Investing in real estate is viewed as an attractive and smart choice for a range of reasons: Zero-interest-rate policies may lead to the devaluation of money we keep in the banks and means that there may be no traditional attractive investment alternative. Therefore, and despite all the efforts by various governments to regulate economies around the world, property investment is still viewed as an attractive, relatively safe, investment.
Having noted this, and despite its attractiveness, property investment is a sector that requires specific knowledge and the overcoming of several challenges on the way. The first is the investment amount required. Traditionally, property investment required deep pockets, and too often, it required the provision of very large amounts of money. This, at least in the past, prevented small investors from joining the game.
The second challenge is knowledge and familiarity with the ins and outs of the sector. We do not need to elaborate much about this. Just like any other investment sector, here too, it is important to understand the market, the way it works, the lingo, who the key players are, what tools are needed for assessing deals, and so forth.
Small Investments – a Great Way to Manage Risk
There are additional challenges to overcome prior to investing in real estate (e.g., locating projects with financial upside, maximizing benefits when dealing with the seller or contractor, as well as finding the best advisors to support you along the way). Here, we are going to focus on the best way to manage your investment and, at the same time, minimize the risk taken.
We already mentioned that, traditionally, real estate investments were exclusively available to the wealthy. However, there are private investors that have less experience in investing and have purchased a property for investment and are enjoying a monthly income. Some may say that these investors have placed all their eggs in one basket – they have invested all of their money in one place, in one property. Like any other field of investment, real estate investment is dynamic and is not always risk-free. In today’s world, where other options are available, investing all your money in one property may end up being less profitable, as that one property may turn out to be less profitable or with less income than expected. One may even lose money.
In the last few years, with the support of governmental legislation, it is now possible to invest small amounts in real estate, to invest in several projects at the same time, and to invest smartly. There is no need to risk everything on one endeavor.
iintoo is such a platform. iintoo enables investors to invest in quality projects for as little as $25,000. Investors can invest in several projects at the same time – minimizing risk through smart investing. In one word, diversification.
The power of together – investors benefit from the wisdom of many and form a group of investors who invest together and become a major financing entity to be taken “iintoo” consideration. The group benefits from the support of iintoo’s team of experts, transparency and supervision throughout the investment life cycle.
The capital invested is being used only for the purpose it was designated for. Although investors invest as a group, each investment is viewed and managed separately and is used solely for the purposes stipulated in the investment agreement.
Timing and investment duration – The investor decides when to enter “iintoo” an investment of choice, while the actual funds are transferred only upon commitment to invest and to maximize potential returns. Each investment’s terms vary at iintoo, and since we are focused on exit-oriented investment, our optimal investment period is 18-36 months; iintoo investors may choose a project duration that best suits their liquidity needs.
With the passage of the new JOBS Act (Jumpstart Our Business Startups Act) in 2012, a law intended to encourage funding of small businesses in the United States by easing various securities regulations, investing together is a new and existing form of investment that attracts many small real estate investors. Furthermore, the new investment structure secures newcomers as it allows spreading risk over several investments and requires full transparency from the contractor / entrepreneur throughout the project’s life cycle.
The days of putting all your eggs in one basket are over. You can now join the game, play with experienced investors, and manage your risks wisely.