A Promising Start

Interchem Distribution Europe OÜ, a company specializing in the import and export of chemicals, had a plan for increasing trading volumes but was lacking finances so it applied for the missing funds with a business loan. The conditions for financing were strict, requiring a personal guarantee of the sole board member and owner in addition to pledging 100% of the company shares. This initial project proved successful, as the company saw a 20% increase in volume and a 50% in profitability.

The company returned the borrowed money along with the interest, setting a success story for the first high-yielding business loan on the platform. Encouraged by the success, Interchem proceeded with a second round of financing, aiming to achieve similar growth and profitability targets, offering our investors 18% interest.

Challenges and Adaptation

The geopolitical landscape shifted dramatically regarding the Ukraine conflict, after Interchem’s second financing round. Despite the turbulent environment, the initial months showed promising development, with profitability almost doubling. However, the sanctions soon followed, making direct trading with Russia impossible. In response, Interchem adapted by redirecting its trade flows through Turkey.

As the deadline for loan repayment approached in 2023, Interchem requested additional time to return the loan, citing that funds were stuck in a Turkish bank. Despite these challenges, Interchem continued to service their loan and pay interest, although the payments began to slow down and become irregular due to their banks’ AML (Anti-Money Laundering) processes.

Legal Proceedings and Agreements

Since no return was done during summertime, as a result of lengthy negotiations by autumn 2023, Interchem and its board member entered into an agreement to repay the loan within five months. Unfortunately, this agreement was not honored as two deadlines passed with no payments. Consequently, R24 initiated bankruptcy proceedings against both Interchem and its board member and sole shareholder Aleksei Baranov.

Bankruptcy processes are notoriously lengthy and complex, with no guarantees of recovering the debts, where the opposing sides rather tend to avoid fulfilling their debt obligations. In parallel to the court hearings the negotiations were held, R24 and Interchem, along with Aleksei Baranov, eventually signed a notarized agreement for the return of the debt, which resulted in a better situation and higher probability of recovering funds than in a bankruptcy proceeding. As the company trades internationally the bankruptcy administrators tend to avoid international litigation as it’s very lengthy and unpredictable and generates enormous costs, which creditors have to cover before any results are achieved. According to the agreement signed, the first principal payout is scheduled for September 2024, with the final return of the principal expected by the end of 2025. Those dates are set as border deadlines and if Interchem is able to pay the debt back earlier, it will.

A Strategic Path Forward

While the timeline for repayment is extended, this strategy is considered more favorable than pursuing bankruptcy. Bankruptcy would halt the company’s operations, eliminating cash flow and necessitating additional financing for legal disputes, which could span 2-3 years or longer without any guarantees of recovery. Therefore this notarized repayment agreement is a more pragmatic approach.

Under the terms of the agreement, returns will first cover incurred legal costs, and the principal returns will be distributed in equal parts to all investors across all stages. Investors can anticipate the first payout by the end of September 2024. Should Interchem fail to make the payment, the notarized agreement provides options for enforcement proceedings without a court order, which is a lot faster process than bankruptcy.

Understanding the Risks

Business loans inherently carry risks, which have materialized in the case of Interchem. It’s essential to recognize the risky nature of business loans and the implications they can have on investors.

In conclusion, the notarized agreement offers a viable solution for the repayment of debt. Even though the timeline is extended, it significantly improves our investor’s position for getting back their invested capital. The alternative options involve prolonged legal disputes and costs with uncertain outcomes.

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With this blog post, we will keep you updated on the progress of the Estonian project Lake residentials development.

Key facts about the Lake residentials development project:

Category – Real estate backed loan
Payment frequency – Monthly interest payments
Collateral – 1st rank mortgage, with the possibility of bank financing in later stages (replacing 1st rank)
Country – Estonia

The update for 30.08.2023

We are pleased to provide you with an update on the progress of the Lake Residents development project:

Finalization of Architectural Project:

The architectural project for single houses within the Lake Residents development has been finalized. Our team of experienced architects and designers have meticulously crafted functional and aesthetically appealing house designs that complement the natural surroundings.

