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2021-07-26 10:05

Reinvest24: peer-to-peer real estate investment with up to 16% of interest per year

The Reinvest24* mix two ways of earning money: by buying a real estate together with other investors and rending it out, or by lending money to real estate projets.

The first way is rather classical. The return is around 6% per year. Reinvest also announces a capital growth, but it's difficult to predict such a number.

The second way is in an EstateGuru style (a platform we prefer to avoid now) with some important differences. If we prefer Reinvest24 to EstateGuru, it's for several reasons:

- The interest rates are often higher, because Reinvest24 has projects in a frontier market: Moldova (around 13% lately, sometimes 15% - plus a bonus if you invest more than 1000 € or 10 000 € depending on the projects),
- Reinvest24* updates the investors about the project in a more transparent way: they regularly show what has been built,
- The second market fee (allowing to sell a loan to another investor) is only 1% (and it is paid by the buyer), compare to 2% at EstateGuru (paid by the seller).
- On the second market, it's possible to sell share from around 1 €, it's not necessary to sell a full loan (it would be difficult to sell a 10 000 € loan otherwise).
- The support is impressive. So far we got always a fast and efficient answer to our questions/needs.

There are some down sides of course:

- When Reinvest24 announces the interest rates, they don't include its fee (1%, while on EstateGuru a 2% fee is paid by the borrower).
- For a short loan, the annualized fee can be more than 1% compare to the announced loan interest. For example, on a 14% loan lasting 6 months, the real interest will be as 12% per year after fee. Take care about this especially with loans on the second market having a short remaining length.
- The platform is still small, with only few loans, and most of them are in hand of the same developper. It's like having all eggs in the same basket...
- The time to fund a project can be long and in most of cases money doesn't get any interest in the meantime
- The interface is not fully friendly. We miss the date of the next payement for a project, we have to check all the loans one by one to see the new offers on the second market…
- The offers on the second market are usually to expensive (if you buy a 1 € share at 1,04 €, it means you loose 4% on the announced interest)
- The platform is diversifing (Estonia, Latvia, Spain, Germany…), but isn't it too much compare to its size? The team showed a very good knowledge of Tallinn (Estonia) market at the beginning. Is it possible to know well so many markets?

Also Reinvest24* has a very good track record so far, no project has failed. But how will the company manage if a failure? Will the platform succeed to recover a default loan? What will be the fee for the investors? (We would prefer to never face such a case, but that may happen…).

* Affiliate link, you may get a welcome bonus if you it to invest on the platform. Also there is an additionnal offer to August 31st 2021 with a 1% cashback on baltic projects (more information on Reinvest24 website).
This article is not an advice to invest on Reinvest24, we only try to share the pros and the cons as users.

Update May 2022
After longer use we've experienced other negative points:
- transfering money from bank to Reinvest24 and withdrawing can be very long
- people who invested in 1st stage of Montesano project thru the second market got 2 months of interest less than expected. There was no information about that. In some cases, the consequence was a money lost for investors. Reinvest24 hasn't even apologized.

Update November 2022
Interests and repayements of several projects are not paid any more. We do not advice Reinvest24 any more.

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