Tag Archives: real estate

ReInvest24 – Real estate investment platform overview

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.

 

 

 

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Crowdestate real estate crowdfunding marketplace overview

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.

 

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5 essential steps to invest buying a property

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.

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Envestio peer-to-peer crowdinvesting platform overview

Envestio logo

 

If you invest for the first time at Envestio don’t forget that you can get € 5 and a 0.5% cashback bonus for the investments made in the first nine months (270 days), more details HERE.

 

Started as a private investment fund, now Envestio is a modern crowdinvesting platform, which offers new ways of making investments in traditional and innovative investment projects. Envestio offers investors premium level investment opportunities, which were carefully chosen from many applications and thoroughly studied by Envestio analytical team. Entrepreneurs from different industries can apply for structured financing at Envestio platform and quickly receive it from the pool of registered private investors. Envestio takes care of the transparent full-cycled fundraising process, and ensures honest and unbiased information exchange between all participants of every investment project.
In the Age of Internet crowdfunding concept swiftly became popular as an alternative way of finding necessary financing for different projects. Unlike the traditional bank financing, crowdfunding is highly decentralized concept, where many investors are participating in each project with investments of small or moderate size. Crowdfunding is being used to finance project of different size and nature, such as commercial ventures, cultural and charity events, scientific research, development of new products, etc. In many cases, people, contributing to a crowdfunding project are not expecting a monetary return, especially in case of funding cultural or charity project, or the return is clearly symbolic, like “thank you” booklet or CD.

Since its establishment in 2014, Envestio has been investing funds in three industries: real estate, energy, cryptomining. A new step into other business area was made in the end of 2017. As of April 28, 2018 an innovative business of cryptocurrency mining constitutes the biggest portion of Envestio’s historical portfolio with 42% of total funds invested, followed by energy sector with 27%, and real estate projects with 27%. 3% were invested in other industries.
As of April 30, 2018 Envestio has successfully conducted and exited 20 investment projects, by fully receiving back principal and interest from our cooperation partners. The total sum of provided capital exceeds EUR 6,3M, while accumulated income from interest exceeds EUR 1,7M level.

What type of investments can be made?

– Crowdinvesting
Crowdinvesting is somewhat more specific than ordinary crowdfunding as it is related to funding business ventures, newly established or already existing companies with a straightforward purpose of earning interest on invested funds. Certain number of investors join a pool to complete the announced need of a project or company for specific type of funding. Profits or revenues are distributed to them according to previously approved schedule and proportionally to the share invested by each investor. Most crowdinvesting platforms allow their participants to start investing from very fairly small amounts, such as 50 or 100 EUR. Ordinary people received a great alternative to traditional bank deposits, which are noticeably less flexible and profitable than investments made through crowdfunding platforms.
– Bridge investing
Bridge financing is an interim financing option used by companies and other entities to solidify their short-term position until a long-term financing option can be arranged. Bridge financing normally comes from an investment bank or venture capital firm in the form of a loan or equity investment. This type of financing only occurs when a company’s runway is shorter than its future financing options, and it needs to remain solvent in order to obtain such long-term financing.

Who is eligible to invest?

All adults may become investors at Envestio. With the minimum investment amount of only 100 EUR, the idea behind Envestio is that everyone should be able to participate in different innovative and traditional investment projects.
It is free to register at Envestio and start investing using the platform.
Investors do not pay any fees for their investment at Envestio either. Therefore, the entire payment is used for the investment with no deductions.
In some specific cases there are one-off fees, associated with international bank transfers.

In what currencies can investments be made?

Investment accounts of Envestio participants are maintained in EUR, and money payouts to Envestio participants are done in EUR as well. Currently there is no blockchain/token technology used behind Envestio operations. Envestio does not convert invested funds into any kind of crypto-currency.
At the moment, Envestio is not accepting credit cards as a mean of adding funds to Envestio investment account. This possibility is still being analyzed in order to comply with AML legislation and be economically viable for Envestio business. Also, it is not possible to add funds by Western Union, crypto-currency, or any kind of electronic money transfer. Envestio portal accepts only safe bank transfers, done by Envestio participants from their private bank accounts.

