You can access your current account balance by logging into your investment dashboard. BitZillow will periodically update your account balance with the details of your investment value. This includes notifications of estimated earnings from rent payments, estimated appreciation, and any processed Free Cash Flow distributions.
Frequently Ask Question Frequently Ask Question
Common questions investors ask about BitZillow and how to start building wealth today
Investing with BitZillow is very simple, you can create an account here.
At Bitzillow, we empower investors to build wealth through real estate. Historically, real estate returns are maximized when treated as a long-term investment. Our platform is designed for investors seeking short and long-term wealth growth.
We recommend Bitzillow investments for short and long-term holds due to:
1. Steady Growth: Real estate is a stable asset with consistent returns over time. While less volatile, it offers lower short-term returns compared to high-risk stocks or cryptocurrency.
2. High Transaction Costs: Buying and selling real estate incurs significant costs, including agent fees, title and escrow fees, and mortgage origination fees. Longer investment periods help amortize these costs.
3. Difficulty of Timing Market Cycles: Real estate prices and returns fluctuate. Investors with shorter holding periods risk selling during down cycles. Longer-term investors can ride out market fluctuations and maximize returns.
By investing with Bitzillow, you can leverage the benefits of long-term real estate investing and build wealth over time.
Diversifying your investment portfolio with real estate can offer several benefits, including reducing overall investment risk, balancing out volatile investments, and serving as a hedge against inflation. Real estate often appreciates over time, all while generating passive rental income.
Diversifying your real estate portfolio by investing in different property types and markets, as well as across both equity and real estate-backed debt products, can further enhance your investment strategy. This can help protect against market fluctuations and provide a more stable, long-term investment approach. Platforms like BitZillow make this easy by allowing investors to buy fractional shares of properties across multiple locations or through diversified funds such as the Single Family Residential Fund and Private Credit Fund.
Our mission at BitZillow is to make investing in real estate accessible to everyone. Whether you have $100 or $1,000,000, anyone can build a real estate portfolio to meet their individual investment needs.
In order to maintain REIT qualification for single family residential properties, the maximum you can invest per individual property is limited to 9.8% of the equity available. For example, if the property has $100,000 of total equity available, you could invest $9,800 in that property. Note: Vacation rentals do not qualify as a REIT, but we still apply this to both offerings.
That 9.8% limit also pertains to the Private Credit Fund and Single Family Residential Fund, which are limited to a maximum offering amount of $75,000,000 in any rolling 12-month period pursuant to Regulation A requirements. We expect to offer common shares in this offering until we raise the maximum amount being offered unless terminated at an earlier time.
BitZillow has protections in place for investors, even in the event BitZillow goes out of business. We have structured our investments so they can continue to operate even if BitZillow is no longer in operation. Each property is housed in its own standalone series LLC, which has its own bank account and separate ownership structure.
Because the investors own the property directly through the series LLC, your investment will continue to hold value as long as the underlying property retains its value. BitZillow retains no material ownership stake, and there is a clear separation between the company and the investment properties. In the unlikely event that BitZillow ceases to operate, we would assign a new custodian to make all major decisions (like what property manager to use, when to liquidate the property, etc.).
Starting from January 2024, dividends will be paid monthly, with the first payment scheduled for the end of January 2024. Subsequent monthly dividends will be paid near the end of each month. All dividends will be deposited into your BitZillow cash balance, which you can utilize for future investments or withdraw as needed.
When making a new investment, your first dividend date will depend on whether you invest in an individual property or one of our funds. You can learn more about both below.
For Individual Properties:
Properties begin paying monthly dividends once they start generating income. Dividend payments represent the cash flow after expenses and reserves. Therefore, the timing of your first dividend will depend on how quickly BitZillow is able to lease out the property (if it is a single-family residence) or make it ready for bookings and start accepting short-term stays (if it is a vacation rental).
The time it takes to start generating income varies depending on factors such as seasonality and property renovation requirements.
Single Family Residential Properties
Historically, the average time to lease a single family residential property has been 45 days. However, the range varies from a minimum of 7 days to over 90 days.
Vacation Rentals
Vacation rentals typically take 3-6 months to generate income, factoring in property design, furnishing, and ramping up operations and reviews on platforms such as Airbnb.
For the Single Family Residential Fund:
Currently, we expect to pay dividends for the Single Family Residential fund monthly, with subsequent dividends paid at the end of each month. Please note that depending on the timing of your investment, it may take up to 60 days to receive your first dividend. To learn more, go to our help section question on SFR dividends.
