Investing in real estate is a great way to create passive income and increase your long-term wealth. Also, it is known that the biggest portion of the world’s wealthiest people portfolios consist of real estate. However, investing in this asset class requires big capital and possess a lot of nuances. Luckily, these days mentioned barriers can be eliminated thanks to crowdfunding solutions, such as Reinvest24.
What is Reinvest24?
Reinvest24 is a European real estate investment platform based in Estonia. It was launched in 2018 but the Reinvest24 management has been working with high-profile real estate investments for more than 10 years already. The Reinvest24 team consists of finance, IT, marketing and real estate experts who have many years of experience and in total managed over 10 million euros in investments. By using Reinvest24 platform, investors can easily start investing in real estate with as little as 100 eur. The platform provides residential and commercial real estate projects from Estonia, Latvia, Moldova and Spain. Since it is real estate – the duration of the projects varies from 6 to 36 months. Also, it is important to mention that all the properties are secured with mortgage. It means that if something goes bad with project or the platform itself, the collateral can be sold, and funds invested can be received back.
How Does Reinvest24 Work?
Once the investment is made, you start earning profits from rental income, capital growth or interest in case of development projects. Some properties have a bullet payment structure (where the income accrued, and principal are paid at the end of investment term) and monthly dividends. By reinvesting your earnings into other investment projects, you can diversify your portfolio and generate income from multiple properties. Additionally, this way it is possible to decreases the overall risks and ensure a long-term investment strategy built to create wealth passively.
The experts in the field of real estate takes care of each project’s market research, paperwork, property development, as well as its management while investors can enjoy fully secured investments.
When a buy-to-let and buy-to-sell gets purchased, it is also mortgaged by a law firm which acts a collateral agent. A collateral agent makes sure investors’ interests are protected. If certain criteria are fulfilled according to the collateral agent’s contract, they take control over the property with the sole responsibility of selling it at the best possible price, distributing the collected assets among the stakeholders that invested into the project. This process makes sure you are protected by the value of the assets you invest in.
In regard to the development projects, the loan contract will be signed, and collateral will be set prior to issuing the loan to the developer. With the development projects located in Moldova, the LTV is 50% and they will make sure that it will not increase throughout whole stages. The team is monitoring closely the progress with the development projects and update investors on the progress made.
The platform provides a variety of investment types. Recently they expanded and showed nice dynamic in terms of projects published. As mentioned before, it is possible to invest in 3 types of properties from Estonia, Latvia, Moldova and Spain, thus, earning 14% p.a. on average.
With rental properties you have can invest in real estate, benefiting the same way as being an investor in an apartment complex in your own city. Most of the real estate crowdlending platforms only broker and negotiate loans from third-party real estate developers. Meaning that your investment is tied with the company you invest in and not in the real estate asset itself. With Reinvest24, your investment is connected to the real estate property you invest in.
Also, development projects have a different variety and interesting concept. For example, they offer possibility to invest in a commercial real estate that will be the first antiviral shopping center in Moldova. And they work with only experienced International developers. The one is KIRSAN Holding, that previously developed numerous successful projects in Spain, Latvia, Switzerland, Germany, Romania and Moldova.
As per buy-to-sell, it is a loan type which is used to purchase a property in order to sell it. In Reinvest24 case, before selling it, they will renovate the property in order to increase its value. Also, it means they don’t lend money to a 3rd party but purchase the property and manage the process in a similar way that they do with the rental apartments.
Performance Review of Existing Properties
We took a closer look at Reinvest24 published projects and made the performance overview. In total, the platform has published 40 projects (including property stages, as each stage comes with an independent collateral), out of which 11 are successfully exited properties. More detailed information about exited properties can be found in the “blog” or properties section – “exited”. At the time of writing this article, Reinvest24 has no defaulted projects and no late payments. Also, the latest information about Reinvest24 properties is available on a quarter basis in their “quarter property overviews”.
The average annual return so far is 14.8% (total combined return) including net yield and capital growth. This includes income from both commercial and residential rent or monthly interest payments from development projects. The best way to maximize your return is to put your earned interest to work. For example, by investing 15K and you keep reinvesting, you can easily become a millionaire in just 30 years. Also, it is possible to increase the estimated returns by buying discounted deals on the secondary market or selling them with a premium.
How Did Reinvest24 Perform During the COVID-19 Pandemic?
During the pandemic, Reinvest24 showed great results and was among the best platforms in terms of how issues were handled. They introduced series of updates, such as quarter property and platform updates, as well as “insider updates”. For example, in the blog series called “Insider updates” you will be able to find the information on each stage of the development process, as well as see the latest pictures and videos from the construction fields.
Also, they exited several Majaka development projects, thus earning 14.24% in returns for investors. And overall starting from spring 2020, Reinvest24 showed nice growth in terms of activity, performance, availability of new projects and how fast they are funding, platform development and overall communication with investors.
In November Reinvest24 launched an early exit option – secondary market. The secondary market has the same fees as primary market – 1% for a buyer and zero fees for seller. More detailed information on how it works is available in this guide. As per the concept of Reinvest24 secondary market, it is more advanced, comparing to the rest available in the industry. There are no typical lists of “loans for sale” and all the shares are available in pools. And the main advantage of it is that sell orders can be bought partially. It means that your investment can be bought by 100 different users, 1 eur from each, which also provides an opportunity to reinvest your monthly rental/interest payouts. Recently they introduced changes to the secondary market and now, if you buy the shares from the rental property, the income for the whole month will go to the user who holds the share at the time of the income payout.
ReInvest24 takes 1% from the investment amount to cover property acquisition expenses. Also, it charges up to 10% from rental revenue generated by the properties to cover various property management related expenses.
Reinvest24 Review – Conclusion
With Reinvest24 you can easily start investing in real estate starting from 100eur. In addition to earning passive monthly income from rental properties each month, you will secure returns from capital gains when you exit an investment. The average annual return is 14.8%, including net yield and capital growth. When investing in any real estate project with Reinvest24, you get claim units, which are yours to keep or sell on the open market at any given time. Even in terms of COVID-19 this platform showed an excellent performance and was able to successfully exit many properties, thus, earning up to 14.8%. Also, recently they introduced secondary market, new countries, project types and became more transparent by introducing new reports, market overviews and project updates. We are excited to see how this platform will perform during this year.
Reinvest24 Promo Bonus
This is an 100% impartial and unbiased review of Reinvest24. However, if you would like to invest through the platform, I would appreciate it if you could use my referral link. It gives you an exclusive 10 EUR bonus for your registration.