Investing

You do not need much capital to invest successfully, you can also create your own diversified investment portfolio at Envestio step by step. Indeed, you can start with small investments from 100 EUR in single project and expand your portfolio over time, you can reinvest profits from successful investments in new projects, etc. As a result, your portfolio will become broadly diversified over time.
Investing at Envestio is straightforward: You choose one of the premium investment opportunities in which you want to invest and decide how much money to invest. The entire investment process takes place online and requires just a few minutes of your time. In return for your investment, you will receive fixed interest payments according to established schedule. The minimum investment is just 100 EUR.
Envestio has already pre-analysed all investment opportunities offered on the platform. In fact, only very small % of companies applying for a financing round on Envestio are accepted and presented further to Envestio participants.
Investments done through Envestio are not just interesting and high-profitable; those are also a way of supporting entrepreneurship and innovation in the region. Many company founders, discoverers, and visionaries often had troubles to find people among traditional investors, who shared their vision and recognized opportunities and potential of their business ideas.
Investors at Envestio are different from that. They share the ideas and see in reality that small things can eventually morph in something big and successful. Envestio participants help new ideas and economic progress, they support innovation and creation of jobs, making a positive contribution to society while earning high profits. It is the best example of win-win situation.
Envestio business model includes cooperation with investment project owners in the field of providing bridge financing/temporary equity replacement for their business projects. Funds, gathered via Envestio portal, constitute a certain share of total financing that is attracted to specific project, besides traditional funding from banks etc. Respectively, the weighted average cost of capital (WACC) for these projects is much lower than interest rate, payable to Envestio participants.
Making investments in premium investment projects at Envestio offers great opportunities, but these investments still are risky as any other. In the worst case, the entire investment, including principal and interest amount may be lost. At the same time, Envestio participants are under no obligation to continue funding the problematic project.
Envestio participants can minimize the risk by diversifying their investment portfolio. Professional investors often follow this strategy because it causes the risk to be distributed among several investments. In this way, successful investments with high return can balance out other less successful investments.
Envestio currently is offering investment projects with yearly interest rate from 12% up to 22%, depending on length and risk category of the project.
Financing of cryptomining hardware industry is considered most risky investment with the highest return, while real estate industry has the lowest risk category and moderate interest rates.
All interest payments already transferred to the Envestio participant’s investment account according to the project’s schedule remain in possession of the investor. Interest that is accrued, but not yet received, is written-off at the moment of confirming the buyback.

How does the buyback guarantee work?

Envestio buyback guarantee means that any Envestio participant at any moment can sell an investment from his or her investment portfolio back to Envestio and instantly receive invested money back his or her investment account. Since the funds, gathered via Envestio portal, constitute a certain share of total financing that is attracted to specific project, besides traditional funding from banks, Envestio is sufficiently capitalized to execute any buyback immediately.
Cost of performing buyback is calculated and shown to Envestio participant in Envestio personal area.
Please note that in some cases cost of buyback can account to substantial percentage of invested amount.

Upcoming platform improvements and new planned events

– Soon the webpage will be available in 6 languages, including Spanish, Italian, Estonian, and Russian besides already existing German and English
– Auto-invest function will be added within June-July 2018
– Secondary market for investments is going to be introduced after auto-invest is in place
– Mobile app for iOS and Android will appear within 1-1,5 months (July-August 2018)
– Around 10 new investment projects are being prepared for presentation at the platform

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Bulkestate real estate crowdfunding marketplace overview

Bulkestate logo

Bulkestate OU is a real estate crowdfunding platform with a focus on funding new development or re-development projects as well as structuring group buying deals to acquire small size (such as one apartment) real estate at wholesale prices (sales price of an entire building). Bulkestate was founded and commence operations since 2016.

Bulkestate operations are regulated by general commercial legislation of Estonia and European Union. In order to operate as a financial institution, Bulkestate has received a financial institution license in Estonia.

