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. 

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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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1. Leonardo DiCaprio

The Titanic-Great Gatsby-Wolf of Wall Street star has made a fortune acquiring various properties over the years. This real estate investor definitely knows how to maximise on his capital growth. Back in 2016, he listed his oceanfront Malibu property for $10.95 million (nearly seven times more than what he paid for it 20 years earlier). The actor has also bought and sold various properties in New York, Hollywood, Palm Springs and The Hamptons.

Mr DiCaprio’s Palm Springs property 432 Hermosa is a currently offered as a short-term rental, with daily rates starting from $3,750 per night. Great rental yield, Leo! In 2005, DiCaprio also bought an entire island off the coast of Belize for $1.75 million, on which he is developing an eco-resort set to open very soon. With this development project, the passionate environmentalist plans to protect the small island and its ecosystem. Now that’s a sustainable real estate investment, wouldn’t you say?

2. Arnold Schwarzenegger

Before he became the Terminator and the Governor of California, Schwarzenegger financed his career as an actor by investing wisely into real estate. Arnold’s pre-acting fortune was made in real estate. He would invest the money he’d make as a weighlifter to purchase multifamily real estate (apartment buildings). His passive income from real estate also led him to further finance the travel and diet expenses associated with his bodybuilding career, winning him 5 Mr. Universe and 7 Mr. Olympia titles.

Mr Schwarzenegger was a successful real estate mogul before ever getting to Hollywood or into politics. Real estate was the foundation of his success. In the 1970s Schwarzenegger put a down payment on an apartment building and he quickly started earning profit with both rental yield and capital growth. “Buildings that I would buy for $500K within the year were $800K and I put only maybe $100K down, so you made 300% on your money.” (extract from Tools of Titans by Tim Ferriss)

3. Brad Pitt

Brad Pitt and his ex-wife Angelina Jolie were (and kind of still are) a real estate power couple. Together, they own the impressive Château Miraval in France. The Hollywood couple bought the property in 2008 for a cool €45 million (about $67 million), and had their wedding there later in 2014. Château Miraval isn’t just a majestic manor house, it is also an income-generating estate producing wine and extra virgin olive oil .

Brad Pitt’s (and Angelina’s) impressive real estate portfolio also includes various properties in New Orleans, New York, Los Angeles, Santa Barbara and Mallorca, Spain. As well as owning all these properties, Pitt has also converted and developed properties in Los Feliz and Santa Barbara which he purchased before meeting Angelina. The actor’s divorce will surely result in the sale of some of his properties, yet it’s safe to say that he will benefit from the capital growth and the properties’ provenance.

4. Kylie Jenner

This 20-year-old celebrity comes from the notorious Kardashian-Jenner clan, known for their reality TV show Keeping Up with the Kardashians. The entire family is also well-known for their high-profile investments in real estate. Without exception, the soon-to-be youngest billionaire Kylie has amassed a significant amount of her fortune from flipping properties. Kylie Jenner has already owned several California homes. She purchased her first home in Calabasas when she was only 17, for $2.7 million.

Jenner didn’t stop there. Since venturing into real estate she has bought and sold 3 more homes in Hidden Hills for $6 million, $5.4 million, and $12 million. The Kardashian-Jenner family are also known for their passion towards interior design, renovating and remodelling their properties before selling them for profits starting from $1 million. The young makeup mogul just recently flipped a home and sold a vacant plot for $12 million (making over 700K profit in just two years).

5. Robert De Niro

The Godfather-Casino actor Robert De Niro has chosen to invest his money in commercial real estate. As well as owning private real estate in New York and London, De Niro has been invested in various commercial properties, located in some of the most prestigious addresses around the world. The savvy businessman has a hotel resort project on the island of Barbuda, and co-owns Nobu restaurants.

In fact, he was the one who inspired celebrity chef Nobu Matsuhisa to launch the Japanese restaurant empire, opening the first New York restaurant in 1994. De Niro was such a fan of Matsuhisa’s early restaurants in the late 1980s that he became a business partner in the Nobu chain. The restaurants’ prime commercial real estate is located in places like New York, Los Angeles, London, Dubai, Moscow, Monte Carlo and Marbella.

6. Tom Ford

Tom Ford is a man of many talents. He’s mostly known as a fashion designer, but has also excelled as a film director and eight-figure real estate investor. Back in 2016, Mr Ford paid $38.75 million for his Hollywood estate in Holmby Hills, which belonged to the late Betsy Bloomingdale, an American socialite and philanthropist. Ford managed to negotiate the price down from $55 million, scoring himself an impressive “bargain” property. After all, negotiation is key when investing in real estate.

