What You Own, What You Risk: Solo vs REITs vs P2P vs Fractional Ownership

In this article (which is quite overdue, I admit), we wanted to critically review some of the key differences and similarities between

1. buying a property solo,
2. buying into a Real Estate Investment Trust (REIT),
3. Peer-to-peer Lending (P2P) – or investing in real estate loans via a peer-to-peer lending platform
4. Fractional ownership – or investing and owning a piece of a property

Below, we walk through what you actually get, what surprised many first-timers last year, and how seasoned investors mix these routes in the real world.

Buying Solo: The ultimate control, but it comes with leverage (often 85:15 LTV with 30-year mortgage)

LTV = Loan-to-Value, or the ratio of a loan amount to the value (or purchase price) of the property.

Formula: LTV = (Loan Amount ÷ Property Value) × 100%.

Example: Buy a €200,000 flat with a €150,000 loan → LTV = 150,000/200,000 = 75%. Lower LTV = more equity cushion, lower lender risk; higher LTV = thinner cushion, tougher terms.

Buying on your own is the classic play. If you know where to look, or know someone who knows where to look, the strongest upside capture lies in securing your own financing and buying a property that has your name on it (with the bank being a silent partner). You have full control as long as you keep up with your payments, but it's important to recognize it's not a trivial process, even if you have the support of experts. Some deals take months to close, with tens of documents needing signatures, approvals, multiple stakeholders, etc. Some deals go awry (yep, we have been burned ourselves…) because … well, it's a long list of things that can go wrong. A leverage of 85:15 (where you cover 15% down payment and the bank finances the rest) is a good deal in good market conditions but note that banks change their interest rates and in most cases it'll be a floating interest rate in line with any sudden economic changes.

In addition, note that €300k property would often cost €320, with municipal transfer tax (commonly ~3–4.5% in big cities), notary/tariffed fees, registration, and assorted admin all making the price materially higher than the listing – something many spreadsheet models forget. Financing isn't just about the rate, though. Cross-border borrowers and anyone with foreign income often face lower loan-to-value caps and extra documentation. Buying solo is great when you want control, you have steady income, and you know what you're doing (or you're willing to pay +3-6% price premium to buy that knowledge).

What are REITs?

When we pitch Airevest, there seems to be this confusion that we're trying to set up a Real Estate Investment Trust (uh-oh). No, we're not (yet, at least. Never say never, right …).

Real Estate Investment Trusts (REITs) allow ordinary investors to own shares in commercial properties the same way they own stocks. By design, a REIT is a company that owns, operates or finances income-producing real estate. It pools capital from many investors by selling shares of itself, injects it into real estate assets and then returns earnings (largely from rents or interest) back to the shareholders.

A central requirement for REITs is that they must distribute at least 90% of their taxable income (= revenue – expenses) to shareholders as dividends. Because of this, REITs are often structured more as "income vehicles" than growth engines.

There are different types of REITs, each with its own risk/return profile. Equity REITs are the most common – they own and manage real estate directly, earning revenue primarily from rents and property operations. Mortgage (or debt) REITs instead invest in mortgages or mortgage-backed securities, earning interest income. And some REITs are hybrids, combining both equity and debt strategies.

The appeal of REITs lies in their high liquidity. Unlike direct real estate which can be illiquid and complex to transact, REIT shares can be sold instantly. Moreover, by pooling capital across many properties, REITs offer built-in diversification (across region, property type, and tenant base) that many individual real estate investors can't easily replicate.

Yet REITs come with important trade-offs and risks. Transparency, especially for non-traded REITs, which are not listed on major exchanges, add another layer of risk, since expenses and where the money goes is somewhat of a black box. REITs remain a major pillar in institutional and retail real estate investing. They offer a way to invest in property at scale – accessing cash flow streams, diversification, and professional management – while relying on regulatory, accounting, and governance structures to align investor interests.

(Anticipated question: Is Bolgar Capital a REIT?

Bolgar Capital presents itself as a real estate investment company active in Bulgaria and Spain, offering investors a fixed 7% annual return paid quarterly alongside potential capital gains. Unlike traditional publicly traded REITs, it is not listed on an exchange and therefore operates with less regulatory oversight, limiting transparency and liquidity. The company emphasizes its proprietary digital platform and mobile app, which allow investors to track invoices and returns, and openly acknowledges that it charges various fees and commissions, though the exact amounts remain unclear. While these digital tools suggest an effort toward transparency, concerns arise around the sustainability of promised fixed returns, the absence of independent audits or third-party appraisals, and the limited details available on fee structures and exit options. Bolgar Capital functions more like a private investment fund or joint venture than a REIT, and potential investors would need to carefully verify its financial statements, legal structure, and risk management practices before committing funds.)

Peer2Peer Lending

People often blur "crowdfunding" and "P2P lending" because both use online platforms to pool money from many individuals for entrepreneurs or small businesses that banks might ignore. But they aren't the same. Crowdfunding is the broader umbrella; P2P lending is just one form of it – specifically, the loan-based version where backers act like lenders and expect repayment with interest.

