Have you ever...
Had your eye on a new pair of heels, or those new golf clubs, or a new car – walked into the store filled with excitement and anticipation for the purchase – to hear the store assistant say – “Sorry we are currently out of stock!”. Then, rapidly, excitement turns to despair….
At BrickX we provide you with the opportunity to Pre-Order Bricks, so you will be less likely to miss out on acquiring Bricks in a new property at the initial price.
How does Pre-Order work?
BrickX, collectively with our buying agents, sources new properties that meet our Property Team and Board approved investment criteria. The fact that we have access to funds to buy properties without having to crowdfund or get any pre-commitment from our investors allows us to move quickly in the buyer’s market and snap up chosen properties efficiently. This really does set us apart from the crowdfunding model, which requires a certain level of pre-commitment prior to making an offer on a chosen property –which may mean missing out on opportunities.
Once we have exchanged and signed contracts and determined the Initial Brick Price, we place the property on the Platform in a Pre-Order Phase. The Initial Brick Price at which initial Bricks are sold is calculated using the property purchase price, plus any Acquisition Costs and Cash Reserve and less debt (where applicable). It’s important to note that the Initial Brick Price is calculated on actual and forecast costs only, with no mark-ups.
Initial Brick Price
(Property Acquisition Price + Stamp Duty + Cash Reserve + Other Fees - Debt)
What are the benefits of Pre-Order?
The Pre-Order Phase allows you the opportunity to reserve Bricks ahead of property settlement, at which point all pre-ordered Bricks transact. The period between bringing a property to the Platform in Pre-Order Phase and Settlement can vary, but is typically 2-3 weeks. So, if you get in early – you can lock in your purchase at the Initial Brick Price.
You can only reserve Bricks if there is available funding in your BrickX Account. The allocated funds are ring-fenced and made unavailable during this time for other Brick purchases. Reserved Bricks can be cancelled at any time up until Settlement from the Pending Orders section in your Account. Should BrickX find anything adverse that causes us not to complete a purchase pre-Settlement, BrickX will remove the property from the Platform and return all ring-fenced funds to investors’ BrickX Accounts, with no cost or loss to investors.
The 10,000 Bricks are initially held by the funder of the properties (BridgeLane Capital), who will then sell down the Bricks post-Settlement. As mentioned, any reserved Bricks transact on Settlement date at the Initial Brick Price, and the remaining unreserved Bricks are placed for sale in the Order Books with pricing determined by demand. This means that high demand for a new property could result in Brick Prices on Settlement date being higher than the Initial Brick Price – which makes any Holder of reserved Bricks a winner for the day.
The Pre-Order Phase is yet another way that BrickX is revolutionising indirect property investment.
Keep an eye out for the next property we bring to the Platform and get in during the ‘Pre-Order Phase’ to be amongst the first to get your hands on your share of Bricks of our newest property.
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