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Best P2P Real Estate Lending Platforms

Ready to become a real estate investor? All you need is €50. Wondering how it works? We will show you.


Best Real Estate Crowdfunding Platforms

Have you always dreamed about becoming a real estate investor but couldn't afford it because you didn't have any money for it? We have a solution for you - it's called Peer-to-peer (P2P) real estate lending. You can literally become a real estate investor with as little as €50.

Pretty incredible, right?

In the past, real estate investing was only available to rich individuals who were willing to commit their money long-term.

This isn't the case anymore.

In this guide, we at P2P Empire will explain how you can become a P2P real estate investor regardless of how much money you want to invest. We will also show you the best P2P real estate lending platforms that offer high returns while keeping your money safe.

Do you prefer to watch a video? Here's our latest comparison of the most popular real estate crowdfunding platforms:

What is Real Estate P2P Lending?

Real estate P2P lending (also called P2P real estate investing) is an investment strategy where you invest a small amount of money into multiple real estate projects.

Sound simple right? - It is!

Within the P2P real estate industry, you can invest in real estate loans, rental properties, real estate equity or participate in group buying deals. We’re going to dive into these categories and show you which one is the best fit for you.

1. Real Estate Loans

With real estate loans you'll earn fixed interest, which is paid monthly, quarterly or at the end of the loan period.

Pros of investing in real estate loans:

  • Fixed interest
  • Fixed loan term
  • Lower risk (your money is protected by a mortgage)
  • Low investment amount (you can start from only €50)
  • Long loan period (you commit your money from 12 to 24 months)

Cons of investing in real estate loans:

  • No cash flow (most of the loan and interest are paid back at the end of the loan term)
  • It can be volatile (the price of the real estate can decrease until it's paid off)

2. Rental Properties

With rental properties, the company purchases the property and sub-lends it to tenants. You will purchase a stake of the property and earn monthly passive income from rental payments.

After the contract is over, the property is sold and you will receive additional return from capital gain if the market price increases during the rental agreement.

Pros of investing in rental properties:

  • Regular cash flow
  • You diversify your money within the P2P real estate industry
  • You will earn capital gains as the price of the property increases with time

Cons of investing in rental properties:

  • Lower interest
  • Usually long-term investments
  • No returns if the property isn’t rented out
  • Lack of diversification (there aren’t as many rental properties to invest in)

3. Real Estate Equity

By investing in real estate equity you become a business co-owner of that property. This is usually the case with development projects. Instead of taking out a loan, the developer offers equity in order to raise enough funds. Ideally, the developer will aim to sell the real estate project with an additional margin, which you will receive as capital gain, together with your initial investment.

Pros of investing in real estate:

  • High interest
  • Little money commitment

Cons of investing in real estate:

  • Long money commitment
  • You're taking a higher risk (in case where sales targets aren’t met, construction is delayed)
  • Investment agreements are often not in English but instead in the local language (Spanish, German, etc.) which makes it hard for you to verify

4. Group Buying

Alongside these investment categories, there is one more investment product also called ‘group buying’, where you together with other investors buy part of an apartment building for a discounted price.

Head down to our section on Bulkestate to find out more about this investment type as this platform is the only one to offer group buying options.

Which P2P Lending Category is Most Popular?

The most popular real estate P2P lending category is, without a doubt, real estate P2P loans with fixed interest and relatively short loan terms.

By investing in property-backed real estate loans you will earn between 10% - 16% interest per year.

Choosing the Best Real Estate P2P Lending Platform

We, at P2P Empire, have tested different real estate P2P lending platforms for you to create a list of the best real estate P2P lending sites in Europe.

👉 Show Me The Best P2P Real Estate Platforms
Or continue reading to learn more about our selection criteria.

Here’s what you should look out for when deciding whether a real estate P2P lending site is for you:

How You Can Evaluate P2P Real Estate Platforms

When it comes to real estate P2P lending, you primarily look at the ratio between returns and risk.

To give you a better idea about how to do it, have a look at the following factors.

1. Average Interest Rates

Every real estate project offers a different interest rate which is why you should look at the average interest rates of projects that are currently listed on the P2P real estate platform. The P2P lending site's statistics usually show a historical interest rates which do not reflect the current situation.