The finalized architectural project ensures the creation of a harmonious living space that meets the needs and preferences of future homeowners. Here are the 3D view of the single houses concept.

Division of Land Plot:

The preliminary planning for the division of the land plot has been successfully completed. This involves the allocation and demarcation of individual plots to ensure efficient land utilization.

Extensive research has been conducted to assess the geology, soil structure, and radon gas levels in the area. These research findings play a crucial role in the process of plot division, ensuring the suitability of each plot for construction purposes.

Electricity Line Relocation:

We are pleased to announce that the high-voltage electricity line that previously crossed the land plot has been successfully relocated. This significant development has allowed the removal of restrictions in that area and opened up more land plots for residential purposes.

The relocation of the electricity line ensures the safety and convenience of future residents, as well as providing a more aesthetically pleasing environment.

Negotiations with the City:

Active negotiations are currently in progress with the city authorities regarding the division of the land plot. We are working closely with the relevant departments to obtain the necessary approvals and permits for the project.

Our aim is to ensure compliance with all local regulations and guidelines to create a safe and well-planned residential community.

Our next goal and milestone in the project is to divide the land plot into individual plots and commence the construction of the infrastructure. We are committed to the successful completion of the Lake Residents development project, and we will continue to provide regular updates as the project progresses. Thank you for your continued support and enthusiasm for this exciting endeavor.

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In this blog post, we will keep you updated on the progress of our Rae residential development project.

Key facts about Rae residential development project:

Category – Development project
Payment frequency – Monthly interest payments
Collateral – Secured with a mortgage, with possibility of bank financing in later stages (replacing 1st rank)
Country – Estonia

Update for 30.08.2023

We are pleased to provide you with an update on the progress of the Rae residential development project. Here are the latest developments:

Approval of Detailed Planning:

Before any activities can be performed on the land, it is crucial to obtain an approved detailed planning. The detailed planning includes various aspects such as infrastructure, zoning, building regulations, and environmental considerations. It ensures that the development project aligns with the local regulations and requirements.

The detailed planning was submitted to the local authorities in the spring of 2021, and it is expected to be approved by the end of the year.

Research and Planning:

Extensive research and planning have been conducted for the Rae residential development project. These efforts are aimed at providing a comprehensive understanding of the land and its potential for development.

The research findings and plans have been carefully prepared and presented to the local government. They cover important aspects such as geology, soil structure, noise level simulations, environmental impact, and infrastructure requirements.

Coordination with Authorities:

The plans for the division of the land have been prepared in close coordination with the relevant authorities. This ensures that the project complies with all regulatory guidelines and requirements.

Through effective collaboration and communication, we have worked towards addressing any concerns or requirements from the authorities involved in the approval process.

Next Steps:

The next crucial step for the project is to obtain final confirmation for the presented plans. Once the plans receive the necessary approvals, we will proceed with the division of the land into smaller plots. This will enable the development of individual residential plots and the implementation of subsequent construction activities.

We are dedicated to ensuring a successful and well-planned residential development in Rae. Our team will continue to work diligently to obtain the final confirmation for the plans and move forward with the division of the land. We appreciate your support and patience throughout this process, and we will provide further updates as the project progresses.

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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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So you would like to make an investment in real estate but keep hearing all these things about the market crashing. Should I wait? Nonsense! You have no idea when the right time is going to arrive. Meanwhile, you’re losing money and opportunities every day. The truth is, there’s no better time to invest your money than right now. Nothing good comes from just sitting on money. It will depreciate or you will end up spending it over time. The only real way to save that money and make it grow is by investing it in projects with high yield. If there’s something all the millionaires in the world have in common, it’s that they all invest their money. And they do it wisely!

You can’t know for certain when the market fluctuation is going to stop

The right time is always obvious when you have an opportunity, the price seems fair and there’s nothing stopping you. The in between moments are the ones which are hard to predict. Are prices going to go up tomorrow? Or are they going to keep going down. Unfortunately, you’ll never know until it’s too late. That’s why it’s always a risk. Depending on your risk tolerance, you’ll either dare to take the plunge (and potentially succeed) or you’ll wait, in which case you’ll definitely lose.

