Crowdestate Review: An innovative platform disrupting the real estate crowdfunding market in Europe. Let’s analyze the platform and why it might be a great place for your investment money.
Considering joining or expanding your property crowd investing platform? Our Crowdestate review below will analyze one of the most successful European real estate crowd investing platform.
Crowdestate Overview: What is Crowdestate?
Crowdestate is an Estonian based real estate crowdfunding marketplace. Launched in January 2014, it has grown to over 37,000 investors, with over 78M EUR worth of developments funded.
Over 185 projects have been funded through the platform, with an average return of around 17.88%.
The company has expanded beyond Estonia, making inroads in Latvia, Italy, and Finland. It’s CEO, Loit Linnupõld is very active on the site, answering investor questions about projects. To his credit, he’s also put together an impressive team of professionals with deep expertise in the sector.
According to the company’s 2018 financial statements, Crowdestate is now profitable.
Key facts at a glance:
- The platform went online in 2014
- Company located in Tallinn, Estonia with representative offices in Latvia, and Italy
- All loans fund real estate in Europe
- Over 158 projects funded
- An average interest rate of +18.51%
If you’re new to crowd-lending or the crowdfunding concept, check out this Wikipedia page.
Our review dissects Crowdestate giving you all you need to know to start investing through the platform. Let’s dive right in.
How to Open an Account on Crowdestate
A valid email address is all you need to signup on Crowdestate. The process is straightforward and takes just a few minutes. You can also signup via Facebook or Google. The primary account gives you access to the site and the ability to browse projects etc.
To start investing, you must open an investment account. To do this, fill in a few additional details. These include:
- Investment Account Required Details
- Account name (Any name you choose)
- Account type (Individual or company)
- ID Code (Social security or local identity code)
- Contact info (address, phone)
- Bank information
- Residency information
This is pretty standard information for similar P2P lending sites and fulfills the Know-Your-Customer(KYC) and other legal requirements.
Click here to open an account with Crowdestate
How to Invest in Crowdestate
After creating your investment account, transfer funds to start investing.
Subsequently, click the Invest menu that takes you to the list of freshly-listed investment projects. Each project comes with a detailed description and a host of other details to help you make an investment decision.
A large part of the information centers around a SWOT assessment for each development. Other details provided include:
- Information provided on an investment
- Asset class
- Investment type
- Capital type
- Investment horizon left
- The expected rate of return
- Risk class
- Number of investors
- Executive summary
- Project description
- Project time-schedule
- Building and infrastructure information
- Market information
- Sponsor & Key people
- SWOT (Strengths, Weaknesses, Threats, and Opportunities)
- Capital structure & Finances
- Crowdestate rating
- Q&A (where you can ask questions and participate in discussions)
Whenever an investment opportunity is published, investors can ask questions before the investing period begins. The only drawback is that most replies are in Estonian and never translated to English or vice-versa, leading to loss of discussion details lost in translation.
Furthermore, you can use the auto-invest feature. Set your criteria and the capital you wish to invest in. The platform does the rest. Auto-Invest is covered more below.
Crowdestate recently introduced a secondary market where investors can trade their investments. It’s a great way to exit investments if you wish to do so quickly.
Head over to your holdings by clicking the “Manage Share” menu. From here, you can set the selling price and view your expected rate of return.
The Overview menu gives you access to the dashboard where you find vital details about your investments, such as:
- Account balance and invested amount, over time
- Expected payments
- News on projects in your portfolio
Carry out your due diligence and allocate funds appropriately to the investment opportunity that fits your criteria.
Types of Investments Available at Crowdestate
There are three types of investment opportunities on Crowdestate. Real estate funding forms the bulk of opportunities on the platform. Here is the complete list:
Real estate – Funding project developments such as residential, healthcare, retail, and office buildings.
Corporate finance – Funding business deals such as working capital, bridge financing, investment capital among others
Mortgage loans – The property or real estate is used as collateral. These loans fall into two categories: first-rate mortgages guaranteed by the physical assets, and those with personal guarantees.
Crowdestate Auto Invest Tool
Like most crowdlending platforms, Crowdestate has an “Auto-Invest” feature. It eliminates the need to manually select and allocate funds every time there’s an opportunity available.
Crowdestate recently updated the auto-invest feature, ensuring that everyone gets an equal share.
The Auto-invest feature is easy to configure. It requires investors to set a few parameters. These are:
- Investment amount
- Expected rate of return
- Investment length
How Much Can You Earn on Crowdestate?
According to Crowdestate, the average return on the platform is around 19%. While that may have been true in the past, a more realistic expectation is around 13-14%.
Who Can Invest In Crowdestate?
You must be an adult and of legal age to invest in Crowdestate. Both individuals and corporate citizens can invest.
People from the US, however, can’t invest in the platform due to stringent, complex, and expensive regulation. The platform is open to a majority of people from other countries. Find out if you’re eligible by going to the site.
- Market returns of 10 – 19%
- Excellent track record and profitable business model
- Secondary market present
- Availability of auto-invest tool
- Low default rate at 0%
- Wide variety of successfully exited projects
- Small initial investment at just 100EUR
- A small portion of projects pays monthly interest
- No buyback guarantee
- Few high yield projects that tend to fill up fast
Crowdestate Review: Verdict
If you’re looking for an easy-to-use, well established real estate investing platform, Crowdestate would be an outstanding choice. It has a long working history and run by an experienced team with deep sector expertise. With its low default rates, at just 0%, and an excellent track record of returns, the trajectory seems promising. The minimum investment amount is also small enough, at only 100 EUR, making it accessible to most investors.
That said, the lack of a buyback guarantee, and the small pipeline of high-yielding projects are potential drawbacks for some investors.
Considering all the above, Crowdestate is still a robust platform to invest in real estate and diversify your portfolio.
Other Crowd Investing Resources
Looking for more options? You might want to read some of our other crowd investing and peer to peer lending reviews. There are many peer to peer lending and investing platforms currently available, and you can diversify your interest income by using several of them simultaneously.
You can consider some other peer to peer companies checking our Estate Guru review and our PropertyPartner review. Check out our posts on the best peer 2 peer lending platforms in Europe, and the best real estate crowdfunding platforms in Europe.
Are you already investing in Crowdestate or in any other peer to peer lending platform? Leave your thoughts and questions about this Crowdestate review below.