For the Private Credit Fund:
Currently, we expect to pay out dividends for the Private Credit Fund monthly, with subsequent dividends being paid out at the end of each month. Please note that depending on the timing of your investment, it may take up to 60 days to receive your first dividend.
After a property is funded, that property has its own bank account with a cash reserve and property manager that is responsible for running the rental home operation & finances.
A property manager is accountable for obtaining revenue (like finding tenants and collecting rent payments) as well as covering the operating costs of that rental home (property management fees, taxes, insurance, repairs & maintenance, HOA fees...etc). Those operating costs are paid out of the rental income received by the property.
You can learn more more about a rental home income statement and the different expense categories in our article titled Understanding a real estate pro forma.
Investing on the BitZillow platform can provide returns to investors in two ways: through dividends and appreciation. Below is our guide to potential returns on the BitZillow platform. This includes the various ways that returns can be achieved, the estimated historical returns for different investment strategies, and how potential returns are affected by volatility and leverage.
Estimated Historical Return Range
Single Family Residential (including individual properties and the Single Family Residential Fund) and the Private Credit Fund. It's important to note that actual returns for individual properties may vary and could either over or underperform the ranges provided. When investing in individual properties, diversifying across several properties and asset types can be an effective strategy for reducing individual property risk
Single-Family Residential (Individual Properties or Fund)
Return Type: Income + Appreciation
Total Historical Returns: 16 - 20% annual
Income Portion: 8 - 15% annual*
Appreciation: Included
Investment Terms
Minimum Hold: 2-7 years for individual properties, 6 months for funds
Return Types:
Private Credit Fund: 18.1% income return
Appreciation: Not included
Benefits of Diversification
Diversifying your real estate investments can:
Mitigate Risk: Reduce exposure to individual property performance.
Stabilize Income: Minimize impact of local market fluctuations.
Optimize Market Exposure: Spread risk across different geographical areas.
Impacts of Leverage
Adding leverage can:
Increase potential returns
Widen range of potential returns
Increase potential downside
Note: BitZillow may add financing to Strategic Refinance properties and Single Family Residential fund during the investment period if favorable terms are available.
Historically, real estate returns have been maximized when treated as a long-term investment, hence why BitZillow investments are designed to be held over multiple years. That said, BitZillow offers various investment products with different hold times and liquidity options to match individual investor goals.
For The BitZillow Single Family Residential Fund and The BitZillow Private Credit Fund
The BitZillow Single Family Residential Fund has adopted a redemption plan designed to provide investors with an option for liquidity. At any time after six months following a particular investment, an investor may request a redemption of all or any portion of their shares, which, if approved, will be redeemed at the then current Share Price (or NAV per Share) at the end of the quarter.
For Individual Rental Properties (Single Family Residences & Vacation Rentals)
Currently, investors will need to plan to hold their individual property shares for the full investment period until the property is sold and investors are paid their proportional proceeds from the sale. Single family residences have an estimated hold period of 2-7 years, and Vacation Rental properties have an estimated hold period of 2-15 years.
Our mission at BitZillow is to make investing in rental homes accessible to everyone, and as such the minimum required to make an investment is only $1000 USD per property. While our minimum investment per property is only $1000, we see that the average amount our customers invest per property is closer to $4195.
BitZillow takes care of all your property ownership responsibilities, such as selecting, purchasing, and renovating your property, as well as finding tenants, and dealing with maintenance requests. BitZillow works with experienced property managers who handle the day-to-day management responsibility. These property managers have many years of experience, enabling them to maximize returns and minimize operating costs.
BitZillow is a platform for investing in fractional shares of quality individual properties, Single Family Residential Fund and Private Credit Fund.
Our investors either buy interests in individual homes or diversified funds of many rental properties, earn income from rent, and BitZillow takes care of the operating responsibilities. Investors can also earn cash returns by collecting on interest payments on loans.
BitZillow raised a $10M seed round in 2021 and a $25M Series A round from a world class group of investors and CEO / founders who believe in our mission of creating the First Bitcoin / Real Estate Platform. Existing investors include Jeff Bezos, Marc Benioff, CEO of Salesforce, Dara Khosrowshahi, CEO of Uber, and Spencer Rascoff, former CEO of Zillow.
Real estate investing can be a reliable way to build long-lasting wealth and generate steady cash flow, tax benefits, and potential property value appreciation. For more information on the benefits of investing in real estate
