The first step in Social Funding is the creation of an Investment Proposal. MyBrix will work the future property owner create a project proposal for there MyBrix funding application. More info here.
After the Investment Proposal is finalised, MyBrix generates a personalised Pledge Portal. The property owner can share this portal link with their friends, family, and anyone interested in supporting the project. More info here.
Once your property is fully pledged (the total amount funded has been met) MyBrix put the property live on the MyBrix platform and the pledgers/investors buy the Brix which they pledged to buy. More info here.
Once all Brix are purchased, the property owner finds a property and uses their own savings for the deposit. MyBrix manages the transaction, securing the balance and protecting investors with a first mortgage, while any leftover funds are transferred to the owner. More info here.
Disclaimer: This blog explains the process specific to social Funding, which is designed for homeowners looking to finance the purchase of a new home through MyBrix by leveraging their family and friends. This process does not apply to refinancing existing properties.
For future property owners looking to purchase a new home by leveraging family and friends, there are four stages to the funding process:
Below, we detail each stage and explain how Social Funding works to help future property owners achieve their homeownership goals.
The first step in Social Funding is the creation of an Investment Proposal. MyBrix will work the future property owner create a project proposal for there MyBrix funding application.
Once the proposal is completed, the property moves forward to the next stage which is gathering pledges from friends and family.
After the Investment Proposal is finalised, MyBrix generates a personalised Pledge Portal. The property owner can share this portal link with their friends, family, and anyone interested in supporting the project. This allows potential investors to pledge a specific amount they wish to invest in the property.
It’s important to note that at this stage, no actual funds are transferred. Pledging is simply a way for supporters to express their interest and commitment to the project. Each investor must create a MyBrix account to pledge, which ensures the process is secure and transparent.
The Pledge Portal enables future property owners to harness the financial support of their community in a simple and structured way, providing them with a path to homeownership.
Once your property is fully pledged (the total amount funded has been met) MyBrix put the property live on the MyBrix platform and the pledgers/investors buy the Brix which they pledged to buy. Only when all Brix are purchased can the owner move onto the settlement phase. It is important to note that MyBrix maintains control of the fund’s they are not realised to the property owner at this stage.
The property owner must also complete standard Know Your Customer (KYC) and Anti-Money Laundering (AML) compliance checks during this phase. Additionally, they must read and acknowledge the Product Disclosure Statement (PDS) and seek independent legal advice regarding the terms of the investment. A solicitor’s certificate will be provided to MyBrix as proof of legal consultation.
Investors need to buy brix in lot’s of 12 for example an investor can purchase 12 brix, 24 brix 48 brix but not 30 Brix.
Settlement begins once all the Brix that were available are purchased by Investors. Once that happens the property owner start’s looking for the property, they wish to purchase knowing they have a deposit and the amount they required has been funded (note: at this point MyBrix still controls the funds and property owners cannot access the funds).
When the owner has decided on which property they would like to purchase they get the contracts checked by MyBrix’s convenors and if everything is clear they can go ahead and put a deposit on the property from there own savings, the funds raised through MyBrix can not be used as a deposit and the property owner must always have least 20% of equity in the property.
MyBrix will then manage the transaction between the funds raised by investors and the realtor to pay the remaining balance of the property and take out a first mortgage on the property to protect the interest of the investors.
Once they is complete any remaining funds that we’re not used to purchase the property gets transferred into the property owners account.
IMPORTANT INFORMATION
MyBrix does not provide any financial, Tax or other advice, you must obtain your own independent financial, legal and tax advice regarding the appropriateness of using any MyBrix Services, having regard to your personal objectives, financial situation and needs. You should not make any decision, financial, investment, trading or otherwise, based on any of the information presented in this blog, any and all information presented in this blog is provided for information only and any action you take as a result is at your own risk.
MyBrix is an innovative solution for property finance that breaks free from outdated traditions. Here are some typically questions. property owners have, see our Frequently Asked Questions (FAQ) page for more details.
MyBrix does not provide any financial or other advice, you must obtain your own independent financial, legal and tax advice regarding the appropriateness of using any MyBrix Services, having regard to your personal objectives, financial situation and needs.
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