EvoEstate is a real estate P2P lending platform aggregator. The website allows you to invest in various real estate projects, originated by multiple platforms. Should you choose to invest with EvoEstate, you can diversify your portfolio across 20 platforms without the need to sign up on every platform individually.
Keep reading this EvoEstate review to find out how you can earn 11%-16% per year when making mortgage secured investments.
EvoEstate in Numbers
EvoEstate is a financial agent that does not originate their own development loans but instead lists projects from other real estate crowdfunding platforms. Let’s have a look at the company’s numbers:
|Investor's earnings:||+ €7,900|
|Total loan value:||+ €40 M|
|Amount of investors:||+1,550|
|Loss of investors' money:||0%|
|Average portfolio size:||€ -|
|Latest financial report||Report for Q4 2019|
You might have noticed that some of the figures from the table above are missing…
EvoEstate is a very new platform that was only founded in 2019. As a result of the company’s age, they were unable to share any information about their investors’ earnings, as many of the loans have not been repaid yet.
Again, due to EvoEstate’s recent founding, there aren’t any financial reports available yet, however, we have linked to the platform’s quarterly report on their blog, should you want to read more about its financial performance.
Altogether, the platform managed to provide funding worth more than €40 million to date. Currently, there are only just over 1,400 investors registered on EvoEstate. The company did not provide us with the average portfolio size of its investors.
According to the latest information, the company is not cashflow positive as it’s prioritizing growth over profits.
EvoEstate Referral Code
EvoEstate offers an attractive bonus for new investors who sign up with our link and invest through the platform.
New investors receive a 0.5% cashback bonus from their average portfolio size during the first six months.
Investors can also earn an additional €15 from every friend that invests on EvoEstate.
Although sign-up bonuses should not be the main reason to invest on EvoEstate, this one is certainly a nice incentive, especially for those who aim to invest a large sum of capital.
Grab your EvoEstate bonus!
EvoEstate’s New User Requirements
Who Can Register?
You can sign up on EvoEstate if you are a private investor or a company with a European bank account in your name.
As we have already mentioned, EvoEstate is an aggregator for P2P real estate platforms. This means that users need to pass the Know Your Customer (KYC) requirements for all listed platforms on EvoEstate. As a result of this, EvoEstate collects more information than other platforms, which results in a pretty tedious and time consuming sign up process.
During the registration process, EvoEstate might ask for a referral code, which isn’t necessary if you sign up with our link in the section above. Your sign-up bonus will be automatically added to your account as soon as you fulfill the new user requirements.
EvoEstate also collects data about the source of your income, and verifying this can be quite a frustrating process. We suggest having your passport closeby as you will need to take a picture with it as part of the process.
You can choose between manual and fast verification. We chose fast verification, which we initially failed on mobile and desktop. In the end, we succeeded on mobile, with the Chrome browser. Note that you should have a decent camera to take a photo of the passport, otherwise it won’t work.
EvoEstate Risk and Return
Before we can determine the ratio between risk and return, let’s have a look at how the platform works.
The platform allows you to invest in three different investment types at the same time:
1. Investing in Rental Properties
Investing in rental properties means that you buy a share of a real estate property, and generate monthly rental income. This is usually considered a lower risk investment, as rental properties are very unlikely to default. You can expect to earn annual returns of 3%-6% (as well as additional capital growth).
Find out more about this business model in our Reinvest24 review.
2. Investing in Fixed Interest Loans
Investing in fixed interest loans is very common on platforms like EstateGuru and Crowdestate. Most of the time, your investments are backed by a mortgage and the expected annual return is 8%-13%. The risk is often calculated based on the LTV ratio, and the lower the LTV, the lower the risk of default.
3. Investing in Equity
With this type of investment, investors become business co-owners. It’s no surprise, then, that this type of investment is considered riskier, as the collateral is often limited (i.e. second rank mortgage). The annual returns for equity investments are typically 14%-30%.
Now, you should have a better idea where you’re investing your money with EvoEstate. Thanks to the platform’s unique setup, investors can achieve very good diversification within the real estate P2P lending sector by simply using EvoEstate.
Investing on individual platforms gives you the opportunity to diversify across a multitude of available projects from that particular website. Furthermore, it is not uncommon to experience cash drag on real estate platforms. EvoEstate solves those two issues.
20 Project Originators
As we write this EvoEstate review, the platform lists 20 project originators. Note that they aren’t necessarily loan originators, as every platform has a different setup.
Here is the complete list of project originators on EvoEstate:
Reinvest24, Rendity, Stockcrowdin, Urbanitae, Max Crowdfund, Inveslar, iFunded, Housers, Nordstreet, Profitus, Property Bridges, Re-Lender, Bergfürst, Blend Network, Brickbro, Brickstarter, CrowdProperty and Civisland.
As you can see, there are many platforms that offer investors the possibility to sign up and invest directly instead of through EvoEstate.
Most investors tend to think that investing their money via EvoEstate will result in lower returns than would be the case if they invested directly on the platforms themselves.
In fact, EvoEstate investors earn the exact same interest rates that they would if they invested directly on the platforms.Thanks to a large amount of funding that EvoEstate is able to provide, the platform manages to negotiate a discount with the project originators at no further cost to the investors.
While this is true, in certain situations, you might want to also invest directly on the platform. Some platforms, such as Crowdestor, offer their own new investors a 1% cashback campaign, which is higher than EvoEstate’s 0.5%. Read our P2P lending reviews to see whether there is a higher bonus when investing directly with an individual platform.
So, how is investors’ money secured?
According to EvoEstate, there are a few ways they look after its investors’ money: firstly, all loans listed on the project are secured by a mortgage. Secondly, all investment assignments are made between investors and borrowers; EvoEstate is simply a financial agent. And thirdly, investors’ funds are stored in segregated bank accounts.