Peer-to-peer real-estate lending lets you fund short-term, property-secured loans, originated by platforms that underwrite borrowers and service repayments. How it works in practice: platforms find borrowers who need money for a real-estate job (e.g., acquisition, refinance, construction). They secure each loan against the real estate (usually a first mortgage). They set a rate and a short timeline (about 1–2 years), then post that loan on their platform so that small investors can chip in to fund it. Investors get paid back with interest if the borrower pays on schedule.

Imagine a local developer in Plovdiv needs €600,000 for 18 months to buy and renovate a 12-unit building valued "as is" at €900,000. The platform checks the plan, does its own due diligence, takes a first-rank mortgage on the property (so the loan is secured), sets an 11% annual interest rate, and lists the deal so thousands of small investors can chip (say, starting from €100). Each month, the borrower pays interest that's split pro rata to investors; if sales go well, the borrower repays the full €600,000 early and investors keep the interest earned. If the project runs late, the borrower keeps paying interest or asks for a short extension at a higher rate. If they default, the platform can enforce the mortgage, sell the building, and use the proceeds to repay investors. Here, however, timing and recovery amounts depend on the market and costs.

Therefore, risk is where the story gets real. Rising rates and a softer commercial property cycle have pushed more loans into delay and recovery on some platforms; independent trackers have flagged elevated shares of late or non-performing loans at EstateGuru, and investor blogs have criticized apparent default levels.

Equity Crowdfunding and where AireVest sits

Equity real-estate crowdfunding means many investors buy shares in a project company that owns a specific property. Your money helps purchase and improve that asset, and your return comes from the property's cash flow during the hold and, most importantly, from the profit when the asset is sold.

You're not buying a fund or a loan; you're taking an ownership slice of one clearly defined project with a plan you can see.

In practice, we first select a property and a straightforward strategy – say, light renovation, lease-up, and sale. You invest by purchasing shares in the special-purpose company that holds a single property. We then execute the plan and keep you informed with plain-English updates on budget, milestones, and timing. The property generates surplus cash after reserves and costs and you, as an investor, receive regular payments along the way. When the strategy or holding period is complete, we sell the asset and distribute what remains to shareholders pro rata, exactly according to the legal documents and their share percentage.

This approach gives you deal-level visibility that's hard to get elsewhere: you see this asset, this budget, and this timeline – plus the reasoning behind each step, plus who else is in on the project. Governance is clearer, too, because major decisions like extending a timeline or altering a renovation scope are documented, and investor rights are defined upfront. You're aligning with the project's actual operations rather than trusting a broad mandate or a fixed coupon detached from the asset's real performance.

Liquidity here is different from the stock market. Most investors plan to hold until the sale. If a secondary option exists, it typically functions as a marketplace where investors can signal interest to buy or sell; it's peer-to-peer and depends on someone meeting your price. That selective liquidity is the trade-off for the transparency and asset specificity you're choosing.

The key risks are the practical ones you'd expect: execution (renovation, leasing, timeline), market conditions at sale (which influence the exit price), and costs (overruns reduce profit). Because this is equity, there's no fixed interest or guaranteed – your outcome follows the property performance. A simple illustration: if a building is acquired, improved within budget, stabilized, and sold near the underwritten price, investors can achieve attractive multiples over an 18–24 month window; if the market softens or works run late, returns compress and timelines stretch.

People choose this route when they want actual ownership, direct participation in value creation, and professional execution – without the heavy paperwork and day-to-day headaches of buying solo. It's a practical middle ground: real ownership exposure, clear reporting, and a defined plan ending in a sale, with risks and timelines made explicit from the start.

Case in Point  

Think of a tidy three-bedroom house in Sofia ready-to-rent. It sells for €500,000 with ~5-8% acquisition costs. We raise the money from investors on the platform to buy it outright via a Special Purpose Vehicle company that is incorporated for the sole purpose of acquiring and managing this one property. Investors are recorded as shareholders of the SPV and, by extension, co-owners of this single property. We handle everything end-to-end: utility transfers, insurance, professional furnishing and photography, pricing, listings, guest screening, cleaning, maintenance, and accountant-ready books. From day one after launch, the home operates as a ready-to-rent asset aimed at stable, recurring revenue for investors.

You get plain-English reporting on occupancy, revenue, expenses, and upcoming actions. We publish a simple timeline and budget, then track against it. Cash that the property generates – after a sensible reserve for upkeep – is distributed to shareholders on a regular schedule. You also have clearly defined governance rights: investors vote on the big stuff such as extending a timeline, approving a material renovation, switching strategy, or selling the asset. Day-to-day execution stays with us so decisions are timely and professional; major forks in the road are yours to approve.

