Welcome back to diving deeper into the concept of rental projects. In part 1, we explained the overall information about this project type and now will have a closer look at the risks and securities.  

Key takeaways

1. The risk factor – this type of project basically has no possibility for the property to default;
2. You can exit the projects whenever You want. Selling it per nominal price on our secondary market will take only a few minutes;
3. To date, zero of our projects defaulted and we were able to successfully exit numerous projects with great capital growth;
4. Investing in rental projects on our primary market is cheaper than on the secondary market;

The main advantage – its risk factor

Let’s talk about the risks that investors might face. The biggest advantage of the investment type is in its risk. There is basically no possibility for the property to default. In fact, the only debt that this kind of project has is an investor’s debt, while the good old consumer loans have several levels of borrowers.

So, once the project is funded, the SPV is created. All the SPVs are independent and their risks are not transmitted to each other. The SPV manages all the cashflows like rental payouts and expenses accrued. Additionally, it means that in the case of some other project facing any challenges, they are not transmitted to the platform itself or any other project. Even if something bad happens to the platform, the project is managed separately. It means that it will be possible to still sell it and get the money back. 

Still, how does Reinvest24 secure Your investment?

Right after purchasing the property, the collateral agent will put the 1^st rank mortgage on the property with the +20% valuation from the funding target and it will hold it in the favour of our investors. The collateral agent will not allow any other transactions with the property. Also, he will make sure that the profits are distributed to the investors. For example, if the SPV is receiving a rental income but does not pay it out to the platform, the collateral agent will have the right to take over the property with a single purpose – to sell it at the best possible price and distribute the funds back to the investors.

Our track record says it all

Speaking of exits, even in times of COVID, when the platforms and projects in the industry collapsed one by one, the quality of our risk assessment proved itself well. In fact, zero of our projects defaulted and we were able to successfully exit numerous projects with great capital growth.

Moreover, the exited projects showed even better performance than we were estimating before. For more information case by case, kindly visit our exited projects blog section.

Read more about How we choose the right investment objects

The primary market vs secondary market

Considering all the benefits that this project type gives, only a limited selection of them becomes available on our platform. It is not happening often and when it does, you better not wait for long.

Even though the minimum investment on the platform is 100 EUR, it is worth considering higher investment amounts. Why? The funding target of these projects is relatively higher therefore it takes time to fund it. As you probably might know, time is money and the longer it is in a funding stage, the longer your investments stay without really working for you.

Besides, you can always exit from your investment by selling the claim units on our secondary market. Taking into account that prices per rental project there are relatively high, it will take you a few minutes to sell it per the nominal price.

As You can see, rental projects are quite outstanding. We are extremely happy that a couple of years ago we created Reinvest24 with one mission – to make great real estate investment projects accessible to everyone.  

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Reinvest24 is constantly growing by adding new investment types, covering unique markets, and welcoming new investors. Not many will remember that at Reinvest24 it all started with rental projects – a unique concept for the alternative investment industry. We decided to educate our new investors, as well as remind our experienced ones what the rental projects are and what benefits they provide. 

We will cover this topic in two articles. In part 1. we explain the overall information about rental projects. In the 2nd part – the security of this type of project. 

Key Takeaways

1. Rental projects give You the best characteristics of being a property owner, without legally being it. You don’t face any additional costs, operational headaches or bureaucracy.
2. Two passive income streams: rental yield – every month once it has a tenant, capital growth – once the property is exited – sold;
3. The capital growth is not capped, and you can earn even more than estimated;

Rental projects explained

Rental project is the investment type where we purchase the property and rent it out to reputable tenants. Normally this is a long-term duration project, as we are interested in providing the highest capital growth possible for our investors and it doesn’t happen overnight. Therefore, we are not rushing with the selling process and rather help the property to gain value, for example by renovating it.

To be legally correct, it is an SPV (Special purpose vehicle company) that owns the property. After the project is financed, we create an SPV which buys it and rents it out. Our team manages all the processes, starting from finding tenants, making renovation works and organizing the selling process of it.

The same benefits as owning the property

The concept is similar to REITs, but in our case, it’s a loan with an ownership characteristic.

Why? This way we can provide investors with the same benefits and security as owning a part of the property, without forwarding any liabilities of it.

The amount of energy, effort and manpower that your real estate project requires can be overwhelming. It’s a very time-consuming process, especially if your goal is to outperform the overall market average. Every rental project needs to find a tenant, take care of all the household issues and undergo any necessary renovations. You also need to pay attention to all the legal matters, including contracts, permits, licenses and permissions. Not so passive anymore, right?

Besides, if we would consider here the ownership structure, it would mean that every investor, who would invest in this property would need to visit the notary appointments every time when required. Now imagine scheduling a perfect time for 2,000 investors. In that case, it would not make sense to provide investments starting with only 100 EUR. Moreover, the secondary market feature as such would not be possible at all.

The yield and the capital growth

Now let’s talk about why the rental projects have yield and capital growth? The first one is a rental yield that you start receiving monthly once the projects have a tenant. This source of passive income is key to creating long-term wealth as it will withstand market fluctuations, ensuring a better cash flow. The second one is capital growth, which investors receive once the property is exited – sold. As simple as that.

