Value Nomad

August 5, 2020

NordStreet Review

NordStreet Review: A Lithuania based platform driving the real estate investment market in Europe. Let’s analyze the platform and see if it might be a great investment avenue.

In this NordStreet review we dive deep into the platform and its functions. Be sure to stay tuned until the end to read our pros, cons, and verdict.

nordstreet real estate crowdfunding review

NordStreet Overview: What is NordStreet?

NordStreet is a Lithuanian-based real estate crowdfunding platform. In the two years since its launch, the platform has grown exponentially, registering over 3500 investors and lending more than EUR 6 million in loans.

Real estate, for the most part, has been a preserve of the rich and well-heeled. P2P lending platforms are changing that perception. They are bringing to innovative market products that make the industry accessible to retail investors. On the other hand, they are instrumental in funding projects that would otherwise go unfunded due to perceived risk.

The NordStreet platform brings together investors and property developers. It’s currently regulated by the Central Bank in Lithuania and operates in a market with a few competitors. Since founding in 2018, the platform recorded impressive returns, with investors getting an average of 11.39% p.a.

NordStreet at a glance

  • Launched: Feb 2018
  • HQ & Country of Operation: Vilnius, Lithuania
  • Registered users: 3500+
  • Minimum investment: EUR 100
  • Estimated returns: 12+%
  • Loan Security: Real estate acts as collateral
  • Auto-Invest: No
  • Buyback Guarantee: No
  • Provision Fund: No
  • Regulation: Regulated by the Lithuanian Central Bank
  • Accepted Currencies: EUR

How Does NordStreet Work?

NordStreet works like other P2P and crowd lending platforms.

We can break down the process into five steps.

  • Step #1: Application by the borrower

A borrower, in this case, project developer, fills out an application requesting funds.

  • Step #2: Project Evaluation

The NordStreet team assesses the project considering the project owner’s credit history, project financials, business plan, etc.

  • Step #3: Funds collection

Lenders or investors pledge and fund project with a EUR 100 minimum investment

  • Step #4: Approving Loan

Once fully funded, borrower signs the pledge and surety agreements and receives the money

  • Step #5: Loan Repayment

The borrower makes repayments according to agreed terms and schedules. Investors get their money back plus interest

nordstreet projects real estate crowdfunding

How to Open an Account on NordStreet

Registration on the platform is a simple, straightforward process. All you need is a valid email address. You will also need to fill in your basic details such as name, etc.

Click here to open an account with NordStreet

Unlike other platforms, Nordstreet relies on another platform, Paysera, to perform verification. Therefore, to verify your account, deposit money, and start investing, you need a Paysera account.

Luckily, opening a Paysera account is easy and free of charge. Register using your email address and password of choice. Paysera will send you a confirmation link and further instructions to complete registration.

Nordstreet uses Paysera to simplify identity confirmation and ensure tighter security on your funds. As such, neither Nordstreet nor Paysera has direct access to your money.

Once registered on Paysera, you will need to verify your account. Customer verification requires a confirmation of your phone number and a document. The document can be a photograph of your photo ID.

Typically, Paysera will verify documents within one business day and approve your account.

How to Invest in NordStreet

Once registered and verified, you can start investing. Before that, however, you should link your NordStreet and Paysera accounts.

Head over to the “Invest” tab on the platform and select a crowdfunding project that fits your criteria. Nordstreet provides thorough information on all projects, including the developer’s history, capital type, risk group and score, estimated ROI, loan repayment terms, etc.

Click “Invest” on the project and enter the amount you wish to invest in. Remember, you can only invest from EUR 100. Confirm the investment and move to the next step.

Funds in your Paysera account will be used to invest in NordStreet projects. The platform reserves the amount of your choice in your Paysera account and debits that amount once the project is fully funded, and all loan guarantee funds received.

Types of Investments Available at NordStreet

NordStreet specializes in funding promising real estate projects with short repayment periods of between 1 – 36 months. Projects must also have an LTV (Loan-to-Value) ratio of not more than 75 percent. Some of the funded projects include single family homes, multi-family, commercial, industry, among others.

Auto Invest Tool

Currently, NordStreet doesn’t have an auto-invest tool. As such, investors have to manually evaluate projects and allocate capital. It’s a slow process but also guarantees investors perform proper due diligence.

How Much Can You Earn on the Platform?

According to the platform, the average return on investment can be as high as 11 percent per annum. Individual investor performance varies based on the selected project, invested capital, investment period, among others.

Always perform due diligence before committing your funds to any project.

nordstreet stats real estate crowd funding review

Who Can Invest In NordStreet?

Nordstreet is open to all people who have reached the age of majority. It’s also open to all legal entities. As an investor, however, you must confirm your identity by linking your NordStreet account to your Paysera account.

NordStreet Pros

  • Low minimum investment at just EUR 100
  • Collateral backed investments (backed by real estate)
  • The average return on investment is 12.87% p.a
  • Open to both individuals and corporate investors
  • Special offers for investors putting up more than EUR 10,000
  • No hidden fees for investors
  • Fast ID Verification and period between funding your account and investing
  • User-friendly dashboard for investors

NordStreet Cons

  • No buyback guarantee
  • Young platform with a minimal track record
  • Low deal flow on the platform
  • Lacks an auto-invest tool

NordStreet Review Verdict

NordStreet is still a young platform in the crowd-lending space. It’s operating in a crowded space, with three other real estate crowdfunding competitors.

However, it has proven to be innovative and agile. Its explosive growth in investor numbers, coupled with an ever-expanding loan portfolio size, is not only promising but also perhaps a taste of things to come.

When it comes to investors, the company adheres to high customer service standards and provides adequate information on projects, plus an intuitive platform. With average investor returns going as high as 13 percent per annum, the platform holds promise for both new and veteran P2P investors.

The bottom line of our NordStreet review is that it’s a wonderful platform for investors looking to make inroads into the P2P lending market. It’s also ideal for investors looking to diversify into real estate. Despite the above, we’d urge that you perform proper due diligence on the projects and platform, and understand any inherent risks.

Happy investing!

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 by checking out our Estate Guru review or our PropertyPartner review. Also check our posts on the best peer 2 peer lending platforms in Europe, and theĀ best real estate crowdfunding platforms in Europe.

Are you already investing in NordStreet or in any other peer to peer lending platform? Leave your thoughts and questions about this Nordstreet review below.

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