4 Min. Read

Reinvest24 Review: Is it good? Don't invest before you read this! (2/2023)

Reinvest24

Reinvest24

Roosikrantsi tn 11, 10119 Tallinn

Test result

2.6 of 5

Invest now on Reinvest*

Safety

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0.50

Interest & Risks

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5.00

Features

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2.00

Advantages

  • Comparatively high Ø interest rates

  • Invest free of charge

  • Secondary market

Disadvantages

  • Unregulated

  • Less experienced platform

  • No automatic investment function

  • No buyback guarantee

  • No app

How good is Reinvest24?

If that's what you want to know, then keep reading.

We took a close look at the platform and tell you whether it's worth it.

In this test, we show you:

What is Reinvest24?

Reinvest24 is a P2P platform from Tallinn, Estonia, founded in 2017.

The platform offers P2P loans that real estate developers use to finance their projects.

Since its inception, the platform has funded more than €30 million worth of loans, making it one of the small P2P platforms in Europe.

How does Reinvest24 work?

At Reinvest24, you must first register online and then deposit money via a bank transfer before you can invest.

With your first deposit via a standard bank transfer, you also confirm the bank account to which withdrawals can be made.

After that, you can invest directly in the offered loans.

However, for new investments, the platform requires a minimum investment amount of €100, and you must note that you can only invest in the loans manually.

Furthermore, you can invest in two markets on the platform. On the primary market (initial issuance of loans) and on the secondary market (loans from other investors).

Features

In the following, we would like to present the most important features of the platform.

Regulation

The platform is not regulated by any financial market regulator.

And according to our current knowledge, this is not expected to change in the near future.

Loans

On average, the loans have an interest rate of 16.89% and loans are offered with a minimum interest rate of 6.00% to a maximum of 24.00%.

No platform we tested offers higher average interest rates.

Roughly comparable interest rates can be achieved at NEO Finance with about 15% and Lendermarket with about 14%.

On Reinvest4, you can only invest in real estate loans from 6 countries, of which loans from Moldova have the highest share with approx. 30%.

The maturities range from 4 to 36 months.

Manual investing

On Reinvest24, you can choose the loans you want to invest in one by one.

And this is the only way to invest at all.

Auto Invest

Reinvest24 does not offer a feature that allows you to invest automatically.

Among all the platforms we tested, it is the only one that does not offer such a possibility.

Accordingly, permanent investing is a lot of work for you, as you have to constantly search for new loans.

Secondary market

On the secondary market, you can offer your loans to other investors or buy their loans from others.

The secondary market is arranged clearly, and you can invest in a loan with just one click.

On the secondary market, as on the primary market, you can only invest manually, which is very cumbersome eventually.

Tax report

On Reinvest24, you can easily create the documents for your tax return.

A tax report is offered for each year, which you can download.

App

Unfortunately, the platform does not offer an app to manage investments.

At this point, we don't expect anything to change in the future.

How much does investing on Reinvest24 cost?

Investing on Reinvest24 is free of charge.

Only withdrawals are charged a fee of €2.

Transaction fee abolished

In the past, Reinvest24 charged investors a fee of 1%for investments on the primary market, but this was abolished in November 2021.

However, it is still often assumed and mentioned in many other reviews that this fee is charged.

Warning signals (red flags)

Currently, we have not noticed any warning signals at Reinvest24.

Frequently asked questions

Below, we address some questions that are often asked about Reinvest24.

Reinvest24 is unfortunately not monitored by an official financial market regulator, which typically proves that it is safe enough.

Also, the platform has not yet successfully financed loans on a large scale, which otherwise can at least partially compensate for the lack of regulation.

On the other hand, Reinvest24 is special in that the loans are structured in special purpose vehicles, which legally and economically separates them from the platform.

This creates additional security for investors and can only be set up with the right legal processes.

We are convinced that Reinvest24 is well on its way to becoming a secure platform, but we are not yet 100% convinced.

How does Reinvest24 make money?

The platform makes money in two ways.

It charges investors an ongoing fee of 10% of the investment amount for the management of real estate.

In addition, there are further fees from commissions that it charges real estate developers for brokerage.

Who owns Reinvest24?

The platform is owned by Reinvest24 Holding, in which JoinEstate OÜ holds 72% and Kirsan 18%.

Expert conclusion

Reinvest24 has already been able to partially prove its safety as a platform with a financed loan volume of more than 30 million. And the fact that the platform grants each loan via a special purpose vehicle is an important point for the security of the investments, but it was not considered in our overall assessment.

The platform offers investors the highest interest rates among all the platforms we tested and is almost universally free of charge. Only withdrawals are charged at €2.

After a simple registration and an initial deposit, investing can already begin. A primary and secondary market are available for investing.

What we are very disturbed, however, is that no automatic investment function is offered. In our opinion, this makes investing unnecessarily cumbersome.

In our overall rating, the platform also loses further points, as it is not regulated and has also only financed loans at a low level.

Overall, we think the platform is just about recommendable.

In our opinion, it is a good supplement to established real estate platforms, which promise more security, but also less interest.

These are for example EstateGuru with an average interest rate of about 11% or Profitus with about 9%.

Invest now on Reinvest24

Not convinced? These are the alternatives

Last updated on 05 October 2022