The creative mogul has also reportedly listed his Cerro Pelon Ranch near Santa Fe, New Mexico for $75 million. The ultramodern ranch has breathtaking views, equestrian facilities as well as an air strip and airplane hangar. The property also generates an attractive income from film projects with its own old western movie set, which has been featured in movies like “Cowboys and Aliens”and “Wild, Wild West” starring Will Smith.

These sure are some impressive real estate investments from famous celebrities. Looks like the secret to prosperity lies in reinvesting your money wisely and diversifying your investment portfolio. Why not follow in their footsteps? Check out the pros and cons of being a real estate investor. You can start from as little as 100€. Discover our real estate projects with great returns and invest in real estate today.

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Cash flow is essentially the movement of money. It’s the net amount moving in and out of your account, which can lead to either a negative cash flow (meaning expenses are higher than income) or positive cash flow (meaning your income exceeds your expenses). There are many ways to invest in real estate with different cash flows. Some choose to invest using cash, others use bank leverage. This all affects your investment’s cash flow, so let’s take a look at 3 different cash flow scenarios when it comes to investing in real estate.

1. Investing in real estate with cash only

As an example, let’s use a commercial office space with the moderate price of 300,000€. If you buy this property in cash you have to put down 300K of your own money. Yes, that’s a big expense, but what you get in return is 1625€ per month as income, which will increase by a 2% index (related to inflation) every year going up to 2000€ over 120 months (10 years). You will also earn a profit from capital gain, but it will stay on paper until converted into real money when you exit your investment.

Risk scenario

In the case of a market downturn, you will still keep your rental income. If a tenant gets into trouble with payments you might need to decrease your rental rate by 10-20% to quickly get a new tenant, but you will survive and most importantly you will keep making money. The market will eventually recover and you can get back to your projected levels of income.

Summary

By investing in a rental property with cash only you will have a safe investment with a stable cash flow and a good tolerance towards market shake-ups. You get about 10.1% of total profitability and a stable 1625€ monthly income, which can be used to cover expenses and to reinvest.

2. Geared investment: 50/50

Now, let’s suppose there is a bank that is willing to give you a loan for the purchase of this commercial property worth 300,000€. The first question is “how much money do you want to take from the bank?” In this investment scenario, let’s say you take 50%, which is 150K out of your pocket, paying a moderate 5% interest on the loan for 10 years. The good news is that you only need to put down 150K to buy the property. However, now you have a monthly expense of 1590€ to pay back the loan on the property. As a trade-off you will only receive 35€ from the rental income as monthly cash flow, which will gradually grow to 360€ per month over 120 months (10 years).

Risk scenario

If something happens to the real estate market, your cash flow would turn into a negative one and you would need to put more money down to cover your mortgage expenses. Any adjustments to the rental price can potentially result in a negative cash flow, which means that in order to keep this investment and gain from capital growth at the end, you will need to continually add more of your own money to this investment to keep it afloat. 

Summary

You get a 12% IRR and you ‘walk a fine line’. You finance only half of the purchase, but you’re also sacrificing on rental income by paying a hefty mortgage. If something goes wrong, you will need to add personal finances to the project. This also makes the property selection criteria a lot stricter and demanding. If you come across a property that is safe to invest in with this setup, you’ll most probably only have a few hours or days at best to close the deal. That’s definitely not enough time to go through the process of a bank loan evaluation.

3. Geared investment: 80/20

Now, in this scenario let’s suppose you have a bank which is willing to finance 80% of the property for the same 5% interest, which is quite rare these days. You would only need to put down 60K, but the monthly loan payment would be sky-high at 2545€, which is more than your monthly rental income.

Risk scenario

In this real estate investment scenario you’ll have to put down more money in any case on a monthly basis to cover the mortgage. If the economy gets shaky, you’ll have to put down even more of your own money. This investment scenario feels more like getting into slavery than becoming a sustainable investor. You also have a very realistic risk of the bank asking for an additional guarantee. If for any reason you find yourself without a tenant for a long period of time, your mortgage expenses will cause a deep hole in your finances.

