There is high demand and limited supply of desirable residential income properties in San Jose and other Bay Area locations. The prices and minimum investment have become prohibitive for many investors. To address these issues HomeBrik offers a new solution for residential real estate investors.
New Asset Class - Residential Real Estate Profits
The HomeBrik services enable investors to purchase property profits, their appreciation, and rental income in residential one to four-unit properties.
Profit Participation Method is an approach to investment that allows passive investors to profit from an injection of capital into residential real estate at the same rate as the property owner. The owner and investor share profits in the property, through price appreciation and rental income.
Profit Participation Agreement (PPA) is a contract between a property owner and investor(s) documenting the specific arrangements between both parties. You can read more about Profit Participation Method and Agreement on the PPA page.
If a property is worth $1 M and investor invested $200 K (20% of the property value) for a period of ten years, the investor will receive 20% of the property value (investment + profit) at the end of the period plus 2% interest rate on the invested amount that accrued during the 10 year period. Assuming that the sale price was $2 M, the investor(s) will obtain $440 K, $200 K of the principal plus $200k of the appreciation($2 M - $1 M) * 20% plus $40 K of the accrued interest. Investors will also receive 20% of the property's new rent, either monthly or annually.
Your property is worth $ 1 M and you received $400,000 (40% of the property value) for 30 years. At the end of the term or when you sell, the investor will receive 40% of the property value (investment + profit) plus 2% interest rate on the invested amount that accrued during the investment period. Assuming 3% appreciation per year, the investor(s) will obtain $1,210,905, 400k principal plus $570,905 of the appreciation plus $240,000 of the accrued interest. You will be requested to hold part of the investment money in escrow for future improvements.
Investment Property Selection
We select investment properties in San Jose following financing requests from property owners. Occasionally, we make exceptions for properties in the other Bay Area locations. We welcome investors from anywhere, but from the Bay Area and San Jose in particular. We encourage San Jose residents to invest in the properties of their neighbors. We know San Jose. We live and work in San Jose. We qualify both property owners and their properties. For each property, HomeBrik presents investors with information on property conditions received from the property owner. Please check the section Owners - How Do I Qualify? for more details.
We use local knowledge and data science to estimate HomeBrik Values or maximum possible values of investment properties.
How Much Can I Invest?
The minimum investment amount that can be placed by an investor is $25,000. There is no maximum investment limit. The minimum investment in a property is $50,000. There are maximum five investors per property.
See How It Works!
Find out How We Identify Investment Properties
HomeBrik Specializes in One to Four-Unit Properties in San Jose
Read about HomeBrik Property Participation Agreement(PPA)
Well known in commercial real estate, customized by HomeBrik for residential One to Four-unit properties
Analyze Your Investments Options With Homebrik Calculator
Short and Long term Opportunities
We will notify you of new investments
Only accredited investors can invest in properties with HomeBrik - check here to see if you meet the criteria.
HomeBrik Investor Calculator
The prefilled numbers are based on one San Jose property which took PPA for remodeling.
You can modify the field values to investigate different scenarios.
E.g. try changing "PPA years" or "Projected appreciation rate"