Investing in real estate with BRXS Properties

For a couple of years now I have been investing in a fractional real estate platform in the Netherlands, its name is BRXS properties. In this article I detail more about the platform and everything you need to know before investing in it.

Introduction

BRXS Properties is a digital real estate investment platform founded with the mission of democratizing access to real estate investment, making it accessible to everyone. Through this platform, anyone can invest easily and from very low amounts in rental properties, eliminating the traditional barriers associated with the purchase of real estate. In fact, since its launch in 2021, it has attracted more than 17,500 registered users, who have collectively invested more than €5 million and received more than €382,000 in interest to date. These numbers reflect the growing acceptance and confidence in a model that seeks to “close the wealth gap” by allowing small investors to benefit from the real estate market.

Investing in real estate historically required large initial capital, technical knowledge and cumbersome paperwork, which made it unfeasible for many young savers. In addition, acquiring a property typically involves tying up tens of thousands of euros (e.g., for the mortgage down payment, taxes and notary fees). Digital platforms such as BRXS change this paradigm by making it possible to invest with just €100 and a few clicks, without the need for visits to the notary or direct tenant management. This approach removes traditional barriers and democratizes real estate investment just as it did with stocks or cryptocurrencies – anyone with internet and a small savings can participate.

Another fundamental aspect is diversification. Instead of buying a single apartment with all your savings, fractional real estate investment platforms allow you to spread your money over several real estate assets, reducing risks and optimizing returns. As classic financial theory points out, “not putting all your eggs in one basket” is key: diversifying your portfolio in different assets considerably reduces the potential losses of an individual investment. This, added to the ease and accessibility offered by BRXS, makes the platform a very attractive option for those seeking to generate passive income in the real estate sector without the complications of the traditional way.

What is BRXS Properties and how does it work?

BRXS Properties is a real estate investment platform where instead of buying outright properties, users invest in notes (“BRXS Notes”) backed by rental properties. Simply put, BRXS acquires and manages rental properties (primarily in high-demand urban areas in the Netherlands) and finances those acquisitions by issuing “notes” or real estate bonds that investors can purchase. By investing in one of these notes, you are investing in a fraction of a carefully selected rental property already leased and managed by the BRXS team. This fractionation model allows people with limited budgets to participate in real estate investments that were previously out of reach.

What are BRXS Notes and what returns do they offer?

BRXS Notes are financial instruments (similar to bonds) issued by BRXS and backed by the platform’s rental properties. By purchasing these notes, you obtain economic rights to the underlying real estate without becoming a direct owner (BRXS retains title to the real estate, but you are a creditor with a security interest in it). Each note has the following main features:

• Fractional and accessible investment: You can invest from €100 per note, up to a maximum of €15,000 per property, depending on your possibilities. This means that with small amounts you can build a diversified portfolio of properties, something impossible when investing directly in a single apartment.

• Fixed interest with quarterly payments: Each note pays a fixed annual interest, generally around 5% net (varies by property). This interest is distributed to investors on a quarterly basis, providing a stable periodic cash flow. For example, if a note offers 5.5% per annum and you have invested €1,000, you would receive about €13.75 each quarter. These payments come primarily from rents collected from the tenant of the property.

• Variable performance bonuses: In addition to the fixed interest, the notes may generate an additional bonus depending on the performance of the property. Specifically, there are two possible bonuses: one for rental overruns during the term (if the property generates more net income than estimated) and another for capital gains on sale at the end of the term. In other words, if rents rise more than expected or if the property is sold at a higher price than the purchase price at the end of the investment, investors receive extra interest proportional to those profits. This makes it possible to capture part of the long-term appreciation of the real estate, in addition to the agreed fixed interest.

• Defined term and capital outflow: BRXS investments have a medium to long term horizon, typically with terms of 5 to 15 years. At the end of the term (note maturity), 100% of the invested nominal value is reimbursed to the note holders, ideally after selling the property. During the term, the principal is committed; however, BRXS offers an intermediate liquidity option through an internal secondary market (Bulletin Board) where you can put your notes up for sale to other users if you need to exit early (liquidity not guaranteed, the sale depends on finding a buyer). In the absence of an early sale, you will recover your investment at the end of the term by adding the accrued interest plus any bonuses earned.

