Reinvest24 Review Summary
Reinvest24 offers investments in real estate-backed loans from Spain, Estonia, Moldova, Switzerland, and Germany, with a high interest of up to 15% per year.
Due to various disputes, the portfolios from Moldova and Spain are not performing, resulting in over €13 M in funds in recovery.
Main takeaways from our Reinvest24 review:
- Invest in rental deals and development loans
- Limited diversification
- Non-performing loans in Moldova and Spain
Reinvest24 suits you if you want to diversify your real-estate-backed portfolio with the highest possible yield.
If you want to invest in Reinvest24, don’t forget to sign up with our link to secure a €10 bonus.
Ready to join Reinvest24?
What is Reinvest24?
Reinvest is a smaller Estonian P2P lending platform that allows users to invest in rental properties, development projects, and real estate-backed loans.
The combined rental yield and capital growth from investments result in the platform boasting an average of 14.8% per year.
This Reinvest24 review will reveal how the platform works and whether you should consider adding it to your investment portfolio.
- The highest yield on loans in the crowdlending space
- Liquid secondary market
- Buy-to-let properties in Estonia
- Some loans come without an appraisal report
- Evaluation of specific properties is difficult
- No Auto Invest
- Non-performing loans in Moldova & Spain
- The platform doesn't share much information about it's delayed or defaulted projects
Are you wondering how Reinvest24 works? Watch our review of the visit to Reinvest24's headquarters, where we learn more about how the platform operates.
Reinvest24 in Numbers
Reinvest24 used to have a pretty good track record and an impressive portfolio performance in the Baltics.
In recent months, the platform struggled with disputes with its shareholder KIRSAN and management issues in Spain, which resulted in many non-performing loans.
Loans from Spain and Moldova aren't performing, which results in over €13 million in "funds in recovery".
If you’re looking for a Reinvest24 bonus, consider yourself lucky! We’ve negotiated a special Reinvest24 reward for new investors, whereby users who sign up with our link receive a €10 bonus.
When retrieving your bonus, you don’t need to use a promo code; instead, the bonus will be added to your investment account as soon as you invest in one of the projects listed on Reinvest24. The minimum investment amount is €100.
All good to go?
As with every P2P lending platform, new users must pass the Know Your Customer (KYC) requirements to start investing.
When completing this, you must share your name, date of birth, country of residence, phone number, gender, and a digital copy of your ID.
Once you’ve verified your email address, you can access the dashboard and available projects.
To deposit funds to your Reinvest24 investment account, you can use the standard bank transfer, free within Europe (SEPA transfers). While this option is free and straightforward, transferring funds might take a few business days.
No EUR bank account? No problem
Reinvest24 charges a €2 withdrawal fee if you want to withdraw your balance.
We are actively testing Reinvest24 and can confirm that depositing and withdrawing funds to and from the platform works without issues.
Risk and Return
Before you invest your hard-earned money into any P2P lending platform, you should fully understand the company’s business model and the securities and risks connected to your investments.
Are you wondering how Reinvest24 compares to other platforms? Check out our comparison between EstateGuru and Reinvest24.
Reinvest24 offers the chance to invest in real estate projects from Germany, Latvia, Switzerland, Estonia, Moldova, or Spain.
The crowdlending platform also allows you to invest in rental projects, yielding monthly cash flow.
How Reinvest24 rental projects work
- Reinvest24 finds properties up for sale and can generate a monthly cash flow.
- The site then lists those properties on the platform so investors can fund the projects.
- Collectively, several investors provide the funds to purchase the property, and, in exchange, they receive a share of the property.
- Once the property is funded, a Single Purpose Vehicle (SVP) is created, a subsidiary company of Reinvest Holding that handles the management of the property.
- According to investors ' shares, investors receive dividends from the monthly rental income paid out by the SVP.
- If the property sells for a higher price, investors earn additional returns through capital gains.
The average return on investment from monthly rental income and capital gains is currently at 14.8% per year. Use our Reinvest24 calculator to calculate the expected return based on your deposits.
1% Exit Fee
Reinvest24 will charge a 1% exit fee from the principal invested amount unless stated otherwise in the project description. This 1% fee doesn't impact your return much if you invest for at least 12 months.
If you are, however, invested in a project for just a few months, a 1% fee can significantly lower your internal return rate.
Sometimes projects are exited sooner than expected, meaning your return might decrease. We suggest focusing on projects for at least 12 months to maximize your profit.