You’re losing money by waiting

There is always a cost involved with waiting to invest. Time is money, right? If only we could predict the future. Then we would all be making passive income. But unless you’re a market expert, you won’t know when the market has finished dropping and when it’s the perfect time to start investing. Meanwhile, every day, month and year that you wait, you are missing out on passive income opportunities. And sometimes market corrections take years! Your risk tolerance may be low, but by being scared of losing your money, you’re actually really losing your money.

Research agrees

Bloomberg (the leading software company delivering market news) even runs simulations on whether it is more profitable to invest right away or wait for a market downturn. The results show that you definitely lose more by waiting and holding on to your cash, in comparison to those who invest their money and hold on to their assets.

Furthermore, with the current inflation rates, the money you’re holding on to will continue to lose value over time. Research has shown that by waiting, instead of investing, you’re actually losing more money than you could be making. For example, between 1926 and 2016 the US stock market returned 6.3% over cash. The research compared investors who waiting 5 years to invest after a market crash (followed by a market correction) compared to investors who held on to their stock throughout the entire period. The research showed that the returns of those who waited were only half of those who held on to their stocks. This is the chart from the research. Excess returns are returns over cash (whereas the buy and hold average is 6.3%).

Hence, it doesn’t matter if you wait for a 10% market correction or 50%. By waiting, you are still losing out on money you could be making, either way.

There’s no such thing as ‘the right time’

Keep investing at all times! To secure your money and make sure you take advantage of all the moments when the market is at its lowest, you should invest constantly. As often as you can, and obviously whenever you find a good opportunity or project. This way you get to benefit from every part of the cycle, going up and coming down. Every day is an opportunity. You just need to realise what kind of an opportunity.

Trust the numbers

Whenever you make an investment, it’s important to figure out what the projections are. The media and society will always have an opinion on how high or low the market is. What’s important is to figure out the yield of your investment and base your decisions on actual figures (rather than opinions). It is also important to check how your investment is protected over time.

In conclusion, waiting for a long time is never good for your money. You should always do your research and due diligence, but there’s no such thing as the perfect moment to invest. This depends on so many things. The best moment to invest your money is when you have it available and when you find the right opportunity. That’s it!

Do you think it might be a good time to become a real estate investor? Discover your investment opportunities right now!

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Our property selection process is comprehensive

Before we choose an investment property, we investigate and make sure it’s profitable. All properties considered for potential acquisition or publishing on the Reinvest24 platform are preselected taking the following into consideration:

1. Location

Location, location, location! That’s what it’s all about with real estate. Especially when the question of how to choose the right investment object is present. We look into the advantages of each area to find out whether it’s in demand. We also think ahead and imagine how each area will transform in 10 years’ time. It is also important to identify whether the location of the property is more attractive for rent or sale transactions. In other words, whenever we find a property in an up-and-coming area with potential, we start looking into it further.

2. Liquidity

In order to guarantee profits, we take a look at how easy it is to sell or rent a specific property in the given area. Statistical fill rates help us determined how easy or hard it is to find tenants or buyers, and what the average time spans are for each transaction.

3. Price

The price of the property is key! It is crucial to find out whether it’s lower or higher than the average market prices. It’s also very important to figure out whether the price is negotiable. This all affects our yield. Determining the price of a property allows us to make solid projections and development budgets.

4. Options

Our Reinvest24 team always looks into the options of an investment property. We investigate to find out if it’s a pure cashflow property or whether there are additional benefits that can be explored. If the property can be developed further, there’s more money to be made. Options like changing the nature of the property from residential to commercial or any other combination can significantly increase the investment yield.

