How do I become a property investor?

It all starts with an inspiration; you have decided that you want to become a real estate investor. But how do you go about it?

Basically, you then start looking at exactly what you need. It soon turns out that as a real estate investor, you need to have at least 30% of the purchase value of a real estate investment in savings. After all, only when you already have 30% yourself, a bank is going to give you a loan for the remaining 70%. Since a real estate investment soon comes to a minimum of €200,000, this therefore means you need 0.30 x €200,000 = €60,000 in savings. Read more here investing in real estate without own contribution.

In practice, you are going to find that this is going to take some time. Say you are able to put aside €300 every month. Before you then reach €60,000, you're €60,000/300 = 200 months away. This is almost 17 years. If you choose this route, then investing in real estate so actually only possible later in life. Provided you are able to put aside that €300 every month at all. We will come back to a shorter-term option later in this article.

Why become a real estate investor?

There are many different reasons why people decide to become property investors. In principle, they are all valid. However, some have a higher priority than others. All in all, it comes down to the following reasons for becoming a property investor:

• Diversification: Any seasoned investor will tell you that diversifying is always a good option. It allows you to minimise risk. Among other things, it means not putting all your money in one sector. If you only invest in shares, for example, you will receive a heavy blow in the event of a financial crisis. Have you also invested in real estate? Then your rental income, for instance, will continue as before. Through diversification, you cover yourself against possible negative circumstances in specific sectors.

   

• Rental yield: The big advantage of a real estate investment is the rental return. Every month, your investment brings in money. And you hardly have to do anything for it. Especially when you don't have to concern yourself with the needs of the tenant. Nowadays, this is often outsourced. Month after month and year after year, you receive a monthly amount from the person who rents your premises.

• Added value: At the same time, real estate always increases in value historically. Periodic dips are possible, but in the long run the value rises almost universally. Thus, not only do you receive a monthly rental payment, but the property itself is also becoming more valuable. This alone would be a good reason to invest in real estate. Apart from the rent to be collected.

Step-by-step plan for becoming a real estate investor

To really understand how to become a real estate investor, we go through the entire process with a step-by-step plan. This immediately makes it a lot clearer for you. So you know exactly where you stand. Let's start with the first step:

1. Visiting different buildings: Before investing in anything, you need to know what you are investing in. Generally, real estate investors choose to visit several properties. After all, you will be investing a considerable amount of money. You do not want to leave anything to chance. By comparing different properties with each other, you get a good idea of what the best options are. Certainly when you call in the help of a specialised party. They will then provide you with advice.

    

2. Visit the bank: When you know roughly what you are looking for in terms of real estate investment, it is time for the next step. You visit the bank to discuss loan terms. In most cases, people do not have the entire purchase amount in a savings account. So you will probably also definitely need to visit a bank to borrow the remaining amount in addition to your savings. Read more here tips for taking out a mortgage loan on a property investment.
3. First purchase: When all finances are in order and you have a nice property in mind, it is time for your first purchase. You are the new owner of a certain building. The 'normal' route is then to rent it out. This will enable you to earn the aforementioned rental income.

All in all, it is not an extremely complicated process. Provided that you have accumulated sufficient savings, you will be able to go through this step-by-step plan. However, we do not want to deprive you of a modern innovation in the field of real estate investment. Becoming a real estate investor has suddenly become a whole lot easier thanks to this innovation.

Invest in real estate with Immotokens

Normally, you have to dig deep to become the individual owner of a particular property. Thanks to the introduction of Immotokens, this is no longer necessary in one fell swoop. Thanks to our co-invest formula you invest with other investors in properties from €100,000 upwards. Alternatively, you can opt for our starter formula, with which you can invest as little as €1,000 in real estate.

How does the starter formula work? Immotokens are, in fact, a digital representation of physical real estate properties. All this is 100% securely recorded via the blockchain.

This means that as the owner of a specific Immotoken, you are automatically the owner of a portion of real estate. Immotokens digitally split one property into several small parts. For example, it is possible to become a property owner from as little as €50. This provides numerous advantages:

• Direct investment with return: With Immotokens, the same applies in terms of return as with the normal route of real estate investment. So you share in the rental income and over time your Immotoken will be worth more and more.

   

• Distribute over several properties: In addition, it makes it a lot easier to become part owner of several properties. It is a great way to diversify even further within the real estate sector.
• Thanks to Immotokens, after a while you can still buy real estate: So as an owner of Immotokens you build up more and more capital. Thanks to the rental income + the increase in value itself. After a period of, say, 10 years you then have sufficient capital to purchase a physical property.

So does this revolutionary technology sound like music to your ears? Then take immediate action and become a real estate investor today thanks to Immotokens!