The real estate sector had until then been spared the effects of the digitalization of the economy. Many proptechs are coming today to change the situation. Bricks.co aims to become the cornerstone of this fund movement with a rental property investment solution starting at only 10 euros.
Easily buy and resell units in rental properties
Bricks is an intuitive online platform, offering its members the possibility of buying and reselling shares in rental properties with an annual return included between 10 and 15%. A performance certainly much better than the meager rate of 0.5% of the livret A, yet the preferred placement of the French.
A classic rental investment requires the acquisition of an apartment or a house for several tens or hundreds of thousands of euros, the possible subscription of a mortgage, the search for a tenant and a good dose of administrative management. . The proposal of Bricks.co, meanwhile, is simple and radically different: allow anyone to invest in rental property from 10 euros.
Once his money has been invested on the platform, the investor simply has to wait for the monthly repayment of his rental yields. Bricks.co is responsible for investing in buildings, collecting rents and ensuring their redistribution to its investors.
The basic principle of Bricks.co is therefore comparable to that of “paper stone”, and in particular to the purchase of shares in real estate investment companies (SCPI). However, the new platform is distinguished by its simplicity of operation, the liquidity of the units and the absence of very heavy fees charged by SCPIs.
Good to know
Bricks.co is a new player in rental real estate that saw the light of day at the start of 2021. It was founded by Cédric O’Neill, who already created the 1001Pharmacies site eight years ago. The entrepreneur’s ambition is to digitize rental property investment and revolutionize the market.
Why does Bricks.co’s offer appeal to investors?
In the space of a few months, the platform has won the confidence of more than 40,000 individual investors. Today it has assets under management worth more than 10 million euros, made up of 15 investment properties.
To support this high organic growth, the Bricks team has grown from 10 to 20 people since the start of the year, and intends to strengthen soon to reach 150 employees by the end of 2022. Fundraising from investors institutional arrangements would also be imminent.
In fact, the platform brings a major financial innovation, by democratizing access to real estate investment and by making it accessible to all. It is in line with the first real estate crowdfunding sites allowing investors to pool their resources to bring a construction project to fruition.
Beyond the profitability of the projects financed, the purchase of shares (or “Bricks”) has something to seduce savers put off by the heaviness and constraints of rental property, with:
- The absence of mortgage to take out;
- A shared rental risk and therefore much lower;
- An entry ticket accessible to all, from € 10;
- The support of all administrative formalities by the platform.
Good to know
Bricks.co has been approved by the Prudential Control and Resolution Authority (ACPR) of the Banque de France. Its investment model has also been validated by the Organization for the Unique Register of Intermediaries in Insurance, Banking and Finance (ORIAS).
A selection of rental properties meeting specific criteria
The selection of goods offered on the platform is carried out with care. Bricks.co uses the funds raised only:
- For investment properties and strictly residential, with a minimum of six apartments;
- In cities with population growth and close to large agglomerations, from 3,000 to 100,000 inhabitants.
These medium-sized towns, in the context of the health crisis, are also experiencing a phenomenon of population displacement from the large metropolitan centers, and therefore an increase in the demand for housing. ” If we can offer our investors this windfall, we welcome it. “, emphasizes Cédric O’Neill.
How to invest on Bricks.co?
Once a new property is put online, any individual has the possibility to create an account on the platform and toacquire a certain number of “Bricks”.
A Bricks corresponds to a part of the building, and therefore to a part of the rents that will be paid to investors every month, at the pro rata to the number of shares acquired. Each “bricklayer” retains the possibility of reselling his shares at any time on an internal market place, at the price of his choice.
Profitability announced at least 10% per year
Bricks aims to offer an annualized rate of net return of between 10 and 15%. To achieve this, the platform relies in particular on a ” profitability triptych “formalized by Cédric O’Neill:
- A rental yield of 5% on average;
- A reassessment of the price of the property, carried out every 6 months by an independent expert;
- A drop in the value of the mortgage in the overall value of the property, via the effect of bank leverage.
This financial mechanism makes it possible to achieve significant returns, far from the performance of more traditional savings products.
In view of the success of Bricks.co, Cédric O’Neill hopes to raise between 15 and 20 million euros soon. Its objective is to rapidly internationalize the platform to quickly offer goods in Portugal, Germany or Spain, in dynamic areas. The year 2022 should therefore be one of strong growth for the young company.
The three key points to remember about Bricks.co:
- Bricks.co offers investors the opportunity to buy shares in investment properties, starting at just € 10.
- The rents received are automatically redistributed, in proportion to the number of shares held.
- The new platform announces an annual profitability of between 10 and 15%.