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ReInvest24 Review 2020

Is ReInvest24 a great platform for real estate crowdfunding? Find out in our ReInvest24 review below:

ReInvest24

Minimum investment:

€100

Our rating:

4.5/5

Average yield:

14.60%

Pros:

  • Available internationally
  • Simple website layout
  • High level of transparency
  • Profitable company

Cons:

  • No auto-invest feature
  • No secondary market to make an early exit

Review summary:

ReInvest24 is a small real estate crowdfunding platform that became profitable in its first year of operation. They offer quality real estate projects that are carefully selected by their analyst team who have experience going back to 2005. The downsides of the platform are a lag of a secondary market to make an early exit and the fact that you can’t set up automatic investment. The platform is available for investors across the world.

It’s free to sign up on the platform.

Last updated: April 17, 2020

Introduction to our ReInvest24 review

Are you considering investing through ReInvest24? Then read on. We’ve written this ReInvest24.com review to help investors determine if ReInvest24 is the right choice for them.

Below you will find an overview of the things that we will discuss more in detail in this ReInvest24 review. Simply click on the links to jump directly to the thing you want to know more about.

Learn about this in our ReInvest24 review:

What is ReInvest24?

ReInvest24 is a real estate investment platform from Europe that enables you to invest in different real estate crowdfunding opportunities.

ReInvest24 projects

The company behind ReInvest24 is based in Tallinn, Estonia. It was founded in 2017 and in 2018, the platform was launched. Since then, an increasing number of investors have joined the platform.

At this point in time, the average return on the platform is around 14.60%

It is possible for investors to start investing on the platform with as little as €100.

How ReInvest24 works

ReInvest24 has a two-sided business model. On one side, ReInvest24 has to find suitable projects for their platform. On the other side, they have to find investors to invest in these projects.

To assess whether or not a project is good, their analyst team conducts a thorough due diligence check of every offered property before it’s put up for funding on the platform. Among other things, they look into valuations, plans, estimates and make any necessary legal agreements.

When a project goes live on the platform, investors can then invest in it (see current projects). If you decide to buy a project, you will receive shares that represent your ownership of the given project. These shares give you the right to the capital growth and yield of the project they represent. This works a lot like if you are buying a shares in a company. You will automatically receive dividends according to the shares you own. ReInvest24 charges a 2% investment commission when you invest in any project.

Let’s look at an investment example:

You invest in a Reinvest24 property at 10.000 EUR with 8,8% Net Yield. Share price is 0,1 EUR and there is a monthly profit distribution. Here the investment look as the following:

  • Investment: 10.000 EUR
  • Net Rental income: 880 EUR per year
  • Property Growth for 2 years: 1025 EUR
  • Reinvest24 Commission: 200 EUR
  • Total NET Earnings: 2585 EUR / 24 months
  • IRR: 13,9 %

Frequently asked questions:

Real estate crowdfunding is a great alternative to investing directly in properties. This is due to the fact that you can diversify between a lot of properties without having to invest millions. At the same time, you will have the opportunity to experience the high returns that real estate has historically provided to investors.

All investing includes risks. However, ReInvest24 has done a lot of effort to make investments on its platform as safe as possible. In our ReInvest24 review, you can learn more about the platform safety in this section.

According to ReInvest24’s annual report of 2018, the company became profitable in the first year of operation with a net profit of €6,710.

  1. Create an account.
  2. Transfer money to your account.
  3. Invest in the projects your desire on the platform.
  4. Log in to your account from time to time to check on your investments.

Who can use ReInvest24?

Both individuals and organizations can invest through ReInvest24.

Individuals

If you want to invest as an individual, you must at least meet the following requirements:

  • Being at least 18 years old
  • Not having your active legal capacity restricted

If you live up to these requirements, then you can probably start investing through the platform.

Organizations

If you run a business, it is also possible to invest on ReInvest24. Once you have signed up on the platform, you must simply go to your account and select “add business account”. From here, you will be able to make a business account:

Business verification

Available countries

ReInvest24 is a platform that makes it possible to invest from most countries in the world. Among others, we know about investors on the platform from:

Lithuania, South Africa, Romania, Lesotho, Bulgaria, Canada, Estonia, Netherlands, United Kingdom, United Arab Emirates, Nigeria, Greece, Bosnia and Herzegovina, Taiwan, Dominican Republic, Italy, Ireland, Germany, Kuwait, Malaysia, Slovakia and Rwanda.

