How Does Fractional Real Estate Investment Work?

Fees for the property management done by BuyProperly are covered under the annual asset management fees which is 1% of the investment. All operational property expenses are deducted from the rental earnings of the property without any markup by BuyProperly.

The fee of 1% of your investment amount covers:

• operating and maintaining the online investment platform;
• managing all aspects of the purchase of high-grade investment properties; and
• managing the funds for each property: collecting investments and distributing monthly rentals and capital on exit.

The exact fee might vary depending on the individual property, please refer to the investment documents for more details.

BuyProperly’s team of trusted local property managers takes care of all the “landlord” issues: tax payments, insurance, tenant search and interactions, maintenance, and day-to-day management.

BuyProperly sets aside a reserve fund for each property to cover any repairs or emergency services required for each property.

You can easily view:

• details of investments bought and sold
• fees and taxes levied
• rental earnings accrued and dividends paid
• history of money transfers
• latest valuation and gains estimation (based on latest valuation)
• capital gains realized
• all your investment documents: shareholder agreement; quarterly statements; tax statements; management services agreement; investor terms and conditions; trust incorporation details, etc.

Your investment is backed by a real, tangible asset – the property itself – and your investment moves in line with the property’s market value. BuyProperly also protects rental returns with rental guarantee insurance: in case of vacancy or tenant default, the full rent is covered by insurance. Be sure to read all offer details for exact terms and conditions and detailed risks.

All our investment properties are insured by a rental guarantee. This ensures that, if the property is vacant, or if the tenant defaults on a payment, the full rent is covered by insurance. The guarantee also covers the costs of any damages by the tenant and rare cases of dispute or eviction.

We use the reserve fund included in the upfront cost estimates – up to 2% of the property value – to avoid a scenario in which investors need to put in more money at a later date. This reserve fund is held in a savings account and earns the current bank interest rate.

In extreme circumstances such as a natural disaster, where costs may exceed the reserve fund and insurance, BuyProperly will call for investors to vote on the following options: (a) liquidation of assets, or (b) requiring additional funds from all investors.

Absolutely! you will receive updates and notifications from the BuyProperly team once you sign-up on the website. You can also send us an email at [email protected] and we will get you all the information you need.