Bricks.co is a start-up created by Cédric O’Neill whose mission is to make real estate accessible to as many people as possible. With an initial investment of only 10 euros, it gives all French people the opportunity to invest in stone with a return ranging from 10 to 15%. Close-up on this real estate opportunity 2.0.
Bricks.co’s value proposition
After several years at the head of 1001Pharmacies.com, a start-up he co-founded in 2011, Cédric O’Neill offers a revolutionary approach to the real estate market through Bricks.co. The principle is simple: Bricks buys buildings and divides them into shares. It all takes place in two main stages:
Identification of the asset
Bricks identifies high potential buildings with at least six apartments. The selection of buildings to buy is made on the basis of criteria such as:
The localisation : the property must be located in the city center or close to strategic locations;
The price : it must be at least 20% lower than the prices in the region;
Rental profitability : it must beat least 10%.
Financial package and purchase of the property
The platform takes care of the financial package and acquisition procedures such as negotiation with sellers, discussions with the notary and subscription to bank financing.
Once the acquisition is completed, Bricks divides each building into 10,000 parts called bricks. The Internet user can then buy one or more bricks on the proposed buildings.
Note that the operation is completed only if all the units are purchased by investors. Otherwise, it is canceled and all investors are refunded.
A successful start for the new real estate flagship
From its launch, the innovative concept of Bricks.co was popular with the general public. Located in Montagnac (Hérault), the first property put online on the platform brought together 124 buyers. The enthusiasm was even greater for the second building, located in Pézenas. 300 investors shared the 10,000 bricks for a profitability of 15.6%. A third building of 15 apartments has already been launched on the platform with an estimated profitability of 13.3%.
Bright prospects for the coming years
In just two months, the young company already registers more than 2,500 investors in its database. To go further, Cédric O’Neill plans to organize a fundraising with institutional investors before December 2021. He hopes to obtain between 10 and 15 million euros.
Furthermore, Bricks.co plans to finance 15 buildings before 2021 and reach the bar of 100 buildings in 2022.
For now, the properties on offer are all in Hérault, not far from the start-up’s headquarters in Montpellier. But the company hopes to reach other departments in France very quickly and, in the long term, offer goods throughout Europe.
Bricks.co, the benefits for investors
Bricks.co’s offer is interesting on many points:
A starting bet of only 10 euros
As we all know, capital is one of the brakes on access to real estate. Not only do you need to have good personal savings, but you also need to apply for a loan from the bank.
But thanks to Bricks.co, it is possible to become a real estate investor with only 10 euros. Investing in real estate is now a dream accessible to all budgets.
Bricks plans a rate of return of 10% to 15% before tax deduction, which is already very interesting. In addition, to reduce costs, the start-up has chosen to invest only in residential real estate. Indeed, this sector is much more resistant to crises than commercial real estate.
No formalities to be carried out
The start-up itself takes care of all the formalities related to the acquisition and management of the building instead of the investors. There is therefore no need to find a bank, to look for a notary, to set up a file or to look for tenants. The professional partners of the company take care of everything!
In addition, the platform has all its properties evaluated every 6 months by an independent expert who validates their prices taking into account trends on the local market.
Rental income each month
Each month, Bricks pays a fraction of the rent to each investor depending on the number of bricks he owns. Furthermore, any investor who wishes can put his units up for sale at the price he wants and collect a capital gain.
How much does Bricks earn?
The start-up receives two commissions:
One of 10% of the value of the property when it is posted on its site;
Another 1% for property management.
It does not charge any fees for buying, holding or reselling units.
Yes ! Bricks is a safe and secure platform. The company is approved by ORIAS and the Banque de France as a Participatory Financing Intermediary (IFP) since July 16, 2021. All transactions carried out by it are therefore perfectly legal.