5. Existing contracts

One thing we seriously take into consideration is the existence of any long-term rental agreements. Perhaps 80% of the property is already rented out. That’s very positive for our monthly rental yield. Existing rental contracts are extremely attractive bonuses. But it’s also essential to explore if there are any obligations that can potentially cause issues. For example, a long-term rental contract for a property that we want to renovate or develop in the near future can become an issue.

6. Financing

It’s always good to know if the property comes with any external financing. Some properties are being sold as companies with an existing loan on the property. Investing in real estate in general increases the chances of financing and further developing properties with potential. 

7. Visual appeal

Some properties can have tremendous value as marketing tools despite not being very attractive financially. If there’s curb appeal, or the property has great architectural value, then it’s always something to consider. Even if the project doesn’t seem to be profitable at first, but it has excellent visual appeal, we search for ways to maximise this appeal and turn it into profits. There are always buyers and tenants in the market that are willing to pay a premium for exclusive properties.

8. Limitations

It is also very important to check if the property is in any way encumbered with limitations, obligations or third party rights. Our team conduct thorough background checks to make sure our properties don’t come with any problematic issues that will impede our yield.

9. Market

When making a real estate investment it is also crucial to bear in mind what is going on with the real estate market at that moment in time. Is it rising or falling at this time in this particular location? Based on the answer, we may want to wait or jump right into it!

10. Rental yield

Last but not least, it’s very important to figure out what percentage of the initial investment amount is the rental yield. In other words, we figure out what the return on investment is. Based on that percentage, the real estate investment project will establish its attractiveness.

The 3 types of projects Reinvest24 invest in

All real estate objects are attractive. However, depending on the type of project, a property can become less or more attractive in comparison to other projects. But you already know how to choose the right investment object, right? Keep reading to find out more about property types we are investing in.

1. Rental properties

We select the right property, following the 10 points above. We then negotiate the best price possible. After financing the project, we operate and take care of all the necessary management or renovation needs. After renting out the property, our investors start enjoying their stable profits and passive income. All in all, there’s very little risk involved.

Management is very important with rental properties. It takes expert manpower and insight to succeed. Management includes organising long-term rentals while allowing the property to increase in value over time with small improvements. With our background and experience, it’s child’s play. 

2. Development projects

New developments include real estate that is built for a specific purpose, including apartment blocks, commercial real estate and residential communities. Development projects usually include buying land or an old house. We then develop the property, which includes building and creating infrastructure (roads, water or electrical works). Some development projects also involve converting or processing the property. 

Processing is a value-creating process that entails changing a property’s nature or design to give it a new use. For example, when an old house is turned into residential apartments to create more rental yield and greater profits. That’s the kind of processing we love! Development projects require a lot of capital and have higher risks. These projects have good returns but less monthly yield, as a lot of time is spent on transforming the property. 

3. Store of value 

A store of value is the function of an asset that can be saved, retrieved and exchanged at a later time, and be predictably useful when retrieved. This also applies to real estate that can be stored for later. For example, let’s say there’s a plot of land in an area that will be developed in 5 years’ time. Sometimes it makes sense to buy the land and wait until it appreciates in 3-5 years’ time before deciding what to do with the property.

After reaching the right value, we can decide to develop the plot or land ourselves or sell it for a profit. In any case, having a plot of land can be very profitable, especially if permits and licenses are obtained, which will increase the value of the property significantly when selling it.

In conclusion, we always choose attractive properties with commercial and rental potential that appreciate over time. Each investment project also undergoes a thorough investigation before we publish it on our platform, making sure our projections reflect a good yield and return on investment.
We hope now you got more insights on how to evaluate real estate investment opportunities and how to choose the right investment object. If you’re interested in growing your money check out our current investment projects and become a real estate investor today!

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So you would like to invest your hard-earned money but aren’t too sure how safe it really is? Don’t worry, we understand your reservations and concerns. The last thing you want is to lose your investment. However, Reinvest24 has some solid points to reassure you that your investment is protected and kept safe so that you can enjoy your passive income with profitable results.