Summary

With this investment option you have to understand that you would need to add more money from your pocket (920€ on top of your rental income) every month to keep it afloat. This would add up to 90K over 10 years, but would increase your IRR to 14%. Increasing the period of the loan to 20 years would help to make this kind of investment not require additional funding as you could cover the lower mortgage payments with your rental income, but it would be similar to scenario 2 in terms of risks and ‘walking a fine line’. It’s also very unlikely to get a commercial loan from a bank for 20 years and you would also not have any cash flow from rent. Also, the chances that the economy will have a correction phase within a 20-year period are pretty high. 

How can I make sure my investment has a positive cash flow?

There are a lot of opinions about how to grow your investments. Some say it’s always best to use bank leverage to finance an investment. Others recommend buying real estate yourself in cash, letting professionals do it for you, or diversifying your portfolio to minimise risks and so on. The truth is, you can argue about methodology, but you can’t argue with math. So it’s important to do the numbers and figure out how to receive the best possible positive cash flow from your investment without taking too much risk.

Take all the cash flow risks into consideration

You need to take various risk assertions into consideration. What happens if the economy goes south? After all, you are making a long-term investment, so you have to consider the different possibilities of economic developments. Also, what happens if there is a market correction for the next 3 years? Will you survive with a heavy mortgage? All the cash flow scenarios above entail risks, and each has its own profitability and silver lining.

So what’s the conclusion?

If you are looking for a stable regular or even passive income you should be very cautious with loan financing because this will incur added mortgage expenses. Financing a real estate investment with a loan can give you a better return in the long run, but the price you pay is the loss of monthly passive income. Going for the maximisation of equity using bank leverage and other financial instruments, you should be well aware of the risks you are taking. This can lead to an increase in income, but it is also what has to lead a lot of famous people to go bankrupt: Trump Entertainment Resorts, General Growth Properties, etc.

Reinvest24 takes its investments very seriously and we evaluate risks and different development scenarios very carefully. Our goal is to maximise the income from real estate investments without taking too much risk and potentially exposing our investors to negative scenarios. Keeping a healthy, positive monthly cash flow from a property is what will really generate real profit over time. This is especially true when dealing with property that is owned for a long-term period.  

Check out our new investment opportunities, which include both monthly rental income and capital growth with a 14.6% AAR.

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Family is one of the most important, if not the most valuable asset in our lives. But very often we forget about that or put it on the second plan as we simply believe it may wait. We reached out to a couple of our p2p investors and also our CEO to find out about their “how-to” tips and tricks. What do they do to balance work and be loving family guys? What investment advice are they giving to their kids? And what about the main investment principles? 

Today is the International Family day, therefore, this blog post is all about the things that matter. 

1. What are your 3 principles of investing?

Lars Wrobbel from Passives Einkommen mit p2p states: 

1. Always have a strategy and follow it! If we have a crisis, I will not develop another strategy in a couple of days! 
2. The investment itself must be as passive as possible.
3. I am 90% cashflow-orientated. So, I invest in P2P Lending, dividend stocks, crypto lending and other stuff that brings me cash in the end.

Stoycho Nedev from Viva Invest principles are very simple:

1. Never invest if you don’t understand the details about the investment. 
2. Don’t put all your eggs in one basket. 
3. Always focus on risk, because it’s the only sure thing in investing.

2. How do you develop an investment strategy? 

Stoycho Nedev explains that he started investing 13 years ago in the stock market. He was completely ignorant, but very confident because very impressive results were achieved in simulated paper trading. “Of course, it’s completely different when the money is real and especially if it is your own money. I lost a significant amount of money at the beginning of the financial crisis. Then realized that there are no shortcuts to financial well-being and started to learn the basic principles of investing. I read lots of books and practice everything with small amounts of real money. Currently, I adjust my investing strategy as the markets develop, usually once in two years,” says Stoycho.

Lars believes that it’s all about goals, “I always saw the investment as an essential pillar in my personal income streams and so I researched everything about cash flow investments. Rest is learning by doing.”

3. What investment advice would you give to your children? 

Tanel Orro, the CEO of Reinvest24 is certain in one – “For a healthy portfolio that provides positive returns through the market cycle, make sure to diversify between different type of investments,” and this is the advice he will give to his son when he will grow up. 

If you are looking forward to adding crowd investing in real estate to your investment portfolio, take a look at Reinvest24 available investment opportunities.

On another hand, Mr. Nedev believes that investing is very important and before you start to invest you have to earn the money. Taking that into account, he would advise the following, “Never spend or invest money that is not yours and you are not prepared to lose. Savings are the foundation of investing. So start saving right now. Learn to invest, but start small! Be sure that you will probably lose 100% of your first investments. Maybe several times in a row.

