Today, almost a year and a half since the beginning of the coronavirus pandemic, we are all forced to adapt to the new environment or the "new normal" in almost all areas of life.

As at any time, there are always "winners" in business and those who are forced to "turn a new page and start over", according to a blog post by Kairi Veere, Investor Relations Coordinator at EstateGuru.

Veere notes in a blog post that there are many companies that are reporting record results from month to month. Real estate is an industry that is "on the winning side, but professionals see no signs of overheating," reveals Veere.

The EstateGuru team also mentions that they are now "moving in with a strong tailwind".

The company adds:

"We are just as successful as our users. Through careful diligence, the risk team has continuously contributed to ensuring that the platform's risk-return ratio is balanced and that the quality of the loans granted or the credit control does not decrease due to the rapid growth. "

Stable or steady growth in real estate can be expected as long as the reserve banks continue their policy of printing money "to stimulate the economy," writes the EstateGuru team. The securities and real estate markets "remain the first preferences for investors looking for a good return due to their risk-return ratio and their liquidity," the company confirmed.

It is true that not all asset classes can be compared with one another, but the diversification of assets is "always crucial".

EstateGuru has looked at direct real estate investments versus crowdfunding platforms and stock market investments "in a single stock versus a multi-stock index fund."

Rental homes can be a good investment if you have the "willingness to manage your own property," noted EstateGuru, adding that mortgage rates have hit all-time lows recently, it could be "a great time to consider buying one." To finance property ". new properties, although the unstable economy can make it more difficult to actually operate as tenants are more likely to default due to unemployment. "

As noted by the EastateGuru team:

"To go this route, you have to choose the right property, finance it or buy it directly, maintain it and deal with the tenants. You can do very well if you make smart purchases. However, you won't enjoy the ease of buying and selling your assets on the exchange with the click or tap of your internet-enabled device, or selling your real estate investment through a secondary crowdfunding platform. Worse still, you may have to endure the occasional 2am call about a burst pipe. "

They added:

"With a thorough analysis and previous experience, however, it is possible to find an excellent investment or an ideal property. The downside is that by investing in just one property or company, you may have taken too much risk and be very vulnerable if something unforeseen happens. "

For example, if you were only buying Apple stock, you might have made "big business". However, it is more likely or statistically more certain to "invest in the S & P500 index – as the fund is based on around five hundred of the largest American companies, and thus includes many of the most successful companies in the world," explained the EstateGuru team.

Like almost any fund, an S&P 500 index fund offers "instant diversification that allows you to own a portion of all of these companies" and the fund includes companies "across all industries, which makes it more resilient than many other investments".

As noted by the company:

"When it comes to real estate, yes, you can find a very nice apartment or house for rental income that will bring you a good return on investment. You may even find an excellent tenant, but there are times when that "luck" changes and you face problems you couldn't foresee. In terms of risk diversification, it is wiser to have a portfolio in which the real estate sector is well represented than to invest in just one property. "

There are certain things that investors need to be aware of before they actually invest, EstatGuru notes, adding that there are various risks associated with companies and that risks "are unpredictable with any investment, such as different economic phases."

But there is a lot of information, "in an investment that saves a lot of nerves in the future and does not arouse unrealistic expectations," says the company.

They continued:

"Unlike many similar platforms, the first and greatest benefit of EstateGuru is that all business loans are collateralized. Why is that important? Even the most experienced risk assessor cannot foresee all the risks associated with a project, and we also have to be prepared for the fact that some projects funded through the platform will not be successful. In this case, we can avoid capital losses by selling the collateral. "

In addition, our company has invested in its team and resources over the past few years "to keep the quality of projects high," revealed EstateGuru, adding that they know how to "act in the worst case scenario and how to help borrowers." ". when they have difficulties. "

(Note: You can read here how the debt collection procedure "runs smoothly".)

The company's management also stated:

"We are often asked why people come to a platform with higher interest rates instead of getting funding from a bank. The main reason is quite simple – the willingness to take risks and the regulations of the banks prevent quick proceedings. "

Banking institutions don't have the capacity to fund or fund an initiative in just a few days, the company stated, noting that the large number of investors on their platform enables borrowers to obtain funding. Borrowers can also access free marketing for their project, EstateGuru announced.

The company also found that it regularly happens that an investor who has "participated in a development project through a loan, for example also buys an apartment from the development project in which he has invested".

Since EstateGuru offers projects from eight countries, it also offers "the easiest way to 'own' property abroad, which is otherwise quite complicated."

As noted by EstateGuru:

"In addition to the risks and the attractive return forecast, we recommend paying attention to the investment costs. Participation in the securities market incurs both transaction fees and account management fees, all of which reduce the investor's net return at the end of the day. Fixed costs are also incurred for real estate acquired for investment purposes. In the worst case, a lot of effort in the form of a failed tenant. "

With the EstateGuru platform you achieve good diversification and the "safest" possible investment in the industry with "an initial contribution of only 50 euros without additional costs".

As mentioned in a blog post, this is an amount most can afford. Another argument in favor of an investment on the EstateGuru platform is that "all preparatory work, background information and risk analyzes of the loan and the borrower have already been done for the investor".

But the company also made it clear:

"Not all projects that apply for funding will reach the platform. Notarial transactions are also made convenient for the investor. The loan is prepared with great care. Investors don't have to worry about mortgages or other contractual arrangements. "

If you want to make your life "comfortable", you can set up Auto Invest under your EstateGuru account which "invests on behalf of the investor according to the criteria you set".

That way, in just a few months, you can potentially have a "reasonably" diversified portfolio of real estate loans that "make extra money without much hassle," noted EstateGuru, adding that the application like the Growth Account is provided by securities banking institutions .

In contrast to the securities portfolio, there are no transaction fees or "fixed costs" with Auto Invest to ensure that the income shown as interest in the loan description is "credited to your account in exactly this amount".

By setting up Auto Invest, you can ensure that you don't miss any project that "shows up on the platform due to the high level of interest and the speed of investors". But if you prefer to learn or familiarize yourself with the initiatives and make all the decisions yourself, then manually investing in different initiatives is still an option for you, EstateGuru clarified.

source https://seapointrealtors.com/2021/08/11/kairi-veere-from-european-online-lending-platform-estateguru-explains-how-to-diversify-real-estate-investment-strategy/

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