1. Your investment is secured by collateral

After Reinvest24 sources the capital for an investment project, the property becomes an asset of a special purpose vehicle (SPV). An SPV has a legal subsidiary status that minimises risks and keeps its obligations. Since every property has its own SPV, all properties remain safe and unaffected by the financial status of other projects. When a property gets purchased, it is also mortgaged by an assigned law firm which takes on the role of a collateral agent. A collateral agent acts as an impartial watchdog, making sure investors’ interests are kept safe.

If a certain criteria is fulfilled according to the collateral agent’s agreement, they receive control over the property in question with the sole task of selling it at the best possible price, distributing the received assets between the investors. So even if something goes south, you can relax, knowing that professionals are doing the best they can to protect your interests. In other words, the property you invest in becomes the collateral.

2. We invest in real estate

First of all, property is our priority. We invest in real estate because we believe in it. Real estate is a valuable asset that always appreciates over time. Combine that fact with our team’s expert finance, IT and real estate insight, and you’ll see your money working for you in no time. Our experienced team and our passion for real estate ensures we make the right real estate investments in every project.

3. Our average return is good

Past performance is not a reliable indicator of future performance. However, if you were to look at our track record, which we seek to uphold, you will see that we have a total combined return of 14.6%* (net yield + capital growth) per year. Our average annualised return indicator includes all exited projects, and is a combination of rental income as well as the increase of our property values.

4. Our past projects speak for themselves

We have had over 10 projects financed by our investors over the years. These past investment projects have made up over 10 million euros in capital, with over 3 million returned to our investors as profits. You can check our exited investments to get an idea of what kind of real estate investments we make.

5. Transparency is key at Reinvest24

All the information about our investments are publicly listed on our website. You can find all the necessary details and contact our support team if you wish to know more about our projects. Prior to investing, you will also receive a comprehensive contract which is yours to review before your capital is put into a project.

6. You can sell your shares anytime

If you wish to pull out your investment or liquidate your assets, you can sell your shares on the open market at any time. Your money, including earned dividends, will be paid straight into your bank account. You can also use your earned profits to reinvest in the future or diversify your portfolio even further.

Investing your money raises a lot of questions, the main one being “is my money safe?” Reinvest24 makes sure every project and real estate investment turns out to be a successful one by using our insight to make the right choices. In any case, you can rest assured that your investment is protected by the property you invest in as collateral. You can also trust in our many years of experience in real estate investments. Intrigued? Discover our investment properties and become a real estate investor today!

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Investing in real estate is one of the most exciting and profitable investments in the world. Everyone needs a place to call home, or a place for business. So, naturally the demand for properties is always there. With the world’s population growing at around 83 million per year, real estate values are bound to increase as well. However, investing in property also involves a lot of capital and insight. So, let’s talk about the pros and cons, and also highlight the alternatives to becoming a real estate investor.

What are the pros and cons of being a real estate investor?

In most cases the greatest advantage of investing in real estate is the almost guaranteed capital growth. It’s an exciting business sector, and all forms of properties are always in demand. But like with any investment, you can expect some downsides and risks as well. No investment comes 100% guaranteed, but real estate investments definitely come close.

Pros:

• Low risks with low volatility
• Monthly cash flow
• Capital growth
• Chances of increasing profitability

Cons:

• High entry barrier
• Resource intensive
• Time consuming

Focusing on the positives

Investing in real estate means low risks with low volatility. For example, with Reinvest24 you can invest your money now and enjoy passive income immediately. Our average Total Combined Return: Net Yield + Capital Growth is 14.6%, based on all exited projects. Low risk, but with high reward. You can also enjoy a monthly cash flow by choosing to invest in rental properties. Did you know that the gross rental yield in Estonia is one of the highest in Europe? 

Furthermore, you can always rely on capital growth in the long term. Real estate prices always rise. It’s a fact. The great thing about real estate is that it will always grow in value. You also have chances of increasing profitability even further by using leverage. You can apply for cheap bank loans and credit to partly finance your real estate investment.