And this is actually a good thing. It’s your tuition fee for the investing university of real life. Be courageous, but not overconfident. Investing is a mind game. It happens in your brain first. So, learn to control your emotions and double-check that you are completely rational and cold-blooded. Avoid wishful thinking. If you don’t know what to do, better do nothing until you have a well tough strategy. Don’t panic and don’t be greedy.”

4. What your family taught you about investing? 

Tanel’s father once said: “Saving money is great, but the purchasing power of that money is only decreasing over time, you get less and less with the same amount of money from the shop. So at some point, you will need to invest that money into something that either generates you income or appreciates over time.” Real estate in that sense provides you with both. 

The family of Stoycho Nedev always support him in all his endeavours, including investing. Investor stresses out that they help him with everything they can, which leaves Stoycho some time to make analysis and fine-tune the investment strategy. “Some times I ask about their opinion on a particular investment. I like to have a different point of view even if they may not always fully understand the specifics they will give me perspective and trying to explain the investment case to them in simple terms usually help me to get even better understanding myself,” states Mr. Nedev. 

5. How do you teach your kid about investing?

We believe that the sons of Lars and Stoycho will be grateful one day for the knowledge fathers are sharing with them.

For example, Lars is mentioning that his 8 years old son already has an investment account in p2p platform, a “world” ETF, shares from Facebook and Disney and Bitcoin and Etherum. “I monitor the portfolio with him together on a regular basis, so that he understands more and more what we are doing,” explains the boy’s father. 

But Stoycho teaches his son to have an attitude about money first. “Then I involve him in my investment activities. He made his first investment a few days after he turned 18 years old. He invested his savings and described the investment case to me why he chooses this particular investment and what is his strategy. I did not push him to invest, but made sure he is aware that if he learns to invest wisely at an early age, this will help him to be more successful,” adds Stoycho.

Wondering how to secure your retirement by investing in real estate? This article is for you.

6. What do you do to balance between being a loving family guy and investor?

Lars: “There is no need for balance because my investment strategy is very relaxed. And I integrate the investments also into the talks with the family. So it’s some kind of “invest-life-balance”. It’s pretty cool to hear opinions and questions from them because mostly you never thought about things they ask. On the other hand: while talking about money also with your family, you can teach them a lot of things in an easy way. “

Stoycho: “It’s actually not that hard. I always put family first. Investing is just a job or hobby in my case. I deeply believe everyone can find the balance. We just have to remember that before we became investors we were just humans. Money should make our lives better, not poorer. I never sacrifice my family time for more money. I will always find the time to have some fun or some quality time with my family. Because it’s true that we only live once. I believe we shouldn’t sacrifice the quality of our lives for more and more money. Everyone should find his balance. In the last 10 years, my investments are more passive, so they don’t eat lots of my time.“

Tanel: “I have a rule that one day a week I have a computer-free day. That one day I spend as much time as possible with my family and if possible then somewhere outside the city, in nature. I have noticed that the rest of the weekdays are more efficient if you unplug yourself from everything for one whole day. And when the batteries are recharged, you can continue to work on full capacity and deliver the greatest outcomes.” 

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In economics, inflation is ‘a sustained increase in the price level of goods and services in an economy over a period of time’. In simple terms, it means prices are going up and the value of your money is going down. Things like the supply of money, a country’s national debt and increase in demand all play a part in rising prices. In the European Union, the average inflation rate is currently 2.2%.

The key to beat inflation, however, is to gain more money with the capital growth of assets over long-term periods. And earn more money from higher prices over short-term periods. By investing in real estate with Reinvest24 you become a part of the value chain, adding more value to real estate assets and hence, increasing profits. In other words, the higher the inflation, the higher the prices, which means earning more from rent or development.

Things keep increasing in price

Every year your money is losing its value. Once upon a time, 100 euros was considered a substantial amount of money when the price of a coffee was below 1 euro. These days, 100 euros won’t get you as far, considering the price for an average coffee is 2.6 euros. The positive side to inflation includes people buying more now rather than paying more later, as well as keeping demand stable, avoiding the problems caused by deflation. Nevertheless, your money is losing its purchasing power every year. And for you, this is a problem.

