Category Archives: Real estate

LendSecured real estate crowdlending platform overview

By Real estate, , , , , , ,

LendSecured is a real estate crowdlending platform, based in Riga, providing only real estate backed business investment opportunities.

LendSecured was founded by two entrepreneurs, who have built a successful secured lending business in Latvia, specializing in real estate backed lending to businesses. The return they have brought to stakeholders of their business was on average 10% annually. The emergence of technological solutions has inspired the founders to build an investment platform and offer the same lucrative investment opportunities for a wider public.

LendSecured platform was created in 2017, as a private tool for investors, enabling them to monitor their loan portfolios. During these years, the platform has been developing its core business (mortgage lending), gathering experience and building loan portfolios.

Since 2017 the platform was accessible exclusively for high net worth investors, but now they are opening it for the public.

The core pillar and philosophy for LendSecured is to minimize the risks. LendSecured feels responsible for their clients and believes that if investors have trusted them with their funds, then it is their duty to offer the safest possible investment opportunities. In order to minize the risks, LendSecured publish investment projects with low LTV (Loan to Value ratio). The lower the ratio, the lower the risk.

LendSecured benefits from debt collection license (Loan MGMT Ltd.). Besides that, LendSecured is the member of European Crowdfunding Network since 2020.

In order to ensure the security of the clients funds LendSecured has partnered with the prominent payment solution provider Lemonway, which is a Fintech founded in 2007 and regulated by Banque de France. Lemonway is obliged by the regulator to hold all money received on behalf of its clients on a separate account, which is held with BNP Paribas (the largest bank of France by value of assets), thus investors of LendSecured can have a peace of mind, as their funds are held safely on a segregated bank account monitored by French Central Bank. This fact totally excludes the chance of fraud, which recently has occured on other platforms in P2P sector.

Moreover, Lemonway is doing all compliance checks, KYC & AML procedures of all funds credited to LendSecured’s account. This helps LendSecured to speed up the investment process and be assured that they comply with all the latest regulations set up by the EU.

If you invest for the first time at LendSecured don’t forget that you can get  a 0.5% cashback bonus for the investment amount.

Who can invest at LendSecured?

Anyone who is above 18 years old can become a client. To register, you need to submit a copy of your passport or ID document and wait until our team completes your identification process. Once all KYC and AML procedures are done, you can invest!

Every investor must have an opened bank account in the Single Euro Payments Area (SEPA).

Investment deals on LendSecured platform

Lendsecured accepts projects with Loan-to-Value (LTV) of 50% on average, maximum reaching 70%. The lower the LTV, the smaller the risk to an investor. The LTV of 50% means that the value of a real estate is as twice as high as the loan amount. This means that in a situation, where the loan ought to be recovered from the sale of the real estate, the value of the real estate will be more than enough to cover the amount lent.

All mortgages can be monitored online on the Land Register of Republic of Latvia: www.zemesgramata.lv.

There are three repayment types that are featured on LendSecured:

  • annuity– where interest is paid monthly together with the loan principal amount spread over the life of the loan.
  • bullet repayment type, the most common type, where borrower makes interest payments monthly, but principal repayment is made in one full payment before the end of the loan maturity.
  • full bullet where there is no interest, nor principal payments during the life of the loan. The sum consisted of entire interest and principal is repaid at the end of the maturity date.

The minimum investment amount on the LendSecured platform is 50 EUR and the average loan term is 12-18 months.

 

BitOfProperty peer-to-peer crowdinvesting platform overview

By Real estate, , , , , , ,

BitOfProperty is a blockchain based real estate crowdinvestment platform,making property investing affordable and increasing liquidity of the investments. The company is headquartered in Singapore and has a subsidiary inEstonia.

BitOfProperty is on a mission to bring real estate investing closer to people. Due to typically high minimuminvestments, many people are unable to personally invest in real estate as an asset class. Additionally,real-estate can often take more personal involvement through the cycle of renting out a property.BitOfPropety’s goal is to provide everyone the ability to invest in real estate.

If you invest for the first time at BitOfProperty don’t forget that you can get € 10 signup bonus to make your first investment, more details HERE.

All assets available on BitOfProperty are carefully screened and evaluated internally prior to listing on the platform. During the evaluation, the team of BitOfProperty will assess properties from a technical, financial and also legal point of view. When the criterias are met and support the property to be listed, the investment term period is set and the property is made available on the platform.