2. Type of Collateral

The type of collateral is extremely important as every project is secured by a different guarantee.

You want to know how your money is protected right?

First-rank mortgages should be the type of security you should be going for when it comes to real estate P2P lending.

Be aware that not every property-backed loan comes with the same protection.

Some borrowers offer a second-rank mortgage or business collateral.

3. LTV

Loan-to-value (LTV) represents the loan amount in relation to the value of the property. If, for example, a real estate developer takes €60,000 loan for the development of real estate project that’s valued at €100,000, the LTV is 60%.

The lower the LTV the better!

This means that if the borrower is unable to repay the loan, the property will be sold for the current market price and you will be paid off. You would only lose money if the value of the property drops below €60,000.

This is very unlikely.

4. Availability of Projects

In how many projects can you invest?

This is important as your goal is to build a broadly diversified P2P real estate portfolio.

You don't want to put all of your eggs in one basket - do you?

You want to spread your money across multiple projects. If there are no available projects you won’t be able to diversify your funds properly.

No real estate projects available? Invest in consumer and short-term loans on other European P2P lending platforms instead.

5. Secondary Market

How fast can you cash out your money should you need it?

To have the option to withdraw your money before the end of the loan term, choose a platform with a secondary market (a place where you can sell your investments to other investors.)

There's, however, one thing to consider.

Often, you need to sell these investments at a discounted rate to motivate other investors an incentive to buy your investments.

6. Auto Invest Tools

No time to evaluate every single real estate project?

In that case choose a platform where you can automate your investment strategy. You can set up you ideal criteria and the tool will do the work for you.

Any catch with this one?

Many experienced investors don’t use the auto invest tool when it comes to real estate P2P lending as the minimum investment amount is higher and the loan term longer than the typical loan.

Also, every real estate project is different and some of the auto invest tools out there don’t allow you to define the type of collateral. As a result, we suggest you pick your real estate loans manually. At least in the beginning.

7. Customer Support

In case you are starting out with real estate P2P lending choose a platform that has a dedicated customer support center that you can use.

8. Trust Factor

Is there an experienced team behind the platform? Who is the platform owned by and what are the terms and conditions? You should know where you invest your money into.

Transparency is nowadays important and platforms that don’t adjust simply won’t make it.

The Best Real Estate P2P Lending Platforms in 2020

Without further ado, here is the list of the best real estate P2P lending platforms at the moment.

Click on the platform to find out more about individual real estate investment sites.

Real Estate P2P PlatformAverage InterestProtectionMax. LTV/Type
EstateGuru11.76%1st, 2nd and 3rd-rank mortgages75%/loans
EvoEstate16.32%1st and 2nd-rank mortgages75%/loans
Crowdestate17.26%1st and 2nd-rank mortgages, and commercial collateral75%/loans
Reinvest2414.6%1st-rank mortgageRental
Bulkestate14.87%1st and 2nd-rank mortgages70%/loans, group buying
BitOfProperty6.4%1st and 2nd-rank mortgagesRental
Profitus10.63%1st and 2nd-rank mortgages70%/loans
Nordstreet11.41%1st and 2nd-rank mortgages60%/loans
Rendity7%1st and 2nd-rank mortgages75%/loans, rental
Brickstarter5.5%1st and 2nd-rank mortgagesRental
Crowdestor15.10%1st and 2nd-rank mortgages, and commercial pledgeLoan

1. EstateGuru

real estate guru

EstateGuru Highlights

  • Property-backed P2P loans
  • Excellent risk assessment
  • 95% secured by a 1st rank mortgage
  • €0 loss of investors’ money
EstateGuru Overview
Average Interest:11.76%
Protection:1st, 2nd and 3rd-rank mortgages
Max. LTV/Type:75%/loans
Availability of Loans:Very Good (4/5)
Secondary Market:Yes
Auto Invest:Yes
Customer Support:Very Good (4/5)
Trust Factor:Exceptional (5/5)

Pros

  • Secured by a mortgage
  • Automated investments
  • No cash drag & stable returns
  • Cons

  • Limited Diversification
  • Not suitable for short-term investors
  • No instant withdrawals
  • EstateGuru is currently the most popular real estate P2P lending platform. Its exponential growth, outstanding due diligence and impressive €0 loss of investors’ money is the reason why everyone loves investing on EstateGuru. While no P2P lending platform is perfect, EstateGuru is certainly very close!