Central banks try to boost the economy

Quantitative easing is ‘an unconventional monetary policy in which a central bank purchases government securities or other securities from the market in order to lower interest rates and increase the money supply’. This promotes increased lending and liquidity to ‘boost the economy’. However, when short-term interest rates are around 0% and lending reaches a peak, the demand-pull inflation occurs; when the demand for goods and services increase faster than the economy’s production capacity.

More and more money is printed every day

Furthermore, countries like the United States print as many banknotes as they need to create a greater supply of money. And with a fixed amount of goods, this again causes inflation. This is deliberately done to get inflation between 2-3%. Central banks believe that an inflation rate around 2-3% is healthy for the economy and stimulates markets to operate more efficiently. On the other hand, one of the major side effects of continuous rising inflation includes higher loan rates in the long run. And it translates into higher living expenses with lower capital value.

Inflation is higher than salary growth

Salaries tend to increase over time, but not nearly as much as inflation. Wage growth in the European Union averaged 1.91% from 2009 until 2018, with a significantly higher inflation rate at 2.46% from 1997 until 2018. Overall, your salary may increase slightly, but prices increase even more. And when the price of raw materials such as oil goes up, so do the prices of the majority of services. Consequently, the overall prices of products and services in a given market will rise in response. Hence, your money constantly buys you less than it did before. 

Your bank account’s interest rate isn’t enough to cover your losses

If you keep your money in your bank account you can get between 0.1-0.5% interest on your deposits. And it, unfortunately, doesn’t even cover the current inflation rate. In other words, you’re losing more than you’re gaining. So, despite the fact that you are ‘saving money’ and getting interest on your deposit, you are actually losing money. Understanding and reacting on these principles is the difference between financially fit people who become wealthier over time, and those who lose the value of their money, becoming poor.

Investing in real estate can help you fight against inflation

Depending on the market, the average real estate market growth can be higher than the inflation rate. For example, the current inflation rate in Estonia is 3.7%. However, the current market growth is 6%. Therefore, by buying real estate and investing your money in property, you are actually beating inflation and covering your losses with long-term capital growth. Furthermore, when you invest in rental properties you also get monthly rental yield as passive income.

Reinvest24 takes all these matters into consideration when choosing the right investment properties, constantly benchmarking our potential real estate against the market, previous investment projects, and the current inflation rate. By investing in real estate with Reinvest24, you will beat inflation and secure yourself a healthy long-term investment portfolio, which will grant you wealth from passive income (monthly rental yield) and capital growth, with a total combined return of 14.6%.

Become a real estate investor today and forget about inflation

In conclusion, if you’ve got money sitting on a bank account and you want to increase it, your main and only goal should be to increase your capital faster than the current inflation rate. It’s also important to control your investment risks and make sure you place your money in assets that appreciate over time. Reinvest24 provides investors like you with the perfect opportunity to beat inflation and increase the value of your capital.

Real estate provides the lowest risks compared with other investments like loans and stocks. Our carefully selected investment properties provide you with the best returns available on the market. Start today, invest in real estate starting from 100€.

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1. Rich people always invest

That’s right! People with money don’t just spend it. They invest their hard-earned money in assets that make even more money. Thus, financially fit people are always eventually able to afford anything they want thanks to their long-term mantra, ‘invest wisely’. Whether it’s stocks, gold, art, antiques or real estate, the rule is to find assets that will increase in value and provide you with great returns. Investing in real estate is one of the safest investments you can make, with an average market growth around 6% per annum.

2. Financially fit people avoid paying high interest

Shortening the period of your geared investment or decreasing your loan amount by putting more money down will save you money in the long run. Wealthy people often avoid biting off more than they can chew, which means they invest without high interest loans. By not having to pay a substantial percentage of your profit to financial institutions, you keep your earned profit and ensure a positive cash flow. The money you save from avoiding interest can be used for reinvesting.

3. Wealthy people like to fight inflation

With inflation, the value of your money decreases over time. This impacts how much your money is worth and what you can do with it. Investing in assets that increase in demand and price over time helps avoid losing the value of your capital. Investing in real estate is a great way to fight inflation. The current inflation rate is around 2% whereas property prices in Europe have increased by 4.5%. Beating inflation is key to staying financially fit. 

4. They keep away from credit cards with interest

If interest is involved, it is avoided. Credit cards come in handy in emergencies and for gaining rewards or making travel bookings. However, the truth of the matter is that credit cards usually symbolise money that you don’t have. If using a credit card means paying interest, then a financially fit person might choose to avoid making a purchase if it involves paying more than necessary and leaving them out of pocket.

