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Available for EU residents

EstateGuru Review

Updated | 21. June 2024

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Available for EU residents
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Secured bya mortgage
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Earn on average (Per Year) 10.77%

2.5
rating

Chosen 2284 times

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Tested Platform
HIGHLIGHTS
  • Property-backed P2P loans

  • High default rate in all regions

  • 2nd worst-rated platform in Europe

  • High fees for investors

RATING
Risk & Returnnumber of stars
Usabilitynumber of stars
Liquiditynumber of stars
Supportnumber of stars
FEATURES
checked iconAuto Invest
checked iconSecondary Market
checked iconCashback
checked iconRegulated
closed iconBuyback Guarantee
DIVERSIFICATION
Min. Investment 50
Loan Originators1
Loan Period in Months6 - 36
Countries8
Loan TypeReal Estate
Interest7% - 12%

News

Statistics

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Year founded:

2014

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Investors' earnings:

€ 79M

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Outstanding portfolio:

€ 258M

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Loss of investors' money:

€ 40.121

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Number of investors:

161.000

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Average portfolio size:

€ 5.685

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Funds in recovery:

€ 132M

    Table of contents

Table of contents

EstateGuru Review Summary

While EstateGuru used to be the best real estate P2P platform in Europe, its performance has suffered in 2024. To regain investors' trust, the platform will have to recover a substantial amount of loans.

Main takeaways from our EstateGuru review:

  • 2nd worst-rated platform by our community
  • Mortgage-backed investments
  • Poor risk assessment
  • More than 50% of loans are in recovery

Not sure about EstateGuru? Try some suitable EstateGuru alternatives.

What is EstateGuru?

EstateGuru is Europe's most popular and reliable P2P real estate platform. Since 2014, the platform has paid €79 M in interest to over 161,000 investors. You can invest in property-backed loans with an average return of 8%. How? Find out in our EstateGuru review after six years of investing on the platform.

estateguru review

Pros

  • Well-developed crowdlending platform
  • Solid risk management in the Baltics
  • Liquid secondary market
  • Individual bank account from Lemonway

Cons

  • Not suitable for short-term investors
  • 3% secondary market fee
  • 0.05% AUM fee
  • €3 withdrawal fee
  • €10 / month inactivity fee for investors who didn't invest in the past 12 months
  • High default rate

Learn more about how EstateGuru is doing in 2024 in our recent EstateGuru update.

What's Our Opinion Of EstateGuru?

We have been investing in EstateGuru for several years and even met the team in Tallinn twice to visit some real estate projects and talk to the management.

While EstateGuru is a licensed crowdlending platform, its issues are mainly connected to risk management. The platform's quick expansion has backfired. As of June 2024, over half of the outstanding portfolio is defaulted. 

In the past, EstateGuru has always managed to retrieve the outstanding balance with a positive return for investors. It's not clear whether the platform will be able to recover investors' funds this time.

While we have invested in EstateGuru since 2018, we significantly decreased our exposure in 2023 due to the platform's performance-related issues.

To regain investors' trust, EstateGuru will have to recover a substantial portion of its portfolio during 2024. You can review our P2P lending comparison page to analyze EstateGuru's portfolio quality compared to other P2P lending platforms.

EstateGuru Referral Code - Earn 0.5% EstateGuru Bonus

New investors on EstateGuru are eligible to receive an EstateGuru bonus. This is how the EstateGuru referral code works:

  • With our exclusive EstateGuru referral link, you will receive a 0.5% cashback bonus, calculated from your average portfolio size after the first 90 days of registration.
estateguru bonus

You do not need to enter any EstateGuru referral code during your registration to receive this bonus.

Ready to get that 0.5% EstateGuru bonus?

User Requirements

To sign up on EstateGuru and invest in property-backed loans, you need to pass the following new user requirements:

  1. Be over 18 years old
  2. Have a European bank account
  3. Pass the investor suitability test

No EUR bank account? No problem

  • 💳
  • 💳

You can invest on EstateGuru even if you reside outside of Europe as long as you have a European Bank account which is required to deposit funds to your new Lemonway bank account offered by EstateGuru. This increases the safety of your uninvested funds on the platform.

EstateGuru offers significantly higher returns than most P2P lending platforms from the UK or the U.S., which makes it an attractive alternative.

🧾 Is EstateGuru withholding taxes?

