Mintos launches passive real estate investing

Latvian company Mintos is adding a new product to its lending platform. It has launched passive real estate investing. Users can now invest in property and earn an income from rent payments and potential property value appreciation.

Mintos is a Latvian online marketplace for peer-to-peer loans. It was founded in 2015. It does not provide loans itself, but works with local partners. The first properties are based in Austria and offered by Bambus Group. This group is also active in Germany, which might be the next location where Mintos will offer property investments.

Indirectly participating in real estate market

Investors can now purchase financial instruments linked to rental properties. That way, they are indirectly participating in the real estate market. It also means that investors are not directly involved in property management. They also do not have any landlord responsibilities.

Long-term investment

Usually, investing in real estate requires large sums of money. With the launch of its new product, Mintos wants to make the real estate market more accessible. Investors can start with amounts as low as 50 euros. “This initiative aligns with our commitment to provide a diverse range of investment opportunities, democratizing access to different markets and asset classes”, said the platform.

‘This aligns with our commitment to democratize access to different markets and asset classes.’

Investors using this product will earn regular returns from net rent payments. That means that returns on the investment are based on cash flows from the property. According to the platform, maturity varies by property. However, investors should know that these are long-term investments, typically ranging from 10 to 25 years.

Equity-campaign raised 3 million

In April this year, Mintos opened an equity crowdfunding campaign on Crowdcube, to finance its own growth. The target amount was reached within the first hour and it raised more than 3 million euros from a total of 3,324 investors. The raised funding was set to be used for international expansion and to launch new investment products. The first launch of one of those products has now become a reality.