ReInvest24 review

Table of contents

One of ReInvest24's rental projects is located inside this Kadrioru Plaza building

ReInvest24's overview

Like EstateGuru or BulkEstate, ReInvest24 allows to invest in real-estate backed loans. What sets this platform apart is that they also list their own development or rental projects.

Most investments on the platform are medium or long-term (6 months to one year), and the expected returns stand around 14% annually.

My opinion on ReInvest24

For a long time, I wasn’t so crazy about ReInvest24. Information about the projects were too scarce to my state, and the returns increased very slowly. However, now that several rental projects were exited, the performance has reached decent levels. The halved fee also helps building up performance much faster.

Although I overall still don’t like the interface – especially the secondary market -, I must admit that ReInvest24’s track record is very good. In addition, the amount of information provided – both during the funding phase and after it’s funded – is nothing short of remarkable.

Overall, ReInvest24 is a great complement to BulkEstate for investors who want to invest in projects potentially more rewarding than those listed at EstateGuru.

Detailed ratings

Actual performance

Returns for this portfolio increase slowly, and haven’t reached their full potential yet – far from it, actually -.

Loans liquidity

Although recent projects tend to be funded quickly, the loans volume is large enough to match the demand.

Reporting

Existing reports are useful, but there could be more of them – especially in regard to portfolio’s diversification –

Transparency & reliability

In term of transparency, ReInvest24 is way ahead most competitors. The detailed projects descriptions as well as the subsequent updates are strong selling points for this platform !

Website ergonomics

The website’s overall design and ergonomics could be much improved.

ReInvest24's pros & cons

Pros

  • High interest rates
  • Interesting geographical diversification opportunities in Moldova
  • Great track record
  • Excellent level of transparency and communication throughout projects' life

Cons

  • The 1% entry fee leads to a poor initial performance
  • Similarly, the €2 fee for withdrawals will greatly hurt small accounts
  • Interface is a mixed bag – the secondary market is especially ugly –

Loans characteristics

Loans durations

Medium-term : one month to one year

Long-term : more than one year

Loans kinds

Real-estate

Minimal investment

€100

Buyback guarantee

Buyback guarantee NOT AVAILABLE

Currencies

EUR – Euro

Overview of ReInvest24's loans

Four different kinds of investments are available on the platform.

  • Rental projects
  • Development projects
  • Real-Estate backed loans
  • NPL (Non-performing loan) projects

I will describe the first three kinds in detail. However, I will skip NPL projects, as I don’t remember ever seeing them listed on ReInvest24 – although I could of course be wrong -.

All projects on the platform have the same minimal investment amount on the primary market : € 100. However, on the secondary market, there’s no such threshold.

Investments are divided in shares initially valued € 1 each. For rental projects, their value will evolve over time.

Unlike most competitors, ReInvest24 charges a fee when investing. It used to be 2% of the invested amount – a high level which mechanically reduced returns, especially for short-term loans -. Fortunately, it’s been divided by two. The resulting 1% fee is much less impacting. This fee applies to both primary and secondary market.

Rental projects

Historically, they were the first kind of investments available at ReInvest24.

For these projects, ReInvest24 will acquire a property through a SPV – Special Purpose vehicle -. If necessary, they will renovate it – or even rebuild it – before renting it. It will then be sold for a premium.

Most rental projects were located in Tallinn or Riga, although the platform also launched one in Germany.

Eberswalde rental project was ReInvest24's first investment in Germany

They usually require little capital – around €200,000 in many cases -. They may thus get funded rather quickly – especially now that the platform’s popularity is growing -.

Combined return from the rental yield plus property value growth is usually around 12%.

It’s important to realize that investors will only start receiving an income once the renovation is over and a tenant is found. Additionally, the rental only amounts for roughly half of the income. Indeed, the eventual price increase of the property is expected to lead to the remaining revenue, once the project is exited. The cash-flow resulting from this kind of investment is thus less predictable form for development projects or real-estate backed loans.