5. Financially fit people plan ahead especially for their retirement

If you have a goal in mind, it’s important to make the right investments now in order to achieve your financial goals in the coming years. If you’re looking to buy a property overseas or travel around the world when you’re done with your career, you better start budgeting and planning ahead. Reinvest24 can help you save money and earn passive income through capital growth and monthly rental yield with a total combined return of 14.6% per year. 

6. Rich people never pay full price

Why pay more? Wealthy people are known to be frugal. They simply know when and where to shop. Savvy investors also never pay full price or accept the asking price. Financially fit people will always try to find, choose and negotiate a good bargain. Saving money when buying something becomes a golden rule. It applies to all purchases, big or small. Shopping apps like SaleMap help you find the best shopping deals and save BIG when buying retail products.

7. They also learn from their mistakes

If money is lost, financially fit people take it very seriously. They will never repeat the same mistake twice. Whether it’s making an investment which was too good to be true, lending money to a friend, or overpaying for an asset; it won’t happen again. In every investment, it’s important to research the market and make your calculations. When it comes to real estate, our team does all the groundwork for you, searching for the best investment properties with high yield.

8. Smart investors cut back on liabilities

If there’s something in your life that’s draining too much money out of your pocket, get rid of it! It could be anything from excess interest on a hefty loan to short or long-term debts. The sooner you cut that money-sucking leech out of your wallet, the sooner you’ll be able to save instead of spend. Hence, it’s important to identify your expenses and reduce the unnecessary ones as much as possible in order to keep a healthy cash flow.

9. Rich people diversify their investment portfolios

One source of income just doesn’t do it anymore. As business mogul Warren Buffet once said, ‘Never depend on single income, make investment to create a second source’. That’s exactly what financially fit and wealthy people have, multiple sources of income. If you’ve already invested in real estate, find another property to invest in. By diversifying your investments and having multiple sources of income you will minimise your risks of ending up with a negative cash flow. In other words, don’t put all your eggs in one basket. 

In conclusion, being financially fit and building your wealth takes time and discipline. It all depends on your spending and saving habits. Acquiring assets which earn you money with capital growth and making long-term investments are definitely habits which all rich people have in common. You’ll never get anywhere new walking down the same old road, so if you’re looking to become financially fit, start incorporating these rewarding habits into your life. Here’s one habit you can start right now — invest in real estate.

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By simply entering ‘real estate crowdfunding’ into Google, you will find millions of results. What you won’t find so easily is a clear, straightforward explanation as to what type of real estate crowdfunding each individual real estate investment platform offers. The main difference is that most platforms mediate real estate backed loans, whereas only a few offer real estate equity. So, let’s explore the main differences between crowdfunding loans vs real estate equity.

Loans vs real estate equity

The majority of real estate investment platforms are in the business of mediating loans. This means that your investment (the money you invest) gets put into a company, rather than the property that company is investing in. Other unique platforms, like Reinvest24, however, provide real estate equity, which is the similar to owning a percentage of the property you invest in. The latter will provide you with much more sustainable, high-yielding results, such as a monthly cash flow from rent.

Exploring the good and the bad of loan financing

Real estate backed loans, also known as real estate debts investments, are investments into, well, debts. Your money is destined towards a loan, taken by a company, to make an investment in a real estate project. When investing into loans, you’re essentially acting as the lender. Since these are usually short-term investments, you have various pros and cons. The main pro includes a shorter hold period, which means you’ll know exactly when you’re going to receive your returns and how much. The main con, however, is that you’re investing in somebodies efforts to earn profit rather than the potential value of a property. 

Pros

• Easier to find clients, who want a loan (more projects, more often)
• Shorter hold period (fixed investment periods)

Cons

• Developments depend and rely on other projects (if one project fails, it can jeopardise the others)
• Fixed investment periods (your investment period is capped) 
• Higher risks (what will happen when crises hits the market, or loan taker defaults) 
• Return relies on the company/loan taker (rather than the value of the property)

Investing in real estate with real estate equity

Investing in real estate equity, which is what Reinvest24 offers, provides the same benefits of owning a property. In this case, you’re acting as a shareholder, receiving both short-term and long-term profits, especially when dealing with rental properties. For example, you will enjoy monthly returns from rent, as well as any rewards received from capital growth when eventually exiting your investment.

