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. Indeed, information about the projects was too scarce to my taste, and the returns increased very slowly.
However, now that several rental projects were exited, the performance has reached decent levels. Fees management has also greatly improved, which means that for new investors, returns will increase 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 projects are funded – is nothing short of remarkable.
Overall, ReInvest24 is a great complement to EstateGuru, for investors who don’t mind bearing some additional risk in exchange for higher expected returns.
Returns for this portfolio increase slowly, and haven’t reached their full potential yet – far from it, actually -.
Although recent projects tend to be funded quickly, the loans volume is large enough to match the demand.
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 of most competitors. The detailed projects descriptions as well as the subsequent updates are strong selling points for this platform ! Moreover, ReInvest24’s track record is excellent.
The website’s overall design and ergonomics could be improved.
ReInvest24's pros & cons
- High interest rates
- Interesting geographical diversification opportunities
- Excellent track record
- Extremely high level of transparency and communication throughout projects' life
- The €2 fee for withdrawals will greatly hurt small accounts
- Interface is a mixed bag – the secondary market is especially ugly –
- The 1% exit fee will reduce performance for short-term loans
- The fee mechanism for secondary market transactions is confusing
Medium-term : one month to one year
Long-term : more than one year
Buyback guarantee NOT AVAILABLE
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
- Green energy projects
Green energy projects were introduced in April 2022, so until now there’s only been one such investment available.
In addition to these, ReInvest24’s website also mentions NPL (Non-performing loan) projects. However, I don’t remember ever seeing them listed on the platform – although I could of course be wrong -.
Geographically, the projects are split unevenly between six countries. As of July 2022, roughly 40% of the platform’s projects are located in Moldova. Estonia and Spain each make up for 20% of the total volume, while the remaining 20% are split between Switzerland, Germany and Latvia.
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.
ReInvest24's success fee
Unlike most competitors, ReInvest24 charges an explicit fee. It used to be 2% of the invested amount, paid when the investment is made. This high level mechanically reduced returns, especially for short-term loans. Fortunately, the fee structure has been improved :
- A first improvement was that the fee level was halved. The resulting 1% fee is much less impacting.
- In late 2021, the entry fee was turned into a success fee. That is, it is paid out once the project is completed.
This fee applies to both primary and secondary market. However, as we’ll explain below, fee handling for the secondary market is a bit contrived as it depends on whether the project has an entry fee (former projects) or a success fee (recent projects).
Rental projects 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.
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 than for development projects or real-estate backed loans.
Moreover, rental projects don’t actually have a set term. Indeed, the timing for the exit will depend on the market conditions.
Real estate backed loans
The loan is granted to a third-party for a development project. Nearly 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.
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. Many of them are located in Moldova, a country not available from ReInvest24’s competitors. ReInvest24 opened a branch in this country in October 2021. However, it’s worth noting that due the war in neighboring Ukraine, the country risk in Moldova has increased. I this personally refrain from investing there since the war broke out.
Another interesting country is Switzerland, where ReInvest24 offered a large loan – more than one million euros in several stages -. The Emmetten ApartHotel project had a very high interesting rate of 15% (which is increased even further for large investments). However, it was only secured by a 2nd-rank mortgage – although ReInvest24’s FAQ claims that all real-estate backed loans are secured by a 1st-rank mortgage -.
Duration for these loans are usually below one year. They commonly 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 !
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 -.
Green energy projects
ReInvest24‘s first Green energy project was introduced in April 2022. It was located in Moldova and aimed at funding a solar panel park.
The initial amount was rather small – €120,000 -. However, two more stages were funded on the platform, bringing the total amount to roughly half a million euros. The interest rate was similar to other projects kinds (14%), and the duration was slightly below one year.
There are roughly five new investment opportunities each month. This figure includes additional stages for existing projects, which are quite frequent.
As the platform is gaining in popularity, recent projects tend to get funded quickly (which in turn 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.
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.
In October 2021, ReInvest24 announced a partnership with Kirsan Group. This large group is behind three projects at ReInvest24 (one in Latvia, two in Moldova). It now owns 18% of the platform.
In a slightly confusing way, Kirsan also lists real-estate loans on their own platform. I didn’t check it out in detail, but at a glance there seems to be very little overlap between projects on Kirsan Invest and ReInvest24.