To have an even better understanding, let’s look at the numbers. For instance, we want to invest in a rental project from Germany – Eberswalde. Its rental yield is 6.5% and capital growth is 6%.

As You can see in the screenshot above, investing 10.000 EUR earns you 650 EUR per year as monthly payouts, which you can increase even more if reinvesting Your payouts.

Read more about How reinvesting at Reinvest24 can increase your returns even more

Additionally, once we sell the project you receive the rest of 600 EUR per year. In the case of Eberswalde, the capital growth is pre-agreed. It means that its capital growth will generate 6% annually. If You will hold the investment for 2 years – it will be twice higher. Please, bear in mind that in other projects capital growth is only estimated. Even though for its estimation we take an average market growth, our experience shows that capital growth might be even higher, as it has no cap.

No cap on capital growth

And that’s the beauty of this investment type. The upside is not capped, as it is, for example, with our real estate backed loans or development projects.

This is a strong argument, as considering the current worldwide events and the fact that Central Banks are printing a lot of new money, it will result in huge inflation in the upcoming years. It means that there will be growth in prices for raw materials and energy. Which will result in the growth of real estate prices as well.

Let’s take, for example, our developing market Moldova. Recently we have seen there a huge capital growth on the properties, that has been even bigger than the 15% interest. In the case of real estate backed loans, the capital growth is not present as in this case we give the financing to a third party. The good thing is that we are looking for a possibility to expand our rental project offering also in Moldova.

Read more about Moldova: The‌ ‌pandemic‌ ‌turned‌ ‌the‌ ‌Moldovan‌ real‌ ‌estate‌ ‌market‌ ‌into‌ ‌a‌ ‌field‌ ‌of‌ dreams‌ ‌-‌ ‌how‌ ‌& why?‌

Duration of the project

These are the only projects that have not a specified duration, as we simply cannot predict at the beginning when we will exit it. As already mentioned, If there is no urge for selling it, we will hold it until the best offer comes in and we are able to sell it with great capital growth for our investors. As our previous exits have shown, we are holding the property for 2-3 years.

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In 2019 we introduced 2 projects to our investors – land plots with great potential, next to one more project that we exited last year – Vinkli 13. We found the land plots and the developer, who was interested in buying them but lacked the funds for acquisition. We financed the buying of 2 land plots. The total amount of financing was a little bit over 500 000 EUR. 

Both projects were located in the Mustamäe district, Tallinn, Estonia – best known as the main technology hub of the country, where companies, such as Skype, Starship Technologies and main Tech Universities are residing. Already back then, we saw great potential in the capital growth of real estate, as well as overall developments in this area. And our estimations were right. 

Works performed 

As our investors know, Reinvest24 has a strong focus on a project’s cash flow and always seeks for the most sustainable investment opportunities.

One property had garage premises on it. Those premises were rented out to car repair shops and similar companies, thus, creating a healthy cash flow of more than 6% for that property. 

The second land plot was used to build a test polygon for Starship Technologies – one of the leading Estonian Technology companies. The aim was to test their AI delivery robots and teach them how to navigate in our world, by bypassing obstacles and creating different real-life conditions and situations. This allowed us to generate another strong source of cash flow for our investors yielding over 7.5%.

Those land plots were also in the process of changing the detailed planning so it would be possible to build office premises and use its potential of being close to Tallinn University. 

Projects’ exit

As the main purpose of using these land plots was changed, in 2 years the developer, who has planned to build stock office type of premises finalized the purchase of plots. As a result, our investors who were invested during the full period of the projects earned over 25% in total adjusted returns.

How 25.05% adjusted interest rate was achieved?

Many retail investors are still not familiar with the benefits that a compound interest strategy can deliver in a relatively short time. It stands for reinvesting any income that a certain investment might generate. In our case, it is monthly income that can be reinvested on our secondary market. This is the beauty of investments that are available on Reinvest24. Recently we conducted a practical case study of one of our projects, showing you the difference and how this can be achieved. 

Where to invest next? 

Our platform is constantly growing, allowing you to invest in more and more outstanding properties. Take a look at our currently available projects from 4 different European markets. Do not forget to use our 3rd-anniversary cashback campaign to increase your returns even more. 

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As long as investments have existed, investors tried to maximize gains and minimize the cash drag. Even the legendary quote says it all – “The time is money”, so don’t underestimate the value of your time, especially, when it comes to investing. But what does that really mean? Let’s take a closer look and find out how to make sure your investments are firing on all cylinders.

What is reinvesting?

Reinvesting is one of the most powerful weapons in the investor’s toolbox. It stands for putting any of your income that certain property generates to purchase additional shares, thus making your money work for you again and again. Despite the fact that having a little extra cash on hand may be appealing, reinvesting can greatly pay off in the long run. The biggest case for reinvesting dividends is the power of compounding returns over time.

In fact, the brightest example of using compounding returns is the greatest business tycoon of all times – Warren Buffett.

