Investment in real estate with no money for Europeans

Real estate is one of the best investments you can make, especially if you can rent it out and earn a monthly income. However, it is not easy for everyone to save up enough money for a down payment. Also, not all people are fine with debt - it can be powerful if you know how to leverage it, but it can be complicated.

We have prepared a list of great platforms European residents, who want to invest in real estate with a very little investment.

My personal favourite is Reinvest24, but I do recommend researching all three platforms.

Please remember that any investment has some risk involved in it.

Reinvest24

Reinvest24 was founded in 2018 by a team of people, who had years of experience in the real estate market. Since then, they have managed over 10 million euros in investments.

Reinvest24 allows you to buy shares of residential or commercial real estate together with other investors starting from 100 EUR in any part of the world. You can earn profit from rent and capital growth combined, without limits on investment period.

Registration is easy: you need to go through a verification process and upload your ID. It takes them around 24 hours to verify your account. After that, you can deposit money and start investing.

  • Start investing from 100 EUR
  • You actually own a part of the projects and earn money from rent. It will not change even if Reinvest24 shuts down
  • Average 14.6% annual return rate
  • Their team does market research, paperwork and property management
  • Every property is insured
  • Cash-out any time
  • Reinvest profits
  • The easiest registration process out of the three companies reviewed here
  • Not many properties available

Fees

Reinvest24 takes 2% of the investment amount to cover property acquisition expenses. Also, Reinvest24 charges up to 10% of rental revenue generated by the properties to cover various property management related expenses.

Crowdestate

Founded in 2014, Crowdestate is the leading real estate crowdfunding platform in Europe. Like Reinvest24, Crowdestate also allows to collectively buy shares of a real estate. The minimum to invest is 100 EUR and there is no maximum to invest. 

  • Start investing from 100 EUR
  • You actually own a part of the projects and earn money from rent. This won't change if Crowdestate shuts down
  • Average 17.82% annual return rate
  • Crowdestate team does market research, paperwork and property management
  • Every property is insured
  • Cash out any time
  • Autoinvest
  • Possible to have several investment accounts: individual and company
  • Pay out only in euros. Also, depositing money to your investment account is for free only if you transfer in euro.
  • Not many properties available

Not eligible countries

Afghanistan, American Samoa, Bosnia and Herzegovina, Guam, Guyana, Iraq, Laos RDV, Syria, Uganda, Vanuatu, Iran, Democratic People's Republic of Korea (DPRK), The Bahamas, Botswana, Ethiopia, Ghana, Pakistan, Samoa, Serbia, Sri Lanka, Trinidad and Tobago, Tunisia, Yemen, Belarus, Burundi, Central African Republic, China, Democratic Republic of Congo, Egypt, Eritrea, Guinea, Guinea-Bissau, Haiti, Lebanon, Libya, Maldives, Mali, Moldova, Montenegro, Myanmar (Burma), Russia, Somalia, South Sudan, Sudan, Ukraine, Venezuela, Zimbabwe, US Virgin Islands and USA.

Fees

Crowdestate may charge fees to either an investor or a sponsor.

Sponsor:

A one-time, 4% structuring fee is paid to Crowdestate for finding the investment opportunities, completing due diligence, capital structuring and covering direct costs

Regular base fee that covers the costs for maintaining the investments, management, accounting etc.

https://crowdestate.eu/en/faq

Investor:

Crowdestate may carry a success fee, if the investment performance exceeds the agreed hurdle rate. Typical success fee is 20% over the 8% per annum hurdle rate. Success fee is paid out at the end of the investment period after the investment has been exited. They calculate the fee into the expected yield, meaning that Crowdestate does not deduct it from the interest payments made to investors. 

https://crowdestate.eu/en/faq

Estateguru

Estateguru is an online peer-to-peer (P2P) debt funding platform where property developers and entrepreneurs can borrow funds from abroad international investor base and investors can invest in secured property loans. They have facilitated more than 925 loans worth in excess of €138 million. The platform allows backing property loans in Estonia, Latvia, Lithuania, Spain, and Finland with the UK, Ireland, and Portugal to follow soon.

  • Start investing from 50 EUR
  • All the loans are backed with a mortgage
  • Average 12.2% annual return rate
  • No fees for investors
  • Cash-out any time
  • Autoinvest
  • Possible to have several investment accounts: individual and company
  • You don't actually own a part of the property like on the other two platforms

Fees

No fees apply to investors. All expenses are covered by the borrower.

Photo by Digital Marketing Agency NTWRK on Unsplash

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