Q: What returns can I expect from a BRXS investment?

The return on your investment consists of: <ul> <li>Rental income: We pay out the net rental income (i.e. the total rental income minus all operational costs) quarterly. This is proportionally distributed to all investors based on their percentage of <a href="https://brxs.crisp.help/en/article/what-is-a-brxs-note-1xbi0ko/?bust=1640005137996">brxs notes</a> in a given property. Changes to rental income (e.g. due to favourable market conditions) will be applied automatically to your quarterly payouts.</li> <li>Property value appreciation: Since property values generally appreciate over time, the value of your brxs notes can also increase. For example: looking at the housing prices between 1995 and 2020 in Amsterdam (graph below), the residential property prices have increased at an average of 7.1% per year over the entire period including two dips in value in the periods 2002-2004 and 2008-2013. It is important to understand that dips in the housing market can happen and could have a negative impact on your investment with Brxs. </li> </ul> <img src="https://storage.crisp.chat/users/helpdesk/website/b5d06b2f41838800/763_aafx3f.jpeg" alt="" /> Source: CBS | On each property page, you can find a calculator that estimates the property’s rental income and operational costs. By adjusting your investment amount, anticipated holding period, and your appreciation assumptions, you can get an idea on your expected returns. We cannot guarantee a fixed return as the interest rate offered is variable and dependent on the ac

Q: How does BRXS make money?

How does Brxs make money: <ul> <li>Offering fee: We charge a one-time offering fee that is already included in your initial investment amount. This helps us to cover costs related to acquiring the property, including sourcing, negotiations, administration, setup, managing any renovations needed, and the costs associated with financing or holding the property while we prepare it for investments. This can vary per property and is transparently displayed in the financial information section of the property details page.</li> <li>Management fees: We charge a management fee that is automatically deducted from the rental income and is reflected in your quarterly payout. This helps us to cover everything that comes with managing properties (such as, overseeing maintenance, finding and selecting tenants, supporting tenants, accounting, insurances, tax filings, etc.). You can see this fee in the financial information on the property details page and also on all your quarterly property statements. If there is a period of no rental income, there will be no fee by Brxs.</li> <li>Exit fee: When the property is sold, we will take a 1% fee on the gains (the difference between the final sales price and the original purchase price). So if there is no gain there will be no fee by Brxs.</li> </ul>

Question 1

What returns can I expect from a BRXS investment?

Accepted Answer

The return on your investment consists of:

Rental income: We pay out the net rental income (i.e. the total rental income minus all operational costs) quarterly. This is proportionally distributed to all investors based on their percentage of brxs notes in a given property. Changes to rental income (e.g. due to favourable market conditions) will be applied automatically to your quarterly payouts.
Property value appreciation: Since property values generally appreciate over time, the value of your brxs notes can also increase. For example: looking at the housing prices between 1995 and 2020 in Amsterdam (graph below), the residential property prices have increased at an average of 7.1% per year over the entire period including two dips in value in the periods 2002-2004 and 2008-2013. It is important to understand that dips in the housing market can happen and could have a negative impact on your investment with Brxs.

Source: CBS

| On each property page, you can find a calculator that estimates the property’s rental income and operational costs. By adjusting your investment amount, anticipated holding period, and your appreciation assumptions, you can get an idea on your expected returns.

We cannot guarantee a fixed return as the interest rate offered is variable and dependent on the ac

Question 2

Is Brxs accredited by the AFM (Netherlands Authority for the Financial Markets)?

Accepted Answer

Does Brxs fall under the supervision of the AFM?

BRXS does not fall under the supervision of the Dutch Authority for the Financial Markets (Autoriteit Financiële Markten; AFM). The AFM is the authority responsible for supervising the operation of the financial markets in the Netherlands.

What does Brxs offer?

BRXS offers notes to investors. In short, notes (also known as ‘bonds’ and by us, referred to as ‘brxs notes’) are standardized loans. When buying a note, you grant us a loan, which, in principle, entitles you to interest payments during the term of the loan and repayment of the loan at end of the term. Those interest payments are variable and dependent on the performance of the property to which the note relates and they comprise of:

Net rental income generated by the property, which is the total rental income minus costs such as maintenance, city taxes, insurance and mortgage payments.
Property value appreciation so you will receive part of the potential gains made from the increase in the property’s value at the end of your investment or when the property is sold.

| Find more explanations on the expected returns here.