One of his first investments was in high school when he and his friend bought a second-hand pinball machine for $25 and installed it in a barbershop. The game proved to be popular with everyone that came into this barbershop. As a result, the entrepreneurial duo reinvested their profits to buy more game machines. In time, they had eight machines in several shops. When the right time came, they sold the venture, and Buffett used his stake to buy the stock for a new business endeavour. By the time he was 26, he’d accrued $174,000 – or $1,692,352.84 dollars’ worth of value in 2021 equivalent.

Here is some of the math to prove this strategy working.

Same 1000 EUR – different investment approaches?

Let’s take as an example investing 1000 EUR in one of our Moldovan projects – Metropolis Business apartments – and see what scenario would bring You more returns?

Option 1

The project description states the following conditions:

• IRR – 15%
• Duration – 12 months
• Monthly payouts

If we invest 1000 EUR in this project and hold it for 12 months, at the end of the loan term, your money will earn you a profit of 150 EUR. Our investment calculator will help us to calculate all the numbers in the blink of an eye – kindly see the screenshot below.

In the mentioned scenario, every month You will receive 13 EUR in monthly payouts and the total balance at the end of the period will be 1,150 EUR.

Option 2

In the second scenario, we have the same conditions, but now we will try to reinvest our monthly payouts of 13 EUR and see what happens.

Reinvesting creates growth

The performance difference comes from reinvesting. To put it simply, every time, when receiving monthly payouts or property repayments, you are adding 1 more violin to play for your financial orchestra. This means that reinvested claim units would also have gained you the interests.

Apart from that, every time you might want to withdraw, you incur costs such as 2 EUR withdrawal fees and taxes, which can quickly reduce any additional returns you’ve gained on both the purchase and the sale. Coming back to Option 2, we see that reinvesting income turned out to gain 14 EUR per month and 1,161 EUR for the same period of time, at the end of the loan term, which is for 11 EUR more than without reinvesting.

For some, it might look to be not a big difference, but when it comes to bigger amounts, the difference is more noticable. It’s 7.3% more in earnings compared to the first option, and it’s only the difference for 1 year. Besides, a true investor uses all the options provided.

To have a broad picture of how it works, do not hesitate to check different principles, loan durations and interest rates, while using our investment calculator, thus choosing the strategy, that fits your needs the best.

Read more about where does investing 100 euros per month get you or how to become a millionaire.

Crowdfunding solutions made investments in real estate easier and created simple techniques that can help investors build up their returns. When it comes to reinvesting smaller amounts – even as little as 1 EUR – Reinvest24 secondary market will be your greatest helper. More information on how it works you are able to find in this guide.

3rd-anniversary Cashback

Whether or not you should reinvest your real estate income depends entirely on the goals you set for yourself. If you are content with what you have, you may feel no need to reinvest your profits. If, however, you are interested in realizing financial freedom and retiring with enough money to live the life you want, you may consider putting it to work again. And it becomes twice pleasant if you are able to use additional bonuses to reach your goals sooner. This year Reinvest24 started to celebrate the 3rd anniversary a bit earlier, giving you a true chance to juice your investment returns. Until 12.05.2021 (included), invest in our projects on the primary market and receive the following cashback bonus from your total investments.

• 0.25 % on investments up to 1’000 EUR
• 0.5 % on investments from 1’001 to 5’000 EUR
• 0.75 % on investments from 5’001 EUR

To participate in the campaign, please read the terms and conditions.

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It’s never too late or too early to start planning your retirement. Even if you have a decent job right now with a satisfactory salary, there is no guarantee for secured retirement. The fact that retirees are living longer and many countries are experiencing lower birth rates is causing a pensions crisis. There’s a growing demographic above 65 with increasing life expectancy due to improved quality of life, access to health care, clean water and nutrition. And whereas this is a positive thing for people wishing to live longer, it’s also an economic burden which is problematic for future pensioners.

People are living longer than expected

Retirees are currently receiving state pensions for much longer than originally expected. This is crippling state budgets and causing governments to reconsider future pensions. Pensioners in countries such as the Netherlands, Turkey and Croatia receive more than 100% of their average working wage when they retire. Furthermore, the global population over 65 has been increasing steadily since WWII, with countries like Estonia and Denmark counting the elderly as over 19% of their total population.

It’s a global time bomb and governments can’t afford it

Pension systems were originally designed to rely on the majority of the population working and paying taxes to support the elderly part of society. However, with an increasing generation gap and Europe’s declining birth rates, this model becomes inefficient. Hence, most states switched to personal saving pension plans in order to transfer the load from the state’s shoulders to every retiree’s own, making pensioners responsible for their personal financial wellbeing.

Today’s youth isn’t relying on state support

A lot of surveys among millennials prove that though they might not fully understand the size of this problem, they don’t believe in the system. Therefore don’t plan to rely on state support when they retire. However, since people globally don’t understand the investment, it’s worrying to think about what will become of future retirees who aren’t planning ahead. The main options to build yourself a decent safety net include investing in assets or opening interest in collecting savings account at the bank. But with the latter, inflation will quickly become your main problem. You have to be a true believer in the banking system to depend on their pension funds for your survival.

