Frequently Asked Questions

Company FAQ’s:

What is REITIUM?

REITIUM is a crowdfunding platform where the everyday investor can invest in real estate investment assets with all the benefits of property ownership without the hassle of property management.

Who is behind REITIUM?

We are a team of accomplished, seasoned entrepreneurs, real estate experts, and data scientists with broad expertise in software development and real estate investing. But it didn’t happen overnight, and we’d like to tell you our vision. CLICK HERE

How does it work?

REITIUM is a two-sided marketplace allowing investors the option to invest in all types of real estate deals to build a truly diversified portfolio and track all assets inside our investor dashboard. Investors share the rental income and appreciation through fractional ownership using NFT’s and blockchain, ensuring all investments are compliant with all security regulations. We can facilitate liquidity through our secondary marketplace. We offer investments in short term rentals, multifamily properties, private REITs, new construction, senior and student housing, commercial, retail, storage facilities, hotels, mobile home parks etc., for as little as $100.

How is REITIUM different from a REIT?

When compared to investing in a REIT, REITIUM provides greater flexibility and transparency. This allows you to build portfolios of individual assets based on specified geographic locations, property types, holding durations, and other criteria from our private REIT investments. REITIUM’s fee structure is much less costly than that of many REITs, allowing investors to earn better returns. Public REITs also have to deal with the instability that comes with being on a public exchange, aka the stock market.

What is a REIT?

Real estate investment trusts (REITs) are one option for accredited investors to engage in the real estate market without acquiring or inspecting properties directly. However, REITs have been heavily scrutinized for their fees, both obvious and hidden. Large finances are required to run REITs, which results in costly fee structures, including commissions paid to Broker Dealers. Investors are required to pay high fees to support the larger organization’s operations. REITIUM was created to bring down the cost of capital and allowing retail and eligible investors to also participate in private deals and leaving more money on the table for the investors as REITIUM has digitized the investment process.

How does REITIUM make money?

REITIUM charges the issuers a 5% fee to raise capital inside our marketplace and 3% when there is a liquidity event. Issuers will also pay REITIUM a hosting fee to manage their client’s cap tables, supporting documentation, KYC/ AML, and payment terms.

Are there fees to invest in REITIUM?

No.
REITIUM does not charge the individual investors any fees with our platform (NO MEMBERSHIP FEES!) However each issuer could have their own management fees which will be fully disclosed in every deal before you invest. 

How is REITIUM set up as a company?

REITIUM TECHNOLOGIES LTD is a company and operates as an intermediary between those seeking to raise capital for real estate deals (Private Issuers) and those seeking to invest in real estate assets (Retail, Eligible & Accredited Investors). REITIUM approaches real estate investment in a new way. REITIUM is part of the “crowdfunding economy” which lets you invest in fractional ownership of an income- producing residential or commercial property rather than the entire property. The fractional ownership model has all the benefits of property ownership without the hassle of property management.

What is fractional ownership?

The concept of fractional ownership is precisely what it sounds like. It allows investors to buy shares in an investment property, we are fractionalizing the corporation that owns the asset and digitizing the share structure. To achieve this result, an issuer (often a private equity firm or REIT) incorporates an entity and utilizes it to acquire an investment property in their preferred asset class. They sell shares to investors to generate the necessary equity for the deal. Investors receives a portion of the property’s rental revenue, cash flow, and profits in exchange for their share purchase. The fractional ownership model isn’t a new idea, though you’re more likely to have heard of it in references to the stock market and other high-end asset classes such as private planes or jets ownership than in real estate.

Investor FAQ’s:

Who can invest in REITIUM?

The REITIUM platform is currently available to Canadians who are residents of Ontario, Manitoba, Saskatchewan, Alberta and British Columbia over the age of 18. Individuals may also invest via self-directed retirement accounts or specified businesses. The REITIUM platform does not require individuals to be accredited investors to participate.

What level of investor is best suited for REITIUM?

REITIUM is for any type of investor who wants to own real estate and believes investing should be easy, accessible and profitable for all. Many investors have not had the opportunity to invest in real estate because of the high barriers to entry and costs associated with owning property – we are now making that possible. REITIUM is a terrific alternative for new investors seeking to get into real estate. Individuals may engage in a portfolio of investments via fractional ownership, avoiding the time and effort of property management but keeping the high rates of return that only property investors have traditionally enjoyed.

 

What is the minimum and maximum I can invest?

Our mission at REITIUM is to make real estate investing simple and accessible to everyone, and as such our minimum amount required to make an investment is $100. Your maximum investment is $2,500 under the Crowdfunding Exemption in Canada, $2,200 in the USA. We are working on creating future investment opportunities that can allow you to invest more with the proper financial credentials.

What type of information do I need to provide to become a REITIUM investor?

You will need to provide: Full Name, Home address, Email, Phone number, Government issued ID (passport, drivers license etc).

How do investors make money on REITIUM?

Investors share the rental income (after expenses) paid out in dividends, as well as market appreciation (depending on the deal structure) based on the percentage of ownership. For example, if you invested $1,000 and the property is worth $100,000, you own 1% of the property.

How easy is it to invest on the platform?

In less than 5 minutes you can – Browse Properties, Select your investment amount, Fund your Wallet, Earn Passive Income, Watch your Investments Grow.

What am I really liable for when investing?

On a typical deal, your risk is limited by your investment amount. Each deal is structured differently and we strongly encourage you to read all the deal’s disclosure documents. This depends on your risk profile and investment thesis. Reading the documents will help you understand the world of investing as well as how to choose future deals to invest in.

Will I have any responsibilities for managing properties I invest in? If not, who is responsible?

No.
Fractional ownership opportunities are a form of passive income which means you have no responsibilities for managing properties, but you still get the financial benefits, similar to when you invest in the stock market. The issuer of the investment property is responsible for managing the properties and tenants.

 

Property Investment FAQ’s:

What is an issuer and how do we work with them?

An issuer is a legal entity that develops, registers and sells securities to finance its operations. Issuers may be corporations, investment trusts, or domestic/foreign governments. In REITIUM’s investment platform, issuers are mainly companies that own and manage a portfolio of properties, like private REITs or family offices.

How does REITIUM decide which properties will be available in the marketplace?

We employ our investing skills and modern data science methods to obtain the top properties for investment opportunities from private issuers and make it easy for any investor to buy shares and start earning passive income. We developed a data-driven market analysis algorithm to identify markets with a high cashflow yield and a positive long-term prognosis for property prices. Strong employment growth, sustained economic development, growing population growth, and affordability are a few of the numerous variables we consider.

 

What types of properties will be issued in the marketplace?

Short-term rental properties, multi-family, single family homes, mobile home parks, cabins, hotel/motel, new construction, presale, commercial properties, and more!

Where will the properties be located?

At this time, anywhere in Canada and the USA. Our goal is to go global in terms of who can invest and what deals we bring onto the platform.

When will you launch your first property on REITIUM?

Our first property will be launched the fall of 2022.

 

Tax & Liabilities FAQ’s:

Is my personal information secure on REITIUM?

Yes.
All information sent between your browser and our web servers is encrypted, ensuring the security of your account information, including passwords and personal information. We do not sell your data. To guarantee that your information is kept safe, nothing is stored outside of Canadian servers and we secure your information with bank-level security and encryption.

Am I taxed by the government on any profits I make on REITIUM?

Yes.
Like with any investment, the tax rules of your Province or State will apply. REITIUM will produce the necessary documentation and may provide guidance. To examine your specific circumstances, we suggest consulting a tax specialist.