The biggest pro would include not having a limit on your return, which means more money in the long run. The biggest con, when it comes to real estate equity is that it’s a long-term investment, which means it takes time and patience to obtain greater returns. 

Pros

• Same benefits as owning a percentage of the real estate (you own shares in the property)
• Passive monthly income (short-term profits from rental yield)
• Lower risk
• Access to exclusive property deals (you own part of a property you otherwise couldn’t invest in)

Cons

• Limited selection of properties (time-intensive investment which means less projects)
• Long-term investments (higher returns are obtained during longer periods)
• Property management (resource intensive, although Reinvest24 takes care of it)
• Slower payout (selling shares and receiving profits from capital growth can take time)

Which type of investment is riskier? 

When comparing the risks, investments into loans mean that the development stages depend on a number of things. You need to take into consideration the financing, the loan taker’s (and such platform’s) other projects and all the due diligence that goes into making a geared investment through a crowdfunding platform.

When it comes to collateral, crowdfunding platforms that mediate real estate backed loans don’t always offer the property as guarantee and even if they do, the value is often a future estimation of it’s price. This means, if the loan defaults, the actual amount of monies recovered will depend on the progress of development works.

Recent announces of default of rather big lending companies on the market confirms, that the declared value of collateral is almost always lower than the actual loan. If it would be the other way around, then the loan taker could easily finance himself via bank loans and on better terms in most cases.

On the other hand, crowdfunding platforms that offer real estate equity always back your investment with the same property you are investing in as collateral. In Reinvest24 we always evaluate all potential risks of each property.

Investing in properties is safer than financing loans

When you invest in rental properties with real estate equity, you benefit from rental yield on a monthly basis. This source of passive income is key to creating long-term wealth as it will withstand market fluctuations, ensuring a better cash flow. For example, at the peak of the last housing crisis in 2008-2009, the real estate prices in Estonia dropped up to 50-60%. Meanwhile, rental prices remained more stable, dropping only around 10-15%.

The fact is people still need somewhere to live, regardless of the economy. So, even if banks aren’t granting loans and there’s a decrease in real estate buyers, there will still be a solid rental market with tenants needing a place to call home. Rental income will ensure you endure and survive a market downturn, at least until real estate prices get back on track. Overall, the long-term price growth of properties for the past 15 years has been above 300% (housing crises period included). 

Properties provides cash flow and long-term wealth 

Even if there’s another housing crisis, investing in rental properties will still generate a healthy monthly cash flow while you wait for things to recover. And eventually, the real estate market always does. So, in terms of long-term returns on periods over 10 years, the market growth is still estimated to be at least 6% per year on average. This estimate includes the next real estate market correction period. When your long-term real estate investment provides rental yield, combined with capital growth, you are bound to receive great returns, with relatively low risks.

In comparison, when investing in loans, the next market correction or housing crises will leave the developers who are taking the loans in a sticky situation with interest rates over 10% and platform fees over 4%, and no rental yield to reward investors. If the developers are unable to sell their real estate, while paying an expensive mortgage with high interest, your returns are in jeopardy. Hence, the potentially high rewards come with high risks.

Get rich quick or get rich for life?

In terms of liquidity, investments into real estate equity can provide you with both long-term and short-term returns (especially when dealing with rental properties). You’ll even enjoy monthly rental income when the market is down. However, compared with investments into loans, it may take more time to enjoy your profits, as your returns will come from long-term periods, which is more sustainable if you’re looking for long-term wealth. In comparison, investments into loans are generally faster since they are short-term investments with fixed periods.

Should I invest in loans or real estate equity?

In conclusion, investing in rental properties will grant you a monthly cash flow to withstand any storm, and the real estate market eventually always recovers. However, when it comes to real estate loans, the investment can become a risk. Many loan takers and developers will never recover from a market correction, especially when using expensive high-interest loans for fast real estate developments. Investing into the loan deal can hold a huge risk when the market is not stable.

If you would like to invest in real estate through a crowdfunding platform that provides real estate equity, take a look at Reinvest24. We are a unique real estate investment platform based in Estonia. Our properties have been providing a total combined return of 14.6% per year, with encouraging projections for 2019. If you would like to start receiving monthly passive income, invest in real estate today, starting from 100 euros. Discover our high-yielding rental properties.

