What if you could be a landlord without all the work that normally is involved or the huge amount of money you would normally need? I found a platform that does all the work for you and I will tell you all about them in my Reinvest24 review.
I also interviewed the CEO, Tanel Orro. Check out the interview here.
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What is Reinvest24
Reinvest24 allows you to buy shares of residential or commercial real estate. You will earn profit from rent and capital growth. This is a lot like buying your own property, but without the hassle of market research, paperwork or property management.
Plus, you can become a (shared) landlord from as little as € 100.
The CEO explains more about the structure and the security in this video:
- Founded: 2018
- Country: Estonia
- Employees: 10
- Investors: 3500
- Average net annual return: 14 %
- Who can invest: Everyone above 18, there are no country restrictions.
Platform Features & Options
- Interest Rates: 10 – 15 %
- Types of Loans: Real Estate (residential / commercial)
- Buyback Guarantee: No
- Auto Invest: No – Aiming to launch in 2019
- Secondary Market: No – Aiming to launch in June 2019
- Minimum Investment: € 100
The Reinvest24 Story
Tanel Orro, the CEO of Reinvest24, has a bachelor’s degree from Estonian Business School and gained experience in the real estate market during his years at LHV Asset Management. While working at LHV, he noticed that there was more interest in real estate than in stocks, bonds or other securities.
But there are some obstacles that real estate investors need to overcome, like the high entry barrier and the time needed to be an active landlord, especially when dealing with more than one property. That led to the start of Reinvest24, where they solve these problems.
By using the crowdfunding mechanism to lower the entry barriers and doing all the management work investors, investors can actually be passive landlords.
All the work with the properties and tenants are being done by professionals, while the investors will be receiving monthly payouts from rental yield and also benefit from property value appreciation over time.
Their mission is to become the leading real estate investment platform in Europe. At the moment they only have properties in the Baltic States, but their goal is to diversify with different kind of properties and in countries all over Europe.
Starting with Reinvest24
- You can start by signup up on the website.
- After you sign up, you have to verify yourself with a passport or ID card. The verification process took less than an hour for me.
- In the meantime, you can check out the current projects, their blog and their FAQ.
- After verification, you can make your first deposit. Click on your name, click the green button that says deposit and you will see the details for your bank transfer. My money was available on my account in just a few hours!
- Don’t forget to add your reference number when you deposit money!
There are currently 3 projects open for funding:
On the website, you can click on every project to read more information about it and decide if you want to put money in that particular project.
There are projects with just capital growth, like the left project in the picture. The 14% is the annual return and because the project is running for 6 months, the Return On Investment (ROI) is 7%. In this case it’s an apartment that’s in development and will be sold once it’s finished.
Other projects, like the middle and right one in the picture, are split into yield and capital growth. These projects are buildings that will be rented out.
The first number is the yield, which is the money you earn from rent. And the second number is the percentage you will earn from the increased value of the property. This combined will determine your ROI.
Make sure to understand everything
Read every project carefully to understand where you are putting your money into. Make sure you understand it completely and ask questions if you don’t.
Their customer service is really good, I usually get a response the same day. Hopefully they will keep this up when they gain more investors.
Reinvest24 charges fees, as there are no borrowers that pay for the expenses; it’s only Reinvest24 and the investors. The fee is 2% of your investment and they also take 10% from the paid rent to pay for upkeep of the property and other expenses.
Even with the fees, you will still gain a good return on your investment.
There aren’t any analytics yet, all I see is a list of the projects I invested in, that’s it. But as they are still a young platform, that will also improve as they are working really hard to add features and gain new projects and investors.
The auto invest feature hasn’t launched yet, but the CEO told me in the interview that they are working on it and they hope to release it soon.
The secondary market isn’t available yet, but Reinvest24 is working on it and they hope to launch it this month.
I’ve recently started to invest with Reinvest24, so I can’t say much about the returns or the performance yet. But I really like the idea of the platform to become a landlord without everything that you normally have to deal with when you own a property.
It’s such a different platform than the ones I know so far and the team seems really committed. The CEO happily answers all of your questions.
They are working hard to improve the platform and to let it grow and I’m certain that they will do anything to make this a big success.
- People from all over the world can invest, as long as they are 18+.
- Earn rental income without all the hassle you would have as a landlord.
- Reinvest24 also invests in all of their projects.
- Their customer service is great, they usually answer all of your questions the same day.
- The platform is still very young, so there is no track record yet.
- There are fees for investors (although totally understandable).
- No auto invest or secondary market yet (but they are working on it).
- No analytics yet to get a good overview of your investments.