Here are some answers to commonly asked questions. You can also email us at [email protected]
BRETS is a blockchain-powered marketplace that allows you to own fractions of an income-producing real estate asset in the United States. Our mission is to empower every person on the planet to have access to high-quality real estate investments regardless of their economic background. We’ve been working towards the democratization of real estate by leveraging blockchain technology. Thanks to it, we generate inclusion: everyone can start investing in real estate for as little as $100. You decide how much to invest depending on your wants and needs. Not only are investors able to buy fractionalized real estate in the US, but they’re also entitled to receive the rental income that these assets generate through their operation, which is achieved through tokenization.
A security token is a type of digital asset that is backed by a tangible asset or investment, such as a stock, bond, or real estate, and is regulated by securities laws. These tokens represent ownership of the underlying asset and can be traded on a blockchain-based platform. A crypto token, on the other hand, is a digital asset that is created and managed on a blockchain. These tokens can be used as a medium of exchange, as a store of value, or as a unit of account, but they are not necessarily backed by a tangible asset or investment. Crypto tokens are typically created through a process called initial coin offering (ICO), which is similar to an initial public offering (IPO) in the traditional financial world. BRETS security tokens are linked to real properties, therefore allowing investors to own fractionalized real estate through our tokens. In other words, you can purchase fractions of real estate assets instead of investing all your capital into one property.
When you purchase BRETS tokens, you are actually buying shares of a company that owns a specific property. Because blockchain adoption is still early, the title of the property has to be assigned to a company or a special purpose vehicle (SPV). Then, we tokenize the shares of that SPV and send them to the electronic wallet you register on our platform.
Your tokens can be exchanged on a secondary market to allow new liquidity opportunities after the lockup period is over (1 year for U.S-persons only and no lockup period for International investors). BRETS will offer the possibility of trading your tokens among other holders that participated in the same offering you participated in. The process works as an order book where you can place buy and sell orders inside our platform. Other investors will see your orders and may choose to execute a trade with you. Moreover, the end goal for our tokens is for them to be traded on massive secondary markets known as ATSs (Alternative Trading System). They work in a similar manner as a crypto or traditional exchange. Inside these markets, liquidity is tremendously boosted as more users participate in trades. You are no longer limited to trading only with peers from your same offering but can extend to the rest of the users worldwide that participate in the different ATSs. Some examples of ATSs are: INX Tzero Merj Securitize Markets ADDX
We apply a rigorous due diligence process to source real estate investment opportunities and carefully audit the following: Financials of the property and its performance over the years Expected income and appreciation of the property Quality and maintenance of the property Legal or compliance issues with the property After all these steps are completed, the property is ready to be listed on our marketplace.
The value of each property is divided into BRETS tokens worth $1 USD each. Therefore, a $600,000 USD apartment would be divided into 600,000 BRETS tokens, in the same way, a $3 million USD multi-family will be fractionalized into 3 million BRETS tokens. The maximum number of investors will be 6,000 and 30,000 respectively if each one purchased the minimum number of 100 BRETS tokens (USD $100).
Property management varies from property to property. BRETS has a sister company called Integrity Income Management that manages a large portfolio of residential and commercial properties. Depending on the asset class, we may hire a more specialized company to manage the property.
Security tokens are digital securities and have to be compliant with laws set forth by the Securities and Exchange Commission (SEC). At BRETS, we conduct security token offerings (STOs) backed by the U.S. real estate industry and the SEC heavily regulates every security token offering to ensure compliance. BRETS utilizes DigiShares (digishares.io) as a back-end blockchain and technology provider. DigiShares leverages technology from different blockchains like Ethereum, Polygon, and Binance Smart Chain to issue security tokens. This means that the protocol used is ERC-20 compatible and therefore allows us to program smart contracts to automate lockup periods, transfer restrictions, and dividend distributions. For more information, we invite you to read our whitepaper.