Reinvest is a popular Estonian P2P lending platform that allows users to invest in rental properties, development projects, and real estate-backed loans. The combined rental yield, coupled with the capital growth from investments, results 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 in the crowdlending space
- 0% default rate
- Liquid secondary market
- Buy-to-let properties in Estonia
- Some loans come without an appraisal report
- Evaluation of certain properties is difficult
- No Auto Invest
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 has a pretty good track record and an impressive portfolio performance. Since its launch, the platform did not experience any defaulted projects.
As of today, Reinvest24 funded more than 185 projects with a value of more than €31 M. The average loan length is ten months, and the annual effective return is currently at 16.81%, which means that Reinvest24 offers the highest-yield real estate loans on the market.
Keep in mind that a high yield comes with a higher risk. Pay close attention to the portfolio allocation, where you can learn more about how your portfolio may be exposed.
While Reinvest24's track record is impressive, investing in loans always comes with certain risks. Investments in Moldava can potentially carry a higher level of risk due to the ongoing war in the neighboring country.
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... You’re welcome!
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 will need to share your name, date of birth, country of residence, phone number, gender, and a digital copy of your ID.
As soon as you’ve verified your email address, you’ll be able to 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 around one business day.
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, Estonia, Moldova, or Spain. The crowdlending platform also allows you to invest in rental projects that yield a monthly cash flow.
Keep reading our Reinvest24 review for more details on how Reinvest24 works.
How Reinvest24 works
- Reinvest24 finds properties that are up for sale and able to generate a monthly cash flow
- The site then lists those properties on the platform so that 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. (We know what you’re thinking. What happens if the property doesn’t receive any or enough funding? Well, the reserved funds are simply transferred back to investors’ accounts).
- Once the property is funded, a Single Purpose Vehicle (SVP) is created, which is a subsidiary company of Reinvest Holding that handles the management of the property
- Investors receive dividends from the monthly rental income that are paid out by the SVP, according to investors’ shares
- If the property sells for a higher price, investors earn additional returns in the form of capital gains
The average return on investment from monthly rental income and capital gains is currently at 14.8% per year.
Thanks to the collaboration between Reinvest24 and the real estate development company Kirsan, the platform can fund high-yielding real estate projects in Moldova. Those loans yield between 12% and 14% per year and are secured by a first-rank mortgage. The risk and return ratio on Reinvest24 is one of the best in the industry.
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 that much if you are investing 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 with a duration of 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 has the right to take over the property, sell it and distribute the sales revenue back to the investors.
The security of your investment on Reinvest24 is very straightforward. 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 is also listing 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.
While Reinvest24 has an outstanding track record (0% defaults), you should remember that the higher interest rate comes with additional risk. 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:
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.
As this is a rather time-consuming task, 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?
To avoid unpleasant surprises when investing, we recommend looking at any platform’s terms and conditions before investing there.
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 clauses mentioned above, 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 2022.
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 which means that investors cannot evaluate whether Reinvest24 is raising the needed amount
Our Opinion Of Reinvest24
Reinvest24 is an exciting project with potential. The platform 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 and more real estate development loans.
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.
Currently, 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 is very lucrative, and the platform can source exciting premises that can be refurbished and sold with additional profit.
Due to the lack of interest from P2P investors, the platform is currently mainly providing 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 it challenging to evaluate the risk of investing in those loans. This is something that the platform has to improve on to attract bigger investors.
So far, investors have funded projects worth close to €31 M with no capital loss. While investing in real estate loans can be lucrative, it’s certainly not risk-free. If you plan to invest on Reinvest24, we suggest you study individual projects and pick the ones that fit your investment strategy.
Ready to invest?
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 just 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 of 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 tend to follow a rather 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, you just view your properties and click on 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 are most likely only able to 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 Bondora’s Go and Grow product. Note, however, that you cannot compare this platform with the securities provided to you by Reinvest24.
Reinvest24’s Customer Support
As mentioned, we’ve been in touch with Reinvest’s CEO, Tanel, when conducting our research on the platform.
So far, our experience with Reinvest24 support has been positive. Tanel was incredibly responsive 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 there is something we haven’t covered in our Reinvest24 review, you can have a look at Reinvest24’s FAQ section or get in touch with Tanel at firstname.lastname@example.org.
Reinvest24 Review Summary
Our experience with Reinvest24 has been excellent so far. The platform offers investments in real estate-backed loans with the high interest of up to 16% per year. There have been no defaulted loans on Reinvest24 so far.
Main takeaways from our Reinvest24 review:
- Invest in rental deals and development loans
- Led by one of the most transparent CEOs
- Limited diversification
Reinvest24 is suitable for you if your goal is 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 Reinvest24?