I love to diversify my real estate crowdfunding investments on as many great platforms as possible, which is why I constantly try out new platforms with my own money and then publish a review on this website.
In this article, I will review a real estate crowdfunding platform called Reinvest24. I heard about it from several friends that are also investing in real estate crowdfunding, and I really liked the fact that they actually invest mainly in equity-based projects, meaning you get a monthly rental income distribution from those projects. I will tell you what returns you can expect from the platform, what are the key features of the platform, and finally also share with you my latest results with the platform. Let's dive in!
Reinvest24 is a real estate crowdfunding platform based in Tallinn, Estonia. The platform launched in 2018 and has already funded over 10 million worth of real estate projects, returning over 3 million back to investors as profit.
As I mentioned earlier, what is really nice about Reinvest24 is that they focus on real estate equity projects, meaning that you actually become the owner of part of the projects, just like you would when you buy an apartment to rent it for example.
For the investor, this means that you will get monthly distributions of the rental income of the property, of course, proportional to the number of shares you own in the project. And if the property is sold (usually at the end of the predefined period of time), you will also get profits from the capital growth of the property, just like you would in 'classical' real estate investing.
As for all the platforms I review, I also got in touch with their support team directly, not only to check if they can help me out but also to make sure there is an actual business behind the website. I can say that I had a really nice experience speaking with their support team, and the people I talked to were very nice and always ready to help. I also checked their registration number in the Estonian company directory, it actually matches the name and address of the company.
Reinvest24 advertises an average 14.6% annual return rate on the platform (from rental income & capital growth combined). Most properties listed on the platform have a yield of around 8% and a yearly capital growth around 5%.
Having invested in the platform since December 2018, it is still way too early to calculate my own overall yield on the platform, but so far all payments have been made on time and with a yield close to what was expected (more about that at the end of the article).
As I mentioned earlier, Reinvest24 mainly focuses on equity-based real estate crowdfunding, meaning you become an owner of the property along with other investors.
As for all real estate crowdfunding platforms, the collateral for each project is the property itself, meaning that the money you invest is actually guaranteed by the piece of property that you get. You could still lose some money of course, for example, if the real estate market goes down or the property doesn't have a tenant, but this is the risk that comes with any real estate investment. But compared to an unsecured loan where you can lose all your investment, with property you are sure to get at least a good part of your investment back in the worst-case scenario.
The team at Reinvest24 also focuses on only selecting the best properties to put on their platform. For each property, they evaluate three criteria:
You can also invest from 100 Euros in each property, meaning that you can invest in many properties on the platform even with small capital. This means that you should definitely invest in as many properties as possible to reduce the risk you are taking on the platform. Indeed, if you have for example 10 properties in your portfolio, the impact of one tenant not paying for a month will be significantly lower than if you just had one property.
Finally, for each property, an SPV (Single Purpose Vehicle) is created, which a simplified company structure. As an investor, you basically become a shareholder of this simplified company, that owns the property you are investing in. This means that even if Reinvest24 was to close down, you will still be the rightful owner of the property and not loose money.
So with all of this combined, it is definitely much safer to build a portfolio on a platform like Reinvest24 than buying a single apartment to rent it out for example.
Starting to invest on Reinvest24 is really simple: you can just make a bank transfer to the platform with the bank details provided by the platform. I for example used TransferWise to do the transfer, and the money was in my account within one day.
As for all platforms, I also tried to withdraw money. Everything went fine on this side, and I had my money back within 2 days.
Then, to actually start building your portfolio you need to select a first project on the platform. You can browse current projects by clicking on the Properties tab:
After that, you can simply click on the project you want to know more about to get more details, for example, this project in Tallinn:
For each project, you will have access to a detailed description of the property, what they plan to do in the future, and of course all the financial details of the project:
Finally, you can simply invest in the project by entering how much you want to invest and click on the Invest button. That will also give you a live estimation of the rental income & capital growth corresponding to your investment in the project.
Let's now dive more into the results that I got so far on Reinvest24. I opened my account back in December 2018 with just 500 Euros to try out the platform but actually invested only later in 2019 as there were not so many projects available at the start. I then invested all of it in a single project as this was the only one available on the platform, which is a group of 13 apartments in Tallinn:
For sure I would have preferred to diversify more on the platform, which is what I will do in the future as they now have more opportunities available on the platform.
In terms of returns, the project was listed with an expected yield of 8%. From the rental income distributions I got so far, I have an estimated annual yield of 7.4%, which is close to what was expected when I invested.
Since then, I invested in 2 more projects on the platform - for a total of around 900 Euros. One is currently being funded, and the other one is already delivering dividends as expected.
From those early results, I can say that Reinvest24 delivers as expected - with a solid rental income yield and no issues whatsoever at the moment. If I keep getting consistent results on the platform, I will definitely add more money on it in the future.
Overall, I can say that I really like Reinvest24. I love the fact that they focus on equity real estate crowdfunding projects, which is quite rare those days for real estate crowdfunding platforms. By investing in this platform, you get most of the advantages that you usually have from classical real estate investing: monthly rental income, and capital growth gains when a project is sold.
You also get solid rental yields around 7-8%, and the ability to easily build a diversified portfolio to drastically reduce the amount of risk in your investment, two things that you probably won't get with a classical real estate investment. I also got very promising results from the platform and no issues at all at the moment. For all those reasons, I really recommend Reinvest24, either to start a crowdlending portfolio or to add to an existing portfolio as it is a nice opportunity to diversify into equity real estate crowdfunding projects.