BuildingBits || FAQs

FAQs

FREQUENTLY ASKED QUESTIONS

 

How long does it take to fund a building?

Funding a building can take anywhere from 1 day to 3 months. Because BIT investments can be made in any 100 increments (Starting at $500) it is possible for just a few people to make very large investments. However, the typical investment size is projected to be around 3,500.  

 

How long does a building take to close?

After a building is fully funded the process of closing the real estate transaction begins. This typically takes 2 – 3 weeks from being fully funded. Sometimes some contractual remedies must be made during closing to assure all obligations are met by the seller, however by the time the paperwork is prepared the due diligence is fairly complete and transactions are fairly typical. 

 

If the building doesn’t get fully funded do I get my money back?

When a seller lists their building on BuildingBITs.com they are contractually committed to keeping the listing for an agreed to a number of days. In the rare occurrence, a listing does not fully fund within the given time parameters either BuildingBITs and/or the Seller may terminate the listing agreement. If a listing is withdrawn all funds are returned to the Building Bit member.  You will not be charged any additional fees to return your funds. 

 

When do I start getting dividends?

To begin accumulating dividends you must purchase BITs and the property must be fully funded and closed. After the property title is transferred to BuildingBITs Holding, LLC your BITs will be eligible for dividends and appreciation. Dividends are accrued and paid out when declared.  Dividends are paid directly into an account specified by the Bit Holder in their account settings. 

 

What is the BB Rating?

The BB Rating is a proprietary commercial real estate rating system developed by BuildingBITs to help you select the buildings that best match your overall investment objectives. It crunches data on six key property metrics including:

  1. Cap Rate
  2. Location and local market dynamics
  3. Tenant Quality
  4. Lease Term
  5. Building Class and quality
  6. Useful Life 

The BB Rating creates a "weighted average" based on the building specific data points that professional Real Estate Experts assess most often when making commercial investments.  More about how the BB Rating works.

 

How will I know if my building is fully funded?

You will receive email notifications when your building hits major funding milestones including Fully Funded. You can also check your BuildingBITs dashboard at any time to see the funding status of your reserved BITs properties.  

 

How much do BITs cost?

BITs opening price are $1.00. If BITs ever become available for resale on a secondary trading marketplace, their price may fluctuate up or down.

 

How do I sell my BITs?

The Bits you purchase are freely tradable securities. However, there is no established marketplace for them (for instance, we are not traded on the NYSE). That means in order to sell them, you would need to find a buyer either on your own or through a licensed broker-dealer. After the sale, you and the buyer would need to confirm the transaction with us and our transfer agent.

 

Can anyone sell their property on BuildingBITs?

No. We seek out property owners who share the values and objectives we have to bring full transparency and healthy opportunities to BuildingBITs members. We focus on properties that bring value over the long-term and appeal to smart investors. 

 

Do I have to participate in the management of the building? 

When you buy BITs you are actually buying an equity interest in a company that OWNS the property. The benefit of this model is that you are entitled to the monies earned and value of that % of a building but do not have the liability of building ownership or hassles of building management. 

 

When do I have to pay for my BITs?

Your money is deposited in a secure escrow account within 24 -48 hours of your payment. The money is held in escrow until the building is fully funded and closed. 

 

What are the fees?

We charge only 1% acquisition fee, 1% exit fees, 0.75% annual asset management fee and if value appreciated 1% of gains at exit.  

 

Where can I find copies of my signed agreements and investments?

Any agreement you sign during the BITs transaction process and any updated addendums or notifications sent to you after your acquisition will be uploaded to your “My Documents” section of your BuildingBITs dashboard. 

 

Can I buy BITs as a Business?

Yes. You can purchase BITs as an individual, jointly, as a trust or as a business. The ownership of the BITs shares will be in the name of the designated entity. 

 

Is there a minimum number of BITs I have to purchase?

The minimum BITs investment it $500. So the minimum number of bits is 100. BITs are sold in 100 increments. (i.e. 500, 600, 700, 800 …) 

 

What securities am I buying?

All securities will be issued by Building Bits Properties I, LLC, an affiliate of Building Bits Holdings, LLC.

 

Do you accept investments from all states?

Currently, we are accepting investments from all states except the residents of Texas and Washington. We are working with the TX and WA state regulators to start accepting investments in the near future. Please provide us with your email contact information and we will notify you as soon as such investments become available.

 

How long will it take for the money to come out of my account?

It may take your bank up to 3 business days to process this request. Please make sure that there are sufficient funds in your bank account until the authorized amount has been withdrawn. In the case of the payment being rejected for Non-Sufficient Funds (NSF) or due to an error in the bank account information provided by you the Issuer or its affiliated company Building Bits Holdings may at its discretion charge an additional $25.00 for each returned transaction, which will be initiated as a separate transaction from the authorized payment and is not part of the investment amount.