Investing in real estate should be at the top of everyone’s priority list. It is one of the safest investments you can make that also helps you fight against inflation. Real estate investments can even provide you with a passive monthly cashflow when investing in rental properties. Furthermore, the risks associated with investing in real estate are generally a lot lower than investing in stocks or bonds. However, the downsides to investing in real estate include the high entry barriers, legal procedures, and all the resource and capital intensive groundwork. Luckily, these days you can easily make an investment in property by choosing real estate investment platforms like Reinvest24.

What is Reinvest24?

Reinvest24 is an innovative real estate investment platform based in Europe. The real estate crowdfunding platform was launched in 2018 but the Reinvest24 team has been dealing with high-profile real estate investments for over a decade. The Reinvest24 team is made up of finance, IT and real estate experts with many years of experience, who have managed over 10 million euros in investments. Reinvest24 has democratised real estate investments by making them available to everyone around the world, allowing anyone to invest in real estate starting from 100 euros.

How does it work?

Investors can buy shares in residential and commercial real estate collectively with other investors starting from 100 euros. Once you make an investment, you start earning profits from rental income and capital growth. By reinvesting your profits into other investment projects you can diversify your portfolio and ensure income from various properties. By reinvesting their profits, investors can decreases their overall risks and ensure a long-term investment strategy designed to passively create wealth. There are also no limitations when it comes to your investment period on Reinvest24. The expert real estate team takes care of each project’s market research, paperwork and property management while investors simply enjoy a fully secured investment that provides passive income over a long-term period.

Is it safe to invest with Reinvest24?

Your invested capital is directly tied to the real estate itself. This means investors also earn profits from the increase in value of the property over time, especially when it gets developed. Furthermore, investors are free to sell their property shares on the open market at any time. After Reinvest24 sources the capital for an investment project, the property becomes an asset of a special purpose vehicle (SPV). An SPV has a legal subsidiary status that minimises risks and keeps its obligations towards investors. Since every property has its own SPV, all properties remain safe and unaffected by the financial status of other projects.

Do the investments have any guarantee?

When a property gets purchased, it is also mortgaged by an assigned law firm which takes on the role of a collateral agent. A collateral agent acts as an impartial watchdog, making sure investors’ interests are kept safe. If a certain criteria is fulfilled according to the collateral agent’s agreement, they receive control over the property in question with the sole task of selling it at the best possible price, distributing the received assets between the investors. In other words, the property you invest in becomes the collateral. This means you are protected by the value of the property you invest in.

What does the investment process look like?

• Reinvest24 selects the best real estate investment projects.
• Real estate investment projects are then reviewed and published for crowdfunding.
• Investors must sign up and go through a KYC procedure before making a deposit on the platform.
• Investors can choose between various commercial, rental and development properties.
• Investors get issued shares when investing in a property.
• Investments are secured by mortgages on the properties, acting as collateral in favour of all investors.
• Once the property funding stage is over, an SPV (Special Purpose Vehicle) company is created.
• Legal contracts are automatically generated for each investment.
• Investors become the beneficiaries of any rental revenue and capital growth generated by properties.
• The SPVs manage the properties, deal with tenants, operations and other day-to-day activities.
• Rental property investors receive monthly dividends from rental income.
• Investors can exit an investment project any time by selling their shares.
• Investors can choose to cash out or reinvest their profits to diversify their investment portfolio.

Why is Reinvest24 different from other platforms?

Reinvest24 doesn’t mediate fixed-term loans. The platform provides the opportunity to invest in real estate, benefiting the same way as owning a percentage of the property. The majority of real estate crowdfunding platforms only broker and mediate loans from third parties. This means that your investment is tied with the company you invest in and not in the property itself, which means you depend entirely on the efforts of the company’s management as opposed to the tangible value of the real estate. When investing in property through Reinvest24, your capital is exclusively connected to the property you invest in.

Why should I invest in real estate with Reinvest24?

Reinvest24 allows you to make small investments in real estate. Instead of going through the lengthly process of saving money for a downpayment you can invest right now. The Reinvest24 team locate, analyse and manage the most profitable investment properties, while investors simply sit back and enjoy their passive income. Investing in real estate with Reinvest24 helps you fight against inflation as the value of your assets increase over time on par with the decrease in value of cash.

What are the estimated returns?

The average annual return is 14.6% (total combined return) including net yield and capital growth. This includes monthly income from commercial or residential rent. When reinvesting your profits, your total investment increases by putting your earned money to work, eventually earning you even further. For example, by investing 15K you can easily become a millionaire in just 30 years.

Pros:

• Investments starting from 100 euros
• Monthly cashflow from rental income
• Attractive capital growth
• Comprehensive overviews of investment projects
• Possibility to reinvest profits and diversify your portfolio
• Real estate investments have low risks with low volatility
• Ability to sell shares and cash out any time

Cons:

• Currently only operating in a domestic market (but new markets coming soon)
• No buyback guarantees
• Relatively new investment platform
• Remote investments

Conclusion

With Reinvest24 you can easily become a real estate investor by investing as little as 100 euros. In addition to receiving a passive monthly income from rental properties, you will receive attractive profits from capital growth once you exit the investments. The average annual return is 14.6%* including net yield and capital growth. Despite being a new real estate investment platform, the team and management behind Reinvest24 have many years of professional experience. When investing in any real estate project with Reinvest24, you get issued shares, which are yours to keep or sell on the open market at any given time. Each investment property is the asset of a special purpose vehicle company which is managed by a collateral agent and is unaffected by the financial situations of other projects. In conclusion, investing in real estate is a safe way to protect the value of your money and increase your wealth over time. But most importantly, now you can start small and invest in real estate without putting down huge amount of capital.