Valentin Kragelj

Valentin Kragelj

Reinvest24 Review 2020

Reinvest24 Review Frontpage

P2P platform Reinvest24 approached me and offered cooperation – I review their platform in exchange for small monetary compensation. So here is Reinvest24 Review 2020! I want to be honest here and point out that this is not a paid review – you will be able to see this throughout the review. I will point at bad, as well as good points about the Reinvest24 platform.

Structure of Reinvest24 Review 2020

The review is split into following sections:

  • Overview,
  • How it works,
  • About the team,
  • Properties,
  • Registration,
  • Investments and fees,
  • Conclusion.

What is Reinvest24?

Interest rates

Depending on the property, 6 – 15 %.

Buyback and secondary market

Backed by property. No secondary market yet.

Loan originators

One.

Fees

2% when investing, and 10% from rental revenue.

Reinvest24 is an Estonian real estate investment platform, that was launched in 2018. Reinvest24 platform allows you to buy shares of residential or commercial real estate with other investors, and earn profit from rent and capital growth. Equity-based crowdfunding gives investors the same benefits and security as ownership, proportional to their investment contribution. You can check out information about the company here.

Reinvest24 Information
Reinvest24 information.

How the Platform Works

This is a hands-down process on how the investment property is found and invested in:

  • Reinvest24 finds properties that are for sale and cashflow positive.
  • The property is listed on the platform.
  • Investors invest in the property.
  • Investors receive dividends from monthly rental income, proportional to their share.
  • After some time, Reinvest24 will exit the property, selling it. If sold at a higher price, investors earn returns in the form of capital gains.

2 Passive Incomes

Reinvest24 provides 2 flows of passive income – rental income and capital growth.

Rental income means that you will be able to receive monthly dividends from the properties that are rented out. You receive profits once the property is fully funded and has a tenant.

Capital Growth is when the price of real estate property appreciates. Investors will receive this income once the property is sold or when they sell their shares of the real estate.

The Team

I went to the About Us page to learn more about the employees. Sadly, only the CEO is mentioned by name – Tanel Orro. It is also mentioned they are working with Tina Real Estate Agency, and that they have an experienced CTO, but nothing more. I find this information too vague. In my opinion, every P2P platform should have its upper management staff listed, with professional photos and links to LinkedIn profile (or another similar website). On the About Us page, there is a photo with 7 people. It would be good to know who the other ones are (apart from CEO).

Properties

Under the Properties page, there is a list of properties that are not yet funded, funded ones, and the already exited ones. Of course, investors can only invest in former ones. At the time of writing, 14 such properties are listed.

Reinvest24 Properties
Reinvest24 available properties page.

You can click on the Exited button, showing you a list of exited properties. Again, at the time of writing, 10 such properties are displayed. What seems strange is that some of the properties were funded before the company was created. For instance, the purchase date of the Ao House development project is June 2015.

To me, such properties shouldn’t be displayed as “exited”, since they were funded years before Reinvest24 platform existed. I don’t know the logic behind it, but to me, this seems misleading. Later, Reinvest24’s staff emailed me the reasons – properties were funded using the Reinvest24’s softare first functionalities, and they were developed by the same real estate team that currently takes care of all their properties. I still see this comparing apples to oranges, especially because said properties were privately funded, and that using the same “software functionalities” is not relevant here.

Property Overview

Most of the properties have a lot of photographs attached, alongside with information about:

  • Property overview,
  • Investment case, which contains the property’s process, and
  • Technical overview, which contains the Building plan and Land register documents.
Reinvest24 Property Overview
Reinvest24 property overview.

Registration

Account creation and identification is easy as 1-2-3.

For the latter, they use KYC (Know-Your-Customer). You have to provide the usual stuff, like your name, surname, date of birth ad front and back photo of your ID card.

Reinvest24 KYC
Reinvest24 KYC form.

They accepted my KYC identification after 1 day, which is acceptable, especially since it was done over the weekend. You receive an email, where it’s said you can start investing in properties from 100 € up.

Reinvest24 Identity Verified
Reinvest24 informs you when you can start investing.

Now all that is left is to deposit money and start investing into properties.

Fees

Let’s cut straight to the chase now. As already mentioned, the minimum amount for investment in one property is 100 €.

Reinvest24 takes 2% of the investment amount to cover property acquisition expenses. This means if you invest 100 €, 1,96 € (2%) is taken away as transaction cost, and your actual investment is 98 €.

They also charge up to 10% of rental revenue generated by the properties to cover various property management related expenses. You won’t see this number under property overview, since the fee is already included in “net rental income”. Though, in my opinion, there should be gross and net numbers displayed for better transparency. The only place the 10% fee is mentioned is on the FAQ page.

They do not hold taxes on your behalf – you must pay taxes according to the legal regulations of your country of residence.

Reinvest24 Fees
Form when you invest into one property.

Liquidity and Secondary Market

Liquidity on Reinvest24 is low, therefore cash-drag will happen. This motivates investors to invest in properties that are almost fully funded, which also lowers the chance of the property not being funded.

Secondary market is not available at the moment. Though it was said by Reinvest24 that it’s in the making, and promised in to be released in March 2020.

Sign-Up Bonus

If you register through my referral link, you will receive a free bonus of 10€. Click here to get the registration link.

Conclusion

Reinvest24 certainly seems to be a legit P2P platform. The returns for investors are compatible with other P2P platforms, and so the platform is especially promising for investors who are looking to diversify their P2P portfolio.

Reinvest24’s staff is working hard on bringing new investors to the platform, although in my humble opinion, they should focus on improving the website a bit more first. There is still some misleading information about properties, and the secondary market was promised to already be launched.

Anyway, I believe in the platform and the employees, and wish them luck!

pros

  • Monthly rental income
  • Non-traditional investment
  • Secured by collateral
  • Staff is friendly and hard working to improve the platform
cons

  • Misleading information
  • No secondary market
  • Limited diversification
  • Cash-drag
  • Fees
  • New P2P platform

That’s if for my Reinvest24 Review 2020! Thank you for your time and I hope I was able to provide enough information for you to decide, if you want to invest or not. Did you find it useful? Is there anything you’d like to correct me on? Leave a comment below and let’s discuss. 🙂

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Valentin Kragelj

Heyo, my name is Valentin and I am a 29 year old investor from Slovenia.  I started investing in ETFs and P2P lending recently, and decided to share my path with you. Because sharing is caring. :)

P2P portfolio: 4800 €

0%

Emergency: 2000 €

0%

Passive income: 40 €

0%
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