EstateGuru does not withhold taxes. You must declare your earnings in the country where you are a tax resident. EstateGuru lets you download tax statements to add to your annual tax report.

Risk & Return

Are you wondering whether investing on EstateGuru is safe? Let's have a look at the securities.

Secured Investments

The most significant advantage of investing on EstateGuru is that a mortgage secures your investments.

This protection scheme is, in theory, much more valuable than any buyback guarantee on Mintos, Esketit, or Lendermarket.

While a first-rank mortgage often backs your investments, there is no 100% guarantee that you won't experience a loss at some point. Investing in high-yielding loans is unlike putting your money in your savings account.

During every due diligence process, EstateGuru's risk team evaluates the profitability of the real estate deal. The platform analyzes the borrower's "exit plan" and considers whether the borrower can repay the loan with the accrued interest.

Most borrowers on EstateGuru are experienced developers who buy or build properties and sell them with a hefty profit. During our talk with the co-founder and head of risk and innovation, we learned that it's common to earn a 30% profit annually by investing in real estate deals. Of course, this is subject to market conditions.

Most of the borrowers lend only about 50% of the required funds, which means that with a 10% interest rate, the funding cost for the borrower is only around 5% per year. The potential profit of the renovated or constructed property can easily cover the funding cost on EstateGuru.

Assess the Risk Yourself

If you are cautious about money, you want to invest on EstateGuru and inspect every project before investing manually. It's not required, but it's good practice for those ready to become serious about investing on EstateGuru.

Professional Investors on EstateGuru

It's also no secret that EstateGuru is onboarding institutional investors who invest millions of euros alongside retail investors. This significantly improves the platform's credibility as institutional investors conduct a much more complex due diligence than most retail investors.

Risk Management

EstateGuru aims to become the most professional crowdfunding platform in Europe. The platform follows the following risk management process for every listed project.

estateguru loans review

Every project listed on EstateGuru comes with a valuation report from certified real estate valuators. Multiple team members review all the collected documents before the credit risk committee approves the loan.

Keep in mind that even this process isn't bulletproof. There are still some risks that could materialize and impact your return.

Inactivity Fee

Effective immediately, an inactive account fee will be applied to accounts with no new investments within 12 months. Here's what you need to know:

  • A €10 fee will be charged after 12 months of inactivity.
  • A €50 fee will be charged after 24 months of inactivity.
  • Before any fee deductions, investors will receive an email notification.
  • Investors can avoid the fee by withdrawing their available balance free of charge before the fee is applied.
  • Fees will not be deducted from accounts that have made small investments or withdrawn available funds.
  • Accounts will not be overdrawn, and no invoices will be issued for these fees.

This policy encourages investors to stay active or withdraw their funds. EstateGuru provides the means to do this free of charge.

Is EstateGuru Safe?

Are you wondering who's behind the platform and whether the terms and conditions are legitimate? We have done the homework for you. Check out our results.

Watch our on-site visit at EstateGuru's headquarters in Tallinn:

Note that this video has been recorded prior to EstateGuru's portfolio performance issues.

Who runs the company?

EstateGuru is founded by Marek Pärtel and Kaspar Kaljuvee. Mr. Pärtel is currently the board chairman, and Mr. Kaljuve is leading the department of Risk Innovations and Risk projects.

EstateGuru’s CEO is Mihkel Stamm, who has been with the company since its inception.

Who is the company’s legal owner?

CEO and Co-founder Marek is joined by Mr. Kristjan-Thor Vähi, who currently acts as a passive co-founder within the platform.

Other partners and co-founders also include Mr. Marko Arro (responsible for the financial side) and Mr. Kaspar Kaljuvee (who takes care of the risk side).

Are there any suspicious terms and conditions?

Are you ready to read through 25 pages of fine print? No? We thought you’d say that, so we’ve done it for you, and here’s what we found.

Clause 12 - Debt Collection Explained

During our investment journey on EstateGuru, we talked to various management people, including Andres Luts, the Chief Risk Manager at EstateGuru. If you want to learn more about debt collection, you can watch our interview here.

It’s good to see that this process is also mentioned in EstateGuru’s terms and conditions.

estateguru review

Here is one of the funded projects we have had the chance to visit during our on-site due diligence in Tallinn.

Clause 4.5 - Storage of Funds

EstateGuru currently stores your funds in EstateGuru's bank account, which is separated from other companies' business accounts.

estateguru review

EstateGuru confirmed that it's currently working to introduce dedicated IBAN accounts in partnership with its partner Lemon Way. Most investors have already received a new IBAN account, which increases the safety of uninvested funds.

