Are you looking to grow your passive income with real estate crowdlending to live the life YOU want? In this article, we will go into a real estate crowdfunding platform Reinvest24 review and give you all the ins and outs you need to successfully invest with the platform.
Recently I’m focusing on diversifying my crowdfunding and peer-to-peer investments. I love to invest in as many great platforms as possible, giving me more and more passive income every month.
Several others have recommended Reinvest24 to me, so I gave it a try and I can highly recommend the platform.
The thing that I like the most is the fact that they focus on real estate equity projects. This means that you’re actually part owner of the projects, getting you a monthly rental income for consistent monthly passive income. On top of that you get the capital growth gains when a specific project is sold.
Plus, anyone over the entire world can invest!
In this Reinvest24 review, we will go into how the platform works, what kind of returns you can expect, and share some of my own experience and results with this platform.
What Is Reinvest24?
Reinvest24 is an Estonian real estate crowdfunding platform with over €12 million worth of projects, wow! What is great about Reinvest24 is that they offer real estate equity projects, where you become a partial owner of the project. This is just like you would buy an apartment and rent it.
For you as an investor, this means that you will get a monthly share of the rental income, relative to the amount of money you invested in the project.
On top of that, you get the capital gains when a project is sold. The sale date of the project is mostly indicated on their platform.
Because you get monthly rental income and the capital gains when selling, investing with Reinvest24 is just like ‘offline’ real estate investing.
This is a unique platform in Europe that is a great way to further diversify your peer-to-peer lending portfolio.
What Returns Can I Expect With Reinvest24?
For Reinvest24, they have an average rate of 14.6% on their platform. This means rental income and capital growth of the property together. Most projects have around 8% rental income and 6% capital gains per year.
When you invest in a project, there are real contracts in place already – this is how they can estimate the yield that a certain project will get you.
When you sign up with Reinvest24 and you have transferred money to the platform, you can invest in any open project. Just be informed that Reinvest24 takes a 2% fee when investing, to cover research and acquisition costs that they are making.
Who Can Sign Up With Reinvest24?
Anyone older than 18 years that completes their KYC procedure can start investing with Reinvest24, meaning that there is NO country restriction with Reinvest24. With a KYC procedure, you simply confirm your passport and that’s it.
You can sign up following these steps:
- Go to the Reinvest24 website and create your account
- Complete the KYC procedure by uploading your passport or your ID
- Fund your account
- Start investing in your first project
How Do I Start Investing In Reinvest24?
If you want to start to go more serious into real estate crowdlending, it’s really easy to create an account on Reinvest24.
You go directly to the Reinvest24 site to sign up and make a bank transfer to the platform, like mentioned above. When I transferred my money, it was in my account within one business day.
To actually start investing your money, you can select a project on their platform. You can check out the different projects they have, using the projects tab.
When you see a project that is interesting to you, you can click on the project for more details.
For example, this project:
They have a lot of information for the project, where you can see everything related to the project, what their plans are, and all the financials related to the project:
You can simply invest in the project you’ve been looking at by selecting how much you want to invest and press ‘Invest’. This will give you an exact estimation of how much rental income and capital gains your investment will have.
How I Tried Out Reinvest24?
In order to properly test the platform, I started investing with the minimum investment of €100. The investment case that was available at the time of investing was a wine boutique and restaurant in Tallinn, Estonia.
You can find the key figures below:
As you can see, there is a portion of capital growth and a portion yield. Total return on investment is estimated on 11.51% annually, which is based on existing contracts with investors.
Since Reinvest24 has a 2% transaction fee, I ended up buying 98 shares of €1 for my €100. This is very clear when you go and purchase your investment:
My Results With Reinvest24
You must be curious about what my results so far are with Reinvest24.
I opened my account in October 2019, meaning that I have a very short reference point for my investment.
I started trying the platform out by investing in one project, which is the wine boutique and restaurant in Tallinn, Estonia project I mentioned above.
The project I invested in was listed with expected results of 11.51% – which consists of a 6.81% yield (monthly rental income) and 4.7% yearly capital growth. For the income that I got so far, I have a return of 6.73%, which is close to what I expected.
From those results early in my investing journey, I can say that Reinvest24 meets my expectations.