    Recently, the real estate P2P platform expanded its operations to Germany, which resonates well with the German investor base as there aren’t many good crowdfunding platforms that allow you to invest in German real estate.

    Have a look at our €3000 EstateGuru portfolio and find out how this popular real estate crowdfunding platform works in our in-depth EstateGuru review.

    Ready to join us by investing on EstateGuru?

    Or read our comprehensive EstateGuru review

    2. EvoEstate

    p2p platform evoestate

    EvoEstate Highlights

    • Invest in real estate
    • Diversify across 20 platforms
    • Free Auto Invest cancelation
    • Great liquidity
    EvoEstate Overview
    Average Interest:16.32%
    Protection:1st and 2nd-rank mortgages
    Max. LTV/Type:90%/loans, rental, equity
    Availability of Loans:Good (3/5)
    Secondary Market:Yes
    Auto Invest:Yes
    Customer Support:Very Good (4/5)
    Trust Factor:Very Good (4/5)

    Pros

  • Exceptional diversification
  • Amazing liqudity
  • "Skin in the Game"
  • Cons

  • Short track record
  • No investment agreement
  • Not regulated
  • EvoEstate is the only real estate P2P lending aggregator in Europe. With only one investor account, you can invest in projects originated by 20 real estate crowdfunding platforms. EvoEstate provides the best solution when it comes to diversification within the real estate P2P lending market.

    EvoEstate is also one of the few platforms, where the founders invest their own capital in some of the P2P projects. Have a look at our in-depth EvoEstate review to find out how the platform works.

    EvoEstate is suitable for you if you're looking for a reliable P2P lending platform for long-term investments.

    Are you ready to learn more about EvoEstate? Watch our interview with the CEO - Gustas Germanavicius.

    Ready to invest on EvoEstate?

    Read our comprehensive EvoEstate review

    3. Crowdestate

    p2p platform crowdestate

    Crowdestate Highlights

    • Invest property-backed loans
    • Minimum investment from €100
    • LTV always below 75%
    • Good ratio between returns and risk
    Crowdestate Overview
    Average Interest:17.26%
    Protection:1st and 2nd-rank mortgages, and commercial collateral
    Max. LTV/Type:75%/loans
    Availability of Loans:Good (3/5)
    Secondary Market:Yes
    Auto Invest:Yes
    Customer Support:OK (2/5)
    Trust Factor:OK (2/5)

    Pros

  • Transparent project description
  • Functional Auto Invest
  • Higher returns
  • Cons

  • Higher minimum investment amount
  • No instant withdrawals
  • First defaulted projects
  • Crowdestate is one of the real estate P2P lending platforms with the highest returns. Compared to EstateGuru, Crowdestate typically lists real estate loans with a longer loan term. The auto invest tool is also more user-friendly, however, the minimum investment amount of €100 will limit your diversification with this popular real estate crowdfunding platform. Overall, Crowdestate is worth trying out if you want to invest in real estate crowdfunding projects in Romania or Italy. Due diligence of certain projects is, however, recommended.

    Have a look at our Crowdestate review to find out more about this P2P real estate platform.

    Read our nifty Crowdestate review

    4. Reinvest24

    p2p platform reinvest24

    Reinvest24 Highlights

    • Invest in rental properties
    • Minimum investment from €100
    • Lower risk and stable cashflow
    • Increase your platform diversification
    Reinvest24 Overview
    Average Interest:14.6%
    Protection:1st-rank mortgage
    Max. LTV/Type:Rental
    Availability of Loans:OK (2/5)
    Secondary Market:Yes
    Auto Invest:No
    Customer Support:Exceptional (5/5)
    Trust Factor:Very Good (4/5)

    Pros

  • Monthly rental income
  • Non-traditional investment
  • Secured by a collateral agent
  • Cons

  • Slow funding speed
  • Limited diversification
  • 1% entry fee
  • Reinvest24 is the leading real estate P2P lending platform that offers investments in rental properties in the Baltics. Lower risk and stable cash flow are two reasons why this real estate platform is quickly gaining in popularity. While investing in rental properties isn’t as common as investing in real estate loans, it certainly helps your diversification efforts within the real estate investment world.