In short, investing with BRXS is equivalent to partially financing the purchase of a rental property in exchange for receiving interest on that financing, with the peace of mind that your investment is backed by a real property. Unlike other models, you do not acquire shares or direct ownership of the property, but rather you are the holder of a mortgage-backed debt note. BRXS takes care of everything operationally: it selects the property, buys and leases it, and then manages both the property and the payments to the investors. You, as the investor, get a passive return without the burdens of ownership.

Benefits of investing with BRXS Properties

Investing through BRXS Properties offers a number of significant advantages compared to conventional real estate investing. Below, we describe its main benefits:

• Accessibility for any investor: The platform allows you to start investing from as little as €100, eliminating the huge financial barrier to entry of traditional real estate purchases. It is no longer necessary to have large savings or go into debt with a mortgage to participate in the real estate market. This makes property investment possible for young people, small savers and virtually anyone. As one user commented, BRXS is“perfect for a beginner,” noting the low minimum investment and the simplicity of the process for those taking their first steps in real estate.

• Attractive regular passive income: With BRXS you get a stable return in the form of quarterly interest payments. The notes typically offer a fixed annual net interest rate of around 5% (e.g. 5.0%–5,5% in the latest offerings), paid each quarter directly into your account. This steady cash flow constitutes immediate passive income from the first quarter after your investment. In addition, you have the possibility of earning extra performance bonuses (derived from additional rents or capital gains on the final sale), which increases the total long-term return. Overall, you are building a diversified passive income stream with higher returns than traditional banking products, without having to directly manage rentals. Many investors value this combination of periodic payments plus potential earnings, considering it an “interesting and promising” way to grow their money over time.

• Investment security and backing: Unlike investing in unsecured equity or crowdfunding, at BRXS your money is backed by real assets (bricks). Each note you buy gives you a first mortgage security interest in the corresponding property. In practice, this means that in the unlikely event that BRXS defaults on its payments, there is a separate entity (a legal foundation called Stichting Zekerheden) empowered to foreclose on the sale of the property for the benefit of investors. This protective structure provides an additional layer of security: the property acts as collateral and ensures that investors have priority to recover their capital. In essence, you are investing in a mortgage-backed bond, significantly reducing the risk of total investment loss. Additionally, all BRXS opportunities from 2024 onwards operate under a prospectus approved by the Netherlands Authority for the Financial Markets (AFM), bringing greater transparency and regulatory oversight to the process.

• Ease of management and zero worries: One of the biggest attractions of BRXS is that it offers a 100% hands-free investor experience. You won’t have to deal with any of the day-to-day work associated with being a landlord: no searching or screening tenants, no maintenance, no managing payments or contracts. The platform takes care of managing the property from start to finish, from purchase and arrangements to rent collection and tenant care. Investors simply choose the property to invest in and then receive their rents passively. BRXS stands out with a very user-friendly app and website, where you can track your properties and income transparently. In the words of one satisfied client: “BRXS is an affordable way to invest in real estate… the platform works in a very user-friendly way”, with payments arriving on time and correctly every quarter. This convenience is priceless for those who don’t have the time or expertise to manage a rental on their own. In short, BRXS takes care of all the hard work, while you enjoy the benefits of being a stress-free real estate investor.

Risks and how to mitigate them

Like any investment, investments through BRXS Properties are not without risk. Although the real estate sector is considered relatively stable, there are several factors that could affect expected returns. Below, I describe the main associated risks and the measures BRXS implements to mitigate them so that investors are as protected as possible:

• Market Fluctuations (Market Risk): The value of a property may decline due to economic factors or changes in demand in the real estate market. For example, an economic recession could cause housing prices or rents in an area to fall, affecting both the resale value of the property and rental income. This market risk means that you could face a drop in property values or rental rates during the investment period.
• Mitigation: BRXS reduces this risk through careful asset selection and diversification. The platform focuses on homes located in areas with high rental demand and strong local economies, which dampens volatility (a well-located property is less likely to lose value abruptly). In addition, users are advised to diversify by investing in several notes in different locations, so that a one-off market downturn in one city can be offset by the stability of other investments. It is worth noting that the base yield in BRXS is primarily the fixed interest (from the existing rent), which tends to be more stable even in the face of moderate market fluctuations. As long as the property remains rented, the interest can be paid, and only a very sharp drop in rents would jeopardize those payments.
• Vacancy risk (unoccupied property): There is a possibility that the property will remain without a tenant for some period, which would affect the rental income intended to pay the interest. This may occur if rental demand in the area drops or if the tenant vacates the apartment and it takes time to find a replacement. Any month that the property is vacant represents uncollected rents.
• Mitigation: BRXS mitigates this risk with proactive professional management. Since the properties offered are already leased at the time of investment, investors start collecting interest from day one. In addition, the BRXS team takes care to keep occupancy high: they select creditworthy tenants and ensure that the rent is kept at market rate to reduce turnover. In the event that a tenant leaves, BRXS has incentives to find a replacement quickly, as the interest on the notes depends on those rents. Diversification again plays an important role: if you invest in multiple properties, they are unlikely to all face vacancy simultaneously, balancing your income stream.
• Risk of non-payment by the tenant: Related to the above, it could be the case that the tenant defaults on the payment of rent (non-payment). Although statistically delinquency in residential rentals is low (~1.5% according to industry data), it is a latent risk: economic problems of the tenant or other circumstances may lead to delays or non-payment.
• Mitigation: BRXS rigorously screens tenants (reviewing payment history, stable income, etc.) to minimize the likelihood of non-payment. They also typically require security deposits or rent guarantees upon leasing, which protects against a few months of non-payment. Importantly, the note model is designed with a certain financial cushion: BRXS retains a portion of the rental income in reserve funds before distributing bonuses, first ensuring payment of the fixed interest and other obligations. Only if the property consistently generates excess income are bonuses distributed. This means that in the event of a one-month default, BRXS is likely to use reserves or the deposit to cover the investors’ interest without affecting them. In addition, they have landlord insurance and legal processes in place to evict delinquent tenants and replace them with creditworthy ones if necessary. Again, by diversifying across multiple notes, the impact of a potential default on one note is diluted in the investor’s overall portfolio.
• Risk of unforeseen costs (maintenance and repairs): Real estate properties require ongoing maintenance and unexpected expenses may arise – for example, breakdowns, necessary renovations, taxes or special community expenses. These unforeseen costs can undermine profitability if they are not adequately anticipated.
• Mitigation: Before acquiring a property, BRXS performs a thorough evaluation of the property (structural condition, installations, etc.) to ensure that there are no major hidden defects. In the financial model of each note, they contemplate a percentage of the income to cover maintenance, insurance and contingencies: in fact, BRXS deducts a small management fee from the gross rents precisely to cover the professional maintenance of the property. This means that part of the rent is reinvested in the care of the property (repairs, fund for major repairs and insurance), preserving its value over time. By having the property fully managed, preventive maintenance is carried out and minor repairs are attended to immediately, avoiding accumulation of deterioration. Ultimately, should a very large extraordinary expense occur (e.g., repairing damage from a natural disaster), the existence of the security interest protects the investor: BRXS could use the value of the property itself as a backup (even refinancing or selling if absolutely necessary) to meet obligations to investors. In short, professional management and financial provisions significantly reduce the impact of unforeseen expenses on returns.
• Low investment liquidity: Liquidity risk refers to the difficulty of converting an investment into cash quickly without loss of value. In real estate, this is a known risk: selling a house or apartment can take months or even years, and you can’t always do it at the desired price if you need to get out in a hurry. In BRXS, although the notes have a defined term of several years, the investor may require his money before the maturity date. It should be clear that the notes are not as liquid as a stock that is sold in seconds on the stock exchange.
• Mitigation: To offer greater flexibility, BRXS implemented an internal secondary market (Bulletin Board) where investors can list their notes for sale to other users if they wish. This functionality, which is uncommon in the industry, provides a possible early exit route, improving liquidity compared to traditional real estate ownership (where selling quickly usually means a significant price reduction). However, liquidity is not guaranteed: the success of the sale will depend on whether there are others interested in buying these notes. To mitigate risk, BRXS seeks to keep investors informed about the performance of properties (which facilitates the secondary market) and maintains a growing number of users on the platform, increasing the likelihood of matching sellers and buyers. Even with this option, it is recommended to invest only money that you will not need right away, since the most prudent thing to do is to count on keeping the investment until its original maturity (which is aligned with the long-term real estate strategy). The platform itself emphasizes the importance of investing for the long term and understanding the illiquid nature of real estate investing. Ultimately, BRXS slightly improves liquidity versus outright purchase, but investors should plan their investment horizon accordingly.