The main difference between Bulkestate and other real estate crowdfunding platforms is a combination of both lending and group-buying services. It provides an efficient solution if initial loan arrangements fail and they might have to foreclose and sell the real estate mortgage. This way the security of the investment project increases, providing more guarantees for the investors. A significant part of their team are experts in the field of real estate development and organisation of the sales process, which is another important differentiator as they have hands-on experience with the due diligence and approval process. Furthermore, they have the necessary capacity to take over management of projects, which do not proceed as planned and deliver the promised result.

Who is eligible to invest?

Any company or any person over the age of 18 can invest in any of the active investment opportunities on the Bulkestate platform.

The minimum investment is 50 EUR. There are no restrictions on the investment amount, yet it cannot exceed the loan amount. Investments may be made several times till the investors reach the goal of the funding for the particular investment object.

Loans

Bulkestate has clear and strict guidelines when selecting investment projects to offer for the investors. The main prerequisite is clarity in the planned repayment of the loan, which may depend on the market demand for specific properties, quality of the project and quality of the development project team. We carefully evaluate the demand for the particular real estate property. Thus, primarily the saleability of properties is assessed as well as the security of exit options upon completion of the project. Also, the general policy is to finance loans where LTV is 70% or less.

Group-buying deals

You can keep an eye on your investments in your Bulkestate user account. Your account displays aGroup buying deal or bulk-deal occurs when an owner of an apartment building wants to sell all apartments (entire building) at once. We publish the offer on our platform giving a chance to purchase one or more apartments in the building. The deal is successful if all apartments are bought, meaning that there is a potential buyer for every apartment in the building and a bulk-deal can take place.ll pending investments.

In group-buying, you are buying an entire apartment and receive the full legal owner title, yet you cannot make an investment in one of the apartments.

How can funds be transfered

To add money to your account, choose an option “Add funds”, set the deposit amount and make a transfer from your bank account (minimum of EUR 50). The bank transfer typically takes 3 to 5 business days to complete after initiating a deposit. Bulkestate makes your funds available in your account as soon as the payment is received.

Investing

There are two ways to invest in loans: manual investing or automatic investing using Autoinvest.

Auto Invest is an investment tool that automatically invests available funds on behalf of investors, basing on their chosen criteria. Once investors set their investment criteria, Auto Invest automatically places orders for matching settings. Investors can review, adjust or pause Auto Invest at any time. There are no additional costs for using Auto Invest.

 

 

 

 

 

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Lenno Joins Viventor peer-to-peer lending marketplace

Viventor logo

Viventor partners with Lenno, a Bulgarian lender that also operates in Poland, Czech Republic and Russia.

Established in 2012 as TNK Capital Management JSC, the company carried out a rebranding and started operating under the brand of Lenno in the second half of 2017.  The company has been registered as a financial institution with the Bulgarian National Bank since 2013.

Lenno provides loans secured by real estate to both businesses and private borrowers, with the average Loan-to-Value ratio across the loan book standing at 49%. The majority of loans issued are secured by properties located in the biggest cities of Bulgaria: Sofia, Plovdiv, Varna and Burgas. To date, Lenno has originated approximately EUR 7 million worth of loans, with the ambition to considerably increase its presence in Czech, Polish and Russian markets in the near future.

We are always striving to be among the pioneers in the industry and it is for this reason that our newly formed partnership with Viventor is vital for our company’s mission. Accessing a new stream of capital will help us focus on expanding our business into new markets and will allow us to focus on developing innovative financing products.”

Aleksandar Tonkov, CEO of Lenno
Lenno loans on Viventor

  • 2500-250000 EUR in size
  • 6 months-5 years in duration
  • 7%-10% projected annual return
  • 60 day Buyback guarantee

The company will initially list its loans from Bulgaria. In addition to Buyback and collateral in place, all the loans will be listed in Euros. On top of that, Lenno will maintain 5% skin in the game stake in every single loan.

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Rent or own? The advantages and disadvantages of each case

“I’m tired of paying money on rent!”
Have you heard that phrase?
If not … maybe on this one:
“Money on rent is money thrown out the window.”
There are many who claim that being the owner of the house and not just a tenant is the best option.
But there are plenty of people who are on the other side of the barricade and prefer to pay the rent monthly instead of getting tired for paying for decades to the bank.
Have you ever heard your friends say, “I’m not crazy to pay for 30 years to the bank! Who knows what can happen in the mean time? It’s just too long!!!”