Clause 15.1 - Amendments

EstateGuru can amend the terms and conditions without prior notice.

estateguru terms

This is one of the few things we dislike about EstateGuru.

Fortunately, EstateGuru listened to our suggestions, and from now on, you will be notified about any changes when logging into your account.

estateguru changes

While EstateGuru won't notify you in advance, it's certainly a good step towards being even more transparent with you.

Do Investors Have Access to Individual Loan Agreements?

Investors on EstateGuru do have access to individual loan agreements. You can view them in the Documents section of your investor’s account.

estateguru agreement

When completing our due diligence of EstateGuru, we did not find anything extraordinary or suspicious about EstateGuru's team members.

Curious about what else we look at when conducting our research?

Potential Red Flags

  • Potential breach of internal processes by the management team in Germany in 2020/2021
  • Poor risk management
  • Monthly fees for inactive investor, who wish to withdraw their funds due to EstateGuru's poor performance

Learn more about possible red flags in our guide about how to avoid investing in P2P lending scams.

Usability

Regardless of whether you are starting out or already investing on other platforms.

Investing on EstateGuru is simple and intuitive.

You can invest manually or set up your Automated Strategy and let the tool do the work.

Automated Investment Strategies

EstateGuru has recently upgraded its Auto Invest and introduced a new way to diversify your portfolio with Automated Investment Strategies.

estateguru auto invest

You can choose between three strategies:

  1. Conservative
  2. Balanced
  3. Custom

Conservative Strategy

The pre-defined conservative strategy will diversify your portfolio across loans with the following characteristics:

  • LTV up to 67.5%
  • Only Bullet (incl. Annuity) Loans
  • No Stage Loans
  • Only bridge loans, business loans and development loans
  • Only Loans from Estonia, Germany, Finland, Lithuania, Latvia
  • Max. exposure per loan can be customized
  • Only first-rank mortgages
  • Up to 18 months

Our Thoughts On The Conservative Strategy

The conservative strategy is suitable for investors who regularly deposit a few hundred Euros per month on EstateGuru and prefer stable lower returns from projects with a lower risk (and LTV). This strategy avoids multiple investments in stage loans, significantly lowering your risk. You can also easily control the exposure into a single loan. The downside of this strategy is that you can't exclude loans from certain countries where the default rate tends to be higher.

Balanced Strategy

The balanced strategy suits investors who prioritize higher returns and lower cash drag. It comes with the following pre-defined settings:

  • LTV up to 75%
  • Stage Loans are included
  • All Countries are included
  • Max. exposure per loan can be customized
  • Any loan securities are accepted
  • Up to 60 months

Our Thoughts On The Balanced Strategy

The balanced strategy includes all countries, including markets such as the Netherlands and Spain, where EstateGuru is just starting. Using this strategy, you will invest in multiple-stage loans, increasing your exposure to a single project. This strategy will diversify your portfolio across all projects, significantly increasing your risk. To lower the risk within this strategy, we suggest keeping the max. exposure to a single loan at €50.

Custom Strategy

The custom strategy is the improved Auto Invest with new settings that let you define the exposure to a single project and individual borrowers.

The most significant benefit of all strategies is that you can use them with minimum exposure to a loan from €50.

Which One is the Best Strategy?

This depends on your risk tolerance. Based on our experience with EstateGuru, we would either suggest the conservative or the custom strategy, where we would exclude stage loans and limit the exposure per borrower. Manually investing is the best approach to take control of the risk.

Investing On EstateGuru Manually

EstateGuru’s basic Auto Invest won’t let you control your investments if you invest lower investment amounts. Here are some points to consider when choosing your own loans on EstateGuru.

All eight factors will help you determine whether a particular real estate investment fits our investment strategy on EstateGuru.

Evaluation Methodology

Interest Rate

The interest rate is not a significant factor on EstateGuru as most projects offer annual yields between 10% and 12%. 

Loan-to-Value

What's more important is the LTV (loan-to-value). The lower the LTV, the lower the risk of default. According to EstateGuru, the real estate market would need to drop by 50% to 60% for the investors to lose their investments. 

Project Stage

Construction companies in the real estate development industry expect to take loans in stages as they don’t need the entire loan amount at once. If an investor had already invested in the same project but in a different stage, one should analyze the borrower's payment more before increasing the exposre.

