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Invest in rental projects with a fraction of capital

28.06.2022

It's not a secret that investing in real estate requires substantial capital, whether buy-to-let or buy-to-sell. There is a solution to the problem by crowdfunding platforms, allowing investors to invest in real estate projects with a fraction of the required capital. The risk you are willing to take is a factor in the potential return on investment.

A buy-to- let platform, InRento, was launched at the end of 2020. The number of investors in the EU has made it the largest licensed crowdfunding platform in the EU, providing an opportunity to invest in rental projects.

InRento s clients invest in existing properties and earn from monthly interest and capital growth once the property is sold at a higher price. Income from capital growth is what no other real estate investment platform has offered before InRento.

Some investors overlook another part of the return capital growth because they look only at what they will get from the rent. Gustas Germanavi ius, founder and CEO of InRento, says we offer our investors the opportunity to earn from both. If the property is sold cheaper than it was purchased, the project owner will have to bear the loss and pay the full amount to the investors. If the property is sold at a higher price, all parties will benefit - the profit is distributed proportionally to the investors, the project owner, and InRento. A modern office in Vilnius, Lithuania was sold recently. Instead of the projected 6.06% annual return, the investors earned more than 20% in ROI.

This buy-to- let project was funded in a few weeks last year. After the property owner sold it at a higher price, investors earned an additional 14.26% capital growth net, according to Deividas Urbanovi ius, InRento's Investment Manager.

A rental project - an office in the Newtown of Vilnius - was completed shortly after. The annual ROI of the project has reached 17.48%!

The average annual return on rental income and capital growth from InRento's completed projects is 19.49% now!

Trust is the most important factor in your decision.

In order to ensure a more stable asset value and protect clients' investments, the specialists of the InRento platform carefully select the projects to be funded. The platform's community is offered projects in central parts of cities and developing districts. Real estate appraisal is performed for each project, and its potential profitability is analyzed today and in future perspectives.

When looking for projects and placing them on the platform for funding, we aim for the generated rental income to exceed the interest on the loan. The interest payable does not cause significant financial challenges for the project owner and reduces the risk of insolvency. Before embarking on the project, we also analyze the possible price change and sales perspective, so we work only with professional project owners who sell the property when the best opportunity arises, says G. Germanavi ius.

According to InRento's management, mentioned project exits prove that a well-thought out investment can yield a much higher than average return. There is no doubt that there will be more examples in the future when investors earn not only from rental interest but also from capital growth.