Investing in Realbricks Company-Legit or Scam?
Hi,
Has anyone invested in a company called Real Bricks? I came across the ad on BP and wondering if it’s safe .
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I just looked into this company closely, and I would say tread cautiously.
My son recently turned 18 and is looking to get started in RE investing, so I've been looking into various non-accredited investments like this. Realbricks is offering fractional shares of SFH rental properties, buying newly-constructed inventory from home builders (they have a new agreement with KB Homes), renting them out and then ultimately selling them to capture the appreciation. The returns offered are reasonable, generally 5%-7%.
I read through their SEC filing, listed on their web page as their offering memorandum. They originally began purchasing properties in Omaha, NE and it looks like their first property was purchased in 2023. They say they purchase properties "for cash", yet in their filing there is debt attached to many of the properties.
RED FLAG #1: I placed a call to their Investor Relations number and spoke with Nick Roman. He was unaware of debt being listed in their SEC filing. He also was unaware that they were selling off another Omaha property, after previously selling one. How does an Investor Relations rep not know what's in the SEC filing and that the company is selling off inventory?
RED FLAG #2: I looked into the property they sold and the one that was currently listed. I saw Nick on a podcast state that they "would never sell for less than they paid for a property", yet the first house was sold for less than the purchase price and the currently listed property is available for $25k less than they paid for it. Why is this two-year old company selling off inventory after two years, and at a loss?
RED FLAG #3: Nick said i had "great questions" and promised to follow up with me. He has since ghosted me.
Is it a scam? I'm not sure, but there are enough red flags to look for other opportunities.