Rendity - P2P Lending Investment Review
What is Rendity?
Rendity is a crowdfunding platform that connects investors with real estate developers. It has its headquarters in Vienna, Austria but recently the company also moved into Berlin, Germany. Rendity was launched in 2014. Up to date, Rendity has been able to bring together 2133 investors who have funded projects worth € 2.546.361.
How do you start to invest?
The first step is to set up an account via their official website. When creating an account, you will be required to produce your national identification details, email address, and a working contact number.
Once you have usefully filled out the registration form on their site, they will proceed to verify your email. Upon verification of the email, you will be asked to then upload your identification document (either a national ID or a Passport). After completing all the steps, your account is now ready to use. Deposit some funds either through your credit card or direct bank transfer, and you can start investing.
Once you have successfully created your account, you will be able to see all the open projects on your dashboard. You will also be able to have a look at projects that have been completed, those that are ongoing, and those that are to come in the future. This information is vital in helping you to make a good investment decision. It is essential for you to note that the minimum amount that you can invest in a given project on Rendity is 1000 euros.
Rendity understands the value of their customer’s investment, and that’s why they strive to provide all the relevant information regarding every project that’s listed on their website. Some of the information that you can go through to determine your investment choices include:
- Project Presentation- every project has a short description showing the number of units, space occupied, and design. The description also states the project’s target demographic.
- Highlights of the deal– every project on Rendity has its highlight, and the platform indicates the highlights next to the description. If you visit their site, you will notice that the projects have some such as type of interest, as well as the experience of the developer.
- Investment-Case- Rendity ensures that you are aware of the total amount needed for every project, what the funds will be sued in, the interest accrual plan, and the exit plan available for the loan.
- Required documents- every project has attached documents on it. It is only the loan contract that’s written in English; all other documents are in German.
- Project Costing- to enhance trust and accountability, Rendity also provides a report of the project was costed i.e., every cost factored in the coming up with the total amount being funded. The costing also shows the net income that each project will receive after factoring in all costs.
- Rendity Rating– Rendity rates every project for transparency purposes. The rating system factors in things like the location of the project, track record, vacancy, type of asset, and duration of the loan. The projects are then given a score ranging from a D to A, A being the highest rating.
- Timeline- every investor would want to know how long the project is going to take, and Rendity provides precisely that. The timeline is divided into four milestones; purchase time, the start of the planning, when the construction begins, and development in sales.
- Location- detailed information about the site of each project is also provided. The description also contains factors that make a given location valuable for the project and the demographic composition of the area.
- Building Plan- every project has an attached pictorial representation. The image shows the plan and how the design is ideal for the targeted market.
Important things that you should know about Rendity!
The Interest Rates
Rendity has some of the lowest interest rates in the real estate crowdfunding industry. Currently, the rates are at 7% per annum, and they vary depending on the project and your investment style.
Available types of investments
To diversify the investor investments, Rendity has provided two types of investments. They include:
- Rendity Growth: Rendity growth mainly focuses on providing loans to developers that wish to carry out development projects. This is suitable for those investors that want to get high returns over a short period. However, it is important to note that it has a higher risk.
- Rendity Income: Rendity income has a lower risk level compared to Rendity growth. This type of investment focuses mainly on yon those projects that promise a regular rent payment. With Rendity income, you are assured of steady income done in a quarterly distribution. It also has a longer-term; it can last up to seven years.
Rendity BuyBack Guarantee
Rendity lacks a buyback guarantee, and this is one of its drawbacks.
It also does not provide an auto-invest tool for its users. This is however, not a matter of great concern as the platform still has a limited number of projects that can easily be managed manually.
There is no immediate secondary market for investors that may want an early exit. Theirs is an option to resell loans after the investment has stayed for more than 24 months.
Pros & Cons of Rendity
Rendity provides a great investment opportunity for experienced investors that want to tap into the German real estate market. With an amount higher or equivalent to 1000 euros, you can roll your investment today and earn some amazing returns. Use the link below to sign up on Rendity today!