Liquidity is straightforward and honest. This is not a stock exchange; the default plan is to hold while the property performs. If a secondary option is available, it works like a marketplace board where investors can find peers to buy or sell shares at an agreed price. Otherwise, the main liquidity event is the sale of the house. When we sell, standard closing costs are paid and the remaining proceeds flow back to shareholders pro rata to their ownership. The result is a simple, transparent path: buy one good asset outright, run it well, share the income, and decide together when to exit.

So, AireVest is not a bank loan marketplace and not a listed REIT. We're building an equity-first model designed for real ownership in specific, vetted properties, professional operations, and transparent financials—with a legal setup that targets clean resale/transfer and clear governance for investor votes on material decisions. In other words: the control and clarity you want, minus the solo friction.

There isn't a single "best" way to invest in property – only a best-fit for your goal:

• Speed and liquidity? REITs
• Pure yield from credit? P2P (careful with originators and protections)
• Control and leverage? Buy solo (and bring a spreadsheet for the fees)
• Control, speed, off-hands management and liquidity? Go AireVest

 

Read More:

European Commission. "European Crowdfunding Service Providers for Business." EUR-Lex / Summaries of EU Legislation, 16 Feb. 2023, https://eur-lex.europa.eu/EN/legal-content/summary/european-crowdfunding-service-providers-for-business.html. Accessed 28 Sept. 2025.

European Securities and Markets Authority. "Questions and Answers on Crowdfunding (ECSPR)." ESMA, 3 Apr. 2025, https://www.esma.europa.eu/publications-data/questions-answers/2501. Accessed 28 Sept. 2025.

—. Q&As on Crowdfunding under Regulation (EU) 2020/1503 (ECSPR). 25 Feb. 2021, https://www.esma.europa.eu/sites/default/files/library/esma35-42-1088_qas_crowdfunding_ecspr.pdf. Accessed 28 Sept. 2025.

European Union. Regulation (EU) 2020/1503 of the European Parliament and of the Council of 7 October 2020 on European Crowdfunding Service Providers for Business. 7 Oct. 2020, https://eur-lex.europa.eu/eli/reg/2020/1503/oj/eng. Accessed 28 Sept. 2025.

Financial Supervision Commission (Bulgaria). Special Purpose Investment Companies and Securitisation Companies Act (ADSICs). Jan. 2025, https://www.fsc.bg/wp-content/uploads/2025/01/spicsca_sg_70_08_20_2024.pdf. Accessed 28 Sept. 2025.

Global Property Guide. "Guide to Property Taxes in Bulgaria." GlobalPropertyGuide.com, updated 2024, https://www.globalpropertyguide.com/europe/bulgaria/taxes-and-costs. Accessed 28 Sept. 2025.

Global Property Guide. "Real Estate Transaction Costs by Country." GlobalPropertyGuide.com, https://globalpropertyguide.com/transaction-costs. Accessed 28 Sept. 2025.

Global Property Guide. "How to Buy Property in Bulgaria as a Foreigner." GlobalPropertyGuide.com, updated 2024, www.globalpropertyguide.com/europe/bulgaria/buying-guide. Accessed 28 Sept. 2025.

Mintos. "Are Investments through Mintos Protected by Any Financial Compensation Scheme?" Mintos Help Center, 2 Apr. 2025, https://help.mintos.com/hc/en-us/articles/115002852609. Accessed 28 Sept. 2025.

Mintos. "Investor Protection on Mintos." Mintos.com, https://www.mintos.com/en/security/investor-protection/. Accessed 28 Sept. 2025.

Skift. "Short-Term Rental Investment Platform Here.co Ceases Operations." Skift.com, 9 Jan. 2024, https://skift.com/2024/01/09/short-term-rental-investment-platform-here-co-ceases-operations/. Accessed 28 Sept. 2025.

IPE Real Assets. "Patrizia Acquires Real Estate Crowdfunding Platform BrickVest." IPE Real Assets, 3 Feb. 2020, https://realassets.ipe.com/news/patrizia-acquires-real-estate-crowdfunding-platform-brickvest/10043584.article. Accessed 28 Sept. 2025.

TechCrunch. "Landa Promised Real Estate Investing for $5. Now It's Gone Dark." TechCrunch, 23 May 2025, https://techcrunch.com/2025/05/23/landa-promised-real-estate-investing-for-5-now-its-gone-dark/. Accessed 28 Sept. 2025.

The Real Deal. "Fractional Ownership Startup Landa Loses Portfolio." TheRealDeal.com, 13 Feb. 2025, https://therealdeal.com/national/2025/02/13/fractional-ownership-startup-landa-loses-portfolio/. Accessed 28 Sept. 2025.

Alternative Credit Investor. "BrickVest Subsidiaries Closed but Website Still Open for Business." AlternativeCreditInvestor.com, 11 Nov. 2019, https://alternativecreditinvestor.com/2019/11/11/brickvest-subsidiaries-closed-but-website-still-open/. Accessed 28 Sept. 2025