Crowdestate is an Estonian peer-to-peer (P2P) lending platform that lists real estate projects with an average interest rate of more than 17% per year. Crowdestate is suitable for anyone who wants to benefit from the growing demand for real estate properties without taking high risks. Keep reading this Crowdestate review to find out whether this is the P2P lending platform for you.
Crowdestate in Numbers
We always recommend having a look at platform’s statistics before signing up and transferring funds. Luckily, Crowdestate is one of the platforms that’s willing to share their numbers with investors.
|Total loan value:||+ €82 M|
|Amount of investors:||+43,000|
|Loss of investors' money:||0%|
|Average portfolio size:||€ -|
|Latest financial report||Report for 2018|
The real estate crowdfunding market is booming and Crowdestate gives you a good opportunity to jump on the train and benefit from it.
Crowdestate Referral Code
If you’re an experienced P2P investor, you might know that some of the companies offer a sign-up bonus for new investors.
Currently, Crowdestate doesn’t offer referral codes or cashback bonuses for new investors. We’ll update this Crowdestate review should there be any progress on this in the future, so save this URL and check back regularly.
Are bonuses important to you? Sign up to EstateGuru to invest in real estate projects and receive a 0.5% bonus while doing so. Unfamiliar with the platform? Make sure to read our in-depth EstateGuru first!
You don't mind the bonus?
Crowdestate offers investment opportunities for investors within continental Europe. The only user requirement is that investors are over 18 years old!
Crowdestor is one of the few European P2P lending platforms that doesn’t require a European bank account. However, we would still recommend that you use an account in euros that supports SEPA payments. You can use popular bank accounts from digital banks such as N26 or Revolut. Transfers from N26 take less than one day.
Risk and Returns
Every investor should briefly assess the risk of investment opportunities on every platform before investing on it.
But how do you go about doing this?
First and foremost, it’s crucial to look at the collateral connected to the P2P investment. In most cases, the loans are secured by a mortgage or various commercial collateral, depending on the borrower.
It’s good practice to check this in advance or set up your Auto Invest according to your preferences. We only invest in secured debt which helps us lower the risk. You can, however, increase the risk and the potential yield by adding equity investments, mezzanine capital or unsecured debt to your portfolio mix.
Crowdestate does an excellent job of informing you about the collateral of every investment. In the project description, you’ll find a section about collateral or finances which informs you about the securities that come with your investment.
It’s good practice to look for keywords like a 1-rank mortgage as well as loan-to-value (LTV).
Note that projects secured by a 1-rank mortgage represent a lower risk than those obtained by a 2nd-rank-mortgage.
Depending on your risk profile, we’d suggest that you invest in loans with an LTV lower than 75%.
Crowdestate takes the liberty to assess the risk for you and displays a table with various categories and risk ratings. The platform then puts the scores together and gives you a risk class that you can use to estimate how risky a particular investment opportunity is.
You can use this risk class to define your preferences in the Crowdestate Auto Invest.
If you’ve invested on Mintos before, you’ll probably recognise this feature as being similar to Mintos’s rating of loan originators.
How Safe Is Crowdestate?
There’s no obvious answer for this question.
The risk of default on Crowdestate can be minimized by investing in secured real estate projects. In the unlikely case that a project defaults, the collateral would be sold and your investment amount repaid. Whether you will be able to retrieve the full investment amount depends on that particular real estate project.
Your uninvested funds on Crowdestate are protected, as they are saved on segregated bank accounts. This is a standard protection scheme for P2P lending platforms within the real estate industry. Overall, your investment is more safe as compared to investing on platforms such as Fast Invest or Bondora.
When investing in P2P lending, you want to be aware of the risks and securities. As many investors use P2P lending to create a passive income stream, you want to have a user-friendly platform that allows you to find everything you need within a few clicks.
Normally, signing up with P2P lending platforms takes no longer than five minutes. You’ll usually just fill in some basic information and upload your ID to verify your details.
During the sign-up process, we had to use the two-factor-verification via SMS, as the Google Authentication didn’t work. We also had to take a photo of ourselves as part of the process.
In our opinion, it seems the sign-up and “security measures” on Crowdestate are a bit too much, and we can imagine that some investors might be intimidated by it. Patience is certainly required when creating your account on Crowdestate!
OK, so you’ve completed the verification and transfered funds to your Crowdestate account, what next?
You can either invest manually in various real estate projects or use the Auto Invest tool.
The Crowdestate Auto Invest allows you to define your preferences and automate your investments. It’s worth noting, however, that the minimum investment amount is €100 per project, which is more than the minimum investment amount on other platforms.
