The website is well designed and easy to use. Navigating is straightforward and sufficient detail about the individual investment opportunities is available.
The real estate loans the platform focuses on are secured by the property itself, meaning that in case of default there is a fair chance you will still get your money back. However, no buyback guarantee is in place.
Many large projects available with relatively high returns
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Crowdestate is a European P2P lending platform that focuses on business loans and real estate development projects. They also offer some other loan types on their platform including personal loans, mortgage loans and car loans.
What is Crowdestate?
Crowdestate is one of the leading real estate crowdlending platform in Europe. The platform allows investing mainly in real estate loans, split into 2 categories:
- Rental projects: Invest in projects with available cash flow from rents
- Development projects: Invest in the construction and the sale of the building
Investments are available across three countries: Estonia, Latvia, Finland and Italy. The loans amounts are usually of several hundred thousand euros, sometimes even up to 1 million euro. There’s at least a new investment opportunity each week, often more.
How to get started with CrowdEstate?
Opening an account on CrowdEstate is easy to do, just requires the usual name information.
Once your account has been opened, you can then deposit money on the platform via a bank transfer.
As on many of the other p2p lending platforms there is an ID verification step that is needed if you want to withdraw money, but you don’t have to do it when you open the account.
Is CrowdEstate safe to use?
CrowdEstate is a platform with a steady track record.
It is advantageous that the real estate loans the platform focuses on are secured by the property itself, meaning that in case of default there is a fair chance you will still get your money back.
However, at the same time no buyback guarantee is in place.
- Secured loans are the safest type of capital available on CrowdEstate. The loans are secured against a collateral, which is usually a mortgage on the assets of the company. Secured loans are always repaid in the first.
- Unsecured loans are riskier than secured loans, but also more comes with higher interest rates. Unsecured loans are repaid to the owner of the capital after all secured debts have been repaid.
- Mezzanine – mezzanine financing is repaid before equity, but after all bank obligations have been fulfilled. .
- Equity – equity loans are the least safe option. The owners are paid the last, after all other liabilities have been paid.
CrowdEstate makes an effort to secure their investors, but your investment strategy is arguably more important to limit the risks and build in protection. You can consider the following components in your investment strategy:
- Only invest in secured loans
- Diversify between multiple loan types
- Diversify between multiple loans