    Reinvest24 has recently also started offering high-interest real estate loans.

    Thanks to the secondary market, you can buy and sell shares in rental deals at any time.

    Head over to our Reinvest24 review to find out more about the platform as well as an in-depth background check of their CEO.

    Wondering how Reinvest24 works? Watch our interview with the CEO of Reinvest24 - Tanel Orro.

    Ready to invest on Reinvest24?

    Read our in-depth Reinvest24 review

    5. Bulkestate

    p2p platform bulkestate

    Bulkestate Highlights

    • Mortgage-backed P2P loans
    • High yields up to 16%
    • Group Buying discounts
    • €0 loss of investors’ money
    Bulkestate Overview
    Average Interest:14.87%
    Protection:1st and 2nd-rank mortgages
    Max. LTV/Type:70%/loans, group buying
    Availability of Loans:Good (3/5)
    Secondary Market:No
    Auto Invest:No
    Customer Support:Very Good (4/5)
    Trust Factor:Good (3/5)

    Pros

  • Secured by a mortgage
  • Very good return and risk ratio
  • Discounted real estate deals
  • Cons

  • Limited Diversification
  • Cash drag
  • No instant withdrawals
  • Similarly to EstateGuru, Bulkestate also offers real estate investment opportunities. Besides the slightly higher interest rate on Bulkestate, there isn’t much difference between investing here or in real estate loans on other platforms. Where Bulkestate really stands out is their group-buying service, where you as an investor can get your hands on exclusive discounts within the Baltic real estate market.

    Bulkestate's crowdfunding projects are getting funded very fast, which is why you should set up your auto invest to not miss those deals.

    Learn more about this unique feature in our Bulkestate review.

    Ready to invest on Bulkestate?

    Read our latest Bulkestate review

    6. BitOfProperty

    p2p platform bitofproperty

    BitOfProperty Highlights

    • Invest in rental properties
    • Secured by blockchain technology
    • Secured by a mortgage
    • 2-4% admin fee
    BitOfProperty Overview
    Average Interest:6.4%
    Protection:1st and 2nd-rank mortgages
    Max. LTV/Type:Rental
    Availability of Loans:OK (2/5)
    Secondary Market:No
    Auto Invest:No
    Customer Support:Very Good (4/5)
    Trust Factor:Good (3/5)

    Pros

  • Secured by collateral
  • Monhtly passive income
  • Individual investment agreements
  • Cons

  • Short track record
  • Only 500 investors
  • Limited diversification
  • BitOfProperty is the second most popular Baltic real estate crowdfunding platform that offers investment opportunities in rental properties. The platform is run by an ambitious CEO that came up with a brilliant idea of how to make your investments more secure with the aid of blockchain technology. While, for most investors, this idea is a bit abstract, it certainly adds to the transparency of investment contracts.

    Learn more about this unique feature as well as BitOfProperty’s offerings in our latest BitOfProperty review.

    Ready to invest on BitOfProperty?

    Read our in-depth BitOfProperty review

    7. Profitus

    p2p platform profitus

    Profitus Highlights

    • Invest in real estate from Lithuania
    • Minimum investment from €100
    • Lower risk and stable cashflow
    • User-friendly platform
    Profitus Overview
    Average Interest:10.63%
    Protection:1st and 2nd-rank mortgages
    Max. LTV/Type:70%/loans
    Availability of Loans:Good (3/5)
    Secondary Market:No
    Auto Invest:No
    Customer Support:Very Good (4/5)
    Trust Factor:Good (3/5)

    Pros

  • Suitable investment alternative
  • Transparent T&C
  • Secured by a collateral agent
  • Cons

  • No Secondary Market
  • Very limited diversification
  • Withholding taxes
  • Profitus is a rather small Lithuanian real estate P2P lending platform that primarily lists real estate projects from Lithuania. This platform is particularly interesting for investors who want to increase their investment in the Lithuanian real estate market.

