive and consult a qualified tax professional with questions about how to report investment activity.
For more information, review this article about Understanding Taxes on Realbricks: Information for Investors.
With a mission to help more people participate in real estate investing, Realbricks is an investment platform that provides access to SEC-qualified real estate offerings with lower minimum investment amounts compared with purchasing an investment property directly. Investors purchase ownership interests in an entity that owns residential rental properties rather than the properties themselves.
Investors can explore available properties and open an account on the Realbricks app or at Realbricks.com. Investors should review the information provided for each offering and consider whether the investment structure, risks, and potential outcomes are consistent with their own financial situation and investment objectives.
Create an account to get started. Minimum investments start at $100.
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.
You should speak with your financial advisor, accountant and/or attorney when evaluating any offering. Neither Terra Mint, Neptune, nor Dalmore makes any recommendations or provides advice about investments, and no communication, through this website or in any other medium, should be construed as a recommendation for any security offered on or off this investment platform. The Site may make forward-looking statements. You should not rely on these statements but should carefully evaluate the offering materials in assessing any investment opportunity, including the complete set of risk factors that are provided as part of the offering circular for your consideration.
Neptune is conducting public offerings pursuant to Regulation A, as amended, through the Site. The most current offering circular for Neptune is available here. Past performance is no guarantee of future results. Investments such as those on the Realbricks platform are speculative and involve substantial risks to consider before investing. These risks are outlined in the respective offering materials and including, but not limited to, illiquidity and a complete loss of capital. Key risks include, but are not limited to, limited operating history, reliance on key personnel, inherent risks in investing in real estate, distributions may not be received on predictable schedule and or at all by Investors, and lack of voting rights. Also, the adverse economic effects of the COVID-19 pandemic remain unknown and could materially impact this investment. An investment in an offering constitutes only an investment in a particular series and not in the underlying asset(s). Investors should carefully review the risks located in the respective offering materials for a more comprehensive discussion of risk.
From time to time, Neptune may undertake "testing the waters" for additional series of securities to be offered pursuant to Regulation A. For offerings that have not yet been qualified, no money or other consideration is being solicited, and if sent in response, will not be accepted.
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AN OFFERING STATEMENT REGARDING THIS OFFERING HAS BEEN FILED WITH THE SEC. YOU MAY OBTAIN A COPY OF THE PRELIMINARY OFFERING CIRCULAR THAT IS PART OF THAT OFFERING STATEMENT FROM: Neptune REM, LLC 412 W Norfolk Ave STE 2, Norfolk, NE 68701 OR HERE.
Investment overviews contained herein contain summaries of the purpose and the principal business terms of the investment opportunities. Such summaries are intended for informational purposes only and do not purport to be complete, and each is qualified in its entirety by reference to the more-detailed discussions contained in the respective offering circular filed with the SEC.
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Potential investors should not rely on any forward-looking statements regarding any investment opportunity, which is based on our beliefs and information currently available to us. The words “anticipate,” “believe,” “expect,” “aim,” “potential,” “design,” “target,” “intend,” “may,” “might,” “plan,” “estimate,” “project,” “projection,” “should,” “will,” “would,” “result” and similar expressions identify forward-looking statements. Such statements are subject to risks, uncertainties, and assumptions and are not guarantees of future performance, which may be affected by known and unknown risks, trends, uncertainties, and factors that are beyond our control. These risks could result in the loss of your investment. See the offering materials for detailed information.
Neptune does not have a public trading market for its Series Interests. While it intends to seek a quotation on PPEX, an alternative trading system (ATS) operated by North Capital Investment Technology, Inc. (“PPEX”) with a view to providing our holders of Series Interests with potential liquidity in the form of a secondary market for their investment in our Series Interests. However, there can be no guarantee that a secondary market may develop, or if it does, as to the volume or pricing with respect to any secondary trading that might develop. The PPEX does not employ market makers to provide liquidity, unlike national securities exchanges. Until Neptune’s Series Interests are listed, if ever, you may not sell the company’s Series Interests. Therefore, it may be difficult for you to sell Neptune’s Series Interests at the time you wish to do so, if you are able to sell them at all. If you are able to sell your Series Interests, you may have to sell them at a substantial discount to their public offering price. Because of the illiquid nature of our Series Interests, you should purchase Neptune’s Series Interests only as a long-term investment and be prepared to hold them for an indefinite period of time.
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.
