One can with no doubt say that we are living in very interesting times. The Internet has made it possible to create brand new business without geographical constraints. I have tested ReInvest24, a service that makes it possible to invest in real estate and get a regular return.
Please note: This review was previously published in Swedish.
For the sake of good order: This is not a sponsored article, but there are affiliate links in the text below. However, the test has been performed with a critical perspective and without the influence of the supplier.
You who have followed Money Cowboy for a while know how I’ve been talking about the importance of having more income streams. If you rely on only one income stream you will be very vulnerable. The more income flows the better, but it must be qualitative income streams of course.
A relatively stable and reliable income stream is real estate. However, they are expensive and require a large capital to get started. Then of course you have to perform maintenance and you will be taking big risks. The risks required are not always proportional to the capital you invest.
Therefore it is interesting to see all new services on the internet, that allow you to invest in real estate without buying the entire property. One such service is ReInvest24.com (affiliate link), where you can invest in real estate, currently primarily in Estonia. The good thing is that you do not have to invest any huge amounts (if you do not want), but can start with as little as € 100. You choose a property you believe in and invest directly in that property. Then you are ready to start earning passive money.
The net return is approximately 7-8% after the commission from ReInvest24.com is deducted, although the net return varies based on the property to invest in. You can also put your shares up for sale at any time, something I have not tried yet.
In addition, the properties are expected to increase in value, which is not included in the calculated return above. Reinvest24 themselves expect that the capital growth will increase, and the rental return will only be about half of what you gain from the investment. If the property increase in value, something that according to Reinvest24 is very likely, you will benefit from that as the value of the shares you buy will increase at the same time as you earn rental return.
Initially, it can take a while before your investment starts to yield a return. Partly because the property is to be fully invested, a process that you follow as more investors put their money into the estate. My only concern is that different properties take different long periods of time to be fully invested, because they are different in how attractive they are, which also mean that the dividends are different. After having talked to the company behind Revinvest24, I learned that there is a group of private investors that can be engaged if a property is not fully invested – an option that is very interesting and something I will follow up on.
The company behind Reinvest24 has not said that they will focus on Estonia alone, and real estate could be acquired across Europe and perhaps the world.
I could only find a few disadvantages to the service. Taxes are not automatically paid, something you have to take care of yourself – do not forget to mention the return on your tax declaration. I suppose this kind of return is like capital income, but it is easy to look up.
Another disadvantage, or rather uncertainty, is that everything is new. Reinvest24 is a new service and there is no history to lean against. Which does not have to be a disadvantage, just a risk. However, if Reinvest24 manage to take care of their business this could really develop into a good, robust service to really count on as a passive income.
There are other similar services, but they usually require significantly larger investments. Being able to invest only a €100 a month is affordable and a reasonable risk of testing the service.
I also think it is very positive that such services are challenging major banks. That’s another reason why I think the big banks era are soon over.
If you would also want to try Reinvest 24, you can do that here:
ReInvest24.com (affiliate link)