Real Estate investments across the world have diversified beyond "Unit-By-Unit, But-to-Let, Self Use" categories. Pandemic catapulted screen time and fuelled all time high Property Search scores across continents. Investors wanted deals, diversification & dividends while covering all plausible risks. Emerging Real Estate investment categories showed the way and became quick favorites! Learn more about them in this slideshow....Happy flipping!

1. GET MORE WITH
REAL ESTATE
INVESTMENTS
EMERGING INVESTMENT TYPES
By : Yatin Sharma
Co-founder & COO
Gravityprop.com

2. CONTENTS
• Executive Summary
• Investment Types
• Categories
• Risks & Rewards
• Broad Comparison
• Crowdfunding in detail
• Structure
• Types of Investments
• Global Statistics
2

3. • One of the biggest misconceptions about real
estate investing, “Investors need to put
substantial amounts to make money”.
• Direct real estate investment has been the
number one choice for decades with relatively
easy access to capital. However, liquidity
remains the key disadvantage.
• So the usual questions which arise while
investing in real estate are
• With what sum can a real estate investment start?
Can one invest as low as $500 in property and get
consistent returns from it?
• Can they control their investments & have quicker
liquidity?
• Can they get returns in double digits with a regular
income and gains on a well timed exit?
• The answer to all of the above is YES!
• Lets discover the emerging Real Estate
investment types and understand how they
work.
3
EXECUTIVE SUMMARY

4. REAL ESTATE INVESTMENTS
Fall Under 4 main categories
➢ Direct investment in real estate – Unit by Unit,
Buy to Let, Rental Income, Self Use.
➢ Investment in Real Estate Investment Trusts
(REITs) – Equity or Mortgage REIT, Traded on
stock exchange.
➢ RE* Private investment funds – Open largely to
HNI investors, High Minimum investment,
usually co-financed with debt.
➢ Real estate crowdfunding – Funds from multiple
investors, Diversified portfolio, transparency &
control.
Let's look at them one on one along with their
risks & rewards.
4
*RE-Real Estate

5. CATEGORY 01 – DIRECT
INVESTMENT
Investor Objectives : Income Through Rental
and or Resale
Most common method of purchase : Mortgage
which is usually defined by the term leverage.
Rewards
↑Income : Low yield 2-4% gross.
↑Resale/Exit : market driven, no or low data
analysis, ill-timed.
Risks
↓Liquidity : complex & time-consuming process
with Multiple stakeholders.
↓Financing Risk : Economic downturns can
wreak havoc on timely payments, one can
loose the property!
↓Property management : idle time, unreliable
tenants, upkeep & renovation can eat into
returns. 5

6. CATEGORY 02 – REIT
Investor Objectives : Liquid investment,
tradeable on stock exchange.
Most common method of purchase : Equity
Shares or debentures via REIT funds and or the
stock exchange.
Rewards
↑Income : Annual Dividends, 7-14% gross.
↑Sale/Exit : High liquidity, traded as shares on
exchange.
Risks
↓Price volatility : directly tied to market index,
even if real estate market is stable volatility in
securities market will impact REIT.
↓Structural Risk : They are equities not bonds
so carry the risk like all equities.
↓Excessive reliance on capital markets REITs
can be overpriced and thus put dividend value
at risk. 6

7. CATEGORY 03 – PRIVATE
INVESTMENT FUNDS
Investor Objectives : hands-off investment, high
income.
Most common method of purchase : Private
Funds.
Rewards
↑Income : 10-18% gross, depending on fund
risk level.
↑Resale/Exit : Investor / Fund driven.
Risks
↓Loss of capital : During periods of market
uncertainty, high unemployment, or other
macroeconomic events that come with
financing risk.
↓Highly Leveraged : Most of the funds are
highly leveraged so past performance is no
indicator for future returns.
7

8. CATEGORY 04 – REAL ESTATE
CROWDFUNDING
Investor Objectives : Low investment high returns,
transparency, liquidity, control.
Most common method of purchase : AMC’s – Asset
management companies/platforms, Fractional Real
estate players, Real estate developers
Rewards
↑ Income : High yield 8-16% & cap gains resulting in
IRR of 16-22%
↑ Resale/Exit : sell stake anytime in secondary
market, complete control, data driven exit
approach.
↑ Diversify : with low entry levels investors can
diversify into multiple countries & assets including
specific Purpose-Built asset class funds.
Risks
↓ Investment Duration : To maximize returns,
platforms might like to hold exits. This to some
investors is not a preferred scenario. 8

9. 9
Column1
Low Entry
levels
High
Diversification
Global
Portfolio
Transparency Control
Low Transaction
costs
Direct Investment
Private Real Estate
Funds
REIT
Crowdfunding
COMPARING BROAD BENEFITS

10. REAL ESTATE CROWDFUNDING IN DETAIL
10
The Fastest Growing Investment Category

11. CROWDFUNDING STRUCTURE
11
Developer/AMC
• Manages the
Asset
• Certified
developers &
AMC’s
Real Estate
Projects / Assets
• Pre-vetted
purpose built
& income
generating
• Grade A
tenancy
Platforms
• Online
investment
• Global
portfolio
Investors
• Individual /
Retail
• HNI
Investment
Returns
AMC-Asset Management Company

12. CROWDFUNDING -
INVESTMENT TYPES
1. Buy-to-let Investment
2. Fixed Interest development
loans
3. Profit participatory equity
investments
12

13. CROWDFUNDING INVESTMENT PRODUCTS
BUY-TO-LET
Pre-Leased Property
Acquired through Crowdfunding
Managed by Asset management
Company
Low Risk - Investors get equity
shares as per unit/s of
investment
Can be a debt structure with
debentures listed on Demat
account
Rental Yield & Cap
Appreciation - IRR 14-18%
FIXED INTEREST
DEVELOPMENT LOANS
Crowdlending to developers
through platforms
In the form of NCD/CCD’s –
Necessarily / Compulsorily
convertible debentures
Fixed interest rate during
tenure
Low Risk - Backed by collaterals
– 1.5-2 times of Investment
Short duration – 2-4 years
Interest Income & Price Upside
- IRR 16-20%
PROFIT PARTICIPATORY
EQUITY INVESTMENTS
Returns as per outcome of the
project
Bullet payment schedule as per
project stages
Principal payment at the
completion of project
High Risk & Reward Investment
Outcomes could vary basis
project lifecycle & developer
Annual Interest Income
- 12-20%
13

14. GLOBAL RE CROWDFUNDING OUTLOOK - 2021-28
120741 101322 113000
851300
-100000
0
100000
200000
300000
400000
500000
600000
700000
800000
900000
2019 2020 2021 2028
GLOBAL RE CROWDFUNDING BY VALUE (MN
USD)
North America,
28%
Europe, 11%
APAC, 53%
Latin America,
5%
MEA, 3%
PROJECTED MARKET SHARE BY REGION -2028
14
CAGR – 33.4%
Source : Industry & primary sources, Research Nester

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