Reinvest24 Review – Become a passive landlord

Reinvest24 is a real estate investment platform, directly competing with BulkEstate, CrowdEstate and EstateGuru in Estonia. However, the business model is different. At Reinvest24, the focus is on earning money from rent and capital gains, whereas on the other aforementioned platforms, you fund loans.

Unlike other peer to peer lending platforms, you can buy shares of real estate in both residential and commercial buildings. Investors proportionally earn profits from the monthly rent and capital gains. You could think of it as being a remote landlord. Reinvest24‘s experienced team actively manages all properties from start to end.

With a strong track record of 10 years, they have already managed to complete more than 10 large real estate projects in the Baltics.  These projects had an average return of 14.6% annually.

Why invest at Reinvest24?

One of the many obstacles for real estate investors is the capital they need to start. For most investors, it’s nearly impossible. And even if you do manage to get started in the real estate industry, the diversification will be low. The advantage is being able to diversify your portfolio, and also hands off investing. This means, that you can continue to work to earn more money to invest in real estate.

But also, many landlords can tell you stories about bad renters. They can leave a serious strain on your finance. It might be a smart idea to have a professional team take care of it.

Reinvest24‘s properties have a net rental yield of up to 9% and have an estimated long-term capital growth of 6% per year. Below, we’ve taken the opportunity to look up the house price indices for the EC. In the last 3 years, the house prices are growing nearly twice as fast as inflation in Europe.

In the long-term, we can expect prices to continue growing at this pace, as the population in Europe is growing at a fast pace.

house price indices Europe
House price indices Europe

Real estate in the Baltics have been growing reliably since the 2008 recession, when housing prices dropped by more than 50%. Last year, in 2018, the prices surpassed the previous highs of 2006-2007. During that 12 year time-frame, our salaries have been growing 2-3% annually. It is worth knowing that the rental yield is 2-3 times higher than Western Europe.

While housing prices dropped 50%, rental prices only dropped by 20% on average. Since the 2008 recession, banks have been more reluctant to lend money, causing rental prices to increase faster than real estate prices. As we mentioned above, for many people, even simply buying a house might not be accessible without a down payment or an unstable job.

Properties are revalued once per year and will provide long-term passive income even after 20 years. Investors can exit their investment at anytime by selling their shares.

What is the downside?

In a recession, the shares could be negatively evaluated, and lose value. While you shouldn’t be worried about real estate losing value in a recession, many investors may simply choose to sell their shares.

If you were to actually invest in real estate, you cannot just get rid of it with the click of a button.

Fees

Similarly to mutual funds, investing at Reinvest24 involves entry fees of roughly 2%. There is also a recurring charge of 10% of the rental income. This is fairly acceptable considered you don’t have to lift a finger.

Taxes

Reinvest24 does not withhold any taxes. It is the responsibility of the investor to report any income to local authorities.

Investors must pay taxes according to the legal regulations of their country of residence. We are reaching out to Reinvest24.

Regulation

Reinvest24 is currently not being regulated in Estonia, like other crowdfunding and peer to peer lending platforms such as Bondora or Envestio. Reinvest24 is currently actively preparing for the regulations that are likely to arrive later in 2019 or 2020.

The real estate investment platform is currently voluntarily having audits conducted by licensed auditors. As stated by many experienced peer to peer lending investors before, transparency is important. And this is incredibly valued by Reinvest24.

Screenshots

Available Properties
Available Properties
Technical Overview
Technical Overview
Object Overview
Object Overview
Investment Case
Investment Case
Financials
Financials

Bonus

Reinvest24 currently does not have any bonus for new investors. But you can sign up here.

Reinvest24 Review - Become a passive landlord - Expat Fire
Reinvest24 Review - Become a passive landlord 1
Reinvest24 is a real estate investment platform, directly competing with BulkEstate, CrowdEstate and EstateGuru in Estonia. However, the business model is
Editor's Rating:
4.5

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