Moreover, these investments don’t actually have a set term. Indeed, the timing for the exit will depend on the market conditions.

Real estate backed loans

Real-estate backed loans are very common in crowdlending. Indeed, such projects are also listed by EstateGuru or CrowdEstate.

The loan is granted to a third-party for a development project. All loans at ReInvest24 are secured by a 1st-rank mortgage. Although the LTV The LTV (Loan-To-Value ratio) is simply the ratio between the loan amount and the collateral value, expressed as a percent. Smaller values indicate safer loans, where the collateral value greatly exceeds the borrowed amount. LTV values around 50% – 60% are usually regarded as safe. can be as high as 80%, many projects only have a 50% LTV, making them very safe.

These real-estate projects are usually rather large. As a result, they will usually be funded in several stages.

Funding the "Metropolis business apartments" project required seven stages

Interest rates for these projects commonly vary between 13% and 14%. This figure is similar than at BulkEstate, and higher than EstateGuru‘s usual 10% – 11%.

An additional 0.5% or 1% bonus may be granted for large investments. The threshold varies greatly from one project to another; it may be as low as €1,000 and as high as €10,000.

These loans allow for some interesting geographical diversification. Indeed, many of them are located in Moldova, a country not available from ReInvest24’s competitors.

Duration for these loans are usually below one year. They usually yield interests monthly, but at least one only paid every six months. Make sure you check this point before investing if you want a regular cash-flow !

Development projects

ReInvest24‘s development projects are similar to the real-estate backed loans; however, they are managed by the platform instead of a 3rd party. Most are located in Spain.

They’re usually smaller in terms of amount – a few hundred thousand euros at most -. One exception was the renovation of a residential building in Xirivella (Spain), which had a budget of half a million euros !

Interest rates for such projects usually stand around 14%. A 0.5% bonus is usually granted for large investments.

These loans are usually medium-term (one year or less). However, many of them were full-bullet – meaning both capital and interests are only reimbursed once the project is completed -.

Loans volume

There are usually two or three new investment opportunities each month. This figure includes additional stages for existing projects.

As the platform is gaining in popularity, recent projects tend to get funded quickly (which in turns will marginally increase the returns).

Platform’s transparency and reliability

The great track record and high level of information regarding the projects are two great selling points for Reinvest24. I wish competitors would provide as many details as ReInvest24, both during and after the funding phase (I’m looking at you, Crowdestor !).

ReInvest24’s background and team

ReInvest24 was founded in 2017, and the website was launched the following year.

Before joining the platform as CEO, Tanel Orro had a long experience in finance and business development.

Loans descriptions

The projects descriptions are well detailed, and usually provide supporting documentation.

They all start with a quick overview, which sums up the most important points :

  • Investment duration
  • Location of the project
  • Interest rate (or expected returns in case of rental projects)
  • Collateral kind and LTV

The project itself is then described in details, as well as its location. These descriptions are sometimes complemented by videos.

A second tab focuses on investment details such as buying price and expected selling price. There’s some overlap with the previous description, but it’s clearly more finance-oriented.

Supporting documents such as floor or facade plans, valuation report and copies of required permits are provided also.

The ability to publicly ask questions regarding the projects would be a welcome addition; BulkEstate and CrowdEstate both provide this feature.

Reporting & statistics availability

ReInvest24‘s website lacks public statistics – which is a pity, as they’re regularly sent by e-mail to bloggers -. The homepage displays partial figures – number of projects and investors – but lacks the total funded volume, for example.

When it comes to ReInvest24’s financial solidity, it’s reassuring to see that the shares capital was increased from €2,500 to €125,000 in Spring.

Annual report for 2020 isn’t available yet. The previous financial report for fiscal year 2019 was unaudited; it show a tiny profit of €2,000.

On the other hand, the platform’s track record is clearly visible. And, as we’re about to see, it’s excellent.

Track record

If we exclude the different stages for the same projects, slightly more than 15 projects were exited. The resulting performance is nothing short of excellent; indeed, most exits resulted in an annualized rate of return around 14%.