In conclusion to this section, it is important to emphasize that no investment is risk-free, and although BRXS implements all of these protective measures (diversification, collateral, professional management, financial reserves, etc.), investors should be aware of possible adverse scenarios. The key to mitigating risks will always be portfolio diversification – not only diversifying among various properties in BRXS, but also integrating this investment as part of a broader portfolio with other asset classes. In this way, exposure to any specific risk is minimized and the overall risk-return balance is optimized. BRXS brings an additional level of security and transparency within real estate, but it is critical to invest in an informed manner that is aligned with your financial objectives and risk tolerance.

How to choose the best investment opportunity in BRXS

Once you have decided to include digital real estate investment in your portfolio, the next step is to choose from the various opportunities available on BRXS Properties. Different offers are usually published on the platform (each one corresponding to a different property), and each opportunity has its own characteristics of location, interest rate, term, etc. Here are some key factors to consider in selecting the right investment for you, as well as a brief guide to analyzing the prospectus of each offer and some strategies to maximize your return:

Key factors to consider before investing:

• Property location: Location is perhaps the most important factor in real estate. Examine where the property is located – city, neighborhood, environment – as this will influence rental demand and potential long-term appreciation. A property in an area with a dynamic rental market (e.g., in an urban center or near universities) will likely have steady occupancy and rental growth potential. Conversely, areas with oversupply or low population growth may lead to more vacancy or lower appreciation. Researching the local market (supply, demand, current prices and future trends) will give you context on the prospects for that investment. Remember the real estate adage: “location is key”. All things being equal, a good location usually translates into lower risk and better steady returns.
• Expected return: It is essential to evaluate the net interest rate offered by the note and possible additional bonuses. At BRXS, each opportunity will tell you the fixed annual interest rate (e.g. 5.0% or 5.5% net) and usually details projected capital gain scenarios upon sale. Consider how that return compares to other investments and to your own financial objective. For example, a 5% annual note plus potential bonus of 1-2% may be very attractive versus traditional bonds or bank deposits. However, don’t just look at the higher number – weigh the return against the risk of ownership. Sometimes an offer with slightly lower interest may be safer (for prime location, long-term tenant, etc.), while one with very high interest may involve more risk (perhaps a property in an emerging area or with higher expenses). Look for the risk-return balance that fits your profile. It is useful to check if the current rent of the property comfortably covers the interest payment; in general BRXS fixes the interest based on the existing net rent, so it is usually sustainable. Still, understand if there is room for rent growth (which could give you future bonuses) or if the return depends solely on long-term sales.
• Project risk profile: Analyze any factors that may add specific risk to the opportunity. For example, is it an apartment already rented to tenants with current leases(this is positive, it reduces uncertainty) or is it a property that will require finding a new tenant after renovations (more uncertainty). Also look at the type of property: a small apartment in a city may be in more liquid demand than, say, a very large single-family home in the suburbs. Check the age and condition of the property – is it a recent construction or an older building? – as this may influence future maintenance costs (BRXS prospectuses often mention if improvements are anticipated or if the property is in good condition). Consider the term of the investment: longer notes (e.g., 10-15 years) tie you down longer, but also tend to have a higher probability of real estate appreciation, while shorter notes return your principal sooner but with less time for appreciation. Evaluate your own future liquidity needs with respect to the term offered. Finally, check if the developer (BRXS) provides information from an independent appraisal of the property or a Loan-to-Value(ratio between the amount invested and the value of the property). The lower this ratio, the more backing you have (i.e., if the property is worth significantly more than the amount invested, your investment is covered by an asset of higher value). In all cases, read the specific risk section of the prospectus for that property – it lists particular risks (e.g., legal liabilities, dependence on a single large tenant, etc.) that vary from case to case.

