In May of 2019, I started investing on Reinvest24. The reason for this is to diversify my crowdlending portfolio with real estate. But after nearly a year with the platform, do I actually like the platform? Let us find out in this review of Reinvest24.
Overall Reinvest24 is a great platform for getting into real estate. I like that you have equity in real estate and then earn rental income.
It is great to diversify a crowdlending portfolio with equity in real estate – without needing a large capital.
However, there are not often new projects and the projects take a while to fund.
What is Reinvest24?
Reinvest24 is a real estate crowdfunding platform based in Tallinn, Estonia. The platform launched back in 2018 and has since then invested 12 million euros in 10 projects. 4 million euros has already been returned to investors.
Reinvest24 specializes in real estate equity projects. This means that you will actually become a part-owner of the estate. Just like if you’d buy an apartment and rent it out yourself. The great thing about Reinvest24 is that you can part-own apartment projects and earn rental income without needing a large capital.
What returns can I expect with Reinvest24?
Reinvest24 states that the investor’s average annual return is 14.6%. This is for the rental income and capital growth combined. Most properties listed on the platform have yield return of 7-8% and an expected capital growth of 5-7% yearly.
Most payments have been made on time for me, however, I do have a property that Reinvest24 is trying to sell. This apparently is taking more time than expected. I also invested in a project in which they canceled and returned the invested money. I don’t remember the exact reason, but either it didn’t fund or they couldn’t buy the apartments after all.
How do I get started on Reinvest24?
Getting started on Reinvest24 is very easy. You simply just signup and verify your account by uploading your identity card like a passport.
How to start investing on Reinvest24?
Investing on the platform is really easy. First, you will need to deposit funds to your account. You can do a simple bank transfer from your bank account. I personally use Revolut for this, since they offer free currency exchange up to €5000 euros a month. You could also use platforms like TransferWise.
Either way with Revolut my funds were in my account by the next day.
I also tried to withdraw funds and this took just about 3 days to process.
Now that you’re ready to start investing, find a real estate project.
Then go to the project page.
Then scroll and input your investment value. The minimum per project is 100 euros.
I really like that Reinvest24 is transparent about the fees and what the expected returns are.
Reinvest24 currently doesn’t offer an auto-invest function. This I don’t mind too much since they don’t offer new projects that often.
My results with Reinvest24
You can view my portfolio page here. Overall the return is okay, but for me, the platform doesn’t feel right. This in no way means, that you shouldn’t invest on the platform.
Should you invest with Reinvest24?
Reinvest24 is a great crowdfunding platform with focus on real estate projects. My issue with Reinvest24 is that they don’t offer many new projects and the projects that they do offer takes a while to fund. Whenever you do invest there is a fee. I wouldn’t mind the fee if there was more projects with faster funding time.
The platform is still new and maturing. All of these things combined have made me chosen to stop investing on the platform. I might return someday.
Nevertheless, this doesn’t mean that you shouldn’t invest on the platform. the returns are solid. Therefore if you need real estate in your investment portfolio, this is a great platform. Just remember to do your own due diligence.
I have not had issues with receiving payments, so the platform seems to have a promising future ahead.
What alternatives are there to Reinvest24?
PropertyPartner is a great alternative to Reinvest24. They both offer loan projects and crowdfunded real estate. Like Reinvest24, PropertyPartner also has fees. They both have a monthly fee and a fee when you invest. Therefore PropertyPartner better for larger accounts.
Another alternative is Brickstarter. Brickstarter seems to be much like Reinvest24, however, I don’t have personal experience with Brickstarter.