Reinvest24: Invest into property and Earn Passive Income from rent and capital gain


Not investment or financial advice. This is not an endorsement or recommendation to buy, sell or hold.  The staff of this site may own the asset/s mentioned on this page. Investing is risky and you may lose all your capital. Do your own research. See full disclaimer.

We receive no direct payments from the mentioned companies. Some links on this page are affiliate links, at no extra cost to you, we may receive commissions when you use them. However, we try our best to keep our articles fair and balanced.


   

Interview with Tanel Orro CEO of Reinvest24.

Special offer at the moment, Reinvest24 < get 10 euro bonus when using this link!

Can you introduce yourself and your role on Reinvest24?

My name is Tanel, I am the CEO of Reinvest24. Before Reinvest24 I worked in LHV Asset Management for 4 years.

How does Reinvest24 work?

We are applying the crowdfunding mechanism to traditional real estate investments (not loans), that means collectively purchasing the property and operating it for the monthly rental income.

How can investors earn passive income from Reinvest24?

Most of our investment projects on the platform are rental properties, where the investors will get proportional payouts from monthly rental income. The investors will also benefit from the property value appreciation over time, especially if we conduct some legal or construction works. We also have some development loan type of projects, where the investor will get fixed interest from safe investment backed with real estate.

Can you describe Reinvest24 in numbers?

We were founded towards the end of 2017, the platform launched was launched in 2018 May. There are +10 people in our team and 12 properties successfully funded. Our first rental project funded on the platform has now made 12 payouts from the rental income.

Do you plan to use leverage or do you plan to use it in the future?

We want to give our investors the first rank collateral and positive monthly cash flow. This is something we might consider for the future.

How does Reinvest24 make money? 

We take 2% from the entry and 10% from gross rental income. Already in our first year, we manage to end the year with a small profit.

What happens if Reinvest24 fails?

All the properties are owned by separate SPVs, to keep them fully independent from the platform and each other. The collateral agent holds first rank collateral in favour of all investors. If Reinvest24 closes its doors, the collateral agent will start to sell the properties on an open market to return the capital back to its owners.

Do all buy to let properties have an exit date?

For most of our but to let projects we dont have any exit dates. The idea is to give each investor the choice to choose how long they would like to stay in the project. If they would like to exit the property, then they can sell their shares on the secondary market (which will be launched in the upcoming weeks). If we manage to negotiate the right price, then we might exit the property early. Our latest exited property generated 24,3% annual income for the investors (combined from rental income and capital growth).

Tanel Orro CEO of Reinvest24

What are the fees the investor pays for this investment?

We take 2% from the entry and 10% from gross rental income. Starting from October, the new user who sign up through our platforms referral program will receive 10 EUR bonus, that will cover the entry fee for up to 500 eur investment.

What are the pros and cons of using SPVs? 

In Estonia, we don’t have that problem. It costs under 200 EUR to register new SPV and the only cost we have with them is the annual report once a year. All these costs are already calculated in the funding target and net rental income (stated as yield).

Do you have an auto-invest tool? 
At the moment emails are sent out to all the users when we list a new property. Once the secondary market update is finalized, we will start working on the auto-invest tool. The auto-invest tool will have an important role in our concept, as investors will be able to reinvest their monthly rental income and we want to make this process for them as simple as possible.

What can we expect from Reinvest24 in the future? 

What we noticed from the last Recession (2008-2009 housing crises), was that the rental demand was actually increasing in this period. The banks are not giving out loans, which makes it hard to buy property, but people still need to live somewhere. Our investors will still receive monthly passive income until they wait for the market to recover (and real estate markets always do). We believe that our rental projects will live throughout the market cycles and provide a stable income for the investors even when things go south.

What is the best investment advice you ever heard?

Don’t hope to get rich overnight, it’s not a sprint, but a marathon. Diversify your investments between different instruments, make a 3-5 year plan and reinvest your profits as often as possible.

Would you like to add more information?

Many P2P investors are questioning the capital growth aspect of our projects and are rather focusing on just the rental yield numbers. The cash flow from the rental income is great, but the fact is that real estate as an asset itself, has historically outperformed the rental yield returns. While we cannot predict the exact numbers for capital growth, it is the aspect that historically has been generating the most profits for real estate investors.

Special offer at the moment, Reinvest24 < get 10 euro bonus when using this link!

We thank Tanel Orro for the interview.

Notice:

  • This interview does not constitute an endorsement.
  • The answers have been provided by the interviewee.
  • This is not a buy, sell or hold recommendation of any assets mentioned in this interview.
  • Do your own research before you invest in anything.
  • This press release/article/interview has been published for free.

Not investment or financial advice. This is not an endorsement or recommendation to buy, sell or hold.  The staff of this site may own the asset/s mentioned on this page. Investing is risky and you may lose all your capital. Do your own research. See full disclaimer.

We receive no direct payments from the mentioned companies. Some links on this page are affiliate links, at no extra cost to you, we may receive commissions when you use them. However, we try our best to keep our articles fair and balanced.


   

Author: Jim Reynolds
Jim Reynolds. Is passionate about finance, passive income and cryptocurrencies. He writes about his passions on NodesOfValue.com. He has worked in the tech and financial industry for a few decades. He holds a masters in business admin and a bachelors in IT. All his writings are not investment advice.


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