CROWDESTATE REVIEW

0 / 5
Overall score
Risk/Reward
4/5

Compared to other p2p lending platforms, CrowdEstate in general offers above average returns against above average risk levels.

Easiness of use
4.5/5

The website is well designed and easy to use. Navigating is straightforward and sufficient detail about the individual investment opportunities is available. 

Protection
3.5/5

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.

Return
4/5

Many large projects available with relatively high returns

WE LIKE

  • Large and diverse amount of loans available
  • Very useful auto-invest option
  • Active secondary market
  • Very high interest rates available (~16%)
  • 5+ year track record
  • Amortized loan repayments

WE DON'T LIKE

  • No buyback guarantee
  • Large minimum investment amount (€100)
  • Most interesting projects get funded quickly
  • Limited pro-active communication

SUMMARY

Crowdestate is a good platform for investors that want to diversify their portfolio with real estate since returns are high and there is sufficient information available on the loan offering. 

HISTORICAL AVG. RETURN

18%

Loan Types

REAL ESTATE

YEAR LAUNCHED

2013

TOTAL INVESTED

€ 65m

TRUSTPILOT RATING

3.2/5

BUYBACK

NO

SEC. MARKET

YES

AUTO-INVEST

YES

Crowdestate Review

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.

crowdestate review

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?

To review how safe CrowdEstate is to invest in, we consider the following:

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.

The risk profile associated with Crowdestate very much depends on the type of loans you choose the invest in. Crowdestate currently offers the following type of loans:

  • 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