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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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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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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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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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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