HOW IT WORKS
How BRXXR Works
One marketplace, four paths. Here's how a home moves from application to shareholders — and how each person takes part.
FOUR PATHS
Choose Your Path
Pick the role that fits you to see each step.
Run the Calculator
Enter your property details and see an estimate of what fractionalization could look like. Every figure is an estimate.
Choose a draft
Pick the listing draft that best describes your property.
Upload documents
Upload your ownership, mortgage, lease and property documents. BRXXR's AI reviews and cross-checks them.
Apply for Test the Waters
Submit your property to be shown to investors for non-binding interest.
BRXXR internal review
A BRXXR specialist reviews the property and the numbers, then approves or declines it.
Test the Waters (30 days) - investors indicate interest
Your approved property is shown on the marketplace for 30 days. Investors indicate non-binding interest. No money is collected.
Indicated interest reaches the mortgage payoff
The goal is the amount needed to pay off your mortgage.
Fractionalization
Once indicated interest reaches the mortgage payoff, the property moves into fractionalization: our partner completes title, lien and inspection review, the property's own legal entity (series) is formed, the owner agreement is signed, and the series is added to the offering statement for SEC qualification.
SEC qualification
The series is qualified with the SEC under Regulation A.
First call - members who indicated interest are invited to invest
Members who indicated interest are invited first to confirm an investment. Allocation is not guaranteed.
Offering open
Remaining shares open to eligible investors through our FINRA-member broker-dealer partner. Funds go to escrow.
Closing - mortgage paid off, shares issued
Escrow pays off your mortgage and shares are issued. The series (the property's legal entity) owns the home; you receive shares equal to your equity less the 3% fee shares. BRXXR holds one non-economic golden share per series for consent rights.
Live - property management, distributions, marketplace
A licensed property manager runs the home, distributions are reported, and shares can be listed on the BRXXR marketplace.
SECONDARY TRADING
A way out, not just a way in.
Once a property is eligible, BRXXRs can trade shares with each other during market hours. Orders, matching and settlement run on the regulated marketplace operated by our FINRA-member broker-dealer partner. BRXXR covers the trading costs, so investors pay no trading fees. Properties stay on the marketplace — investors exit by selling shares to other investors.
Investors type their own limit price and quantity, as a Day or good-till-cancelled order. There is no buy-now button and no pre-filled price. Bids and asks stand until they are matched, cancelled or expire. Tenants of homes with two or fewer units get 24 hours first on each new sell order.
Trading may be paused for material events. Liquidity depends on buyers and sellers and is not guaranteed.
WHO DOES WHAT
Who Does What
BRXXR
Technology, marketplace, AI review, investor and tenant support, issuer administration.
Broker-dealer partner (Texture Capital)
Identity and eligibility checks, subscriptions, secondary trading system.
Licensed local partners
Property evaluation, diligence and property management.
GLOSSARY
Key Terms
- 1031 Exchange
- A tax rule that can defer capital gains tax when proceeds from one property are reinvested in another. Shares of a company or series generally don't qualify; ask a tax adviser.
- AML
- Anti-Money Laundering — regulations and procedures designed to prevent criminals from disguising illegally obtained funds as legitimate income.
- ATS
- An Alternative Trading System — a regulated electronic marketplace where investors can buy and sell securities outside traditional stock exchanges.
- Accredited Investor
- Under SEC rules, a person with income over $200,000 ($300,000 with a spouse or partner) in each of the last two years, net worth over $1 million excluding their primary home, or certain securities licenses.
- Appreciation
- An increase in a property's value over time. Property values can also stay flat or fall.
- BRXXR Care
- BRXXR's property care and asset management program: preventive maintenance, tenant support and vetted vendors.
- BRXXRs
- Members of the BRXXR marketplace, including people who hold shares of a property series.
- Broker-Dealer
- A firm licensed by the SEC and FINRA to buy, sell, or trade securities on behalf of investors.
- Cap Rate
- Capitalization rate — a property's net operating income divided by its price or value, used to compare properties. It is a snapshot ratio, not a forecast or promise of any return.
- Capitalization
- The total dollar size of an offering: share price × number of shares offered. It is not a valuation or a market value.
- Cash-on-Cash Return
- A ratio of one year's pre-tax cash flow to the cash invested. Any figure shown is an illustrative estimate, not a promised payment.
