This HoneyBricks review will examine HoneyBricks, an investment platform for real estate founded by Andy Crebar and Ramesh Doddi. Located in San Francisco, USA, HoneyBricks provides commercial real estate investment opportunities as fractionalized NFTs.
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Last Updated: Sep 15, 2023
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HoneyBricks is a commercial real estate investment platform that uses tokens to give out property ownership.
It offers ownership in private REITs and lets you borrow using your tokens as collateral. Plus, it also allows you the purchase and sale of HoneyBricks tokens, thereby generating dividends and profits.
This is just the tip of the iceberg about this real estate investment platform, as this HoneyBricks review will explore all that you should know. You’ll get to know the features, pros and cons, how to invest, and much other useful and interesting information.
HoneyBricks is the first investment platform to combine crypto and crowdfunding in the real estate space. They invest as a “primary partner” in major real estate projects.
How do they do this? According to their site, with the aid of asset-backed security tokens, they join investors in commercial real estate opportunities of high quality.
Here, equity shares are permitted, and token holders can transfer them straight to their personal crypto wallet.
Buying HoneyBricks tokens through the blockchain is the way potential investors can take part in the investment flow. The sale of these tokens begins after 12 months or more.
Although there have been cases to combine both physical and digital property, HoneyBricks exhibits one of the biggest tests of blockchain power outside the meta world. Whether you choose to invest in HoneyBricks or not, the company is worth looking out for.
This part of the HoneyBricks review explores the pros and cons of this real estate investment platform.
HoneyBricks is a real estate platform that makes individuals possess properties through the use of tokens. This HoneyBricks review will break down all this platform offers its investors.
Using your crypto wallet, HoneyBricks allows you to purchase real estate investment trusts (REITs) shares.
Here, you can make payments using Fiat or cryptocurrency, but you mustn’t sell your shares for about 12 months. After this time, you can either choose to sell your shares on the secondary market or back to Honey Bricks.
According to law, you’re to store any asset purchased on HoneyBricks for a minimum of 12 months (1 year). You can’t sell your tokens to buyers until the end of this period.
If you don’t want to sell, you can decide to hold tokens back. However, you should note that the payback period is usually 3-6 years.
When you invest with HoneyBricks, you purchase private REIT shares. Upon this, you’d receive a token that represents an interest of ownership in the HoneyBricks REITs as a limited partner.
This simply means that you can use your HoneyBricks token as collateral when you loan money.
You should also note that various factors determine the interest rate of your loan, which could range from 4 – 12 percent. Unlike the situation where your assets serve as collateral, this loan is preferable due to your token invested.
Payments from HoneyBricks are made to your cryptocurrency wallet in the form of dividends and principal returns. Distributions can be received in USDC or any other supported coin.
Having the option to accept payments in various currencies can assist you in creating a whole cryptocurrency portfolio.
This section of the HoneyBricks review will list out the features of HoneyBricks.
In this HoneyBricks Review, we’ll explore how to invest in HoneyBricks in very simple and easy steps.
As said earlier, the HoneyBricks token signifies actual Securities which you can have access to either as an accredited investor or a non-US resident. Here’s how to invest through HoneyBricks
After your purchase, you’d benefit first from asset liquidity, not commercial real estate. This is possible due to the sale of direct tokens either through HoneyBricks or a secondary marketplace after a compulsory SEC 12 months storage period.
It is worth noting that HoneyBricks makes crypto-based loans easier by giving token holders the opportunity to use an asset for collateral, making it a more functional platform.
The sour part of this HoneyBricks review is that there are some charges attached to HoneyBricks’ crypto and real estate combination. Below are some of the fees you’ll pay.
When you purchase or sell HoneyBricks tokens, you’ll pay a certain fee for such a transaction. This fee is usually around 0.05% to 0.2% of every transaction and covers the maintenance cost of the blockchain.
Upon investing in REITs, a major part of your profits can be eaten up by management fees. Although the standard fee is 1% per year, HoneyBricks charges management fees based on investment opportunity.
This section of the HoneyBricks review will explain the security of this investment platform.
Tokens for HoneyBricks are considered securities by the SEC, and they act according to the guidelines outlined in the Securities Act of 1933. There isn’t much information available regarding the marketplace’s security beyond these two characteristics.
However, HoneyBricks gives a lot of details on how it conducts its due diligence process in choosing what property to offer in the marketplace.