The question is:

Who is right? How is it best: to own or pay rent?

We will try to find the answer to this question in this article.
What I want to clarify, however, from the very beginning is this: the information I will provide further, will not make you permanently pass on either side of the barricade and to be pro or against rent for the rest of your life .
That’s because, in our decisions we have to take alongside our lives, and there are, besides our preferences, a number of other factors. Some of these factors are static.
There are also dynamic factors. And these dynamic factors makes that what seems to be the perfect choice now, over the next 5 years will no longer be a good idea.
That is why, I’m proposing to address both the owner and tenant in terms of the advantages and disadvantages offered by each of them.
So, anytime, during your life, reading this article, you can review all these advantages and disadvantages according to your situation at that time, and as a result, you will be able to make the best possible decision.

Why buy a house or apartment?

You buy a house once in your life

A house is more than a roof over your head.
The feelings you associate with your home can be even stronger if they mark a new beginning.
For example, if you just married and together with your half bought a house, you think at it as your home, the home that, over the years, will shelter countless dreams, hopes, but it will also witness many events in live through which every man passes, at some point in his life.
That is why a word from the old says: “In a man’s life you must make a child, build a house and plant a tree.”
Whether you agree or disagree with this phrase, I’m sure you understand the point of having a home. That’s because this house is the foundation for everything that’s going to happen.

It provides stability

You know that you have where to come back every night; a place where you can put your head down and rest after a full day.
You know that you are not at the owner’s mercy that can ask you anytime to leave the house within … or change the terms and conditions whenever he wants or … even worse, maybe sell the property if he is offered a tempting sum of money.
In this situation, you are the one who decides.
And as most of the owners do, if you’ve chosen to pay a 25-30-year credit to the bank, you know that with every single payment you make, every passing month, you’re a step closer to owning 100% of of your house.

There are no surprises

Even if small incidents can occur from time to time (for example: the neighbor above has flooded you and you have to paint again), that does not mean that this will happen every month. Normally, the expenses for your home remain the same.
This will help you to keep track of your expenses, forecasts and financial goals.

Diversification of income sources

Although investing in buying a house to live in, in the long run, does not necessarily prove to be a profitable one, the fact that you own a house can help you a lot in getting new loans from the bank if, from the situation your account, resides that you are a good payer.
If instead, you’re thinking about buying a house, in order to rent it is a good idea. Real estate is nothing but another source from which you can receive passive income month by month from the people you rent it.

Why rent a house or apartment?

You do not need the bank’s approval

There are people who, for various reasons (theirs or the employer) can not go to the bank to opt for a credit for buying a home.
For them, this second option works best. That’s because the system is simple, fast and works in 3 steps: Seen. Pleased. Rent. No more months of running and dozens of approvals and of course … without the burden of thinking that they will have to pay 25-30 years to the bank, no matter what.

Flexibility

And when I say flexibility, I do not necessarily mean the flexibility of the location but also the budget.
Think about it this way: maybe you want to live in the capital city today because, why not … here are the most interesting events?
Later, the agglomeration and madness of the capital don’t feel no longer so good, and you decide to move to a smaller town.
To the retirement age, you may want to live out of town for a simple and quiet life in the country to be closer to nature.
All of these changes can be done quite quickly, because you do not have a real estate already bought to keep you moving from where you want, when you want.
This is perfect for you if your job or business forces you to travel a lot and as a result you have to move often.
We also talk about cost flexibility. If you want to stay in a central area you will pay a price. If, then, for various reasons, you want to pay less, you can rent a property on the outskirts of the city.
Your family is growing up and the studio you lived in until yesterday, has now become a snap? No problem. You can rent a house or apartment with 2 or 3 rooms at any time.
As you see, as a tenant, you have a very high flexibility, both in terms of location and in terms of the amount paid for the rent and the size of the rented dwelling that can be changed, as said above, consistent with the changes that occurs in your family.