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.
Paradoxically, actual repayment schedules were only implemented recently and aren’t yet visible for all projects. Other projects only display the loan duration and reimbursement frequency.
Reporting & statistics availability
For a long time, ReInvest24‘s website lacked public statistics. Fortunately, it was finally introduced in early 2022. Now that the initial bugs have been fixed, it’s really useful as it displayed a large variety of figures. Among other statistics, it’s possible to visualize the projects breakdown by country or type, the monthly and total funded amount, or the number of investors as well as their country.
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 2021.
Annual report for 2020 was released in October 2021. Just like the previous year, it shows that the platform is barely profitable. Indeed, the profit reached a tiny €14,000. The report didn’t get audited.
On the other hand, the platform’s track record is clearly visible. And, as we’re about to see, it’s excellent.
As of early May 2022, out of 141 funded projects, 53 were repaid (these figures sometimes include several stages for a given project). 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 !
In addition, the first business loan on the platform was exited in July 2022. The exit of the Interchem project’s four stages resulted in returns of 16% yearly – and even 18% for investors who committed large sums -.
Until summer 2022, delayed repayments for real-estate backed loans were extremely rare. However, in July 2022, repayments for projects from Kirsan were delayed until the end of the month.
On the other hand, rental projects don’t have a fixed end date and exiting them sometimes took a while.
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.
More anecdotally, the platform supposedly offers a real-time camera view of some projects. It’s kind of a gadget, and I couldn’t get the video stream to load anyway.
Impact of the war in Ukraine
ReInvest24’s projects are located neither in Russia nor in Ukraine, so until now the war in Ukraine has been no impact.
On the other hand, roughly 40% of the platform’s projects are located in Moldova. Since the war broke out, it’s been rumored the conflict may extend to Transnistria. This breakaway state lies in a small part of Moldova bordering Ukraine and has maintained strong ties with Russia after the fall of USSR. As Moldova is a small country, the centrally-located capital Chisinau (where most projects are being developed) is only one hundred kilometers away from Transnistria.
As a result of the increased country risk, I have stopped investing in Moldova.
Early exit available
New projects are announced by e-mail as well as on social medias (more on this topic below).
I regret the inability to filter the projects list by project kind or country. However, as there are usually only a few properties available at the same time on the primary market, it isn’t a big deal.
Investing manually on the primary market is trivial; it’s just a matter of inputting the desired amount.
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.
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 amount 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.
Also, it would be great to have an overview of the offers on the secondary market, instead of having to check each project individually.
A small tutorial regarding the secondary market was published on the platform’s blog.
The fee for using the secondary market depends on the fee structure for the project. For former projects (with an entry fee), the buyer pays 1% and the seller doesn’t pay anything. It’s the opposite for new projects (with a success fee) : the seller has to pay 1%, and there’s no fee for the buyer. Several investors pointed out that the fee level should be explicitly displayed when confirming a transaction.
Most shares on the secondary market are sold with a high premium. Indeed, shares initially valued € 1 are commonly sold for € 1.03 or € 1.04, and sometimes as much as € 1.08 ! However, from time to time, it’s possible to buy a small amount of shares at face value.
On planned improvement to the secondary market is the addition of an overview. Currently, one has to check each stage of each project individually when looking for investing opportunities ! Benevolent investors also sometimes announce interesting offers on ReInvest24’s Telegram channel.
One last remark about ReInvest24’s secondary market. There’s one puzzling behavior investors should be aware of. Indeed, you own offers won’t be visible when you are logged in.
Website’s ease of use
English, German, Estonian, Russian, Spanish
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
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 – in my opinion – 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 displayed 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 the main menu to appear is just annoying.
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 improve 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.
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.
The FAQ A FAQ is simply a compilation of Frequently Asked Questions is also very complete. During my initial review, I regretted it wasn’t broken down by topic, which made it hard to find information. In addition, several items were outdated or even wrong. Both issues have been corrected and the FAQ is now a great source of information.
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.
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
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
At the end of July 2022, the XIRR for my ReInvest24 portfolio was 8,03%.
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 facts & figures
Number of investors
Loans amount financed
As of July 2022
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;
- able to make a deposit using a European bank account.
In order to proceed to the investment stage, you need to perform verification of your identity.
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.