Highlighting the negatives

One of the greatest disadvantages of investing in real estate is the high entry barrier. When it comes to big development projects, it’s usually a very exclusive game. The more attractive the property, the harder it will be to invest in it. Becoming a real estate investor is also very resource intensive. It’s not all about money. You also need support from real estate experts, notaries and construction companies.

The amount of energy, effort and manpower that goes into real estate is overwhelming. It’s a very time-consuming process. You will need to search for tenants, take care of maintenance 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?

What alternatives are there to investing in real estate?

So, you like the idea of becoming a real estate investor but the above makes you wonder if there’s another option that doesn’t quite include so many (complicated) disadvantages. You’re right, there are some other alternatives that let you enjoy the perks and lessen the downsides of investing.

Dividend stocks

Dividend stocks can grant you passive income, but you need to be knowledgable. To successfully invest in real estate through dividend stocks you need a deep understanding of the market, mixed with a higher-than-average risk tolerance.

Crowdfunding

Crowdfunding is an excellent way of investing into something big, together with the help of other investors. When it comes to crowdfunding in real estate, you can expect a good yield but your risk is also higher than with average real estate investments. Many real estate crowdfunding platforms actually mediate loans.

In other words, when you invest to finance a real estate development project, you’re actually investing in the company and not in the property itself. Furthermore, investment periods are usually fixed, and when investing into short-term loans you have to constantly stay on top of new opportunities to make sure your capital is producing the right results. This requires a lot of time and energy when it comes to due diligence and research.

Reinvest24

Reinvest24 is a unique real estate crowdfunding platform in Europe. Our team includes finance, IT and real estate professionals with many years of experience. Our platform doesn’t mediate fixed-term loans. Instead, we provide everyone the opportunity to invest in attractive real estate, benefiting the same way as owning a percentage of the property. We invest in rental properties with the goal of creating passive monthly income for all our investors.

You can become a real estate investor by investing as little as 100 euros. In addition to the passive income from our monthly rental yield, your invested capital is directly tied to the real estate itself. This means you also earn profits from the increase in value of the property over time, especially when it gets developed. Furthermore, when you invest in a real estate project with Reinvest24 you get shares, which you are free to sell on the open market at any time.

Become a real estate investor today

Investing in real estate is a profitable business. But it involves a lot of blood, sweat and tears (as well as capital). However, the good news is that these days you can also become a real estate investor and enjoy passive income by simply investing in properties through crowdfunding investment platforms like Reinvest24. Start investing in real estate today, explore our exciting investment properties!

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Estonia, Latvia and Lithuania have received the appellation of ‘Baltic Tigers’ for good reason. When it comes to Estonia, for example, the country has been flourishing since its independence from the Soviet Union in 1991. Today, Estonia ranks 3rd in the European region when it comes to economic freedom. Estonia’s focus on the IT sector and startup world contributed to the high-income economy that is currently among the fastest-growing in the EU. 

Why is the economy in the Baltic states so solid? 

Almost every industry has flourished over the last few years. Salaries are growing, and so do the prices. In Estonia, housing prices keep increasing along with purchasing power. Overall, the Baltic region’s House Affordability Index (HAI) has increased. It means that more and more people can afford to buy a home for themselves. The HAI for each Baltic capital in the third quarter of 2018 was 134.3 for Vilnius, 186.0 for Riga, and 154.3 for Tallinn (a 5.8 point increase compared to 2017). 

Furthermore, when it comes to Estonia, a study by Swedbank highlighted how ‘rapid wage growth outweighed growing apartment prices and interest rates.’ All this talk about HAI increases is good news for the Baltic states since it indicates that the Baltic economy is well alive and developing. The demand for rental properties also increased with the influx of foreigners travelling, relocating and investing in the Baltic states. 

Estonian startups received record investments in 2018

Estonia has been hitting headlines when it comes to startups, especially tech startups. Companies like TransferWise and Taxify have been transforming the world for a while, but more innovative companies are on the rise. It was a record-breaking year for Estonian startup investments in 2018. Merely six months into the year, the investments were only 30 million euros short from the total investments made in 2017.