Two of them even resulted in a rather extreme performance : respectively, 18.76% for “Luxury office in Tallinn” and a whopping 24.37% for “Luxurious rental apartment in Tallinn city center”. It looks like high-end projects are extremely rewarding !

To my knowledge, there’s been no delayed reimbursement for loans on the platform. On the other hand, rental projects don’t have a fixed end date and exiting them sometimes took a while.

Projects updates

I really appreciate how ReInvest24 communicates throughout the project’s life.

Unlike what their name implies, “Insider updates” on projects are actually available for everyone to read on the blog. They provide detailed updates regarding the progress, either in pictures or video.

A more formal quarterly property overview is also available. For rental properties, it displays a detailed costs breakdown as well as a summary of noteworthy events. I can’t help but praise this deep level of details and transparency !

One aspect I also greatly appreciate is that the value for most properties are re-evaluated regularly. A full valuation report is then available, and the book value for the property is adjusted. For example, the value for “Modern office in the business center of Tallinn” has increased by 6% since the initial investment, in addition to yielding rental income.

Platform's features

Early exit

Early exit available

Investing methods

Manual investing

Manual investing

New projects are announced by e-mail as well as on social medias (more on this topic below).

Investing manually on the primary market is trivial; it’s just a matter of inputting the desired amount.

Auto-invest

ReInvest24 is one of the few platform which don’t provide an auto-invest feature. However, the reduced number of projects as well as the time required to fund them hardly make auto-invest a necessity. Additionally, it’s always recommended to examine projects before investing, so investing manually really makes sense.

Secondary market

My first contact with ReInvest24‘s secondary market was a huge disappointment. In addition to requiring a magnifying glass in order to be able to read the text, it just didn’t make sense to me.

It looks so bad that it actually reminds me of ViaInvest‘s dreaded statistics graph. However, after zooming in and toying a bit with the interface, I finally understood how it is supposed to work.

The gray lines represent the number of shares available at each price level. Thus, in the screenshot above, the prices vary between € 1.03 and € 1.21. The latter come with a hefty premium, as initially all shares are worth € 1 ! In terms of volume, the largest bar represents 1030 shares (at € 1.04 each); the exact amount for the other bars is displayed when hovered.

After inputting the target amount, things become much clearer. The system will indeed compute the resulting transaction price, in a way similar to a stock exchange’s order book. The cheapest shares will thus be bought first.

A complete summary of the transaction will then appear; it includes the average shares price, transactions cost and estimated total interest.

For example, let’s imagine I want to buy shares for an mount of €2,000. 238 shares are available for € 1.03 each, which isn’t enough. The additional 1030 shares at € 1.04 sill won’t be sufficient. I will thus have to buy the remaining shares for a price of € 1.05. The resulting average price is slightly above € 1.04.

I regret that the output only reports the expected annual income as an amount instead of estimating the XIRR.

Another missing feature – this time on the projects list – would be the ability to filter them by project kind or country.

A small tutorial regarding the secondary market was published on the platform’s blog.

Secondary market is free for sellers. However, buyers have to pay a 1% fee, which is the same level as for the primary market.

Website’s ease of use

Languages

English, German, Estonian, Russian, Spanish

Funding methods

Available languages & translations quality

The website is translated into a large array of languages. Overall, the English translation is good, although I spotted a few typos and some awkward phrasing.

ReInvest24's registration process

Signing up at ReInvest24 is quick and easy.

Account funding and funds withdrawal

The only way to fund your account is via a SEPA transfer.

In a weird way since Britain left EU, ReInvest24 uses an English bank. Deposits are usually available on the next business day. Instant transfers are supposedly supported, but I could only manage to make a standard transfer.

Withdrawals used to be free, but since early 2021 they incur a € 2 fee, regardless of the withdrawn amount. There’s no minimal amount, but because of the fee it obviously makes little sense to withdraw a tiny amount.