When we compare the Auto Invest feature to similar platforms like Bondster, Crowdestor or EstateGuru, we’ve noticed that Crowdestate’s gives you a lot of options, allowing you to take full control of your diversification
Overall, the Auto Invest on Crowdestate feature seems to offer better options as most Auto Invest tools within the real estate P2P lending area. Note, however, that this feature is only useful if there is enough available loans to invest in. If you are investing in P2P loans for a while, you might know, that high availability of development projects is something every platform is struggling with.
Liquidity is an important factor that most investors don’t consider when they start investing in P2P loans.
Sometimes you might want to withdraw your investment earlier as anticipated. Luckily Crowdestate offers you the possibility to sell your claims on the secondary market.
Crowdestate’s secondary market allows you to sell your active investments and withdraw your money from the platform or invest in different projects. Some investors also use the secondary market if there is a shortage of new loans on the platform. While it can help you diversify your portfolio, you should take into consideration the premium price you’ll be paying for projects on the secondary market.
Overall, it is nice to have the option of early withdrawals. However, we aren’t huge fans of trading on the secondary market on any platform. We prefer to diversify our portfolio on various platforms with various investment periods so we can avoid fees or premium prices for investments on the secondary market.
Crowdestate support is quite responsive. We received an answer to our request as to whether they also accept investors from the U.S. the next working day.
You can send all your questions to firstname.lastname@example.org or give them a call on +372 6 599 111. If you wish, you can also leave them a message within the live chat on their homepage.
Crowdestate vs. EstateGuru
We believe that Crowdestate’s biggest competitor is EstateGuru, that’s why we want to show you the differences between those two platforms to give you a better idea of how they compare.
While both platforms are very similar in terms of the offering, there are a few differentiators that we noticed when investing on both platforms.
Crowdestate’s Longer Loan Periods
While EstateGuru usually lists investment opportunities for a duration of 6-18 months, Crowdestate tends to offer longer loan periods of up to 36 months.
Crowdestate’s Superior Auto Invest Feature
Both P2P lending platforms offer you the possibility to automate your investments; However, there are some clear differences when we compare this feature on both platforms.
Crowdestate gives you more control over your automated portfolio whereas EstateGuru’s Auto Invest seems to be littered with limitations.
The former only allows you to unlock all options if you decide to invest at least €250 per project, while with Crowdestate, you can invest from €100 per project and have access to everything.
Crowdestate’s Higher Minimum Investment Amount
When investing manually, you’ll have better options to diversify your portfolio with EstateGuru as the minimum investment amount on this platform is only €50, whereas Crowdestate’s is a whopping €100.
Crowdestate’s Flimsier Project Descriptions
Both platforms try to give you as much information about the project as possible. If you decide to invest manually and actually look into the project description, you might prefer EstateGuru as their descriptions follow a better structure than Crowdestate’s.
Crowdestate’s Higher Interest
Both platforms target a similar audience; however, there are a few details you should be aware of. In terms of returns, Crowdestate’s average interest is above 17%, while EstateGuru’s is only 12%.
Note that your returns will depend on the projects that are listed on the platform at the time you choose to invest. If you are looking for an alternative to Crowdestate, EstateGuru might just be the right option for you.
Crowdestate Review Summary
Overall, Crowdestate has impressed us. Transparency, Auto Invest as well as the secondary market are good reasons to invest in projects on Crowdestate. If you are looking for longer capital commitments and you don’t mind the high minimum investment amount of €100, Crowdestate might be the right fit for you.
If you are one of those investors, who prefer to invest in short-term loans, with short loan periods and moderate returns of around 11% per year, you might be better off with platforms such as Mintos, PeerBerry or Robocash.
Even though the sign-up process on Crowdestate is a bit frustrating, the platform delivers on its promises, and we’re yet to experience any issues with the platform. Should this change in the future, we will update our Crowdestate review and let you know.
Ready to do join 43,000 investors?
Does Crowdestate have an Auto Invest feature?
Crowdestate has an Auto Invest feature that will help you automate your investment strategy. The feature comes with a lot of diversification options that will give you more control over your portfolio. Read our full Crowdestate review above for everything you need to know.
Does this platform have a buyback guarantee?
Crowdestate does not offer a buyback guarantee. Most of the loans listed on Crowdestate are, however, protected by a personal guarantee, mortgage or commercial collateral. Learn more about it in the liquidity section of our Crowdestate review above.
Is Crowdestate legitimate?
Crowdestate is a legitimate P2P lending platform that offers real-estate P2P lending opportunities with attractive yields. The platform provides good diversification options as well as features that will help track your portfolio performance and automate your investment strategy.
What’s the minimum investment on Crowdestate?
The minimum investment amount on Crowdestate is €100. You can start investing on most other P2P lending platforms from only €10.
|Address:||Müürivahe 17-2, 10140 Tallinn, Estonia|
|Phone:||+372 659 9111|
|Social Media:||Facebook, Twitter, LinkedIn, Instagram|