For many people, retirement becomes a period of financial stress

The truth is, many people don’t even get to work up to the age of 65. Eventually, either health issues or unemployment will start to interfere with you receiving a monthly salary once you reach a certain age. And although your retirement should be the time to enjoy your life’s work and do all the things you’ve always dreamed of doing. Instead, it becomes a period of depression, lack of money, declining health and missed opportunities.

Your bank’s pension fund won’t save you

Banks always have their management fees when it comes to pension funds. Even if banks decrease their management fees from 0.95% to 0.49%, you’re still not gaining as much as you could if you would invest in long-term assets. Banks charge their management fees annually regardless of the fund’s positive or negative growth. Also, the management fee is taken from the fund’s total amount. And even then you still pay an additional fee when exiting the fund. Hence, you’re constantly losing a percentage of your retirement money. Instead of gaining attractive returns from capital growth.

Investing in real estate with Reinvest24 can offer you peace of mind

Reinvest24 is a real estate investment platform that allows you to invest in profitable properties together with other investors. Our investment properties have great potential and provide passive income from monthly rental yield. as well as long-term capital growth. You can invest your hard-earned money into real estate collectively with other likeminded people starting from 100 euros, providing a 14.6% total combined return per year. Discover the rewarding habits of financially fit people and start thinking about your future today.

• • Reinvest24 provides the best investment alternatives

• • You decide which property to invest in, how much and when

• • You can cash out and retrieve your money any time without fines or exit fees

• • If you build a big enough portfolio you can even eventually live off passive income

• • We earn commission only if you earn profit from your investment

Think of your pension as a bonus, not your livelihood

Considering the average old-age pension in Estonia was 405.4 euros per month in 2017, there’s really not much to look forward to, especially considering the average rent of a 1-bedroom apartment in the city centre costs 451.96 euros. According to these figures, you won’t even be able to cover your rent, let alone food, utilities and medical expenses. Furthermore, you can completely forget about enjoying life, traveling or taking up a new hobby… you simply won’t be able to afford it. Hopefully these alarming facts will awaken your desire to invest and plan ahead, leaving your pension to simply serve as an additional source of passive income, rather than the only income.

Earn 1 million euros by the time you retire

Investing in real estate is an excellent way to fight against inflation and ensure long-term wealth from capital growth and rental yield. You can read about our long-term investment projections in our post where does investing 100 euros per month get you? By investing 200€ every month regularly for 30 years (72K total investment) with a 14.6% total combined return per year, you will end up with a portfolio worth 1,206,882.53€ in just 30 years. With over a million at your disposal by the time you retire, you can do anything you want.

In conclusion, the majority of the world isn’t prepared for retirement and suffers from a lack of financial literacy. Furthermore, governments and banks are not capable to provide you with financial freedom and the retirement of your dreams. The only solution is to take matters into your own hands, research and invest in long-term portfolios with profitable returns. Start thinking about your future, discover our investment properties and become a real estate investor today to secure your retirement. 

The post How can you secure your retirement by investing in real estate appeared first on .

Over centuries, the intriguing charm of Spain has stolen many hearts. Its beautiful beaches, impressive architecture, delicious food, famous landmarks and very rich culture, makes this country an appealing destination.

So is Spain’s real estate market. However, It is always important to learn more about the market where You plan to make long-term investments. In this article, we briefly share the highlights of our insights on the current market situation, the latest statistics available and trends for the coming year.

COVID -19 and its economic impact

It is not a secret that the recent health crisis left an impressive consequence on all of the world. And Spain is not an exception, as tourism is one of the key drivers of Spain’s economy – 12.4% of GDP. In fact, Spain got the biggest hit among the countries in the eurozone with punishing figures for GDP last year (see the screenshot below).

Also, take a look at this panel of Economic indicators.

As of now, Spain can be considered to be in a recession stage and it is likely expected that it will not return to pre-crisis levels until the end of 2022. However, Caixa Bank researchers state that despite the seriousness of the situation and the high uncertainty regarding how the pandemic will develop, the sector is supported by a much stronger foundation than in the previous crisis of 2008. Before the outbreak of the COVID-19, the financial situation of Spanish households and companies in the sector was healthier than back in 2008. Moreover, the number of new properties being built was not excessive in relation to the demographic trend. Banks also have much better solvency and liquidity ratios. All these factors make experts more confident in the sector’s ability to weather the current crisis.

When it comes to investing, the recession always comes with opportunities. The best time to buy real-estate is when there is an uncertainty on the market and there are not so many buyers. In this article we shared more insight on why you should use the financial crisis situation for your convenience in terms of wealth building.

Demand for the properties

Regarding domestic demand, the APCE (Association of Promoters and Constructors in Spain) has already put forward a demand to the Government, together with other incentives, for the reduction of VAT on newly built property from an average 10% in most areas to 4%. It is expected that those actions will positively improve the demand in the real estate market.