Investing

In order to make investments on BitOfProperty platform you need to verify your profile and add funds to your account. If your verification has been approved by the platform, you can go and explore properties listed and start making investments.

All properties are available for browsing on the Properties page. Clicking on a specific property will take you to an individual property page where you can find more detailed information, such as pictures and description, monthly distributions, capital allocation and all other supporting documents for the investment opportunity. BitOfProperty wants to ensure that you have all the necessary information to make an informed decision.

If you decide to invest in a property, make sure you have verified your profile. After successful verification, follow these steps:

1) Top up your Wallet using a wire transfer with at least the amount you would like to invest. Instructions for adding funds can be found in the Wallet page.

2) Invest either in an ongoing crowdfunding campaign or buy available shares the investors are selling from other properties.

There is no minimum investment amount set, as this may vary depending on the lowest share prices available on the market. Also, there is no cap on the maximum investment amount this is dependent on the maximum amount of shares available on the platform.

Before making an investment, you need to transfer money to your account on the platform. Once the money is on your platform account, you can choose a property to invest in. For the crowdfunding deals, the amount invested will be reserved at first and when the total investment amount is reached, the amount will be transferred to SPVs bank account by BitOfProperty and the property acquisition will be carried out. For the over-the-counter marketplace deals, where you buy shares from other investors, you would have to fill out a Buy Order. Before that, make sure you have sufficient funds in your Wallet. Once a matching sell order has been found, BitOfProperty will contact you directly to complete the transaction.

If the investment amount of the campaign is not reached, the money is sent back to your wallet and you can use it to invest in other investment opportunities or transfer it back to your personal bank account.

When you make an investment, your share will be calculated by dividing the amount you invested with total investment amount of the deal. Both monthly rental income and capital gain will be distributed according to the share you own in the property. Rental income will be distributed every month, whereas, capital gain will be distributed in the end of the investment term. If you sell your share within the investment period, you will receive capital appreciation on your share earlier, assuming that you were able to sell the share with a profit.

Investment term for the opportunities is usually between 3-5 years. The investment term can be shorter or longer, depending on the situation of the real estate market.

Fees

There are no transaction fees for the investors.

Investors are only charged with the Management Fee of 10% from the rental income. In case there is a vacancy period with no rental income, the Management Fee will not be charged.

 

 

New Rendity project – Josef-Ruston-Gasse 28

By News, Real estate, , , ,

Rendity informed that a new investment opportunity is available at the portal to all registered participants: Josef-Ruston-Gasse 28.

Investment type: Development project
Period: 24 months
Fixed interest per annum: 6.5%
Distribution: Yearly
Financial intrument: Qualified Subordinated Loan
Issuer: Cardiometa Research GmbH
Minimum investment amount: 500 EUR (decreased from 1000 EUR, only for this project)

If you invest for the first time at Rendity don’t forget that you can get 25 EUR signup bonus for your first investment, more details HERE.
Josef-Ruston-Gasse

Rendity Josef-Ruston-Gasse project

Rendity Instant Interest

Investors receive from the deposit of the investment the Rendity Instant Interest, which will be paid after the funding period. With the Rendity instant interest, you not only receive interest on your invested capital for the loan term, but also for the time before that. Thus, you already receive interest for your investment during the funding period. You will receive your Rendity Instant Interest at the end of the funding period.

Project details

The Josef-Ruston-Gasse 28 project is a new building project in 1210 Vienna. In the course of the project 69 residential units with a weighted total usable area of 3,328 m² and open spaces (loggia/terrace/gardens) of 913 m² will be built. The apartments will be grouped around two open courtyards on four floors. The project has already been approved and 10 apartments have already been sold prior to the start of construction (Q2 2019). Further reservations have already been made.

The individual apartments are between 36.92 m² and 109.33 m² in size and all have open spaces. The majority of the project (57 out of 69 residential units) consists of efficiently designed two-room apartments that appeal to both owner-occupiers and purchasers of condominiums. The remaining 12 units are 3- and 4-room apartments, which are increasingly aimed at couples and families.

 

ReInvest24 – Real estate investment platform overview

By Real estate, , , , ,

ReInvest24.com is a real estate investment platform that allows investors to invest into properties in smaller amounts than it would be required, if they would be a sole investor and start benefitting from their investments almost immediately. Investors also have a better opportunity to diversify their investments between different properties and keep the investments safe.

