Where Should You Invest $25,000 in 2016?

December 22, 2016

The year 2015 has left investors with some questions regarding their investments in 2016. Where do you invest in an over-saturated market, when a zero-interest-rate policy is being implemented? iintoo fills this gap, with a new and exciting, yet relatively solid, real estate investment platform. This platform is based on the funding of many, and one that may generate projected annual returns of 15% and more. No wonder it is becoming more popular among accredited private investors.

The last financial quarter of 2015 was excellent for iintoo, the real estate social investment network. iintoo raised $10 million for several projects with a total asset value of $45 million. The company also secured some significant international projects and grew its investor base on a daily basis.

“Being able to invest small amounts in real estate starting at $25,000 is an important thing for a private investor,” explains iintoo CEO Eran Roth, one of Israel’s promising under 40 business people, according to Forbes Israel. “iintoo’s social investment network brings news to the world of real estate investments by making large-scale investments accessible to private investors, as well as diversifying one’s investment portfolio with an alternative to today’s zero-interest-rate environment. Moreover, it is also becoming a viable alternative to today’s challenging financial market. We bring a different model, one that connects quality real estate investments with a social investment network based on the funding of many. This way we allow a variety of investors to become aware of and invest in larger projects that, usually, are not available to the small and private investor – both financially and because of the needed due-diligence process required prior to investing in a large deal. With iintoo both barriers are removed,” says Roth.    

Real Estate Funding of Many – How Does it Work?

All this came about in 2012, with the introduction of the new JOBS Act (Jumpstart Our Business Startups Act) in the United States, a law intended to encourage funding of American small businesses by easing various securities regulations. The new rules allow accredited investors to invest in various forms of investments (and in 2015, a new regulation was introduced allowing non-accredited investors to invest, opening up the market to an even wider variety of investors).  The JOBS Act impact on the real estate market occurred immediately. In 2012, investments injected $2.7 billion, rising to $5.1 billion by the end of 2013 and ending up in 2014 with $10 billion (worldwide), an increase of 350%.

How does it work? Property developers and entrepreneurs come to iintoo with projects they seek to fund. All projects go through a thorough investigation and due diligence by our investment committee, which comprises the best legal, finance and real estate experts. We physically visit the property and its location and surrounding area as well as perform a thorough investigation of its current and potential financial trajectory. Only after the approval of the project by our investment committee, we approach our pool of investors to invest in the project.

Investors can join iintoo and set up their profile at no cost and with no commitment. All registered investors can view investment projects that have passed our investment committee. The decision to invest in a project is up to the investors. They can select a project based on their preferences and match their appetite for risk and return. Once they decide to invest, and based on the portion of their investment, they become members of a Limited Liability Company (LLC) that, in turn, invests in a joint-venture entity that holds title to the real property.

This is great news! iintoo’s international digital platform lets its registered investors invest in real estate projects around the world. Throughout the investment period, investors get periodic updates about the state of their investments, all of which appear in their account. They can communicate with each other and discuss investments via the platform. What’s more, they can follow other investors and learn from their investment decisions while making their way in the world of property investment at their own pace.

“Investing together in real estate, as offered by iintoo, removes entry barriers normally associated with property investment,” explains Dov Kotler, iintoo’s Chairman. Dov has years of financial experience, including managing Israel’s top credit card companies and one of Israel’s prominent banks. He continues: “We open the market to investors with funds as low as $25,000, where they can invest in exclusive projects with potential high yield returns where the associated risks  are managed. Moreover, as the project exit period impacts on its yield directly; our contract with the developers requires them to meet the project’s set schedule. Not meeting the set deadlines influences directly the projects’ profit distribution in favor of iintoo’s investors,”adds Dov.