- Distribution
- A payment a property series may make to shareholders from available cash, if and when declared. Distributions are not guaranteed and can be reduced or stopped.
- Due Diligence
- The research and analysis process used to verify a property's financials, legal status, and risks before listing it for investment.
- Escrow
- A secure third-party account where investment funds are held until all conditions of a transaction are met.
- FINRA
- The Financial Industry Regulatory Authority — the organization that oversees broker-dealers to ensure fair trading practices.
- Fractional Ownership
- Owning a portion (fraction) of a real estate asset through shares. Each offering sets its own minimum investment.
- Fractionalization
- The process of dividing a large asset (like a building) into smaller shares that many people can own.
- GP
- General Partner — the entity or person who manages the property and makes operating decisions on behalf of investors.
- Golden Share
- One non-economic share per series held by BRXXR for consent rights. It carries no distributions and is recorded at closing.
- IRR
- Internal Rate of Return — a way to express a series of cash flows as one annual rate. Any IRR shown is an illustrative estimate based on assumptions, not a prediction.
- KYC
- Know Your Customer — a standard identity verification process required by law to prevent fraud and money laundering.
- LP
- Limited Partner — an investor in a real estate deal who contributes capital but isn't involved in day-to-day management.
- Liquidation
- Turning shares into cash by selling them to another investor on Secondary Trading, if a buyer exists. Properties stay on the marketplace unless one buyer acquires every share of the series. The amount received can be less than the amount invested.
- NOI
- Net Operating Income — the total revenue from a property minus all operating expenses, before mortgage payments.
- Non-Accredited Investor
- An investor who doesn't meet the accredited thresholds. In a Regulation A Tier 2 offering they can generally invest up to 10% of the greater of their annual income or net worth.
- Offering
- A specific property's sale of shares, made through BRXXR's broker-dealer partner only after SEC qualification, with terms set out in its offering circular.
- Offering Circular
- The formal document filed with the SEC under Reg A+ that describes the investment, risks, and use of funds in detail.
- Operating Agreement
- A legal document that outlines how an investment is structured, who manages it, and how profits are distributed.
- Prospectus
- A legal document filed with the SEC that provides detailed information about an investment opportunity.
- REIT
- Real Estate Investment Trust — a company that owns income-producing real estate and distributes most profits to shareholders as dividends.
- Reg A+
- Regulation A is an SEC exemption that lets a company offer securities to the general public, not only accredited investors, once the SEC qualifies the offering.
- Reg A+ Tier 2
- The higher tier of Regulation A: up to $75 million in a 12-month period, with audited financial statements, ongoing SEC reports and investment limits for non-accredited investors.
- Reserve Fund
- Money set aside from property income to help cover repairs, vacancies or other costs. Reserves can run out.
- SEC
- The Securities and Exchange Commission — the U.S. government agency that protects investors and regulates the securities industry.
- Secondary Market
- Where holders sell shares to other investors once a series is Live. Properties stay on the marketplace and leave only if one buyer acquires every share of the series. A buyer may not be available, and prices can be lower than what you paid.
- Share
- A unit of ownership in a property series. One share is $100, and shares are sold in whole shares. The more shares you own, the larger your stake in the series.
- Underwriting
- Reviewing a property's finances, condition and assumptions to identify risks. Underwriting does not remove risk or guarantee an outcome.
FAQ
Frequently Asked Questions
Common questions about the BRXXR process.
What's the minimum investment?
Each offering sets its own minimum in its offering circular.
How often are distributions paid?
Distributions are planned monthly from net rental income, when available. They are not guaranteed.
When can I sell my shares?
Shares trade once the series is Live, through our FINRA-member broker-dealer partner, after the tenant 24-hour priority window. Liquidity is not guaranteed.
What does it cost to trade?
Investors pay no trading fees. BRXXR pays our broker-dealer partner's fees. Other offering costs are disclosed in each offering circular.
Who manages the property?
Licensed local property managers, with monthly reporting to shareholders.
What if the property is vacant?
Underwriting includes vacancy assumptions and reserves, but vacancy can reduce or pause distributions.
Investment Disclaimer: All investments involve risk, including possible loss of principal. Past performance does not guarantee future results. Please read all offering documents carefully before investing.
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