Investment Protection on Reinvest24
Reinvest24 collaborates with a collateral agent, the Estonian law firm Clarus OÜ. This licensed law firm puts a mortgage (with additional validation of 20% above the funding target) on the property in favor of Reinvest24 investors.
The SPV is responsible for paying out the rental income to Reinvest24 investors.
If the SPV misses three consecutive rental payouts, the collateral agent can take over the property, sell it, and return the sales revenue to the investors.
The security of your investment on Reinvest24 is very straightforward. Be informed, however, that the safety of your investments on Reinvest24 can vary in certain jurisdictions.
There are no complicated agreements or buyback guarantees; your investment is often secured by a first-rank mortgage, which an independent law firm holds.
Risks to consider
Reinvest24 also lists projects where we couldn't find any evaluation reports. A mortgage does not back those projects.
Reinvest24 informed us that in specific markets (Spain), property evaluation is causing high costs, which would decrease investors' annual returns.
While we understand that in specific markets, the legal costs to set up a mortgage are high, we suggest you research a dedicated property before blindly investing in anything available, as this might significantly affect the risk of your investments.
Note that Reinvest24 is currently not a regulated platform.
Investing in Moldova
Reinvest24 constantly expands into new markets to offer secured and high-yielding projects to its investor base.
Many of the recent projects on Reinvest24 originated in Moldova.
We have reached out to the CEO of Reinvest24 to learn about the investment opportunities in Moldova. Watch the full interview here:
Remember that past performance might not reflect the current situation. Due to geopolitical tensions in the area, loans from Moldova might carry additional risks.
Is Reinvest24 Safe?
At this point, you should have a good idea about the potential returns and securities resulting from investing in real estate properties through Reinvest24.
Before you sign up, redeem your Reinvest24 bonus, and invest money, we suggest conducting your own due diligence.
This task is rather time-consuming, so we've done the heavy lifting for you. We’ve completed background checks on senior staff and sifted through Reinvest’s contract, and presented our findings below:
Who Runs the Company?
Reinvest24 is led by CEO Tanel Orro, who has been with the company since its inception. Before working with Reinvest24, Tanel worked at LHV bank as a sales manager. Tanel has a team of at least ten who help him grow the platform.
Who is Reinvest24’s Legal Owner?
The Reinvest24 platform is owned by Reinvest24 Holding, which is owned by JoinEstate OÜ (72%) and Kirsan (18%).
Are There Any Suspicious Terms and Conditions?
We recommend looking at any platform’s terms and conditions before investing to avoid unpleasant surprises when investing.
We don’t need to tell you that reading a finance platform’s T&Cs, word for word isn’t a delightful task. And it probably won’t surprise you to hear that most investors and fellow P2P bloggers don’t do this before they invest... But, at P2P Empire, we know the importance of doing this if we are to provide the best quality information to our investors.
We’ve gone through the company’s terms with a fine-tooth comb; see our breakdown of our findings below:
16.1. Fees You Should be Aware of
Managing properties, maintaining the platform, dealing with contracts, and researching new investment opportunities all costs Reinvest time and money. So, yep, you guessed it! Reinvest24 needs to make money too. But how does the platform do this?Reinvest24 charges its investors a 1% fee of the principal investment amount.
If you invest €100 into one project, the platform will charge you a €1 fee. Reinvest24 also charges a 10% fee for managing the properties, which is deducted from the monthly rental income.
Reinvest24 also reserves the right to charge an administration fee if the property is sold.
The selling costs can vary, depending on the size and nature of the property, but usually, it’s around 2-3%, which is similar to the fees attached to selling your own property.
Reinvest24 used to charge a 2% fee for transactions on the primary market. This fee has been recently reduced to just 1%.
If investors decide to exit investments early, they will be charged a VAT fee, which will be deducted from the sales revenue of the property.
Investors must be well-informed about the fee structure of Reinvest24, and we believe this information should be more widely publicized beyond its brief mention in the company’s terms and conditions.
Besides the abovementioned clauses, we haven’t found anything we think investors must be aware of. The platform doesn’t take responsibility for any losses resulting from investments, but this is a common thread with all P2P investments.
You should know that the Estonian crowdfunding space isn’t regulated yet. But, thanks to the recent scams with platforms like Kuetzal and Envestio, the Estonian Financial Inspection is finally moving towards regulations. We expect official national and EU regulations to be implemented across Estonian crowdlending platforms by the end of 2023.
Do Investors Get Access to Individual Investment Agreements?