Double-Digit Yield, Risk Management and Transparency   

This may come across as “too good to be true,” yet, real estate investments, especially in the US, demonstrates that transparency, lowering the barriers to entry, high-yield projections and risk management is a great formula that brings about proven results:

  • Projected annual return of 15%. At iintoo, we approve projects only when the project’s business plan includes projected annual returns of at least 15%.
  • Risk management. iintoo’s track record and hands-on experience comes in handy when it comes to avoiding pitfalls. iintoo minimizes risks associated with real estate investment while negotiating the deal terms with the developer. For instance, the developer cannot exceed the expenses associated with the project, and the developer may undergo a profit distribution penalty if the project term extends beyond what is defined in the business plan. In addition, iintoo’s unique investment model permits investing in several projects simultaneously, making sure risks are diversified over several projects.
  • Transparency and removing entrance barriers. With as little as $25,000, anyone can invest in real estate. You no longer need to be wealthy or an institutional investor. Moreover, one of iintoo’s foundations is the harnessing of investors with tools and knowledge for them to make better-informed decisions about their investments. This is why iintoo developed a state-of-the-art social investment network that keeps investors updated and informed. It lets them connect with and follow other investors with more experience and know-how.

iintoo Gains Only When Its Investors Gain

A common headache for investors is the ongoing investment-management fees. iintoo has set out to change the game here, too. Roth explains: “We don’t manage capital. We call upon capital when there is a deal. This is why we do not charge any ongoing management fees. We collect a success fee – a certain percentage of the profits when there are profits. The relative portion is based on the amount of funds committed – the more funds that are committed, the smaller is our success-fee percentage, 20% being the maximum we charge of any project’s profits.”

Less than a year in the market,  iintoo has already raised funds for four impressive projects in the US, with average projected annual returns of 18%. For the first project, iintoo raised $1.6 million from its investors (out of a total of $15 million in project costs) for a purchase and upgrade of a residential apartment building in Manhattan (50 leased apartments, all to be upgraded before its resale within three years).

With a projected annual return of 17%, the second project is the purchase of a 174-unit multi-family asset in St. Louis, Missouri. Here, iintoo raised $1.6 million from its social network investors (out of a total of $5.5 million in project costs). Until its resale, the property is expected to produce average cash-on-cash revenue of 13.5%, to be distributed to investors on a quarterly basis. Upon its sale, it is projected to produce a total 16% annual yield.

For the third project, iintoo raised $4.5 million from its investors for a unique project in Flatbush, Brooklyn, New York. The projected yield is 20% annually.

Recently, iintoo raised $2.3 million (out of a total of $10 million in project costs) for another income producing property in Tulsa, Oklahoma. Here too, the property is expected to produce a yearly yield of 14% to be distributed to investors on a quarterly basis. Upon its sale within three years, it is projected to produce a 19% annual yield.

Investing Together

If there is one thing you should take from this article, it is the understanding that there is a way to remove many of the barriers associated with property investments, all without giving up on quality investments, projected high yields and risk management. This results in a different form of thinking, one that changes the world of real estate investments and  makes it more accessible and transparent.

The second thing you should take from this article is that iintoo is an investment social network for property investments, which enables you to enter the world of real estate easily and led by the best experts in the field.

Would you like to hear more about iintoo and invest together? Join us today!

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*When we refer to “Equity Protection” we are referring to an arrangement where iintoo epiic GP LLC, the general partner of each covered issuer (“Covered Issuer”), promises that, even in the event the underlying project is not profitable or records a loss, the investor in the Covered Issuer shall receive a specified amount equal to the original principal investment he/she/it provided (less other amounts already received by such individual investor during the course of the investment) subject, however, to significant limitations including but not limited to repayments for losses in the Covered Issuer are only made up to a maximum amount of funds available from the retention account and the policy (where such policy limit may be less than the total amount invested), repayments are on a first come, first serve basis, and losses are aggregated across Covered Issuers subject to the same retention account and policy. iintoo epiic GP LLC, and not investors, is a party to the policy with Everest Insurance®. As a result, investors have no direct legal rights under the policy. In addition, beyond use of the Equity Protection proceeds from the retention account and the policy, neither iintoo epiic GP LLC nor the Covered Issuer has any obligations to indemnify investors for losses. For more information, please see “Business of the Company—Equity Protection” and “Risk Factors—Risks related to the Equity Protection” in any of our issuers’ private placement memoranda.

