Blockchain is already permeating the real estate sector at an accelerated rate. The impact may not be widely visible at the surface level yet, but the foundation is being laid out to leverage the nascent but thriving technology to redefine the way properties are bought and sold.
Bricktrade: An Overview
For those out of the loop, Bricktrade is a U.K-based real estate company. It was launched in 2018 by founder and CEO Guv Kang, a serial entrepreneur with 15 years of experience in the real estate sector.
During this period, Guv also founded the London-based premium real estate firm Waterfronts.co.uk with an established office in Hong Kong.
So, on that count, Bricktrade is an already established firm with a decent track record and a team flaunting 120 years of collective industry experience and £21 billion in property deals.
However, the company aspires to become much more than just a run-of-the-mill real estate platform. And to achieve that, it has turned to blockchain tech and smart contracts.
Bricktrade is the first-of-its-kind platform in the U.K. with a legally tested mechanism for tokenizing real estate.
Bricktrade is backed by Alphabit Fund and it was also recently picked by Launchpool as the fifth project in the first cohort of its first incubator class.
(For the uninitiated, Launchpool is a comprehensive blockchain ecosystem with more than 35,000 investors worldwide.)
Lowering the barriers to entry for investors
It enables users to invest in real estate in the U.K. from anywhere in the world. And that too with just £500, they can invest in top quality construction finance projects across Blighty.
Yes, the entry barrier to property investment in the U.K. is unprecedentedly low with Bricktrade, which probably explains the buzz surrounding the platform.
Furthermore, there is no need to spend weeks or months on pesky paperwork, Bricktrade claims. There is no need for credit checks, mortgages, or bank deposits. There is also no need to pay any intermediary fees because, with Bricktrade, you don’t need a lawyer, real estate agent, or notaries, etc.
Thanks to blockchain tech, you can wrap up your investment deals in a matter of minutes.
As of December 2021, Bricktrade claims to have £100m worth of property projects, 1,500 investors, and many partners on its platform.
How Bricktrade works
As the first-of-its-kind tokenized real estate investment platform, Bricktrade brings together property developers and real estate investors under the same roof. The platform offers unique incentives to both user groups.
For property developers
Bricktrade uses its blockchain infrastructure to offer a crowdfunding platform to property developers.
Typically, property developers rely on banks and large financial institutions to secure funds for their projects. And as you might guess, investments from these entities come with many strings attached, including high-interest rates.
With Bricktrade, however, property developers can crowdfund their upcoming projects to users all over the world. The process is transparent and includes no hidden surcharges.
Property developers need to follow these steps:
- Submit a project.
- Wait for Bricktrade to verify the project.
- Wait for Bricktrade to list the verified project in its marketplace.
- Raise funds through crowdfunding.
- Once the targeted fund is secured, start building the project.
The company assures that the crowdfunding process is FCA-approved and complies with all AML and KYC laws in the U.K.
As previously mentioned, Bricktrade enables investors from anywhere in the world to invest in the real estate market in the U.K.
From the looks of it, the platform has done a neat job making sure that even users with little to no prior experience in real estate can start investing easily.
Because Bricktrade only uses an FCA-approved crowdfunding model, investors can rest assured that their rights are protected by financial laws and regulations in the U.K.
What’s even better is that investors do not have to sweat over technical details and specifics of the projects on their radar. Bricktrade’s experienced team of professionals do it on the user’s behalf to oversee every step along the process including deal origination and structuring to legal, technical, and financial due diligence, trading, and risk mitigation.
To get started, you just have to:
- Open a live account.
- Deposit funds in your account.
- Start investing in promising real estate platforms listed in the Bricktrade marketplace.
The minimum investment amount is £500.
Note that Bricktrade accepts investments in both fiat and crypto.
Investors can earn up to 10% returns on their investments, which is significantly higher than what you would get from conventional investment avenues such as the banking system in most parts of the world including the U.K.
Also, asset-backed investment is another big advantage Bricktrade offers to all users. This means a designated portion of the real estate you invest in is entirely yours the moment you sign on the metaphorical dotted line.
For more information and regular updates, visit the Bricktrade official website.