Are you looking to grow your passive income with real estate crowdfunding to live the life you want? This Reinvest24 review will go into a real estate crowdfunding platform, Reinvest24, and give you the ins and outs of investing successfully.
Recently I’m focusing on diversifying my crowdfunding and peer-to-peer investments. I love to invest in as many solid platforms as possible, giving me more passive income every month. With a deep appreciation for investing and how this can make money for me, I am constantly looking for ways to invest.
Several others have recommended Reinvest24 to me, so I tried it, and I can highly recommend the platform based on my experience. As an investment strategy, this can very well help my liquid net worth.
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 capital growth gains when a specific project is sold. Buying properties has become a definite real investment with high yields for my investment portfolio.
Plus, anyone over the entire world can invest! Property investing has never been more profitable.
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 experiences 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 capital gains when a project is sold. The sale date of the project is indicated on their platform.
Because you get monthly rental income and capital gains when selling, investing with Reinvest24 is like ‘offline’ real estate investing in the housing market.
This unique platform in Europe is a great way to diversify your peer-to-peer lending portfolio further.
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 by 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 seriously 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 mentioned above. When I transferred my money, it was in my account within one business day.
To start investing your money, you can select a project on their platform. You can check out their different projects using the Projects tab.
When you see a project interesting to you, you can click on the project for more details.
For example, this project:
They have a lot of information about 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.
What Returns Can I Expect With Reinvest24?
For Reinvest24 they have an average rate of 14.8% on their platform. This means rental income and capital growth of the property together. Most projects have around 8,4% rental income and 6,4% 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 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 the research and acquisition costs that they are making.
How I Tried Out Reinvest24?
To properly test the platform, I started investing with an investment of €100. The investment case 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 of yield. Based on existing contracts with investors, the total return on investment is estimated at 11.51% annually.
Since Reinvest24 has a 2% transaction fee, I bought 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 I have a good reference point for my investment.
I started trying the platform out by investing in 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%, consisting of a 6.81% yield (monthly rental income) and 4.7% yearly capital growth. For my income so far, I have a return of 6.73%, which is close to what I expected.
From those results, I can say that Reinvest24 meets my expectations.
In the future, I expect consistent returns from the platform. In addition, I will definitely add more money to the platform in the future.
What Are The Risks Of Investing In 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 you’re buying into.
The risks here are that no one is willing to rent the property or the real estate market has a downward trend.
When we compare collateral-based construction with an entirely unsecured loan, 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 out our peer-to-peer lending risks here.
Ways To Reduce The Risk With Reinvest24
Reinvest24 is focused on reducing 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 you’re taking on the platform is reduced.
If you’re investing in multiple properties and can’t find a new tenant for a few months, the impact will be much smaller than 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. Every property they have has 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 property owner and would 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 crowdfunding platform like Reinvest24 is a lot safer than buying one single apartment yourself and renting it out. Plus, this is a lot less time-consuming!
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 underlying property’s value.
This is no issue, however, because of the value of the underlying asset. Reinvest24 does great research to find properties and undervalued deals, meaning that the property’s value is often higher than the value of the loan. Until now, they’ve not lost a single € on any property, so investors always got their money back.
There is always a risk regarding the underlying property losing value because of some unexpected reason – like market movements.
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:
- 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
- There are limited diversification options
Should You Invest In Reinvest24?
My first experience with Reinvest24 was very positive.
I love that they focus 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!
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 appropriately.
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 lot of money you want to invest (over 10,000 EUR). If this is the case, I recommend you diversify with other crowdfunding real estate alternatives or regular platforms like Mintos or Fundrise.
All In All – Reinvest24 Review
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 they select are AWESOME. Investing in the real estate business has never been easier than with this platform.
Always remember that you must conduct your own due diligence. Nothing beats a well-informed and educated decision when you buy a property. This is true for beginners and experienced real estate investors alike. You must be as knowledgeable as possible when investing in real estate to make money.
I trust the platform and am curious about how the platform will develop over time. This is an investment opportunity you do not want to miss as you further develop your investment strategies as part of your plans for financial freedom.
Would you like to invest in Reinvest24? Then sign up immediately by clicking the button below:
Do you have money invested in real estate crowdfunding platforms?
Founder of Spark Nomad, Radical FIRE, Journalist
- Expertise: Personal finance and travel content
- Education: Bachelor of Economics at Radboud University, Master in Finance at Radboud University, Minor in Economics at Chapman University.
- Over 200 articles, essays, and short stories published across the web.
Experience: Marjolein Dilven is a journalist and founder of Spark Nomad, a travel platform, and Radical FIRE, a personal finance platform. Marjolein has a finance and economics background with a master’s in Finance. She has quit her job to travel the world, documenting her travels on Spark Nomad to help people plan their travels. Marjolein Dilven has written for publications like MSN, Associated Press, CNBC, Town News syndicate, and more.