    Platforms like EstateGuru and Crowdestate mostly focus on the Estonian real estate crowdfunding market. The Lithuanian P2P market is much better regulated, which increases the securities that come with P2P lending. Also, Profitus is one of the most user-friendly real estate P2P lending platforms. The only downside to using this platform is that there aren’t as many real estate projects available here as there are on competitor sites.

    Find out more about this real estate crowdfunding platform in our Profitus review.

    Ready to invest on Profitus?

    Read our in-depth Profitus review

    8. Nordstreet

    p2p platform nordstreet

    Nordstreet Highlights

    • Invest in properties from €100
    • No hidden fees
    • Property-backed loans
    • Mainly projects from Lithuania
    Profitus Overview
    Average Interest:11.41%
    Protection:1st and 2nd-rank mortgages
    Max. LTV/Type:60%/loans
    Availability of Loans:OK (2/5)
    Secondary Market:No
    Auto Invest:No
    Customer Support:OK (2/5)
    Trust Factor:Good (3/5)

    Pros

  • Secured investment
  • Stable return
  • Suitable alternative P2P platform
  • Cons

  • No Auto Invest
  • Subject to cash drag
  • No secondary market
  • Nordstreet is in direct competition with Profitus, but this platform has a slightly higher average interest rate. Nordstreet tends to list more real estate from Vilnius (Lithuania’s capital city) than Profitus, which has a bigger focus on real estate projects in smaller Lithuanian cities. In the past, Nordstreet has also listed real estate projects from the USA and Poland.

    Find out more about this real estate crowdfunding platform in our Nordstreet review.

    Ready to invest on Nordstreet?

    Read our updated Nordstreet review

    9. Rendity

    p2p platform rendity

    Rendity Highlights

    • Invest in Austrian properties
    • Minimum investment from €500
    • High availability of projects
    • Secured by a mortgage
    Rendity Overview
    Average Interest:7%
    Protection:1st and 2nd-rank mortgages
    Max. LTV/Type:75%/loans, rental
    Availability of Loans:OK (2/5)
    Secondary Market:No
    Auto Invest:Yes
    Customer Support:Poor (1/5)
    Trust Factor:OK (2/5)

    Pros

  • Development loans and rental properties
  • Stable cash flow
  • No cash drag
  • Cons

  • No instant withdrawals
  • No secondary market
  • Lower yields
  • Rendity is the most popular Austrian P2P lending platform. The real estate site offers investment opportunities in property development across Austria and Germany. Loans are typically less expensive in Germany and Austria than they are in other parts of Europe, which is why the average interest rate per year isn’t usually higher than 7%.

    Rendity is a very good alternative to EstateGuru or Crowdestate as it primarily targets different real estate markets. The initial investment of €500 is, however, much higher than most investors are willing to invest at first.

    Read our Rendity review to find out more about the platform.

    Ready to invest on Rendity?

    Check out our new Rendity review

    10. Brickstarter

    p2p platform brickstarter

    Brickstarter Highlights

    • Invest in rental properties
    • Earn monthly cash flow
    • Support the sharing economy
    • Earn from short-term rentals
    Brickstarter Overview
    Average Interest:5.5%
    Protection:1st and 2nd-rank mortgages
    Max. LTV/Type:Rental
    Availability of Loans:OK (2/5)
    Secondary Market:No
    Auto Invest:No
    Customer Support:OK (2/5)
    Trust Factor:OK (2/5)

    Pros

  • Returns from monthly rent
  • Secured by real estate
  • Suitable for beginners
  • Cons

  • Only limited to vacation rentals in Spain
  • Subject to volatility
  • Lower yields compared to development loans
  • Brickstarter is a popular real estate P2P lending platform from Spain. The P2P site offers investment opportunities in rental properties, many of which are acquired and renovated to be listed on rental sites such as Airbnb or Booking.com. If you want to invest in vacation rentals on the coast of Spain without spending a fortune, Brickstarter might be the best fit for you. When it comes to the return, you can expect similar results as on platforms such as Reinvest24 or BitOfProperty.

    Ready to invest on Brickstarter?

