InRento buy-to-let crowdfunding

Earn over 20% ROI with real estate investment.

InRento is a buy-to-let crowdfunding platform, authorised and regulated by the Bank of Lithuania. Their mission is to make one of the most common investment types-rental property investment, more accessible to everyone. For the first time, investors will be able to invest in rental properties just from 500 EUR on a European regulated platform.

Because they care about the risks, the investments are being structured as loans which are secured with mortgage security. Because the investments are structured as loans, they have a combination of fixed-interest rate and variable interest. In simple terms, this translates that if the property would be vacant, the borrower will be obliged to pay the fixed interest rate. If the property would not be rented out for a longer period, the interest rate is being increased even 4 times, in order that investors would receive the rental yield. (The exact terms will be found in each project description and contract).

In case the borrower would fail to meet financial obligations to the investors, inRento will take all the necessary measures to resolve them in the name of investors and if needed enforce the mortgage and repossess the property.

While assessing the loan applications, they strive to reach an agreement with the borrower that 80% of the rental income would be paid out to the investors. If the property is rented out, the investors will be distributed with 80% of the rental income, but if the property would lose its tenant, the borrower will be distributing the interest payments. The 20% which is left to the borrower covers the administration costs, minimum upkeep and other expenses.

While owning a rental property by yourself can look like an attractive option, for some, there are few elements that can make it upsetting.

Landlords managing multiple properties can tell you that sometimes the hassle of dealing with problematic tenants or fixing broken furniture, can make you wonder whether owning or administering the property by yourself even make sense.

Because they strive to create an investment experience which would be as close as possible to owning an actual rental property when or if the property would be sold more costly than it was acquired, the capital growth-share would apply to the investors. They are targeting the investor share for the capital growth to be in the range of 50-70%.

Let’s take a look at this example:

Loan value: 100,000 EUR

Capital growth share: 70% investors, 10% inRento , 20% borrower

Proportional sales price to the loan value: 110,000 EUR

Duration: 2 years.

The investors would receive additional 7,000 EUR, while inRento would earn 1,000 EUR and the borrower would earn 2,000 EUR. Given such an example, investors would earn an additional 3.5% annual return, which combined with 6% would make an annual return rate equal to 9.5%.

Considering the arguments above, it becomes easy to understand that inRento model is based on incentivising the borrower to produce the highest possible return. The higher the return is for the investor, the higher it is for the borrower.

If you would like to begin investing in buy-to-let crowdfunding opportunities, click now on the link in the description and you will receive a gift of €20 for your first investment, only if you create your account using this link. Of course, BSuccessful team will also receive €20 when you make your first investment, so thank you if you choose to do so.

Of course, this is just one example and it is not the most optimistic. The first property was recently sold and here are the results for investors.

A rental project was sold for EUR 130000 (the asset was acquired for EUR 108000). As a result, the investors earned EUR 15400 (70% of the earned profit of EUR 22000) as capital growth or a return of 14.26% in addition to the monthly rental interest of 6.06%.

The total return on investment (ROI) of the first fully completed rental project from InRento has reached 20.32%!

Income from capital growth is what no other real estate investment platform has offered before InRento.

Last year, InRento funded 20 rental properties in Lithuania and Spain for a total of 2.5 million euros and the amount funded during the first two months of 2022 has already reached almost 1 million EUR. This is just the beginning as they plan to offer more different projects and enter a new market this year.

From my point of view, a yield of over 20% is very high, not only for real estate. Even on the stock market it is very difficult to get such returns.

In conclusion, we would like to present you an open letter, written by the founder of these companies because it is very important to understand what their exact intention is and how they think.

"Dear inRento investors,

I am reaching out to you for the first time to share the story behind the inRento and why we decided to create it. My name is Gustas, I’m the founder of inRento and in order to understand the story of inRento, we have to delve into the story of - the largest European Real Estate crowdfunding aggregator, a company I have co-founded as well.

Together with my co-founder Audrius, we have decided to create EvoEstate back in 2018 for a few reasons. First and foremost, to enable people to invest across different platforms from a single account and provide all the investment features that other platforms lacked. However, behind these logical reasons, there is definitely a part that is somewhat emotional. One of the books that capture this reasoning is called “Start with Why” by S Sinek (which I highly recommend reading to everyone) which explains why one should have “why” in any organisation.

With Audrius our “why” was to encourage people to save money, invest it and invest it smartly, meaning having the possibility to diversify.

So far, I believe we’ve executed at least one of our internal ways, but as we continued to build EvoEstate we have felt that there’s a lack of lower-risk real estate crowdfunding opportunities. In my purely personal opinion, buy-to-let crowdfunding or Rental properties offer a great risk-reward ratio.

Unfortunately, today there is a lack of providers on the European level of such deals, which made me wonder, why shouldn’t we create one.

Fast forward several months, I’m publishing this article on Continental Europe’s first authorised and regulated buy to let crowdfunding platform, which on one side makes me feel contented and on the other excited about the upcoming challenges and experiences.

Our mission with inRento is to provide people carefully sourced buy-to-let investment opportunities across Europe in an accessible, secure and transparent way.

At one time in their lives, every European has visualised the idea of owning rental property.

We understand that acquiring a rental property takes years of work and patience in order to save up the large required capital, therefore we are creating the possibility to make it real with as little as 500 EUR.

Our goal is to start sourcing operations in Lithuania and within 18 months scale up our loan offerings on a pan-European scale. Within these 18 months, we are planning to offer investors to invest in deals from 3-4 countries. We as a company are backed by institutional investors - Business Angels Fund 2.

Besides myself being licenced Investment Advisor for MiFID2 regulation at Baltic Financial Advisors Association - BFAA, I’m taking on this journey with as well a licenced Investment advisor Deividas Urbanovičius, who has worked as a Financial Analyst and manager at trading firms and Vytautas Urbonas. Besides our core team, I’m grateful to have these advisors supporting us on our journey as well:

Arvydas Strumskis - Fund manager at Verslo Angelų Fondas, in the past member of the Board at Narbutas ir Ko UAB, Lietuvos Energija AB (Ignitis), and the real estate fund management company Lord LB Asset Management, UAB.Juan Alonso-Villalobos - Former Co-CEO ING Direct France, CMO ING Nationale Nederlanden Spain; held Advisor’s and Partner’s roles in multiple asset management companies across Europe."

Please find the link that will guide you in creating your account on the InRento platform. Once you have created this account, you will be guided through the steps you need to follow. You have to go through a KYC process which we're sure you won't do for the first time.

Financial investments in InRento are made through a payment processor. You can find instructions on their platform in this regard, it is an application similar to Revolut that you have to download, top it up with money and so you can invest. It's like a separate wallet from which you make investments and from which you approve all transactions, your money being permanently in this account and not in InRento custody until you place an investment.


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