As per the past year’s sales transactions, you can see from the chart above, which compares sales with last year, 2020 got off to a modest start before plunging in the lockdown months of March and April, then started to recover in May. Pent up demand ensured sales growth in the third quarter, but the figures for October, with sales below last year, suggest that the bounce is over. Year-to-date (10 months) the home sales are about 20% smaller than they were in 2019, with the difference built up in March-May 2020.

Construction industry in 2020

According to Idealista, during last year, the construction industry suffered enormous economic losses due to the work stoppage. Although the stoppage lasted only a short period of time, once working activity resumed, production was cut by 20%. This created a deficit of supply with demand jumping back to previous year levels.

Also, the job losses in the sector impacted the workers in the construction industry in Spain. It has decreased by 65% in relation to the same period in the previous 2 years. The cities most affected by this situation are Madrid, Barcelona, Malaga and Alicante as they are the ones with the highest construction activity in the country.

Price bubble in real-estate

According to the data, provided by Statista in November 2020, the real estate bubble index arranges Spain in a bubble risk-free zone. It means that Spain’s real estate market is not overheated and still has room to grow in terms of prices. Also, the price rise is stable and people are not making emotional purchases of the property. For example, Madrid’s index is 0.43, which is below the index median score of 1.5.

Trends to expect

As per the trends to expect, Colliers Spain states that in 2021 build-to-rent will be an investment opportunity in provincial capitals and other consolidated urban areas with demand. With that being said, Madrid remains to be the most dynamic housing market. Whilst Barcelona is suffering the negative effects of government intervention, making Valencia city an attractive alternative to Barcelona for investors.

Also, S&P estimates a rapid rise in house prices in Spain which will reach 1.8% already in 2021. It’s worth noting that a 1.4% price drop is nowhere near the plummeting rates seen in Spain in 2014 during the height of the previous financial crisis, where properties cost 35% less on average than in 2008.

By 2022, Standard & Poor’s expects a sharper rise still in terms of house prices in Spain – up to 4.5%. All this means that within the space of one year, house prices in Spain will experience one of the biggest price fluctuations (fall to rise) of Europe’s main economies, from a 1.4% to a 4.5% rise.

Best time to invest in Spanish real estate?

Currently, the Spanish real-estate market went into the ‘healing’ phase of the real estate market at some locations. The properties in Barcelona were clearly having some ‘air’ in their prices, which is being let out now. While this is a painful process for some participants of the market, it definitely has a healing and positive long-term effect on the Spanish real estate market in general.

Our numbers show that Valencia, being undervalued compared to Barcelona or Madrid now is becoming more popular and is gaining momentum. Its close location to the seashore, strong transit and logistics industries, the Valencia Community size (5.5 million), which is larger than Barcelona (4.8 million) and a bit smaller than Madrids (6.6 million) make it a great place for entering Spanish market. With construction costs between 1000 and 1300 EUR/m² and real estate selling price between 1400 and 1800 EUR/m² we also don’t see a bubble on the real-estate market that might still be present in some other countries.

Invest in Xirivella, our first spanish project

At the end of 2020, we published our first project from Spain offering an outstanding annual yield of 15.8%.

The key benefits of investing in this project are the fact that it will be fully developed and managed by the Reinvest24 team, in partnership with an experienced construction company – Kirsan Holding. Also, we see great potential in this property, as the demand for modern new apartments in the area is high due to low supply. It’s an old city covered with historical buildings, leaving less room for new developments. The unfinished building will come at about 450 EUR/m² and the average price for the sale of the new construction now is around 1400-1600 EUR/m².

More information about this project is available here.

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Investing in real estate is a great way to create passive income and increase your long-term wealth. There are many pros and cons to investing in property, the main con being the fact that investing in your own real estate requires a lot of capital. The entry barriers are high, but these days you can choose to invest in real estate through real estate investment platforms like Reinvest24, which work just like crowdfunding platforms. If you’re thinking about becoming a real estate investor, consider investing with these great advantages — think big, start small and act now.

1. You can start small, investing in Baltic real estate from only 100€

Real estate prices keep rising every year. These days, you need at least 100K to buy, develop and either rent or sell a decent property for a profit. However, with Reinvest24 you can easily become a real estate investor starting from 100 euros per investment. Investing small amounts during a long-term period can even make you a millionaire in under 30 years.

For example, by investing 10K (one-time initial investment) and 100 euros regularly for 30 years, you will have an investment portfolio worth 1,066,375€ by 2049. You can read our post about where does investing 100 euros per month get you to see more examples.

2. You don’t need to be a real estate expert

If you like the idea of investing in real estate but have no idea about what’s going on with the housing market, then investing in real estate on your own can be very risky. Fortunately, our real estate team has been dealing with high-profile real estate investment projects in for many years. We know exactly what is going on with the Baltic real estate market, what trends are on the rise, and which properties have the highest returns. Reinvest24 does all the market research for you.

3. Your legal overheads are optimised

Another time-consuming and stressful things about investing in Baltic real estate is all the legal procedures and paperwork you need to handle. Starting from notary fees and ending with various licenses needed to develop your property, legal expenses can seriously damage your budget and create a hole in your investment project.