Avoid extra expenses

Do not imagine that if he owns the house, the owner of the house has escaped other expenses. Not at all. There are a lot of expences that gather in time and need to be resolved, so you can still live in good conditions in that house and continue to pay rent.
That’s not to mention the taxes that the landlord has to pay annually. You, as a tenant, do not have to take out any money from your pocket for that.
As a tenant, you avoid the costs of removing the furniture, redecorating the new home, etc.

Access to liquidity

A house can not be converted into cash from one day to the next. From this perspective, it is illogical to put your lifetime savings in one thing: in a building.
That’s because it cannot be turned easy into liquidity and also, depending on the evolution of the real estate market at that moment, no one can guarantee you that the real estate you own will be sold over the years at a price above acquisition.

Instead of a conclusion

Now, at the end of the article, I’d like to know your opinion. From your point of view, if you have the choice now: to rent or to buy a house, what would you choose and why?

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6 tricks to negotiate a smaller rent and be a winner

Are you looking to rent an apartment, a studio or a house and want to get a monthly rent as small as possible? Then the tips below will definitely help you when you negotiate with the owner of that building.

1. Do the research. Study the market.

You need to know at what prices are rented other similar buildings in the area.
And when I say: to know at what prices are rented, I do not refer to the price displayed on real estate sites, but the actual amount the tenant pays after negotiating with the landlord.
This will take you some time. I know that. However, in order to be able to negotiate effectively, you need to have enough valid arguments at hand in negotiating with the owner. Of the two of you, the one who comes up with the strongest arguments will win.
If you do not like it or do not have the time to sit and study the market, you can call a real estate agency in the area, to come a real estate agent with you, inspect the apartment you want and help you in the negotiation process.
An experienced real estate agent has much more knowledge than you could get from watching a few housing deals. However, consider that, in this case, you will also have to pay a commission to the real estate agency. But do not worry about it. Think of it this way: if eventually all the parties involved win, that’s all that matters.

2. Count on honesty

Mutual trust is an important factor in the long run if you reach an agreement with the owner and sign the rental agreement.
That’s why, when the negotiation process takes place, do not fall in the temptation to use false informations, in order to make the owner take decisions that favors you. If he feels like you are trying to force his hand, he will withdraw from the bargain and look for another client, and you will have nothing to gain from the whole process.
The reverse is also valid. If in the bargaining process you feel the owner is trying to bloom things so they seem much better than they are in reality, it’s time for you not to get tired anymore. Signing a contract with a liar owner will only bring long-term additional headaches and is not worth it.

3. Treat the man in front of you with respect

Try to keep a constant attitude throughout the negotiation process. If you annoy or offend the owner, or do cynical affirmations, you will not look smarter and will not be able to turn back the situation in your favor.
Look at the situation also from the owner’s point of view. Respect his opinion, because you want, in turn, for him to respect your point of view.

4. Go on the win-win idea

Think that if you come to an agreement in the long run, both you and the owner will win: you will pay a lower rent and he will not have to lose time constantly running after new tenants .
So when negotiating, do not try to win all your battles. If the owner gives up something, when you talk about a particular aspect, give up on yourself when you negotiate another aspect of renting the building.
If you can give more rents as an advance from the beginning, it can be a great asset for you. So, in the eyes of the owner, you are perceived as a trustworthy tenant, without any financial problems, which will not make for him every month’s trouble when it comes to paying rent.
At the same time, the bigger amount you give him from the very beginning can make him look so much to be willing to offer you a lower rent than he would have initially wanted at the beginning of the negotiation.
You can also, in return for a smaller rent, to renovate his apartment or fix some of the faulty things in the apartment.
Also, if you are good at something and the owner needs that service, you can try a bargain: for the amount that reduces the monthly rent, you will provide services periodically, in the field you are skilled in.