Reinvest24 gives you the opportunity to diversify your investments in residential and commercial properties in multiple countries.

Reinvest24 OÜ, located in Tallinn, Estonia, was founded in 2017 and launched the Reinvest24 platform in 2018.

Reinvest24 team is working with the real estate market since 2005 and during this time they were involved with project development, investments in real estate, property sales and maintenance.

How it works and who can invest?

There are 2 ways your investment is working for you and both are happening at the same time:

  1. You get an instant income from the cash flow the property is generating, which is being regularly transferred to your account.
  2. You benefit from the increase of the value of the property. You get this money right after you sell your shares.

When selecting properties ReInvest24 runs a rigorous list of criterias and filters and creates a risk profile for every potential property that includes:

  • Liquidity Index of the property – how easy is it to sell this property, should it be necessary or profitable
  • Vacancy Index – how easy is it to find a tenant
  • Price Growth Expectation – the estimated price growth of a property of this type in this area.

Reinvest24 platform allows everybody to invest, who is older than 18 years old whose active legal capacity is not restricted. In order to proceed to investment stage, you need to verify yourself.

Before making an investment, you need to deposit funds to your wallet on the Reinvest24 platform. When it is done, you can choose a property to invest in. The amount invested will be reserved at first and when the total investment amount is reached during the funding period, your investment will be transferred to the SPVs bank account by Reinvest24. In ‘My Wallet’ you can see the amount that has been reserved. When the target sum is funded, the reserved funds will be moved under funds invested.

If the investment amount is not reached, the funds reserved by the platform will be released and you can use it to invest in other properties.

Investment minimum and maximum amount

The minimum investment amount set in Reinvest24 equals to 100 EUR. There is no maximum investment amount to investor.

 

 

 

New investment project in Latvia announced by Bulkestate – Luku Street II – Launch 17 september 2018

By News, Peer-to-Peer Lending, Real estate, , , ,

Bulkestate logo

Bulkestate announced today that it is preparing to launch a new investment project in Latvia, Riga.

Launch time: Monday / 17 September 2018 / 16:00 (EEST)

The property is located in Mārupe, which is one of the closest private housing areas to Riga. The main advantage of the region is the convenient traffic to the city centre, international airport and the seaside, at the same time preserving the green neighbourhood characteristic of the outskirts of the city.

Project information:

Interest rate: 13%
Investment target: 58,000 EUR
Loan period: 12 months
Loan to value: 50%
Security: Mortgage

New investment project in Latvia announced by Bulkestate – Nometnu Street – Launch 28 august 2018

By News, Peer-to-Peer Lending, Real estate, , , , , , , ,

Bulkestate logo

Bulkestate announced today that it is preparing to launch a new investment project in Latvia, Riga.

Launch time: Tuesday / 28 August 2018 / 17:00 (EEST)

Project

Bulkestate OÜ has signed a purchase agreement for a property (land 2,077 square metres and building) located on Nometnu 18, Riga. The property is a part of Riga’s famous Art Noveau collection, a 4-storey apartment building in the Āgenskalns district. The surrounding area is a mix of residential houses and light commercial facilities. It is a convenient location, only 10 minutes away from the city centre and 15 minutes from the Riga airport. The building was owned and managed by the University of Latvia as a residential property.

The property includes 12 apartments and two commercial premises as well as an adjacent wooden building. All apartments and the wooden building have been reserved by buyers with contracted sales revenue 866,000 euros and 86.6 thousand euros paid to Bulkestate as a reservation deposit.

Location, quality of the building and significant discounts to the market price have facilitated fast sales process and high commitment from the buyers to complete the purchase.

Commercial premises will be sold after completion of apartment sales process. The expected sales price for these is 250 thousand euros.

Loan

The loan amount will comprise EUR 800,000 and will carry a 17% annual interest rate.

The loan will be used to finance payment of purchase price and transaction costs and will be repaid by payments for sold apartments.

Security

The loan is secured by a first rank mortgage on the building. The market price of the building has been defined as EUR 1,400,000 (LTV ratio is 57%).

The borrower

For technical reasons, loan agreement will be signed by LP Private Property SIA (a company controlled by Bulkestate OÜ) who will lend these funds to Bulkestate OÜ to pay the sellers of the building and associated transaction costs.

