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Reinvest24 Analysis

Real Estate Debt
Real Estate Crowdfunding

Last updated in November 2022.

What is Reinvest24?

Reinvest24 OÜ, founded in 2017, operates a direct peer-to-peer (P2P) marketplace based out of Estonia. Their investment products include real-estate-backed loans, rental properties, and development projects. Since its launch, Reinvest24 has invested over 33.3 million euros and has repaid capital in excess of 15 million euros. Reinvest24 has financed 196 projects, with more than 20,000 investors on their platform (Figures sourced on November 9th 2022). Head over to Reinvest24 statistics to get more valuable performance insights.

Key Takeaways

  • An annual average return rate of 14.8% combined with yield plus capital growth. 
  • Reinvest24 charges a 1% exit fee from the principal amount invested. 
  • Investment products include development projects, real-estate-backed loans, rental projects, NPL projects and business financing.

How Investing on Reinvest24 Works

Reinvest24 investments in primary and secondary markets start at €100. Their investment products include development projects, real-estate backed loans, rental projects, NPL projects and business financing. SPVs typically purchase and manage the properties.

Development projects:

  • Financing is provided to build or renovate properties in order to sell them for a profit. Reinvest24 can seek bank financing to bring the total cost of funding the development project down.

Real-estate-backed loans:

  • Financing is provided to 3rd parties and is secured with collateral.

Rental projects:

  • Buying & renovating properties through financing to generate long-term rental income. These projects may be sold if the return on investment (ROI) is exponential.

Business loans:

  • Funds provided for business expansion that typically has non-real-estate related collateral.

Projects may be structured in a variety of ways; loan to a 3rd party against 1st rank mortgage with collateral. Projects secured with a first-level mortgage or additional collateral, can have a loan-to-value ratio (LTV) of up to 60%. Properties owned by Reinvest24’s SPVs can have an LTV ratio on the collateral of 50%-80%, with term lengths from 6 to 36 months.

Reinvest24 Returns & Fees

Reinvest24 publicizes an average annual return of 14.8% to date, including rental income and increases in property valuation, with a 10 months average term length for projects. Reinvest24 tends to invest in emerging markets and undervalued projects. They manage and develop properties themselves to remove 3rd party costs and increase profit margins, aligning their interests with their investors. They work only with reputable developers, to try and mitigate risk and to date, they have had no defaults on any projects.

Reinvest24 charges investors a 1% success fee from the principal amount invested (charged once the investment is exited) and a €2 fee for withdrawals.

Depending on the circumstance, projects may incur additional fees such as an intermediation fee, an administration fee, a fee for recovery of the debt(s), maintenance fees for managing properties, and an early exit VAT fee.

Reinvest24 Management

Tanel Orro is the founder and CEO of Reinvest24. Prior to founding Reinvest24, Tanel led his own team at LHV Asset Management and has a degree from Estonian Business School. Reinvest24 is headquartered in Estonia, with offices in Germany, Spain and Moldova. Reinvest24 establishes special purpose vehicles (SPVs), which are subsidiary companies in countries where they own and manage properties. Reinvest24's management team has been working in the real-estate sector since 2005 and collaborates with Tina Kinnisvarabüroo (TINA KVB), a company providing professional consulting to Reinvest24 on development projects and property management.

According to data on their income statement submitted to the Estonian business register, Reinvest24 reported Net Profit (Loss) for Financial Year 2021 as 89 807 euros, with “other operating expenses” of (-299,709).

Reinvest24 has two members on its board, Tanel Orro CEO & Natalja Semjonovitš. Reinvest24  OÜ has 125,000 Euro in share capital from parent company Reinvest24 Holding OÜ. The parent company Reinvest24 Holding OÜ has only one member listed as a board member and beneficial owner, Natalja Semjonovitš.

Special Considerations

Crowdfunding is not covered by insurance, and investors may be subject to losing their principal investment.

Reinvest24’s 2nd largest share in projects is in Moldova, which can carry risk due to the war in Ukraine. Moldova accounts for over 29% of its previous projects, with over 6 million euros invested.