Why is the AFM banner at the top of the webpage?

An offering of securities (such as notes), in principle, requires a so-called ‘prospectus’ under the Prospectus Regulation. A prospectus is a document which contain

Question 3

When and how can I sell my brxs notes?

Accepted Answer

We’ve designed BRXS for investors who want to invest in real estate for the long term so as to maximize return potential. BRXS intends to hold and manage the properties for up to 10 years. Now we understand the importance of flexibility when it comes to your financial portfolio, so there are options to sell brxs notes when you need.

We are exploring the options on setting up a **secondary market **and will keep you updated on the progress. Through a secondary market you can sell your brxs notes to other investors.

In the meanwhile, there are two options to sell your brxs notes after a 6 months hold period from their initial purchase:

Find an eligible buyer (i.e. resident of the Netherlands, 18 year of age or older) and agree the transfer of ownership to them; we will complete transfer administration at no cost.
Sell your brxs notes back to us at their current market value minus 1% transaction fee. In the twelve months immediately following an initial offering, a property’s market value is deemed equal to the original purchase price. Afterward, the property’s market value changes relative to the sales of similar properties in the neighbourhood where the BRXS property is located. Approval of BRXS is required for all sales and it is up to the discretion of BRXS whether to accept or reject a sale.

Question 4

What is a brxs note?

Accepted Answer

A brxs note is a type of loan that gives you the right to receive interest and the repayment of your initial investment amount. This interest payment is dependent on the performance of the property to which the note relates and will comprise of:

Net rental income generated by the property, which is the total rental income minus costs such as maintenance, city taxes, insurance and mortgage payments.
Property value appreciation so you will receive part of the potential gains made from the increase in the property’s value when the property is sold.

| Each brxs note is priced at €100. You can invest a maximum amount of 100 brxs notes or €10'000 in one property and the minimum investment in a property is 1 brxs note or €100.

You can find more explanations on the expected returns here.

Question 5

How does BRXS make money?

Accepted Answer

How does Brxs make money:

Offering fee: We charge a one-time offering fee that is already included in your initial investment amount. This helps us to cover costs related to acquiring the property, including sourcing, negotiations, administration, setup, managing any renovations needed, and the costs associated with financing or holding the property while we prepare it for investments. This can vary per property and is transparently displayed in the financial information section of the property details page.
Management fees: We charge a management fee that is automatically deducted from the rental income and is reflected in your quarterly payout. This helps us to cover everything that comes with managing properties (such as, overseeing maintenance, finding and selecting tenants, supporting tenants, accounting, insurances, tax filings, etc.). You can see this fee in the financial information on the property details page and also on all your quarterly property statements. If there is a period of no rental income, there will be no fee by Brxs.
Exit fee: When the property is sold, we will take a 1% fee on the gains (the difference between the final sales price and the original purchase price). So if there is no gain there will be no fee by Brxs.

Question 6

What are the risks associated with investing in BRXS?

Accepted Answer

While real estate is widely regarded as a relatively safe investment, as with all investing there are risks to be aware about and take into consideration when making your investment decision. Examples of some common risks involved with real estate investing:

Extended vacancy: an extended period with no tenant can significantly reduce your returns due to a reduction in rental income. We minimize this risk by investing in properties in cities and neighbourhoods where we believe rental demand to be strong and sustainable; and by using a vacancy projection that is higher than the national average in our financial models.
Tenant default: it can happen that a tenant is no longer able to pay their rent, which will lead to us ending our rental agreement with them. Ending a relationship with a tenant can be time consuming and subject to the tenant’s rights under Dutch law, this could lead to lower net rental income and lower returns on your investment. To minimize the risk of tenant default happening, we have created a thorough tenant selection process.
Operational expense risk: a property’s operating costs can increase faster than projected and faster than rental income growth. This could lead to lower net rental income and lower returns on your investment.
Maintenance risk: During the purchase process, we do a deep due diligence and technical inspection on the property to uncover all needed repairs and renovations. However even the most comprehensive prev

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