All funds received by Bulkestate from investors will remain at Bulkestate and will be directly used to complete the acquisition of the property.

Repayment schedule

Loan and accrued interest will be paid within 3 months.

*Bulkestate incentive payment

For this project Bulkestate offers the following special incentive pay (cash-back) for investors:

  • Investors making EUR 10,000 or larger investment will receive 1% incentive payment from the invested amount (representing 4% annual interest rate), while
  • Investors making EUR 25,000 or larger investment will receive 2% incentive payment from the invested amount (representing 8% annual interest rate).

 

Crowdestate real estate crowdfunding marketplace overview

By News, Peer-to-Peer Lending, Real estate, , , , , , , ,

Crowdestate logo

Crowdestate is a real estate crowdfunding marketplace offering high-quality, pre-vetted real estate investments. Their close relationships with different local real estate developers and brokerage companies give them access to a large number of off-market real estate investments. Only the best investments surviving the due diligence process are published for investing.

While all relevant information required for making proficient investment decisions are attached to each investment, all investment decisions are made by the investors based on their personal investment preferences and risk tolerance. Extensive background information, business plans, and financial models combined with a low 100 euro minimum investment are making real estate investing quick and easy.

Online marketplace and underlying technology provide access to the real estate investments regardless of your location or time zone.

At the same time, Crowdestate is a perfect partner for real estate entrepreneurs having a bright investment idea but lacking etiher capital or liquidity. Crowdestate is their professional funding partner, consolidating hundreds or thousands of smaller investment orders into a single lump sum.

How it works and who can invest?

You should be a registered user to gain access to the investment opportunities. Before investing, you are expected to provide Crowdestate with necessary information and confirmations required by the law.

As a registered user, you can open one or several investments accounts (for instance, one for your personal holdings and the other for your investment company). All your transactions (investments, distributions, payments etc) will be reflected on your investment account.
You should have sufficient free funds on your investment account to start investing. Funds can be added to your investment account through wire transfer, please always use investment account’s unique reference number to ensure smooth transactions.
Please review investment opportunity before making any investment decisions. Crowdestate’s investment opportunities are of different length, risk profile and return expectations. Please consider the suitability of any investment opportunity to your personal risk tolerance and investment horizon. If the available opportunity does not match with your preferences, please do not invest in it. We are regularly adding new real estate investment opportunities and in time you will find a suitable one.
If you have found a suitable real estate opportunity, please start investing by entering your investment amount and concluding the necessary agreement. At the moment of signing the agreement, Crowdestate will make the reservation in your investment amount on your investment account.
In case the funding campaign is successful (the investment opportunity gets funded before the deadline of the funding campaign), Crowdestate will proceed to concluding the investment transaction. During the settlement process, your investment amount will be debited from your investment account and transferred to the Sponsor.
In case the funding campaign fails (the investment opportunity falls short of full funding before the stated deadline), your investment agreement and the reservation on your investment account are automatically cancelled.
Investors from all countries are welcomed in Crowdestate loans except US citizens (due to the regulations the US government has set).

Investment minimum and maximum amount

The minimum amount of any single investment is usually EUR 100,00 (one hundred euros), and investments can be made with 100 euro intervals (i.e 100, 200, 500, 1000 euros etc).

Any new investment opportunity opens with a 24 hour prebooking period. This is a period where one investor can make one investment order within the preferred maximum investment amounts. The final investment amount will be determined by the number of prebooking investors. It will remain between 100€ and your submitted maximum investment amount.

Different types of capital and their meaning

Equity is the capital placed in the company by its owners. The owners are paid the last, after all liabilities have been paid.

Mezzanine is a hybrid capital (subordinated loan or preferred equity) that lies between equity and secured loan. It has a lower risk than equity – mezzanine financing is repaid before equity, but after all bank obligations have been fulfilled. In addition to the usual interest, bonuses that depend on the profitability of the project may be added to the mezzanine capital.

Unsecured loan is a layer of capital between equity and secured loans. They are riskier than secured loans, but also more profitable. Unsecured loans are repaid to the owner of the capital after all secured debts have been repaid.

Secured loan is the safest and thus the least profitable type of capital. The loan is secured against a collateral, which is usually a mortgage on the assets of the company or some other type of collateral. Secured loans are always repaid in the first priority.

