Understanding Fees on Realbricks: A Comprehensive Guide

Investing in real estate has traditionally been a complex and costly endeavor, often reserved for those with significant capital and industry knowledge. However, Realbricks is changing the game by democratizing real estate investment through fractional ownership. As you embark on your investment journey with Realbricks, it’s crucial to understand before making any investment the associated fees to make an informed decision. In this article, we will break down the two main fees associated with a fractional ownership model: the quarterly “Assets Under Management” (AUM) fee and the ongoing monthly Property Management fee.

Recurring fees are found on each property page.

Assets Under Management (AUM) Fee

What is the AUM Fee? The AUM fee with Realbricks is a quarterly assessment based on a percentage of the property's original purchase price. This fee covers a variety of essential services that ensure your investment is well-managed and operated.

Services Covered by the AUM Fee:

  1. Tax Preparation: Ensures that all tax-related matters are handled professionally, maximizing your tax benefits and compliance.
  2. Investor Support: Provides ongoing assistance and information to help you make the most of your investment.
  3. Financial Oversight: Monitors the financial health of your investment, ensuring optimal performance and risk management.
  4. Property Management Oversight: Guarantees that the property management is efficient and effective, enhancing the value and returns of your investment.

Payment Method: The AUM fee is conveniently deducted from the rental income generated by the property at the end of each financial quarter. You will not receive separate invoices for this fee, simplifying the financial management of your investment.

Property Management Fee

What is the Property Management Fee? The Property Management fee is a monthly charge deducted from the gross rent collected that covers the operational expenses of managing the rental property. This fee is crucial for maintaining the property’s value and more.

Services Covered by the Property Management Fee:

  1. Operational Expenses: Includes costs related to the upkeep, repairs, and general management of the rental unit.
  2. Management Partner Compensation: Paid to the professional property management company responsible for day-to-day operations.

Realbricks negotiates competitive rates with property management partners for each individual offering. This ensures that you receive high-quality management services at a fair price, tailored to the specific needs of each property.

Payment Method: Similar to the AUM fee, the Property Management fee is automatically deducted from the monthly gross rental revenue. This approach ensures that your cash flow is managed efficiently, without the need for additional payments from your pocket.

Why These Fees Matter

These fees affect the net returns on your investment. By paying for necessary operational services through the above fees, Realbricks ensures that your properties will continue to be well-managed and remain a financially sound investment.

Transparency and Trust

At Realbricks, transparency is a cornerstone of our business model. We believe that clear communication about fees and services builds trust and confidence among our investors. Our goal is to provide you with all the necessary information to make informed decisions and feel secure in your investments.

Conclusion

Investing in real estate through Realbricks.com offers an innovative and accessible way to build wealth. By understanding the AUM and Property Management fees, you can better manage your investments and maximize your returns. Remember, these fees are designed to cover essential services that protect and enhance your investment, ensuring a smooth and profitable experience. Thank you for taking the time to read about our fees associated with the Realbricks platform. If you have not already done so, you can sign up and start building your portfolio today.

Realbricks is also available on both iOS and Android to make investing on the go easier than ever.

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.