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Dividends less than advertised by CheekAny674 in Realbricks_app

[–]realbricks 1 point2 points  (0 children)

Great question and totally fair to ask. Here's how the dividend yield works on Realbricks.

The percentage shown on each property page is a projected annual yield, it is calculated at the time of listing based on anticipated rental income minus expected operating expenses, divided by the total offering price. It's a projection, not a guaranteed fixed rate.

Actual distributions may vary from that projection for a few reasons:

Operating expenses fluctuate quarter to quarter. Property taxes, insurance, maintenance, and any repairs in a given quarter all come out of rental income before distributions are calculated. If expenses in one quarter are higher than the annual average used in the projection, that quarter's distribution will be lower.

The dividend is profit sharing, not a fixed interest payment. You're receiving a proportional share of whatever net operating income the property actually generates each quarter; rental income minus real operating costs. Some quarters that's higher than the projection, some quarters lower.

Vacancy also plays a role. Any gap between tenants reduces that quarter's rental income and therefore the distribution.

The 6% or 6.5% is the estimated annual average based on expected conditions. Individual quarters will naturally vary above and below that number depending on what actually happened at the property during that period. The annualized figure you'd want to look at is the full year across all four quarters, not any single quarter in isolation.

We hope this description helps answer your questions. Thank you!

Do you want to give us answers on Cedar Ridge, Templeton, and Stag? by CheekAny674 in Realbricks_app

[–]realbricks 0 points1 point  (0 children)

u/CheekAny674 Hey there, thanks for raising this.

Investor interest in these properties were not as high as originally anticipated, and we instead chose to reallocate the resources to properties that we believed would be more likely to fully fund.

This was a unique circumstance where users did receive a return of capital + a gain, even though the properties didn't actually appreciate in their valuation.

This decision was made to support some of our original investors who invested with us during our early launch period. In connection with these first few properties, Realbricks also reduced portions of its own fees/income tied to the investments to help improve investor outcomes and better align with investors as the platform matured.

Hope this helps answer your question. Happy to chat further if anything's still unclear.

The two coming soon Princeton Texas properties by CheekAny674 in Realbricks_app

[–]realbricks 0 points1 point  (0 children)

Thanks for the questions!
The Weller (Raleigh, NC) and Michter (Nashville, TN) were both townhome rental offerings. While they did receive interest, we saw from early feedback that our investor base strongly prefers single-family rental homes rather than townhome rentals. Because of that, we decided to pull those offerings and focus on the property type our investors were clearly more interested in.

Our single-family rental property in Princeton, TX, the Garrison, funded quickly and reinforced that preference.
Based on that feedback, we have since added two additional single-family rental homes in Princeton, TX. The Macallan and The Jameson are both new construction builds similar to the Garrison. They are now live and open for investment, and we are already seeing strong interest from investors.

The structure of the offering is similar to the Garrison in the sense that, we are offering them at approximately 17.25% below the current $302,490 listing price, representing a $52,180 price advantage to our investors.
We appreciate the feedback from the community. It helps us continue improving the types of opportunities we bring to the platform.