5. Whatever happens, stay calm

When emotions are involved, and each one holds at their point of view and are not willing to change it, then negotiation becomes almost impossible, and a conflict is reached rather than an amiable understanding.
The higher the tension between the two parties, the more likely the two parties to sign a lease contract decreases. That’s why, although I know it’s hard, in a bargain you have to look at everything “at cold”.
Detach yourself from emotions and try to look at the whole situation from the outside, from both angles – the owner and the tenant.
This will give you a clearer perspective on the whole process, and at the same time it will be easier for you to keep calm, compared to the situation where you see this whole transaction as a matter of life and death.
Also, even if you are desperate to rent that home, do not show you’re desperate desire even if:
You know that tomorrow you do not have where to stay and you will sleep under the free sky or
– 
You think you cant’t find a home like this anymore even in your most beautiful dreams.
The more you are desperate to become a tenant in that building, the more the owner will “smell” you more easily and will get harder in the negotiation process.
As I said earlier … leave your feelings home.

6. Do not let yourself intimidated

Do not rush to make the decision to rent the house at the price proposed by the owner, depending on events such as:
– as you visit the apartment, there are other potential customers who have also found themselves to watch it at the same time as you. Most likely, it’s a “production”, meant for you to rush to make a decision.
– while the landlord shows you the home, his phone rings and the alleged clients at the other end of the wire makes him to come back to you and say, “So what is it … you’ll take the apartment or I will talk to the customer on the phone to come and see it?”

In conclusion: when you start the negotiation process for the monthly rent in that building, remember the advices above and you will be much more satisfied with the outcome of the negotiation.

 

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6 Things To Know Before You Invest In Real Estate

When we think about starting a business or making a financial investment, the ultimate goal is usually the same: getting enough money to allow us to live the lifestyle we want.

And when you think about the amount of money you have to raise to allow yourself to do that, do not forget to consider inflation + taxes that have to be paid and that will automatically have to be deducted from the total amount of money you have.

And when it comes to investments, having a property or several real estate is always a good idea; even in periods of financial crisis.

Think so: land is a finite resource. People will always need spaces specially designed to live, work and have fun. So, just like in other areas of business, so is in the real estate: everything is just a game between demand and supply.

What is good to understand is that: real estate properties will continue to experience an increase in their value as time passes, despite slowing down periodically as a result of more subtle or larger economic crises.

Real estate is the field that brought most people from simple people to millionaires. And in spite of what you might think … no, you do not have to be a genius to succeed!

So, if you’re thinking about investing in real estate, to gain your financial independence, here’s what you need to know:

1. Set your financial goals

What are your goals from a financial point of view?
What are you expecting from buying a real estate?
What you achieve by acquiring that property will bring you closer to achieving your financial goals?
As you well know, developing a business requires time and money. Investing in real estate is no exception to this rule.
So, if you have an already tight amount of money that you want to invest in this direction, make sure you take all the time to identify a property that matches your budget and not just so … a property which, once purchased, will serve your interests better and will make it easier and faster for you to accomplish your goals.

2. Do not spend a fortune on books and courses

You do not have to misunderstand. You need to have some knowledge about real estate because, from this adventure you start, you get to be a winner. But what you must know is that all the information you need should get maximum a shelf on your library as a volume.
So bend over the books and study carefully. Search on Google and make a habit of reading real estate sites.
But do not overwhelm yourself with the existing information around you. When you notice that you read, read, and the things you already know continue to repeat, with 1-2 relatively new elements in addition, it means you have learned about everything you need to know.
It is very easy to let go of the thought that you still have not found the trick you need to quickly get rich out of real estate and continue to document, collect books and courses in the hope that you will find that secret information that will open the gate of wealth in real estate for you.

So, when you notice that the information you read is still repeating, it means that it is the perfect time to stop reading and return to real life. It’s time to move to point 3.

3. Visit several real estate properties

Life beats the movie. And what else can make you feel the pulse of real estate in your area, than … some direct visits on the field.
But great attention! Do not buy the first property you see.
Here are two mistakes that many real estate investors do:
    –
Buy a property for the simple fact that they like what it looks like

Buy the property because they are not willing to make the effort to inspect other properties existing on the market at that time
Remember: you must look at that property from the perspective of return on investment. You will not live there. You do not have to like it. Instead, it must be profitable when you decide to sell or rent it.
Once you’ve visited enough real estates, take a moment to think and put on paper the most tempting real estates you’ve visited. Write along with them your financial goals. Then try to reduce the number of listed properties from the perspective of the goals you want to achieve.
This exercise will help you make the most beneficial choice for you.