With Reinvest24 your expenses will be optimised and you’ll only pay a small percentage of what you’d normally pay if you would be investing in property on your own. In conclusion, your expense will be proportionate to your total investment, not whatever the lawyers and notaries charge in total.

4. Reinvest24 takes care of all the real estate management and due diligence

What about the day-to-day expenses, maintenance and upkeep… is that something you’re willing to take care of? If you really want your passive income to stay passive, simply leave it to Reinvest24. We fix, furnish, clean and manage all our investment properties, allowing our investors to enjoy the perks of being a real estate investor without needing to deal with the headaches of property management.

As well as providing you with easy entry to the world of Baltic real estate investing, we also take care of all the due diligence. Reinvest24 chooses the best investment properties, but only after screening the market, making thorough financial calculations, conducting research on the market and its future potential, visiting the property and closing the best deal to ensure investors make a great profit.

5. You can diversify easily and receive passive income from multiple sources

A smart investor diversifies. In other words, multiple investments are made to assure income from various sources, minimising the risk of investing your capital. Our Baltic real estate investment platform allows investors to diversify easily. You can choose between different property types; commercial, residential, or investment types; development properties, long-term rental properties and attractive short-term rental properties. Reinvest24 is also constantly expanding its markets, offering real estate in different locations such as Baltic tigers, Moldova and soon other European destinations.

6. You can invest in exclusive properties that you otherwise couldn’t find

Investing in exclusive Baltic real estate requires a lot of money. Furthermore, the most interesting investment properties are never openly offered to the public. There’s a closed group of buyers, sellers and real estate professionals that deal with property very private. Hence, sometimes it’s impossible to get your hands on certain projects, even if you have the money. Read more about these smart real estate millionaires who invested in property and held on to it.

Through Reinvest24 you can gain access to the best selection of properties available. You can also invest in more expensive real estate properties collectively with other investors. Last but not least, we help you invest into exclusive Baltic real estate that’s not publicly on sale as we often lead direct negotiations and make deals on properties that aren’t publicly on offer.

7. It is quick and easy to cash out

Selling real estate can take a lot of time and patience. Sometimes it takes months, sometimes it takes years. Do you have enough time and money to wait out a market slump? Reinvest24 provides its investors with an easy exit. You can sell your shares anytime in our marketplace. Your money, including your earned dividends, will be paid straight into your account.

Furthermore, your shares can be sold in several parts, if you wish to liquidate only a small part of your assets. In any case, it’s a lot easier and faster than selling actual real estate. However, the secret to becoming rich through real estate lies in the buy-and-hold strategy. The longer you keep your investment, the more money you will make with capital growth. Read more about why real estate prices have grown and always will.

8. Your investment is protected by collateral

When investing in a property through Reinvest24 you receive the same level of protection that you would when buying your own real estate. Each property becomes an asset of a special purpose vehicle, which has a legal subsidiary status that minimises risks and keeps obligations to investors. All our properties remain safe and unaffected by the financial status of other projects.

Furthermore, every property is also mortgaged by an assigned law firm which takes on the role of a collateral agent that makes sure investors’ interests are kept safe. The property you invest in becomes the collateral, so your investment is always backed by the value of the capital. For your peace of mind, discover our article on 6 ways your investment is protected.

9. You will receive profit from rental yield and capital growth

Our total combined return is 14.6%* per year. That includes net yield, mostly from rental income (ca. 8%) as well as capital growth (ca. 6%). Reinvest24 provides investors with monthly passive income from rental yield, and investors also receive profit from capital growth when exiting the investment. In other words, you get regular returns as well as a healthy profit from the increase in the value of the property you invest in. Hence, you’re profiting from short-term and long-term returns.

So, there you have it! Nine reasons why investing in Baltic real estate with Reinvest24 is better than investing in property on your own. There’s no denying that investing in real estate on your own can bring you great returns, but it definitely requires more knowledge, more money and protection. Our real estate investment platform democratises real estate investing, so that you can grow your capital easily, affordably and safely. In conclusion; think big, start small and act now! Invest with Reinvest24 in real estate starting from 100 euros.

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You may think you don’t have enough money to invest, but that’s not true. With our real estate investment platform you can become a real estate investor from 100€. Reinvest24 offers a wide range of investment properties that provide passive income from rental yield and great returns from capital growth. Our total combined return of 14.6% allows you to gradually build your long-term wealth from small investments and by reinvesting your profits. So, what would it look like, investing 100 euros into real estate each month with Reinvest24? Take a look.

Investing in real estate with Reinvest24 provides 8% rental yield

Our investment properties provide great returns from their increase in value and their monthly income from rent. Reinvest24 invests into the most profitable properties and provides investors with monthly passive income from all types of rental contracts, including highly profitable short-term rentals.

We currently have a market growth of 6%

Our properties are all located in neighbourhoods with potential. The current real estate market growth rate is fairly stable, and the fact that households have more purchasing power only leads us to believe that our real estate values will continue to rise over the years. Gains from capital growth are received when you sell your shares.

