Social funding is a two stage process, the first stage is where you get your friends and family to pledge to support your property funding, similar to a go fund me campaign, at this stage they do not need to provide any money. During this phase you will get a good idea if you will obtain the full funding for your property. We will be checking in with you regularly to see how we can assist if issues are encountered in getting the amount you need.

Only once you have reached your funding goal in funding pledges do you progress to the next stage, this is where you invite all those who have made pledges to create MyBrix investor accounts, they will need to undergo full ID checks so we can ensure these meet our obligations under our AFSL, once successful they will need to fund their MyBrix wallet and make a Buy Order for the Brix in your future property. Investors can cancel their order at any time up until the full amount is secured.

When the full amount is secured, we lock their wallet and the property purchase process occurs. If you don’t reach your funding goal the funding round will be cancelled and all funds released to the investors, who can withdraw these funds if they require. You could start a new round at a lower value if your investors are willing to participate.

This is up to you and the strength of your social network, if you can secure the funds in a few weeks, the timeframe to purchase a property is approx. 6 weeks, so you need to add this to your funding timeline.

BuyBack is a concept pioneered by MyBrix, this is where you as the Owner sell your Brix for a price and then buy them back at a defined higher price over a defined term. The buyback process is fully online. At the start of each 12 month period you define how much per month you want to spend to buy back your Brix from your investors. For example $5,000 per month might equal 50 Brix per month or 600 for the 12 month period

The investors then decide how many Brix they want to sell back to you in that same 12 month period, there could decide to say sell 1 per month (12 in total) or 5 per month (60 in total) from their holdings. Once the full 12 month allocation is sold other Brix holders must either wait for the next 12 month period or sell to you in months you want to purchase additional Brix.

Every 12 months the Brix buyback price is set based on the indexation you decide when you setup the buy back scheme. It could be 5%, 7% or 10%, based or the expectations of your investors. Obviously the higher the index, the more you pay and the less Brix you can buy each year.

We suggest 7% is a good starting point as this gives investors a reasonable return and provides you with substantial savings over a traditional bank loan (in terms of time and cost).

As the owner you can sell at any time, however you will not receive the full sales proceeds, as this will be split proportionally between all Brix holders (including you) based on the Net Sales proceeds. If at the time of the sale you own 25% of the Brix, you will get 25% of the net sales proceeds.

You should also note that MyBrix has exclusive rights to sell the property for you to ensure that the best price is achieved for all Brix holders.

We suggest your facility should go for a maximum of 10 years, but it can go longer depending on the expectations of your investors, this will be discussed with you in your initial consultation with MyBrix.

Firstly, you will be letting down your family and friends who are expecting you to make these payments to buy their Brix back. You also need to understand that the interests of the Brix holders are protected by a mortgage and like any mortgage if you don’t comply with the obligations of the mortgage your property can be reprocessed and sold, we encourage you to make the payments each month to avoid disappointing your friends and family and any other undesired outcomes.

Just like a bank loan, you pay for everything related to the property, as it is your property.

The short answer is yes, however a condition of the mortgage is that MyBrix needs to facilitate the rental process and the net rental receipts need to be split proportionally amongst all Brix holders. If you hold 25% of the Brix, you will receive 25% of the net rental receipts.

MyBrix charges a fixed fee of 5% of the funding raised to get you through to owning a property, this includes consultation, assistance in fund raising, providing our platform to undertake the process, assistance to purchase your property and conveyancer fees to settle the property. We then charge a fixed fee of $100 per property per month to facilitate the buyback process.