4. Do not expect the miracle offer

By viewing real estates again and again, you can fall into the other side: to postpone the decision to purchase. And as you may well guess … this action will have negative repercussions.
Not buying a real estate under the pretext that you have not found the “winning offer”, you might lose more than if you found an offer not as tempting as you would like, but you have bought it to put it to work, to produce money for you.
To conclude: as soon as you find the real estate offer that meets most of your criteria, stop thinking and buy it. Continuing to wait for the “irresistible offer” you dream of is a dangerous game … this offer may never be, and the offers that pass next to you may not come any more soon.

5. Make a thorough financial analysis

Let the figures speak. Look at all like a game of numbers. Just so, the conclusion you get will be realistic.
If you think about the whole transaction from the financial perspective and leave your feelings aside, it will be easier for you to refuse a property when the terms and conditions of the transaction do not meet your profitability criteria.
In this sense, take the time to make a complete analysis of the property based on its history. Also, inform yourself about the distance to the city’s main points of interest.
See how much you can rent or sell the property according to the potential of the area.
Take into account the taxes that must be paid and the interest you have to pay to the bank, if you make a loan to that effect.
And finally, draw the line, and see how profitable your real estate investment will be.

6. Find sellers anxious to close the deal

How can you do that? When you find a real estate that you like, be interested in it’s history. Since when is it put up for sale? How has it’s price changed since it’s on sale to date?
If the price of the apartment or house in question is unchanged although the property in question is on sale for more than a year, you can see that its owner has it’s price and is not willing to give it less than what he ask for; in other words: negotiating with him will not end with far greater benefits for you.
But if you find a property whose price has continued to decline over the last year, it means that its owner is anxious to get rid of it. As a result, that person will be more flexible in negotiating with you, and you are likely to have the chance to win and get the price and conditions you want.

Conclusion

Owning one or more real estate properties can provide you with the financial stability you want. It can also be packed with those passive income that everybody wants, if you rent it.

It’s all about staying calm, not making hasty decisions, and logically judging, based on figures. Real estate businesses are long-term businesses. Also, it’s important to realize that buying the desired property is just the first step you take to reach your financial goals and not the end of the road. Success!

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Learn how to invest in real estate

Real estate investments are safe and have the best chances of becoming profitable in the medium and long term. The situation has changed over the last years, the crisis has been overcome and the real estate market has balanced, and a real estate investment can be, very easily, driven to success. Any real estate investment process is required to undergo a valuation and analysis procedure to make the investment profitable.

Stages you have to go through to make the actual investment:

1. Analyze your financial situation. Set your budget clearly. In particular, evaluate your assets and incomes, analyze your expenses. Thus, you will be able to have a clear picture of the capital you would have available to invest in real estate. If you intend to make a loan for this initiative, your savings will be very important in paying advances and reducing the monthly financial rate.

2. Consult a bank. Depending on your budget, if you think you still need money to go into the investment, consult a bank and get a credit pre-contract. Thus, you will find the amount you will have to make a first investment in real estate. You will also know the monthly rate you will have to pay in the case of a credit.

3. Make an investment plan. For starters, try to determine what properties you would be willing to invest in. For example, if you live in an area with intense economic activity, a profitable investment would be in an office space. This type of property can bring you a substantial income and can support the rate if you have a bank loan.

4. Verify your competition. Analyze the offer on the local real estate market, especially if you are targeting an investment in your city or area where you live. Depending on the information obtained from the market analysis, you can determine that your investment in real estate will bring extra gain. The market for apartments, commercial spaces, land is a competitive one, so it is mandatory to differentiate your property through a value element to raise the interest of potential buyers or tenants.

Only invest in areas where that you know. Take these steps before you make a first investment in real estate, leave a comment and tell us your opinion.

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