Investors can access individual loan agreements by navigating to the Transaction page and downloading the "principal loan terms" which can be found next to the transaction that represents your investment into a dedicated loan.
Potential Red Flags
- Some of the selected properties don't come with an appraisal report, so investors cannot evaluate whether Reinvest24 is raising the needed amount.
- The dispute between Reinvest24 and KIRSAN (borrower and shareholder of Reinvest24) has negative impact on loans from Moldova.
Learn more about possible red flags in our guide about how to avoid investing in P2P lending scams.
Our Opinion Of Reinvest24
Initially, Reinvest24 started offering rental projects, where investors purchased the property rented out and later sold it with capital gains.
Unfortunately, rental deals in the Baltics weren’t as attractive for P2P investors as they preferred to get fixed interest, as is the case with real estate loans, which is also why Reinvest24 moved towards offering more real estate development loans, which carry additional risks.
The strategic collaboration with the real estate developer Kirsan opened many new opportunities to Reinvest24, which started funding some of Kirsan’s high-yielding development projects in Moldova, which ended up badly for investors.
Almost 90% of the funded projects on Reinvest24 are real estate loans rather than rental deals.
During our visit to Reinvest24, we had the chance to visit all of the currently available rental properties in Tallinn, Estonia.
Investing in rental properties in Tallinn used to be very lucrative, and the platform could source exciting premises that can be refurbished and sold with additional profit.
Due to the lack of interest from P2P investors, the platform mainly provides investment opportunities in real estate loans with fixed interest rates and no capital gains.
Unfortunately, not many projects come with a dedicated appraisal report, making evaluating the risk of investing in those loans challenging.
While investing in real estate loans can be lucrative, it’s certainly not risk-free. The ongoing dispute between Reinvest24 and its shareholder KIRSAN, harms investors. Additionally, Reinvest24's management in Spain was replaced due to several issues with the performance of Spanish loans.
As of October 2023, we don't suggest investing on Reinvest24 as the performance of the platform's loan book is far beyond what most investors are expecting.
Reinvest24’s tools are intuitive; if you’re active on platforms like Mintos or EstateGuru, you won’t have any issues using Reinvest24.
Even investors starting with P2P lending will find the platform easy to use.
The Available Properties page is the most-visited section of the site. On this page, users can see the projects in the funding phase, those that have already received funding, and projects that have been successfully sold (or exited).
You can see basic information about the funding target, rental income yield, and expected capital gain.
During our visit to Reinvest24, we had the chance to visit two of the highlighted projects in Rocca Al Mare and the restaurant in Kadriorg.
If you like the project, you can invest immediately.
Note that the minimum investment on the primary market is only €100 per project. If you decide to invest on the secondary market, the minimum investment is only 1€.
🧾Does Reinvest24 deduct taxes?
Reinvest24 doesn't withhold taxes from your earnings. You can download the income statement for a selected period, which lists all your income, including interest and income from capital gains. You can save this report and submit it to your tax authorities when you file your taxes in the country where you are a tax resident.
Liquidity is an essential aspect of investing in real estate loans. Investors follow a relatively long-term strategy when investing in real estate crowdfunding platforms.
Reinvest24 has a dedicated secondary market where you can buy and sell investments from previously funded projects.
This significantly improves the liquidity of your investments on Reinvest24. The secondary market on Reinvest24 is built like a stock exchange. You can sell and buy shares of properties.
Buying shares is relatively straightforward, you only need to navigate to Properties and then choose the tab Secondary Market. You can then view individual properties and buy a part of them. After each transaction, you will receive a confirmation email.
If you decide to sell your shares, view your properties and click the sell button.
You can input the number of shares you want to sell and place your order in the following fields.
The unique benefit of the secondary market on Reinvest24 is that investors can buy and sell any share.
On other crowdfunding platforms with a secondary market, you can most likely only buy or sell the entire investment. Therefore, your investments on Reinvest24 are usually more liquid than on other platforms.
If you are someone who wants to have instant access to the capital, we suggest having a look at Fintown. This platform lets you exit your investment after the minimum loan period for free.
As mentioned, we’ve contacted Reinvest’s CEO, Tanel, when researching the platform.
So far, our experience with Reinvest24 support has been positive.
Tanel responded promptly to our questions about terms and conditions and the company’s business model. Unfortunately, we can’t say the same for all CEOs we’ve been in touch with.
If we haven’t covered something in our Reinvest24 review, you can look at Reinvest24’s FAQ section or contact Tanel at firstname.lastname@example.org.