Withdrawals below €1,000 should be processed immediately, whereas larger ones require a manual verification by the platform.

Website’s design and ergonomics

In term of design and ergonomics, ReInvest24‘s website is a mixed bag.

Indeed, on one hand, several screen are extremely readable and well-designed. Among them, the “how it works” page, which clearly describes the investing mechanisms as well as the different loans kinds.

On the other hand, as already pointed out, the secondary market is an absolute disaster. The font is so tiny that it’s not legible, and in spite of the very simple mechanism, the way it’s display makes investing look very complex.

More generally, the color scheme lacks subtlety, while the fonts are too small.

In addition, there are a few inconsistent navigation choices. For example, the “Withdraw” button is located on the “My investments” page, whereas the “Deposit” button is hidden inside the popup menu.

Finally, the small delay required for main the menu to appear is just annoying.

Reporting

A good overview of the current investments is provided on the “My investments” page. For each property, it lists the invested amount, current value and total income received. However, I regret that we can’t access a similar report for exited properties.

In addition, ReInvest24‘s income report is very complete; font size should be increased in order to improved readability, though.

On the minus side, portfolio statistics are basically non-existent. It would be great to be able to visualize the diversification level in terms of duration, country or project kind. EstateGuru‘s diversification score provides such an overview, for example.

Documentation

As already mentioned, the How it works page is a model of clarity. It clearly explains the differences between the different investments kinds, as well as the overall investing process.

On the other hand, although the FAQ A FAQ is simply a compilation of Frequently Asked Questions is very complete, it would benefit from both a restructuring and some proofreading .

Indeed, it isn’t broken down by topic, which makes it too large. In addition, several items are severely outdated – for example, the secondary market is still marked as upcoming, whereas it went live many months ago -. Worse, the provided information is sometimes just plain wrong – for example, an item states that one share is initially worth 10 cents, when it’s actually one euro -.

Communication & support

As already pointed out, the communication regarding the projects is excellent. More generally, the platform communicates actively – and, even more important, effectively -.

The platform’s blog contains updates regarding funded projects as well as generic posts regarding investing-related topics.

I’m not a huge fan of Facebook, but many platforms could get some inspiration from Reinvest24’s Facebook page. It lists successful exits, new projects and useful statistics – which should actually be incorporated in the website -.

In addition, the platform’s social media manager Kristina is active on the Telegram channel dedicated to ReInvest24. It’s a great place to ask questions about the platform or request improvements.

Finally, most e-mail are reimbursement notifications and announcement of new projects. All e-mail notifications are configurable.

Official ReInvest24 pages on social networks

Support

In terms of support, there’s a live chat available. It’s also possible to get in touch with the platform via by phone or via email.

Actual performance of my ReInvest24 portfolio

7,78%

At the end of August 2021, the XIRR for my ReInvest24 portfolio was 7,78%.

The initial fee level (2%) as well as the delay required to exit my early investments resulted in a lowered performance. However, it's been picking up recently, thanks to several successful exits.

Don't hesitate to read my most recent crowdlending portfolio review for detailed platforms performance comparison as well as historical performance.

For a detailed comparison of the different real-estate and business crowdlending platforms, check out this article.

Portfolio creation date

I created my ReInvest24 portfolio in December 2018

ReInvest24's main competitors

ReInvest24's facts & figures

Location

Tallinn, Estonia

Founding year

2017

Number of investors

10,000

Loans amount financed

€12,580,000

As of August 2021

Who can invest at ReInvest24

Reinvest24 platform allows everybody to invest, who is older than 18 years old whose active legal capacity is not restricted. In order to proceed to investment stage, you need to verify yourself.

ReInvest24 FAQ

Disclosure

Please note that this review may contain affiliate links. It means that I will earn a commission if you decide to invest after clicking through the link – at no additional cost to you, of course -. Please understand that I have experienced all of these companies, and I recommend them because they are helpful and useful, not because of the commissions I make if you decide to invest through my links.

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