    Check out our new Brickstarter review

    11. Crowdestor

    p2p platform crowdestor

    Crowdestor Highlights

    • Invest P2B loans secured by a personal guarantee
    • Minimum investment from €50
    • Buyback fund for increased security
    • Secured by additional commercial pledge
    Crowdestor Overview
    Average Interest:15.10%
    Protection:1st and 2nd-rank mortgages, and commercial pledge
    Max. LTV/Type:Loan
    Availability of Loans:Good (3/5)
    Secondary Market:No
    Auto Invest:No
    Customer Support:Poor (1/5)
    Trust Factor:Good (3/5)

    Pros

  • Higher returns
  • Popular amongst investors
  • Intuitive P2P platform
  • Cons

  • Higher risk
  • No instant withdrawals
  • Poor customer support
  • Crowdestor is one of the most popular peer-to-business (P2B) lending platforms in Europe. The platform funds a variety of projects across different industries. While Crowdestor isn’t primarily focused on the real estate market, sometimes users can invest in interesting projects backed by first-rank mortgages. While we wouldn’t suggest using this platform as your primary source of real estate investments, it’s certainly a possible alternative to more mainstream platforms.

    Learn more about this platform in our comprehensive Crowdestor review.

    Ready to invest on Crowdestor?

    Read our latest Crowdestor review

    Why Invest in Real Estate Via P2P Lending Platforms?

    • Investing in real estate properties with as little as €50 is an amazing alternative for you if you don’t have a large sum of money or don’t want to take the risk and buy your own property.
    • Thanks to real estate crowdinvesting, you can become a real estate investor without all the hassle that comes with it.
    • The real estate P2P lending platforms take care of all the paperwork for you, the only task you need to do is to register on one of the platforms, transfer funds and choose your investments - meaning you safe a lot of time.

    Easy right? In theory, yes.

    But, before you start investing, we would like to give you our seven golden rules that we follow when it comes to real estate P2P lending.

    Seven Golden Rules of Real Estate P2P Lending

    1. Read the terms

    Be aware of how the platform works and what your rights and obligations are. We read all the terms and conditions before signing up on any P2P lending site.

    You can get a brief overview of a platform’s terms in our P2P lending reviews.

    2. Understand the risk

    Every real estate investment is backed by some collateral. Note that there is a significant difference between a first-rank and second-rank mortgage. Before you invest, look at the LTV, mortgage type and interest. Compare these with other projects and determine for yourself if the protection scheme matches the interest rate.

    We only like to invest in real estate projects that are backed by a first-rank mortgage.

    3. Invest manually

    It’s common practice to automate your investment strategies with an auto invest feature. In most cases, real estate P2P lending platforms don’t offer an auto invest tool that would allow you to match all of your investment criteria.

    Don’t be lazy and learn how to pick your own real estate investments. If you don’t want to invest manually, we suggest using platforms like Mintos or PeerBerry, as these offer more user-friendly automated investment options.

    4. Diversify across multiple countries

    You should know that diversification is the best protection against market volatility or loan defaults.

    Spread your real estate investments across multiple countries to lower the risk of default.

    5. Invest in metropolitan areas

    During an economic downturn, the real estate prices in country areas can drop by up to 60%. Full recovery might only take a few months, or it could take several years. Generally speaking, large cities are less affected by drops in real estate as the demand for housing is usually very high. Also, properties in metropolitan areas aim to recover much faster than in the countryside.

    6. Do not invest money that you cannot afford to lose

    This is a no-brainer but still many investors are emotionally attached to their P2P investments.

    Every investment comes with a risk. P2P lending isn’t an exception. In the worst-case scenario, you might lose a part or all of your investments.

    P2P lending is a very good alternative to the stock market, cryptocurrencies or ETFs as it isn’t as volatile.

    7. Invest long term

    Real estate P2P lending isn’t the best option for you if you are looking for quick capital gains. Most of the platforms list projects with a loan term of 12 to 24 months. Some of the platforms even offer real estate investment opportunities for 36 months.

    Note that real estate crowdfunding isn’t a short-term investment per se. If you want quick access to your money, invest on platforms such as Mintos, Bondora or PeerBerry.

    Ready to become a real estate investor? You got this!

    Sign up to one of the above mentioned P2P real estate platforms and transfer a small amount of money to get started. As you get familiar with the platform, increase your investments and start creating your passive income stream.

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