Investing ​100 euros every month will become over 500K in just 30 years

You can choose to spend 100 euros on a fancy dinner, or you can decide to invest in real estate. By making regular 100 euro investments with Reinvest24, you will have enough money to enjoy fancy dinners every night in the long run. Your 100€ per month over a 30-year period, combined with the 8% rental yield and 6% market growth will become a great retirement plan.

Here are the different scenarios:

10 years

By the end of year 10, your 100€ per month investment will give you a total portfolio worth 26,602€.

20 years

Another 10 years later, your investment portfolio will be worth 129,811€.

30 years

And by the end of year 30, you will have 533,187€ which you can cash out whenever you want.

Investing more money each month will make you greater returns

Naturally, by investing more money each month, your long-term investments will provide you with even better returns. Although 100€ is the minimum investment on Reinvest24, you can start small like many of our investors, and eventually increase your regular monthly investments.

The results according to regular monthly investments:

100 euros

Investing 100 euros regularly for 30 years will provide you with a portfolio worth 533,187€.

200 euros

Doubling the monthly investment to 200 euros regularly for 30 years will provide you with a portfolio worth 1,137,965€.

500 euros

Increasing your monthly investment to 500 euros regularly for 30 years will provide you with an attractive portfolio worth 2,665,938€.

Putting down 10K and investing 100 euros per month will make you a millionaire in just 30 years

What you really want is to become a millionaire, right? That means having 7 digits on your portfolio. Well, what if I told you that could happen in under 30 years.

Starting with 0

So, we already know that by investing 100 euros regularly for 30 years you would end up with a portfolio worth 533,187€.

However, by also making an initial investment of 10,000€ at the start of your investment period, you will make your dreams come true.

Starting with 10K

By investing 10K (one-time payment) and 100 euros regularly for 30 years, you will have an investment portfolio worth 1,066,375€.

Now you’re a millionaire. Mission accomplished! 

Start by making a small investment in real estate

So, these are long-term results of making small investments into real estate. Making an initial 10K investment and investing 100€ per month for 30 years will grant you an investment portfolio worth over 1 million euros. Once you become an investor you can also invite friends to invest in real estate, potentially earning you even more money with our Reinvest24 Affiliate program. Check out our investment properties and join our community today.

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Last months were quite busy for Moldovan people. Beside all the buzz and fuzz about COVID-19 pandemic, there were presidential elections taking place, which might have got into shadow of American elections and the Trump-Biden saga. Voters had the possibility to either elect a new president or reelect the incumbent Igor Dodon. Congratulations to Maia Sandu on winning the presidency with 57.7%. In this article we will shed light on why this presidency might become remarkable for Moldovan economy and overall country’s development.

Who is Maia Sandu

Ms Sandu, 48, is a former World Bank economist and former prime-minister who favours closer ties with the European Union. Mr Dodon, meanwhile, is openly backed by Russia. Moldova’s former prime minister said that as president she would make it her priority to tackle corruption and unite the country. Priorities of her campaign were reducing unemployment, raising the minimum pension and building closer ties with the European Union. And answering the question if she would like to see the country  joining the EU one day, she clearly states that yes, and moreover, it will be her main objective during the presidency in the following 4 years. 

As mentioned above, she is not a newcomer in the field of politics, as from 2012 to 2015 Ms Sandu was Minister of Education of Moldova, as well as member of the Parliament of Moldova from 2014 to 2015, and again in 2019. According to polls from 2019, conducted by the Public Opinion Fund, Sandu ranks among the most trusted politicians in Moldova. And the recent elections just approves the fact that citizens of Moldova are ready to face the upcoming changes.

What does it mean for Moldova and its economy

We were anticipating and actually favoring this scenario as we have several ongoing projects in Chisinau – the capital city of Moldova. Actually this turn of events opens quite a good and promising long-term outlook for Moldova and its economy. Lately the government of Moldova introduced a lot of supporting measures related to real estate for its citizens such as Prima Casa and some local programs.

A lot of Moldavians work abroad, in European Union, but on the opposite with other countries, Moldovan expats don’t look to assimilate and stay in the countries they work in, but rather to return to their homeland with the capital they earn elsewhere. 

As you might remember from our previous article about Moldovan economy and real estate the current price for real estate on Moldovan is about 600-800 eur per sq. m. which is very cheap, compared to the level of any country around it, especially if it’s an EU country.

Moldovan economy currently

We continue to follow very closely on the Moldovan real estate market and during the past month, we see an increased interest towards real estate. Quite a lot of Moldovan citizens, as well as international investors, come to realize the huge potential hidden in Moldovan market. Especially in its capital city, where the remarkable difference in prices makes their eyes shine. Besides, the profitability in the construction sector is one of the highest. Of course it’s not a ‘free breakfast’ and there is still a lot of work to be done if you really decide to invest into Moldova. It’s not the easiest and well-developed market to enter with European mind-set, but if you have the right partner and enough experience – this market might provide you with incredible opportunities. 

