This overview explains how taxes generally work when investing through Realbricks, including the tax forms you may receive, how distributions may be reported, and how other applicable proceeds may be reported. This content is for informational purposes only and is not intended as tax advice. Tax treatment depends on individual circumstances, and investors should consult a qualified tax professional regarding their own situation.
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Questions frequently asked by investors are answered in short form in this section and expanded upon below.
1. Invest
When you invest, you are purchasing ownership interests, or shares, in the entity that owns a 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.
2. Potential Quarterly Distributions
If the property associated with an offering is leased 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 on a quarterly basis 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.
How it Works:
3. Selling Shares on Secondary Market (if and when available)
The Realbricks Secondary Marketplace is coming soon! Through the Secondary Marketplace, investors may be able to buy and sell shares directly with other users on the platform, subject to applicable restrictions.
Note that there is no assurance that an investor would be able to sell shares if a secondary marketplace becomes available. Investors should consider whether they can hold an investment for an extended period and whether they may need access to those funds before investing.
4. Potential Liquidation Event (When a Property is Sold)
If a property associated with an offering on the Realbricks platform is sold, investors may receive proceeds in proportion to their ownership interests in accordance with the offering documents and applicable corporate requirements.
Liquidation events are not guaranteed. Investments in these fractional real estate offerings are intended to be long-term investments. They are considered illiquid, meaning there is currently no public market where investors can sell their interests on demand.
5. Corporate Depreciation
Realbricks handles depreciation internally:
Note: Depreciation is not passed through to investors and does not appear on 1099 forms.
6. Other Tax Information for Investors
In general, the Realbricks investment structure is intended to simplify state tax reporting for investors compared with some direct real estate ownership structures. Realbricks handles all property-related state taxes internally.
Investors owe state income taxes only in their state of residence, not the state where the property is located. This will be reflected on the applicable tax form(s) that each investor receives.
Realbricks offerings are structured through Terra Mint Group Corp., which is taxed as a U.S. C corporation. The property-owning entity, Neptune REM, LLC, is treated as a disregarded entity for federal income tax purposes, so its taxable activity is generally reported at the corporate level.
For investors, this structure generally means:
✓Investors generally receive IRS Form 1099 reporting rather than Schedule K-1.
✓Tax reporting depends on investment activity.
✓Individual tax consequences vary.
✓Consult a qualified tax advisor.
✓Review the offering documents.
For additional information about a specific offering, explore the applicable offering documents available on the Realbricks platform.
Disclaimer: Realbricks does not provide tax advice. Investors should consult a CPA or tax professional regarding their specific tax situation. 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.
NO MONEY OR OTHER CONSIDERATION IS BEING SOLICITED, AND IF SENT IN RESPONSE, WILL NOT BE ACCEPTED.
NO OFFER TO BUY THE SECURITIES CAN BE ACCEPTED AND NO PART OF THE PURCHASE PRICE CAN BE RECEIVED UNTIL THE OFFERING STATEMENT FILED BY THE COMPANY WITH THE SEC HAS BEEN QUALIFIED BY THE SEC. ANY SUCH OFFER MAY BE WITHDRAWN OR REVOKED, WITHOUT OBLIGATION OR COMMITMENT OF ANY KIND, AT ANY TIME BEFORE NOTICE OF ACCEPTANCE GIVEN AFTER THE DATE OF QUALIFICATION.
AN INDICATION OF INTEREST INVOLVES NO OBLIGATION OR COMMITMENT OF ANY KIND.
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.
Realbricks does not offer refunds after an investment has been made. Please review the relevant offering materials and subscription documentation for more information.
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.