The above may contain forward-looking statements. Actual results and trends in the future may differ materially from those suggested or implied by any forward-looking statements in the above depending on a variety of factors. All written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the previous statements. Except for any obligations to disclose information as required by applicable laws, we undertake no obligation to update any information contained above or to publicly release the results of any revisions to any statements that may be made to reflect events or circumstances that occur, or that we become aware of, after the date of the publishing of the above.

Private placements of securities accessible through the iintoo™ social network real-estate investment platform (the “Platform”) are intended for accredited investors. Such private placements of securities have not been registered under applicable securities laws, are restricted and not publicly traded, may be subject to holding period requirements, and are intended for investors who do not need a liquid investment. These investments are not bank deposits (and thus are not insured by the FDIC or by any other federal governmental agency), are not guaranteed by and iintoo Investments Ltd. (“iintoo”) or any third party working on our behalf, and may lose value. Neither the Securities and Exchange Commission nor any federal or state securities commission or regulatory authority has recommended or approved any investment or the accuracy or completeness of any of the information or materials provided by or through the Platform. Investors must be able to afford the loss of their entire investment.

Equity securities are offered through Dalmore Group LLC. (“Dalmore”), a registered broker-dealer and member of FINRA/SIPC. Any real estate investment accessible though the Platform involves substantial risks. Any financial projections or projected returns are projections only, and iintoo makes no representations or warranties as to the accuracy of such information and accepts no liability therefor whatsoever.

Investors should always conduct their own due diligence, not rely on the financial assumptions or estimates displayed herein, and should always consult with a reputable financial advisor, attorney, accountant, and any other professional that can help them to understand and assess the risks associated with any investment opportunity. Any investment involves substantial risks. Major risks, including related to the Equity Protection and/or the potential loss of some or all principal, are disclosed in the private placement memorandum for each applicable investment.

Neither iintoo nor its affiliates nor Dalmore Group LLC makes investment recommendations nor do they provide investment advisory services, and no communication, including herein or through the Platform or in any other medium should be construed as such.

iintoo, its employees and affiliates are not insurers or insurance brokers, and do not offer insurance services, advice or information to new or existing investors.
Insurance is provided to Iintoo epiic GP LLC (and placed through Cobbs Allen, a licensed insurance intermediary) by Everest Insurance®, subject to all of the terms and conditions of the applicable insurance policy, to support iintoo’s equity protection undertaking as further specified and described in the confidential offering materials of iintoo. Everest Insurance® is not a sponsor or promoter of any offering described herein.

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About Everest®
Everest Re Group, Ltd. is a Bermuda holding company that operates through the following subsidiaries: Everest Reinsurance Company provides reinsurance to property and casualty insurers in both the U.S. and international markets. Everest Reinsurance (Bermuda), Ltd., including through its branch in the United Kingdom, provides reinsurance and insurance to worldwide property and casualty markets and reinsurance to life insurers. Everest Reinsurance Company (Ireland), provides reinsurance to non-life insurers in Europe. Everest Insurance® refers to the primary insurance operations of Everest Re Group, Ltd., and its affiliated companies which offer property, casualty and specialty lines insurance on both an admitted and non-admitted basis in the U.S. and internationally. The Company also operates within the Lloyd’s insurance market through Syndicate 2786. In addition, through Mt. Logan Re, Ltd., the Company manages segregated accounts, capitalized by the Company and third party investors that provide reinsurance for property catastrophe risks. Additional information on Everest Re Group companies can be found at the Group’s web site at www.everestre.com

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