HoneyBricks makes sure that investors invest with trust and confidence. An overview of HoneyBricks’ due diligence procedure for new properties is provided below:
HoneyBricks concentrates on the 15 major cities in the US, as they make up 50% of the total paid rent. Due to this, they target mainly areas with strong demand, landlord-friendly laws, and a favourable market outlook.
HoneyBricks partners with leading real estate companies to identify great prospects and sort through their investment criteria. This includes area information, property details, and rental information.
HoneyBricks evaluates assets using accepted financial standards. It considers operating income, the potential for capital growth, rental return, and market expectations.
All investment alternatives are compared based on their predicted returns and core or core plus products.
Users’ information is gathered by HoneyBricks when required. Only when you ask for the information or when you want to buy a token through the Site will it collect “Know Your Customer data.”
Your shares of assets are less likely to be stolen or transferred without your knowledge when ownership is transferred using blockchain technology.
Although HoneyBricks takes security very seriously, cryptocurrency exchanges and other blockchain-based technology have also been subjected to hacks.
If you choose to invest on the platform, keeping your tokens in a physical wallet rather than a digital one is advisable.
Although HoneyBricks is the pioneer company to merge both cryptocurrency and real estate investment, there are some great competitors in the real estate space.
Propy, just like HoneyBricks, makes it easy to purchase and sell real estate using web3 technology. Similar to HoneyBricks, certified crypto agents on Propy can use crypto to make and accept offers. It also enables users that are verified to list a property as an NFT.
Parcel is another online real estate token marketplace that’s still in its development stage. In a seed round recently led by Framework ventures, Parcel realized a sum of $4 million.
Fundrise has experienced great growth as a result of its affordable annual cost and $10 minimum investment.
Depending on your objectives, it offers a range of eREITs, and investors receive quarterly dividend payments. Unlike HoneyBricks, Fundrise doesn’t require any form of accreditation and has an average annual return of 8-9%.
Even though HoneyBricks is still not widely accessible due to regulatory approval in other countries, tokens start at a low entry price of $1,000. This allows investors to start out small and develop trust in the platform.
It’s vital to keep in mind that only authorized investors from the United States can use the website; users must have earned more than $200,000 during the previous two years.
Presently, International investors must meet the same requirements as accredited investors in the United States.
User experience can only be evaluated broadly because HoneyBricks is still in the early stages of development with the early access program. Overall, HoneyBricks users can take advantage of various benefits over direct ownership and REITs.
An easy-to-use interface is offered by HoneyBricks, allowing investors to use their cryptocurrency wallet to get started immediately.
Commercial real estate fractional ownership enables a wide variety of investors with different financial backgrounds to get involved in real estate.
Unlike other real estate investing methods, with HoneyBricks, consumers can take advantage of incredibly high capital efficiency and a simple loan balance.
Aside from the financial aspect, HoneyBricks does a good job of ensuring that all users have the required resources at their disposal.
As seen in this HoneyBricks review, this is an investment platform that makes it possible to invest in commercial real estate as fractionalized ownership.
In all, the HoneyBricks idea appears to be a promising one for security tokens and how it will affect the real estate sector.
However, HoneyBricks may not be the best investment option due to its lack of liquidity and restrictions imposed by being available only to certified investors. Transactions in both fiat currency and crypto assets may therefore result in further tax issues for you.
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Currently, HoneyBricks is only available to accredited investors and non-US investors. There are several factors beyond the control of HoneyBricks that makes the timing uncertain. Some of the factors include regulatory and compliance permissions.
HoneyBricks investment minimum is set at $1000 per token/real estate investment. In the HoneyBricks platform, some offerings May differ in investment minimum, while some may take a reasonable amount. Others could be on the higher side. This is dependent on what the project sponsor requires.
The future of real estate transactions may lie with HoneyBricks. You may most certainly anticipate returns now, nevertheless, that are equivalent to those offered by other real estate crowdfunding platforms. If you choose to invest in HoneyBricks, make sure to diversify your real estate holdings by using different crowdfunding platforms.
Just like other real estate investment crowdfunding companies, investing in HoneyBricks gets you a membership interest in a Special Purpose Entity. It's usually an LLC formed especially for the investment. The ownership of any equity, preferred equity, or debt interest in the property is held by the LLC.
To begin, on the HoneyBricks website, click "Get Started" to create an account. An email address, basic details about your residence, your full name, and if you are an accredited investor will be required. Only accredited investors in the US and those living outside of the US are currently permitted to invest with HoneyBricks. You will be able to browse open trades and purchase tokens if you successfully complete the prerequisites and open an account.
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