If you are from one of the countries above, it should be fairly straight forward signing up and investing on ReInvest24. However, if you are not from one of the above countries, chances are that you can sign up and invest anyways. If you are in doubt as to whether or not you can invest on the platform, you can always contact the support team at ReInvest24 via the contact options on the website.

How safe is ReInvest24?

To determine if ReInvest24 is safe, we have taken a look at some of the potential upsides and downsides of investing on the platform in the following part of our ReInvest24 review. 

1. ReInvest24 profitability 

According to ReInvest24’s annual report of 2018, the company became profitable in the first year of operation with a net profit of €6,710.

ReInvest24 profit report

This contributes positively to the safety of the platform as there is less risk of a profitable business going bankrupt. This also reduces the platform risk.

It is also far from all crowdinvesting platforms that are profitable. But here ReInvest24 is already ahead of the competition.

A small wish from our part is that they would make their annual reports even more accessible on their website. We think the company could benefit from this, as a lot of investors prefer platforms with full transparency.

2. Main risks

In the following, we go through some of the main risks of using ReInvest24 that we have considered:

ReInvest24 bankruptcy risk

Of course, there is a risk of ReInvest24 going bankrupt. Like many other P2P platforms, ReInvest24 has also safeguarded investors if that should happen.

The company set up a Special Purpose Vehicle (SPV) for each investment on the platform. Basically this is a form of subsidiary company that owns the property titles, and whose responsibilities include the maintenance of the properties and managing tenants. If a ReInvest24 then goes bankrupt, it should not affect the properties on the platform.

Financial turndown risk

If you choose to invest in real estate through ReInvest24, then you also take on real estate related risks.

Therefore, a financial turndown in real estate could affect the investments on ReInvest24 due to the fact that a real estate crash could cause a decline in property values.

Is ReInvest24 safe?

Investments on ReInvest24 are secured by mortgages held by collateral agents in favor of the investors. Furthermore, thorough due diligence is also conducted by ReInvest24’s analyst team before any projects are listed on the platform. The analyst team has experience in the industry since 2005. 

Our biggest fear with using the platform is how a downturn in real estate would affect the individual investment on the platform. Overall, we believe that ReInvest24 is a good platform with serious projects and an excellent management that is able to navigate such a situation.

Our experience with ReInvest24

Of the many real estate crowdfunding platforms from Europe we have tried, we believe that ReInvest24 is one of a kind. They have some carefully selected projects featured on their platform which are quite easy to all ones money invested in.

We tried to invest a chunk of money on the platform, and were quite pleased with the communication that follows an investment. For example, each month we get an email about dividend payments:

Dividends from our ReInvest24 test

When we go to our profile it is also easy to find an income report.

Even though they don’t have a secondary market or offer an auto-invest feature, we still have faith in the management of the company. However, as they grow in popularity, we hope that they will be able to feature more projects for investors to be able to get diversified further on the platform.

ReInvest24 reviews on Trustpilot

Trustpilot is a great place to learn what other people think of ReInvest24. We have collected some bad, some average and (so far there are only good reviews in english on Trustpilot) some good ReInvest24 reviews from Trustpilot for you to take a closer look at:

5 star ReInvest24 review on Trustpilot

Best ReInvest24 alternatives

Not sure ReInvest24 is the right choice for you? Then there are also some good ReInvest24 alternatives to consider. The following are some of our favorites:

Even if you choose to use ReInvest24, it may still be a good idea to take a closer look at some of the platforms above. By using multiple platforms you minimize your overall platform risk. At the same time, you will have the opportunity to diversify your portfolio further.

Conclusion of our ReInvest24 review

ReInvest24 is an excellent platform for real estate crowdfunding. They have an experienced team of analysts that go through the projects before they are made available to investors. You will also be able to find a competitive return on the platform.

Some investors view it as a negative that ReInvest24 only has very few projects live on the platform. But some of the platforms that are trying to post more projects for investment then lag on due diligence. Therefore, we quite like the fact that ReInvest24 is a small platform that takes the time to do their due diligence well.

One of the things we think is missing is a secondary market and an auto-investment feature. Otherwise we really like ReInvest24 and look forward to seeing how the platform will grow over the coming years.