You can look up your late loans in your portfolio.

estateguru review

It doesn't matter which exact stage you invest in. If the loan defaults, all the stages will likely default, and after the collateral is sold, investors will be repaid proportionally rather than chronologically.

Loan Period

The longer the loan term, the harder it will be to exit your investment before the end of the loan period. The loan period has a direct impact on the liquidity of your portfolio.

estateguru evaluation

Mortgage Rank

It's recommended to always look at the collateral value and the mortgage rank. The higher the mortgage-rank, the better.

Valuator

The risk of your real estate investment is always reflected by the valuation of the property, which is why you should look into the company evaluating the collateral and the date of the evaluation. The older the evaluation report, the higher the chance that the value of the collateral has changed.

In this case, the evaluation was done by Inreal, a licensed real estate company from Lithuania. Do a quick Google search about the validator to ensure it’s a legitimate and licensed company.

estateguru valuator

Licensed real estate agencies mostly evaluate collateral (securities). Those documents, together with the borrower information and the business plan, are double-checked by the EstateGuru risk team (Credit Committee), which also sets the loan terms.

Location

Location is often the most critical value-adding factor. Properties close to cities tend not to lose as much value during an economic downturn as in the countryside.

You should research the property's address, which serves as a mortgage, and verify whether there is a good connection to the city.

More experienced investors might also consider excluding certain countries with historically higher default rates. Depending on your risk tolerance, Finland or Germany could be two countries to exclude.

We recommend analyzing EstateGuru's loan book to understand the performance of the platform's loans. 

Borrower’s History

Would you like to borrow money from a company that had difficulties paying back in the past? Let's hope not. Look at the borrower's history to see whether you can spot any delays or defaults.

estateguru review

Unfortunately, if you haven’t invested in previously funded projects by the same borrower, you won’t be able to see the loan details. What you can see, however, is the status icon. If it’s blue, it means there are no delays. If the icon has an orange part, the loan is delayed. The red icon represents a defaulted status.

It might appear like a hassle to evaluate real estate projects, but you can do your evaluation in less than ten minutes as soon as you get the hang of it.

This process will significantly increase the control over your investments compared to using the Auto Invest.

The downside of not using Auto Invest is that you might limit your diversification.

You might also encounter cash drag if you end up with uninvested funds in your account. To compensate for this, you can increase the minimum investment amount to €300 or €500, depending on your total portfolio amount.

If you can spend ten minutes per week evaluating your real estate investments, we suggest doing so.

Investing On The Secondary Market

The strategy mentioned above applies to manual investments on the primary market, meaning you invest directly in newly originated loans.

EstateGuru has a dedicated secondary market, which you can use if you have uninvested funds in your EstateGuru account.

A secondary market is where you can sell or buy investments before the end of the investment period.

estateguru secondary market

You can use filters to sort offers based on your preferences (your investment strategy). You can also sort the columns as you wish.

You will get additional information about real estate investment if you click on the small shopping cart icon.

You can only buy the entire investment on the secondary market and not a part of it. If someone sells an investment for €1,740, you must the entire selling price.

estateguru secondary market

You should also look at the “seller expected earnings” and “buyer expected earnings” and match this with the loan updates.

Investing in the secondary market certainly takes more time. If you spot a good deal where the likelihood that the borrower will repay the loan in time is very high, you can use the secondary market to increase your yields.

The secondary market could also be helpful if there aren’t enough loans available on the primary market. EstateGuru has also a feature that allows you to buy bulk investments on the secondary market.

The secondary market has no Auto Invest feature, so manually investing can be time-consuming. 

Liquidity

Now it’s time to look at how fast you can withdraw money from EstateGuru.

Do you think about liquidity when choosing their P2P lending platforms?

No? You should, though!

With EstateGuru, you usually commit your money for at least 12 months. You have, however, the option to use the secondary market and cash out before the end of your investment period.

Note that if your default rate is high, the liquidity of your investment is limited. The more defaulted loans in your portfolio, the lower the liquidity of your assets.

Selling on the Secondary Market

You can sell your investments for a premium or discounted price. Sellers and buyers should know that this isn’t a trading platform and that you will be charged a 3% fee if you sell your investments.

Buyers also cannot sell their claim within 30 days after purchase.

To sell your claims on the secondary market, you must go to your portfolio and click on the shopping cart next to your investment claim.