For the future, I expect consistent returns form the platform. In addition, I will definitely add more money to the platform in the future.
What Are The Risks Of Investing On Reinvest24?
The structure of projects with Reinvest24 is that they focus on equity-based real estate crowdfunding, where you own a part of the property.
As is the case with most real estate crowdfunding websites, the property is the collateral for the project. This means the money you invest in a project is guaranteed by the property that you’re buying into.
The risks here are that there is no one willing to rent the property or the real estate market has a downward trend.
When we compare the collateral-based construction with a loan that is entirely unsecured, you will at least get a good chunk of your investment back. This is the worst-case scenario by the way.
If you want a detailed overview of every risk associated with (real estate) crowdlending, check it out here!
Ways To Reduce The Risk With Reinvest24
Reinvest24 is focused on reducing the risk by selecting only the best properties that can be put into their platform.
They will look at:
- Liquidity index – Will this property easily sell?
- Vacancy Index – Is it easy to find someone to rent the property?
- Price Growth Expectation – What is the average capital growth for projects similar to this one?
One great thing that they are offering, is investing from €100 per project. You can invest in a lot of different projects even if you’re investing with small capital.
When you’re distributing your money over many projects, the total risk that you’re taking on the platform is reduced.
If you’re investing in multiple properties and they can’t find a new tenant for a few months, the impact will be much smaller compared to when the only property you invest in can’t find a new tenant for a couple of months.
The other great thing is that they have a Single Purpose Vehicle (SPV) for every project.
What is a Single Purpose Vehicle (SPV)? The SPV is a separate company that owns the property, making you a stakeholder in this company. For every property that they have, they have a separate SPV – this minimizes the risk and improves the transparency for any single project.
This means that when Reinvest24 was to go bankrupt and close down, you would still be the owner of the property and will not lose any money. The SPV will not even be affected by the bankruptcy of Reinvest24.
When you’re considering real estate investing, going for a crowdlending platform like Reinvest24 is a LOT safer than buying one single apartment yourself and rent it out. Plus this is a lot less time-consuming!Open An Account At Reinvest24
Buyback Guarantee On Reinvest24
Like most real estate crowdfunding platforms, Reinvest24 has no buyback guarantee. When you’re investing in real estate, the asset is backed by the value of the underlying property.
This is no issue, however, because of the value of the underlying asset. Reinvest24 does great research to find properties and deals that are undervalued, meaning that the value of the property is often higher compared to the value of the loan.
That being said, there is always a risk with regards to the underlying property losing value because of some unexpected reason – like market movements for example.
Let’s look at the positives from the Reinvest24 platform first:
- The platform is very intuitive and easy to use
- You get monthly cash flow
- You get monthly capital growth
- Easy to diversify with €100 minimum investment
- You have NONE of the difficulties and troubles you would have as a landlord
- Everyone from all over the world can invest
Everything has upsides and downsides, so we should also look at things they can improve in this Reinvest24 review:
- It is a new platform (started in 2018), so little track record
- As an investor you have to pay fees to invest – while understandable, this is not the case with other platforms
- No auto-invest or buyback guarantee
Should You Invest In Reinvest24?
My first experience with Reinvest24 is very positive.
I love that they are focusing on equity projects, where you get a monthly rental income and capital gains when a project is sold. This is not a regular occurrence at other real estate crowdfunding websites, for sure!
With Reinvest24 it’s easy to diversify your portfolio since you only have to invest €100 per project. This reduces your risk and allows you to diversify properly.
There are not many projects available at the same time, which is good – this means they only select high-quality projects. If you are a regular investor with an average portfolio, Reinvest24 is a GREAT addition to your portfolio.
However, it may be hard to diversify if you have a big amount of money that you want to invest (over 10,000 EUR). If this is the case, I would recommend you diversify with other crowdfunding real estate alternatives or regular platforms like Mintos, Grupeer, or Crowdestor.
All In All
The overall impression of Reinvest24 is a solid platform that is growing a lot. I am positive about the platform, the way you get monthly rental income plus capital gains, and the high quality projects that they select are AWESOME.
I trust the platform and am curious about how the platform will develop over time.
Would you like to invest in Reinvest24? Then sign up immediately by clicking the button below:Open An Account At Reinvest24
Do you have money invested in real estate crowdfunding platforms?