The increasing international investments into Estonian startups, especially tech startups, has greatly contributed to the growing economy in the Baltic states. International investors keep finding new opportunities in the Baltic Tigers. And the recognition received from the media is encouraging more and more people to trust Baltic businesses offering innovative solutions.

The Baltic economy has a good balance

According to a Baltic States real-estate market research by Swedbank, ‘Annual average net wage growth in the Baltic capitals remained rapid in the third quarter of 2018’ with salaries increasing close to 10% in Tallinn and Vilnius, and 8-9% in Riga. With the entire Baltic region’s increased salaries, it seems logical to conclude that property prices will also keep growing. On the other hand, the growth in salaries has also stimulated consumption, which in turn stimulates inflation. 

Whereas the dangers of inflation can set into a panic, one of the best ways to fight against inflation still lies in property investments. Putting your money to work for you by investing properties is far better than keeping it in a low-interest savings account. Considering the positive outlook of the Baltics states, we are confident that Reinvest24 investment properties are a great way to increase your long-term wealth. Besides, the monthly rental yield and capital growth is a great addition to your sustainable investment portfolio.

Economic growth in the Baltic region has accelerated to 4.2% YOY

There has been a strong demand for intermediate goods and services in the domestic production. Additionally in Estonia, private consumption has accelerated in 2018 due to the rapid wage growth and income tax reforms. In the third quarter, household consumption increased by 4% in real terms. Furthermore, the Baltic region’s investments have also increased by 4%, contributed primarily by improved investments from non-financial corporations. In comparison, the government sector’s investment growth decelerated slightly.

Hence, the robust domestic demand in the region accelerated the growth of imports to 6%, whereas exports grew by only 1% YOY. The Baltic states’ trade balance is still positive, but it has gone down compared to the levels in 2017. Domestic demand is strong. But it’s still less than that of the GDP value, which helps keep Estonian current account balances positive.

The Baltic states’ economy in 2019 looks promising

Although government investment growth has decelerated this year. As expected, its share in GDP is expected to remain high in the coming years. Therefore, the Estonian government investments will continue to stimulate economic growth relatively strongly. The Estonian government investments’ share in the national GDP is the highest among the EU member states.

In the third quarter of 2018, Estonia’s GDP growth accelerated to 4.2% YOY in real terms. Combined with the previous quarter’s GDP increase of 0.4%, it’s a promising sign that things are looking up. Swedbank conducted another Macro Focus research stating, ‘The Baltic economies will greet the New Year in a balanced state,’ leading us to believe that things will remain steady as we enter the first quarter of 2019.

Invest in real estate in the Baltic states 

In conclusion, Reinvest24 is proud to confirm and share exciting news that the economy in the Baltic region is growing and will probably continue to do so. Our real estate investment platform has been providing a total combined return of 14.6%. However, with so many studies pointing towards further economic growth, 2019 feels like a promising year to keep investing in Baltic real estate. Remember, don’t let your money lose its value. Invest in real estate in the Baltic states starting from 100€.

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Real estate values generally always increase in the long run. The gentrification of cities, growing population rates and increasing demands for accommodation around the world are causing prices to move upwards each year. Our expertise is based on the European real estate market. And from what we know, the price index for real estate in Europe has been going up over the past 5 years, reaching an all-time high of 111.42 index points in the first quarter of 2018.

Growing populations spike demand

According to the most recent projections by the United Nations, the global population will rise from 7.6 billion to 11.2 billion people by 2100. It’s safe to say that the world won’t get any bigger. But it definitely will get more crowded. This all plays a part in determining the increases in real estate prices. The emergence of new destinations and markets are also playing a role in growing property prices.

For example, in the United Arab Emirates, Abu Dhabi only had a small population of 25,000 people back in 1960. However, today it’s a booming metropolis with almost 2 million people. That’s a lot more people who need housing. Understandably, real estate prices also increased together with the demand and population.

Some people can afford more

This obviously depends on the country, but in our market here in Estonia, things are looking up. A recent study about the housing market in Estonia, conducted by leading banking company Swedbank, discovered that households have more purchasing power. The growing confidence of real estate buyers also increases the demand for residential property as well as investments in property. 