Next, you can use a slider to adjust your discount or premium. Your investment will be listed on the secondary market by clicking Sell My Claim.

estateguru secondary market

Note that your offer on the secondary market is only valid for 14 days. EstateGuru also applies a selling fee of 3%. In our case, it would be €0.73 if we decide to sell our investment and reinvest the capital into new loans.

A 3% fee won't break the bank if you need to withdraw your investments fast.

You should also remember that you might fail if you plan to sell defaulted loans. Investors have little appetite to buy off defaulted loans, so you might need to wait until the loan is recovered. 

Do you enjoy this review? Invite us for a coffee ☕

Customer Support

When we contacted EstateGuru to verify information or explain specific features in more depth, EstateGuru was able to provide answers to all of our questions.

The team responded within 24 hours but was also keen to meet us during our trip to Tallinn to show us some of the projects they were working on.

EstateGuru's CEO is always open to joining us for an interview and answering critical questions. 

There aren’t many P2P platforms in Europe that are as transparent with their investors as EstateGuru.

EstateGuru Alternatives

In 2024 EstateGuru is experiencing many defaulted loans, so investors often look for alternative platforms that provide a better return on investment. Here are three EstateGuru alternatives worth considering.

LANDE

While EstateGuru offers investments in real estate loans, LANDE offers up to 12% on agricultural loans. Investing in agricultural loans funds European farmers who produce essential crops for the food industry. LANDE's loan portfolio performance has been excellent, which is why it's also one of the highest-rated platforms on P2P Empire. Learn more about how to earn passive income in our LANDE review.

Crowdpear

If you like investing in real estate loans but prefer to earn interest on a platform that takes a more conservative approach on risk assessment, Crowdpear might be a good fit for you. This regulated crowdfunding platform from Lithuania offers investments in real estate loans in and around Vilnius. Learn more about how to earn up to 11% interest in our Crowdpear review.

Fintown

If you don't want to bear the borrower risk you must consider when investing in real estate loans, then Fintown might be worth considering. This newly launched Prague-based platform offers investments in rental properties with high occupancy.

Your funds will fund short-term rental units in Prague's city center. You don't bear any risk that the borrower won't repay the loan, as the income is generated directly from the rental yield. Learn how to make 12% on Fintown in our Fintown review.

author

Jakub Krejci

Founder

Fact

Checked

Jakub Krejci, the founder of P2P Empire, brings six years of expertise in navigating and investing across diverse P2P lending platforms. Drawing insights from over 50 interviews with industry CEOs and founders, Jakub offers a unique perspective in the peer-to-peer lending realm. Renowned for his high-quality reporting and regular updates, Jakub stands as a trusted authority for individuals navigating the dynamic P2P investment landscape.

Editorial Note: We earn a commission from partner links on P2P Empire. Commissions do not affect our editors' opinions or evaluations of products.

FAQ

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Is EstateGuru regulated?

Estateguru is regulated in every country where it operates, and regulation for crowdfunding platforms exists. EstateGuru will be fully regulated by the end of 2022 as the platform aims to receive the European Crowdfunding Service Providers (ECSP) license, valid in all EU countries.

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How EstateGuru works?

EstateGuru is a crowdfunding platform that connects investors with borrowers. The crowdfunding site lists real estate-backed loans in which investors can invest and earn an attractive yield of 10% per year.

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What does LTV stand for on EstateGuru?

LTV stands for Loan-to-Value. This number represents the ratio of the loan amount to the value of the collateral or property that is backing the loan. The lower the LTV, the lower the default risk for investors. The average LTV on EstateGuru is 59%, while the maximum allowed LTV stands at 75%.

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Who can invest in EstateGuru?

Any investor over 18 years of age residing in the European Economic Area or owning a European Bank Account is eligible to register on EstateGuru and earn passive income by investing in real estate-backed loans.

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Is EstateGuru safe?

Your investment on EstateGuru is subject to risk. The platform follows strict risk assessment guidelines and provides full access to its loan book, which any investor can analyze. Be informed, however, that certain risks may materialize, which may impact the safety of your investments.

COMPANY INFORMATION

  • Company:
  • EstateGuru OÜ
  • Legal Address:
  • Tartu mnt 10/Pääsukese 2 Tallinn, 10145, Estonia
  • Office Address:
  • Tartu mnt 10/Pääsukese 2 Tallinn, 10145, Estonia
  • Email:
  • info@estateguru.co