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It’s been a long day and you’re done diversifying your investment portfolio. Now’s the time to sit back and relax, enjoy your passive income, and open a bottle of fine wine. Those seductive, sumptuous and silky elixirs of life don’t come cheap, though. Fortunately for our investors, we can provide an excellent investment strategy to keep the cellar stocked until the end of time. I mean, who wouldn’t want to make an investment strategy that will secure you a daily bottle of wine?

How about a bottle of Côtes du Rhône every day…

There are plenty of wonderful wines to suit our investors’ palates. However, in this case, let’s use a nice red bottle of Côtes du Rhône as an example. We’re talking about a rich and intensely aromatic wine (perfect for our soon-to-be rich investors). The average price per bottle in our market is 8€ but prices vary according to country. So, how much would you need to invest with Reinvest24 to guarantee a lifetime supply of Côtes du Rhône? Take a sip, and keep reading.

Investing 22K is equivalent to a bottle a day

If you were to invest 22,000€ in real estate with Reinvest24, our real estate investment platform would provide you with healthy cash flow from rental yield and capital gains. The return is sufficient enough to have (or at least buy) one bottle of Côtes du Rhône wine every day, worth 8€.

Let’s break it down for you:

Market growth on average: 6% (capital growth)

Rental yield: 8% (monthly cash flow)

Investment: 22,000 euros

According to our research, conducted by our expert Reinvest24 team, making a 22K investment provides Reinvest24 investors with an income of 0.005861111111 euros per minute:

Multiplying,

0.005861111111 euros x 1440 minutes (24 hours)

…gives you 8,44€ per day, ah voilà!

There’s your daily bottle of fine wine!

Investing 36.5K is equivalent to a bottle a day + you keep the capital gains

Now, if you were to invest 36,500€ in real estate with Reinvest24, our real estate investment platform would provide you with enough money from rental yield alone (8€ per day) to buy yourself a daily bottle of Côtes du Rhône wine and keep the 6% profit from capital growth. So, now you can even start saving up for your own château, just like Brangelina.

You can cash out and retrieve your initial investment any time

If for some reason you’ve had enough of enjoying a bottle of Côtes du Rhône every day, you can always cash out and sell your shares on our open marketplace. All the while you’ve been receiving a passive daily income over 8 euros, you’ve also kept your initial capital. When selling your shares and cashing out, you will still have your money (22K or 36.5K) as well as any additional capital gains accumulated during the investment period.

Real estate and wine both get better with time

That’s right! These two essentials for every refined and savvy investor will both appreciate as time goes by. Your real estate will bring you a rewarding profit after a long-term period thanks to its capital growth (6% average appreciation per year). On the other hand, your bottles of Côtes du Rhône will also increase in value as time goes by. For example, the average price for a bottle of 1982 Lafite Rothschild back in 2011 was $5,500 (that’s a 6,548% appreciation). That’s how much some wine prices have changed over 25 years. And of course, there’s also the fact that they will taste better with age.

Real estate and wine can improve your health and wealth

Real estate and wine can both make you rich financially and physically. Now that’s definitely a reason to smile and keep your mind, body and soul at ease, with a positive outlook. Investing in property can provide you with a positive cash flow from rental yield and capital gains. These kind of returns help you reinvest and keep diversifying your portfolio with even more wealth-generating assets. One of the greatest advantages of real estate is that it also helps you fight against inflation, ensuring that the value of your invested capital keeps rising with time. It’s also one of the safest investments in terms of risk and volatility.

Whereas the values of stocks and other assets can fluctuate drastically, the real estate market remains fairly stable throughout long-term periods, which is why real estate prices have grown and always will. Investing in property is essential for any healthy investment portfolio; it will provide you with a healthy cash flow and capital growth, especially when developing your property, just like Reinvest24 is doing with these rental apartments in Tallinn’s tech hub. The great news is that you can now invest in real estate starting from 100 euros.

Invest in real estate (and fine wine) today

After a long day of working hard and investing, it sure pays off to have a nice glass of Côtes du Rhône (practically for free) waiting for you. So, how about it? Invest wisely and provide yourself with a lifetime supply of quality wine. Please note: wine cellar not included. Start today by making a sober investment in real estate. Discover our investment properties which provide investors with delicious rental yield and sublime capital growth. Make a sustainable investment strategy. If you’re already ready to pop the cork and increase your wealth, sign up now to invest in real estate.

Disclaimer: No grapes were harmed during the research and writing of the article. Reinvest24 is still tracing several missing bottles of Côtes du Rhône wine, which miraculously disappeared during the creation of this content. 

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