Different types of real estate investment and their meaning

Rental – Investments to projects with available cash flow.

Development – Investments to property development projects (the construction and sale of buildings).

Speculative – Risky early-stage investments to a property where the main parameters of the development project are known, but they can change significantly during the implementation of the project (e.g. the development process of the detailed plan and its duration as well as building rights).

Various asset classes and their meaning

Working capital is a capital needed for financing the running operations of a company.

Investment is a capital placed in the development of a company, in particular in its main assets.

Bridge financing is a temporary short-term financing, usually later replaced by a long-term and more stable financing solution.

M&A is financing mergers and takeovers of businesses.

 

New investment project in Latvia announced by Bulkestate – Barona Dainas II – Launch 10 july 2018

By News, Peer-to-Peer Lending, Real estate, , , , , , ,

Bulkestate logo

Bulkestate announced today that it is preparing to launch a new investment project in Latvia.

Launch time: Tomorrow / 10 July 2018 / 16:00 (EEST)

The second phase of the project ‘Barona Dainas’ follows as the borrower has successfully completed the purchase of the property.

Interest rate: 18%

Investment target: 50,000 EUR
Loan period: 12 months
Future loan to value: 33%
Security: Equity

New investment project in Latvia announced by Bulkestate – Launch 6 july 2018

By News, Peer-to-Peer Lending, Real estate, , , , , , ,

Bulkestate logo

Bulkestate announced today that it is preparing to launch a new investment project in Latvia.

Launch time: Tomorrow / 6 July 2018 / 16:00 (EEST)

The property is a 2200 m2 large land plot on Lūku Street, in Mārupe district. The land plot is intended for private house construction. Mārupe is one of the closest private housing areas to Riga.

Interest rate: 13%

Investment target: 35,000 EUR
Loan period: 6 months
Loan to value: 49%
Security: Mortgage

5 essential steps to invest buying a property

By Real estate, Smart money, , , , , , , , ,

Real estate invest

The first steps as an investor in the real estate world can be risky and complicated. Like any new approach, there is a learning process and by allocating time and studying the problem, the results will be positive. Before you buy a property, here are some steps to keep in mind.

Prepare the advance and set the rates for the loan

Financing through a loan an investment in a property is not the same as the financing of your own home. If you decide to invest and buy a property, expect a fairly important advance. Get ready the advance and study bank lending offers. Funding conditions are very important.

Decide if you want to rent or sell the property

Renting or selling an investment involves different strategies, so it is important to know what method you intend to apply. If you bought a property and you want to sell it after you arrange it, it is a quick way to earn capital. Renting requires shorter repairs and smaller investments, but it has a much lower return. The gains accumulate over time and the investment is amortized over a long period of time. Rental properties involve long-term commitments to keep tenants, but provide a long-term secure income.

Understand the local economy

Studying the current situation may be helpful. If you intend to rent, it is important to think long-term. Is the city potentially economical, or is the local economy declining? You need an economy that attracts potential tenants who will pay for long-term rent or you can always find quality buyers. Researching this economic situation will take time. Nobody knows the situation better than a local. Create relationships to understand if it is advisable to rent or sell a property. You can start investing in real estate in an area that will be familiar, close to your resentment.

Study the market

If you like a building, look for similar properties on the market. It is helpful to orient yourself according to the market price. Make a comparative study to see at what price you could rent your property, compared to other similar properties. Do not focus only on pricing. Verify if certain properties are for long available for sale on the market, then there are reasons why they are not leased. If real estate agents offer discounts, this indicates a market with few buyers. If the prices are high and few properties are available then the market is weak in quality offers and there are many buyers, that is, you have to compete.

Find out the costs for repair and maintenance

When buying a property, you also have to estimate the costs for repairs and improvements so that it is suitable for rent or later sale. Call a specialist who can find hidden building defects. If you intend to resell, evaluate correctly what costs are involved in the arrangement of the building. External repairs, painting, overhauling are much cheaper as structural defects or electrical network reconfiguration. Take into account not only repairs but also maintenance costs. If you want to resell, then you have to include these expenses in your plans, so you will not to lose. If you want to rent, avoid major repairs and renovations. Renting will bring long-term income, and the investment should not involve large expense.

error

Enjoy this blog? Please spread the word :)