Frequently Asked Questions

Company FAQ’s:

What is REITIUM?

REITIUM Technologies Ltd. builds investment platforms utilizing Distributed Ledger Technology that makes investing simple and accessible by providing a safe, secure and reliable marketplace for differing investment types.

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 – to learn more CLICK HERE

How does it work?

REITIUM Crowdfunding is a two-sided marketplace offering investors the option to invest in varying types of real estate deals to build a diversified portfolio and track all assets inside the investor dashboard on the REITIUM Crowdfunding Marketplace. Investors share the rental income and appreciation through fractional ownership. We use blockchain, to ensure investments are compliant with regulations. We intend to facilitate liquidity through our secondary marketplace. We intend to offer investments in varying asset types, including but not limited to; short term rentals, multifamily properties, private REITs, new construction, senior housing, 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 intends to provide greater flexibility and transparency. This allows investors 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 more affordable than many REITs, with the potential to allow investors greater returns. Public REITs also have to deal with the instability that comes with being on a public exchange, aka the stock market.

What is fractional ownership?

The concept of fractional ownership is exactly what it sounds like: allowing 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 (the person or company raising capital for the property deal) 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 could receive 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 or the product-based goods crowdfunding platform, Kickstarter. 

How does REITIUM make money?

Issuers are charged a 3-5% fee to raise capital on the REITIUM Crowdfunding Marketplace and intends to charge another percentage when there is a liquidity event. Issuers 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 deals on the REITIUM Crowdfunding Marketplace?

No.
Individual investors are not charged any fees to invest in deals on the platform (NO MEMBERSHIP FEES!)
However each issuer could have their own management fees which will be fully disclosed in every deal before making an investment.

How is REITIUM set up as a company?

REITIUM Technologies Ltd is a company that builds technology. The tech platform intends to operate 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 is part of the “crowdfunding economy” which opens up the fractional ownership model for income- producing residential or commercial properties. The fractional ownership model has all the benefits of property ownership without the hassle of property management.

What is the REITIUM Crowdfunding Marketplace?

REITIUM Funding Ventures (REITIUM.fund) is REITIUM’s Crowdfunding Marketplace that showcases private equity real estate deals available for fractional investing. By using Crowdfunding exemptions, all types of investors can invest in deals.

Investor FAQ’s:

Who can invest in deals with REITIUM?

The REITIUM Crowdfunding Markeplace is available to Canadians who are residents of Ontario, Manitoba, Alberta and British Columbia over the age of 18. The REITIUM platform does not require individuals to be accredited investors to participate.

What level of investor is best suited for REITIUM?

REITIUM’s Marketplace 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 new alternative for 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 similar rates of return that only accredited 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 CAD. The maximum investment is $2,500 CAD under the Crowdfunding Exemption in Canada. We intend to create future investment opportunities that could allow larger investments with the proper financial credentials.

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

You will need to provide: Full Name, Proof of Address, Email, Phone number, Government issued ID (Passport, Driver’s License, PR Card, etc).

How do investors make money on REITIUM investments?

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:
Create your Account, Browse Properties, Select your Investment Amount, Attach your Banking, 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. Your investment amount will likely depend 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 Crowdfunding Marketplace, 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 vetted properties to showcase on the Crowdfunding Marketplace. Investment opportunities from private issuers help make it easy for investors to buy shares and start earning passive income. We developed a data-driven market analysis algorithm to identify markets with cashflow yield and 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 when vetting deals.

 

What types of properties will be issued in the marketplace?

We intend to showcase: 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. Our goal is to go global in terms of who can invest and the location of deals brought onto the platform.

When will you launch your first property on REITIUM?

Our first property is intended to launch on the Marketplace January 2023.

 

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 ensure 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 may produce the necessary documentation and may provide guidance. To examine your specific circumstances, we suggest consulting a tax specialist.