Review the offering prospectus: Before investing, it is essential to read the prospectus or information document of the note issue of the property you are interested in. This document, approved by regulators, contains all the financial and legal details. When analyzing it, pay attention to these key aspects:

• Description of the property: The prospectus should include a card with the characteristics of the property: address, type (apartment, house, etc.), square meters, number of rooms, year of construction, general condition, and if it is rented (and since when). Read the description of the neighborhood and surroundings to understand the quality of the location. They also usually mention if the property already has a tenant (and in what condition) or if it is in the process of being rented. An already rented property with a high occupancy history provides more certainty. If remodeling or improvements made/pending are mentioned, take note as they may affect costs or value.
• Financial details and investment structure: Here you will find the purchase price of the property by BRXS, the total amount of the note issue (which is usually close to that net price), and the commissions applied. Check what is the net annual interest you will get and how it was calculated (it usually corresponds to the net rental yield after expenses and commissions). Also note the exact term of the note and the exit strategy: when the property is planned to be sold and how the result will be distributed. Important: check whether BRXS provides equity or additional financing. In most cases, the users’ investment covers the entire purchase and there are no bank mortgages involved (which is good, since the notes have the first claim on the property). If there were any outside financing, it would be detailed; make sure you understand what priority each debt has. Check to see if they estimate a combined total return (interest + expected appreciation) and consider that this is a projection, not a promise. Look at expenses: BRXS typically includes ~4-5% fee on the investment (already discounted on the face value of the notes) plus annual lease management (deducted before paying interest). The prospectus breaks this down; understanding this structure helps you calculate the actual return.
• Occupancy and tenant history: A good prospectus will indicate whether the property is currently leased, the amount of monthly rent and perhaps tenant information (e.g., “family with annual renewable lease for 2 years”). This allows you to judge income stability: a current, market-rate lease is a positive sign. You can also include historical vacancy rates for that unit or region. If the property is vacant, the prospect will explain the strategy for leasing it and may estimate a time frame for placement. Analyze this point because it directly impacts the generation of income to pay the interest.
• Guarantees and investor rights: Confirm in the prospectus that the notes are backed by a security interest (mortgage) in the property in favor of the investors (should be explicit). This is the core of the BRXS security, so it is important to see it clearly reflected. It usually mentions the constitution of a first mortgage and the intervention of the foundation(Stichting Zekerheden) acting for the benefit of the noteholders. Also check if the property has insurance (building insurance, rent default insurance if applicable, etc.), as these are additional layers of protection. Finally, read the clauses about what happens in case of default: they should describe the process of selling the property and paying investors. Understanding your rights will give you peace of mind about how you would be covered in extreme events.

In general, BRXS is transparent and provides this information in an accessible manner for each investment opportunity; do not hesitate to consult with their team if you have any doubts (the platform offers chat and briefings). Take the time to analyze each prospect carefully – remember it’s your money and you should invest in an informed way.

Strategies to maximize the return on your investment: Once you have selected your BRXS investments, you can follow some smart strategies to get the most out of them:

• Diversify across multiple properties: Although each BRXS note already gives you a portion of a diversified real estate asset (by having many investors), as an investor it is wise not to focus on just one note. Take advantage of the low minimum investment to spread your capital across multiple BRXS offerings. For example, instead of putting €1,000 in a single property, you could invest €200 in 5 different properties. This way, you spread the risk geographically and from different tenants: if one of the investments has a setback (vacancy, delay, lower appreciation), the others continue to generate rents, stabilizing your total return. Diversifying also allows you to combine different profiles – perhaps you invest in one note with a higher fixed interest rate and another with higher appreciation potential, balancing short and long term. Diversification is the number one tool for protecting your investments and improving the consistency of your returns.
• Reinvest interest payments: Each quarter you will receive cash interest on your notes; a powerful strategy is to reinvest those proceeds in new notes or new opportunities that arise. Reinvesting earnings accelerates the growth of your principal thanks to compound interest: basically, you put interest to work to generate more interest in the future. By reinvesting quarterly payments to buy more notes (either from the same property if they open an extension, or from new ones that appear on the platform), you are gradually increasing your position without bringing in additional money. Over time, this snowball can significantly increase your cumulative return. For example, you could plan that each time you collect €100 in carried interest, you will allocate it to the next available real estate opportunity. This reinvestment discipline is similar to reinvesting dividends in stocks: it boosts long-term returns significantly. If your goal is to generate a growing passive income, reinvesting at least a portion of your earnings until you reach your goal can be very beneficial.
• Stay informed and adapt your strategy to market trends: Although management is handled by BRXS, as an investor you should keep a close eye on the evolution of both your investments and the real estate market in general. Check the quarterly updates BRXS provides on each property (e.g., property status, occupancy, bookings, etc.) to ensure that everything is on track. Also, pay attention to market conditions: housing price trends, rental demand levels in the cities where you invested, regulatory changes (rental laws) and the economic situation. This will help you make informed decisions, such as deciding to sell a note in the secondary market if you anticipate that a certain area is going to devalue, or on the contrary, holding an investment for a longer period of time if you see upside potential. It will also allow you to identify new opportunities: if BRXS starts offering properties in another emerging city or country, being aware of the trends will give you an advantage to take advantage of those offers early. In short, be a proactive investor: the platform does the operational work, but you can optimize your portfolio with knowledge and timing. Finally, update your strategy according to your own goals – for example, maybe at the beginning you reinvest everything to grow, but later you decide to live off the interest and stop reinvesting, or vice versa. The flexibility is yours; BRXS is a tool to achieve your financial objectives, and as such you should use it with a strategic vision.

By following these tips, you will be able to select solid opportunities on BRXS and manage your portfolio optimally. Always remember to do your own research and take advantage of the educational resources the platform offers (webinars, blogs, support chat) to become an increasingly informed and successful investor.

BRXS Properties represents an innovative value proposition in the investment world: it combines the best of real estate (stability, income stream, tangible backing) with the flexibility and accessibility of modern financial technology. Throughout this article we have seen how BRXS breaks down the traditional barriers to investing in real estate – you no longer need to have large assets or deal with endless red tape to be a real estate investor. With amounts starting as low as €100, anyone can start building a diversified portfolio of properties and enjoy quarterly passive income, backed by real assets and managed by experts.

The security and confidence BRXS provides is also evident: its mortgage-backed note model, coupled with the transparency of operating under financial regulations (approved prospectuses) and clear risk management policies, offers investors a solid and reliable platform to deposit their money. While all investments carry risks and it is important to understand them, BRXS incorporates multiple mitigation measures that significantly reduce exposure, from careful property selection to diversification and legal protection for investors. In essence, BRXS makes it possible to “make money while you sleep” with real estate – a privilege that once seemed reserved only for big money or experts is now available to anyone.

In closing, we stress the importance of diversification and financial education in your investment journey. BRXS Properties can be an excellent piece within your portfolio, providing that mix of stable returns and growth potential that many of us seek. We invite you to explore the platform for yourself, review the opportunities available and see first-hand how intuitive it is to invest in real estate digitally. If you are looking to diversify your investments, generate secure passive income and participate in the real estate market in an accessible and hassle-free way, BRXS Properties presents itself as a very attractive option, backed by the experience of hundreds of satisfied investors.

Don’t wait any longer to become a real estate co-investor! Discover in BRXS a new way to grow your money, at your own pace, with confidence and from anywhere. Start forging your path to financial freedom through real estate today by taking advantage of this innovative and motivating platform, the digital brick is waiting to help you meet your financial goals!