Surprise! I just invested in BitBricks, and Here is What It is!

Introduction to BitBricks

Two days after investing in BitBricks, a fellow shareholder, Fahad, posted a detailed post on our #BitBricks WhatsApp, explaining what he thinks the micro investment company is. After reading through the informative post, I asked for permission to share it for my readers and followers. Besides, being a fellow investor in the same company, this is very crucial to me as well! But wait! Would you mind joining BitBricks for great real estate investments? Anyway, slots must be over or getting over by now (8-9 slots left)! Catch up with the ride by reaching out to the director, Livingstone Mukasa here: 0772459167

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Back to our topic, below is the unedited version of what BitBricks is all about as explained by Fahad Bruhan Jr, a Thought Leader and Writer in the fields of Business, Investment and Personal finance:

“This writeup is to explain to people what Bitbricks is all about.

Disclaimer: I’m an investor with Bitbricks. I’m not writing this on behalf of the company. I’m not part of management team. I’m only sharing information I believe is necessary.

I started following up on Bitbricks for some good time now, until I made a decision to be part of it as an investor. Well this is not the first crowd funding investment I’m in.

I’m only sharing knowledge and information which believe is important. I believe most of you did your analysis about Bitbricks and know some of these things. If not, then it’s very important to have information and knowledge about any investment before making an investment decision. Information like line of business, management team, legality of the company, how you can make or lose money, your role as investors etc are key.

So far this is what we need to know regarding Bitbricks in particular and basic investment knowledge in general

1 – LINE OF BUSINESS

BitBricks is a micro investment company, and it’s line of business as of now is real estate area, but it’s line of business can change with time depending on market demands and directors approval.

As a private company, Bitbricks raises capital through crowd funding and invests the capital in its line of business opportunities – real estate areas – they consider profitable.

2- LEGAL LINE

BITBRICKS is a registered company in Uganda. Refer to management on registration information if you need. As a registered private company, BitBricks by law of Uganda can only have less than 100 shareholders.

It’s only the 100 shareholders who can contribute capital inform of cash, land, knowledge, etc for Bitbricks to invest in projects the management considers profitable. Incase of capital of form of land, others etc, it’s valued by a team then converted into shares at the prevailing share prices.

3- MANAGEMENT

The company is registered by the government of Uganda and as policy, they have to have directors. For now, Mr Livingston Mukasa who is the founder is the known director of the company as per my knowledge, with time, they will have to elect more directors representing different interests of shareholders.

The directors will be amongst the shareholders, especially those of you who have knowledge, experience about business, investment, legal aspect etc. The directors will be making decisions which will determine profitability, direction etc of the company. It’s very important the directors are knowledgeable in vast and crucial areas of business.

The directors will also approve people who will be managing the company, decide on Dividends payout, salary for management etc, meet with shareholder to discuss progress etc.

The management team reports to directors and directors report to shareholders. In other words the directors are shareholders representatives.

Its important the directors are comprised of people who represent every shareholder category, including the minority group.

4 – SHAREHOLDER

As a shareholder or potential shareholder, to invest with Bitbricks, you open an account at 100k Ugx. Then you have to contribute monthly minimum of 100k for 2years or 24 month as per the terms. Totalling to 2.4 Million.

Or you can pay a lump sum of above 2 million and forego the registration fee of 100k.

The 2.4 million buys you 600 shares at 4k per share. 2,400,000 ÷ 4000. You now own 600 shares of Bitbricks after paying the 2.4m at the current share prices. Share prices can change with time.

The 2.4 million or any amount of your investment is locked up for a period of 2 years, in other words you can not access it, it is being put to use before you can start receiving returns or sale your shares if you wish to.

Share prices will keep changing, when the company started at idea stage, shares were going at 3k, now it’s 4k because value was added, meaning if share prices go up before the lock down period, your contribution buys you lesser shares.

Your 100k buys you 25 shares at 4k currently, but if the share prices goes to 5k, your 100k can only buy 20 shares.

REMEMBER. This is very important, the 2.4m is the minimum, lowest amount needed to become an investor. You can invest more than that, meaning you will own more shares of the company. The more shares you own, the more dividents you will earn and the more ownership stake you will have.

HOW DO YOU MAKE OR LOSE MONEY IN BITBRICKS?

I use the words MAKE or LOSE because this an investment and in any investment, you can make and lose money, this is important information, there is no guarantee that you will only make money, you can as well lose. But the interest of the management, directors and founders is not to lose money. Just know it’s possible in any investment to lose money.

In any investment, you make money through cashflow and capital appreciation.

If the company makes sales of properties or rent and generates revenue and makes profits out of it, they can decide to give out Dividends as per directors approvals, you earn Dividends according to number of shares you own. Remember the company can as well decide to reinvest the profits instead of giving out. In this case, your would be dividends is put back in the business.

But you don’t need to worry about reinvesting of profits, because it’s makes you earn money through the second avenue, your capital appreciates. In other words your share prices go up.

If you own 600 shares at 4k share each, that means your value in the company is 2.4m. If the share prices go up to 8k each due to reinvestment or profitability, your 600 is now worth 4.8 million. The more they reinvest, the more the value of the company goes up and your share value.

Many people talked of security of their investment, yes there is risky, but as per the management, they have taken all these into consideration. One way you should have some sense of feeling secure, is the investment line which is real estate. Your capital is turned into properties, these properties will be there even if they can’t be sold or rented out for some time. And the people who are behind the investment idea are knowledgeable of the business line.

For more clarification about the writeup, share in reply or contact the management team (Dr. Livingstone Mukasa, 0772459167)

Thank you.

Fahad Bruhan Jr is a Thought Leader and Writer in the fields of Business, Investment and Personal finance.

I share content at fahadbruhan.com on business, investment and personal finance. I’m also a comtributor at Afripreneur Nation, a platform which shares similar contents. www.afripreneurnation.com“

Conclusion: That was Fahad, my fellow shareholder at BitBricks Limited. What do you think? God bless you.

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2. Fahad Bruhan on calling your house, car, or anything an ASSET
3. Fahad Bruhan on why you should focus on cashflow before building a house
4. Livingstone Mukasa on BitBricks and crowdfunding for real estates
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