According to Statistics Estonia, on 1 January 2017, there were 706,000 dwellings in Estonia, of which 76% were occupied. Compared to 1922 when there were 252,000 dwellings in Estonia, the number has nearly tripled. When people have more purchasing power, this increases the demand for property. Hence, prices go up when the supply of desirable property is limited.

Nevertheless, even if some countries are experiencing an increase in their GDP, the price growth of the property is still a lot higher than the growth of wages. And even the growth of inflation. According to Eurostat, house prices in the EU went up by 4.5% at the end of last year (2017), yet salaries (at 2.02%) and inflation (currently at 2.1%) are lagging behind. So, prices are increasing, but not necessarily because people are getting richer. It’s definitely more about the increase in demand.

Keeping up with inflation

Real estate prices give inflation a run for your money. As mentioned above, the inflation rate in Europe is currently at 2.1% according to Eurostat. And at the moment, the real estate growth rates in Europe are well passed the 2% mark, they’re actually over double. So, for anyone worried about their money not having as much purchase power in the next few years, investing in real estate is a great way to fight the system. And ensure an increase in wealth over a long-term period.

Investing in real estate is definitely one of the safest ways to fight against rising inflation. With Reinvest24, you can enjoy a 14.6% average annualised return based on rental yield (ca. 8%) and market growth (ca. 6%). Furthermore, the world’s population growth and its correlation with real estate prices keep things in check with the good old law of supply and demand. This means you will surely benefit from capital growth and beat inflation over the years.

Globalisation means the world is your oyster

We live in a very international world these days. Most borders are open and with the Schengen Agreement, residents from any European country are free to travel, live and work in other European countries since the internal border practically don’t exist. Hence, you have people moving to other EU countries, increasing the demand in some European markets more than others. You also have domestic growth with people moving into larger cities from smaller towns and rural areas, which increased the demand and price of real estate in urban areas.

Globalisation also means that wealthier people can move to less expensive countries to buy or invest in a property where they will get more value for their money. At least in Europe, where you can live anywhere and definitely buy anywhere if you’re an EU resident. The world is simply at your feet when it comes to real estate. In Europe, 2.5 million homes belong to people living in another EU Member State, and several million Europeans no longer live in their country of origin.

Reinvest24 provides opportunities for international investors from anywhere in the world to easily invest into the Baltic real estate market. You can invest in property with the biggest development potential and enjoy a monthly rental yield without ever needing to visit the real estate you invest in, or deal with the property management. Our team of real estate professionals take care of all the everyday maintenance, while you sit back and enjoy the profits of your investment.

Real estate prices will keep rising

Globalisation, inflation, population growth, increasing GDP and personal income/purchasing power are all increasing the demand for real estate and setting up a trend for its growth. If you invest in real estate that has a good location and development potential, you can easily receive a 100% profit from capital gains within 8-10 years. What’s more, you can enjoy rental yield every month, which allows you to cover management costs and keep reinvesting.

So, indeed, there are many reasons why property prices grow and always will, but the greatest correlation is still between the growing worldwide population and the consequent increase in real estate prices. After all, we all need a place to call home. From a financial point of view, investing in property can help you beat inflation.

Invest in real estate today

Are you looking to make an investment in real estate? The Reinvest24 platform is a safe place to invest your money in European property for long-term capital growth. The growth of our investments is supported by fundamental analysis and research. Our Reinvest24 team constantly analyses the current real estate market, searching through all the investment trends and choosing only the best real estate investment opportunities available.

By investing 15K into real estate with Reinvest24, you can become a millionaire in 30 years. Simply by reinvesting your 8% rental yield and capitalising on ca. 6% market growth each year, you will have 1,000,000€ before 2050. That’s the beauty of making a long-term investment in real estate. Discover our exciting investment properties with attractive monthly rental yields and high returns from capital growth when exiting the investment, and become a real estate investor today. 

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