The good partnerships and low risk investments is what we focus on in Reinvest24. Currently we have several projects in Chisinau – the capital of Moldova with very experienced player on the local market. And each one of those projects reported increased sales volumes within the last weeks.

We are happy to offer our investors an opportunity to invest amounts starting from 100 EUR and share the benefits of the growing country with great potential. Browse our currently available projects to take part in Moldovan real estate market growth.

Some statistics

Moldova area: 33’846 km² vs 45’227 km² Estonia

Moldova population: 4.033 m vs 1.325 m in Estonia

Chisinau population: 636k vs 394k in Tallinn

Average real estate price: 650-700 EUR/m² in Chisinau vs 2’100-2’400 EUR/m² in Tallinn

Those numbers indicate that there is a great potential to be realized. Now, that the Economy development seeds are planted they need time and some care to provide a proper harvest to those, who can wait.

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Real estate is a dream investment when it comes to capital growth. You can invest in something today, and in a few years, your real estate’s value could be through the roof. The appreciation of your property can make you a millionaire with just one real estate deal. The secret is to buy property in an emerging market, sit on it, and wait until the time is right. This is known as buy-and-hold real estate investing. It takes patience and it takes insight, but the reward is well worth the wait.

Overall, real estate investments are much safer than investing in the stock market. Capital growth helps you fight against inflation, and a positive cash flow ensures you can reinvest your profits and continuously diversify your portfolio. To inspire your investing in property, here are 5 investors who became real estate millionaires by starting small (okay, some were born into it). And also use the buy-and-hold investing strategy until the time was right.

1. Sidney Torres

When Sidney Torres first got into real estate in 1997, he was making little over $25K a year working for a local construction company. With overtime pay, hard work and disciplined saving, he eventually managed to earn between $30K and $40K a year. Torres managed to buy his first property and successfully “flipped” (developed) it despite his basic salary. This was the start of his career in real estate. Since then, he has been renovating houses and now even has his own TV show, The Deed.

Sidney’s real estate investments helped him start a trash company that cleaned up the famous French Quarter in New Orleans. Furthermore, Mr Torres has diversified into commercial real estate, owning an upmarket boutique hotel and one of the world’s best beach resorts in the Bahamas. He runs over 25 companies (most of which are in the real estate industry) and employs 150 people. He is a serial entrepreneur who started small by investing in real estate and holding on to it.

2. Sean Conlon

Sean Conlon was an Irish immigrant who settled in Chicago back in 1990. He started his American Dream by working as an assistant janitor. After a few years of hustling, cleaning up floors during the day and painting walls at night, the Irish real estate aficionado managed to save enough money to buy his first apartment. “I understood fairly quickly that real estate is a tangible path to wealth,” says Conlon.

Sean’s passion for real estate landed him a job in a real estate brokerage firm in 1993, which allowed him to continue dealing with the property until he made his first million in 1996, thanks to buying low and selling high at the right time. In the year 2000, the Irish real estate investor founded his own company, Conlon & Co., a boutique real estate investment firm. He has also launched Sussex & Reilly, a high-tech real-estate firm which he grew to over 300 employees.

3. Gerald Cavendish Grosvenor

Gerald Grosvenor, the 6th Duke of Westminster, owns 190 acres next to Buckingham Palace, including most of upscale Belgravia. Okay, maybe he didn’t start small and the source of his wealth is ancient, but he does know a thing or two about buy-and-hold investing. Grosvenor invested heavily into real estate in the 1980s and is to this day one of the wealthiest real estate investors, owning properties all across London’s poshest neighbourhoods. The aristocrat’s very own private Grosvenor Group has property on five continents with $20 billion in assets under management.

4. Charles Cadogan

Real estate investments in Europe

But what about Europe? The European Housing Index has increased steadily over the past 5 years, moving up 1-2 points per year, reaching 111.42 index points in the first quarter of 2018. Furthermore, according to the Global Property Guide, Estonia (where Reinvest24 is based) is currently in the top 5 countries with greatest price changes, ranking 4th with a of 58.56% price increase over the last 5 years. You can read our article about the housing market in Estonia if you’re interested in investing in a rapidly growing market.

It is said that buy-and-hold real estate investing is a solid long-term strategy which guarantees great returns from the appreciation of real estate. However, returns always differ according to property and market growth. So it’s always important to do your research before investing. Our Reinvest24 team goes through extensive due diligence before publishing an investment project. Read more about how we choose our investment properties. 

Discover the buy-and-hold investing strategy

In conclusion, it is vital in all investment opportunities to acquire the assets with the biggest potential and hold on to them for as long as possible. Capital growth and rental yield will eventually make you rich sooner or later. The sooner you invest, the sooner you will reach your desired financial goals. Some people wait years, working a day job and putting money aside to eventually invest. But these days you can start small and invest in real estate investment platforms like Reinvest24.

So, why not follow these real estate investors’ investment strategy? Invest in real estate today and receive passive income from rental yield as well as great returns on capital growth when you exit your investment. If you don’t want to wait, Reinvest24 can help you invest now starting small from 100€.

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