Let’s have a look at what happens should one of the stakeholders go out of business.
If the borrower isn’t able to pay back the loan, the loan originator will sell the collateral and pay back investors’ money.
Loan originator defaults:
If the project originator defaults, every case is treated individually, most of the time the originator establishes Special Purpose Vehicle (SPV) which holds the funds and real estate collateral. If the originator goes out of business, this administrative entity should return the funds to the investors.
EvoEstate is an agent of real estate investments. The platform facilitates the transactions and stores client funds in segregated bank accounts. If bankruptcy occurs, a contractual entity will be appointed to take over the role of EvoEstate and serve all the investments. The budget for this entity’s services is assigned and separated from the operational and investment funds.
‘Skin in the game projects’
EvoEstate’s co-founders inform investors that they invest at least €1,000 in every ‘skin in the game project’. This should help fellow investors to decide which projects they should invest in, as the co-founders claim that those projects are the ones they believe in. Surprisingly, as we write this EvoEstate review, there is only one project, which is flagged as a ‘skin in the game project’.
Does it mean that all the other projects aren’t as good? We suggest doing your own due diligence and diversifying your portfolio. Unless you want to invest €100,000 on EvoEstate, there is no need for you to invest €1,000 in a single project.
Is EvoEstate Safe?
Before investing in real estate loans on EvoEstate, we recommend you have a look at the people managing the company as well as some legal aspects connected to the investment contracts. We understand that reading all the terms and conditions, as well as doing a background check of the platform, isn’t the most exciting task, which is why we’ve done the heavy lifting for you.
Here’s what we found:
Who Runs the Company?
Gustas it the CEO and he takes care of the acquisition of new partners, the platform’s fundraising and the investor relations. Gustas has also co-founded two other startups: Biecount.eu and Wellparko. Wellparko was recognised as 2nd best start up in Europe within the Energytech / Clentech sector.
A passionate P2P investor, Gustas also frequently publishes interesting articles about real estate investing on EvoEstate’s blog and on LinkedIn.
Audrius is in charge of signing up new customers as well as the due diligence of the projects listed on EvoEstate. Audrius has invested in several companies, including Revolut, Enevo and NorthOne.
Other Team Members
In total there are five people behind EstateGuru and a sixt person is joining the team soon. Learn more about the team in the About us section.
Who Owns the Company?
According to the Estonian business registry, EvoEstate is owned by its co-founders. While the company's office is located in Giedraiciu 3, Vilnius, Lithuania, EvoEstate is registered in Estonia, rather than Lithuania for regulative reasons.
See the exact reasons why EvoEstate is registered in Estonia outlined below:
- In Lithuania, EvoEstate would need to pay tax on undistributed earnings.
- The e-residency makes the remote management of the company very easy.
- In Lithuania, the company would require an asset management license in order to operate its auto invest feature.
We also suggest watching this video interview of EvoEstate’s 21-year-old CEO (which was recorded at the beginning of the year), to find out more about the platform’s business model.
Are EvoEstate’s Terms & Conditions Legitimate?
We read the terms and conditions and didn’t find any suspicious clauses. In fact, we think the terms and conditions are very transparent, and most of the time they’re favorable to the investor.
But, what did we find in the T&Cs?
Clause 4.5: If the platform decides to remove one of the criteria within its auto invest tool, it will notify the users. If a new criterion is added, the user has to change it manually.
Clause 6.5: As with most P2P lending platforms, investors are only able to transfer funds to the platform from their European bank account, and this bank account must be held in the investor’s name. If the investor changes bank account, they should notify the platform as currently there isn’t an option to change the bank details from the user dashboard.
Can Investors Access Individual Loan Agreements?
Some of the platforms give investors a loan agreement, which basically describes the legal contract between investor and borrower. As EvoEstate lists multiple projects from various platforms, it’s not as easy to receive an individual loan agreement every time.
In our conversation with Gustas, we discovered that whether there is a contract or not depends on the loan originator. In most cases investors can view the contract in the portfolio section within their investor account.
EvoEstate, however, provides an agency contract which is made between the lender and EvoEstate.
An example of such a contract can be found here: EvoEstate contract with Menorca.
So is it Safe to Invest on EvoEstate?
During our due diligence, we haven’t found any suspicious information about any team members or contract clauses that need further explanation.
Other positives of this platform include the diversification options - EvoEstate gives investors the opportunity to broadly diversify their real estate portfolio. As you might know already, diversification is the best strategy to decrease the risk of default. Investing on EvoEstate will lower your risk as you invest in real estate projects from several countries and multiple loan originators.
It’s worth noting, however, that as with every P2P investment, investors risk losing all of their invested funds. EvoEstate isn’t liable for any losses as a result of your investment decision.
Therefore, we do recommend conducting your own due diligence before signing up on EvoEstate.
If you want to invest on EvoEstate, you simply view the available projects and choose the investment type that suits your strategy. You can choose between loans, equity and rental contracts.
The first few projects that are listed on top of the project page are flagged as “skin in the game projects.’ This means that the co-founders have invested at least €1,000 of their own capital into these deals.
EvoEstate's main benefit is the diversification within the real estate crowdfunding industry. Their auto invest tool allows users to invest in projects from platforms that are often limited to non-residents. Most notably, in projects on Spanish platforms.
Here are all the options you can customize when setting up your automated investment.
As you can see, when using this tool you can define your investment by many basic criteria, such as the loan types, portfolio size, loan periods, amount per project, country, interest, mortgage rank and individual project originators.
We suggest that users invest at least €5,000 and distribute their money across 100 deals. If you follow this structure, you will achieve better diversification than you would if you invested higher amounts per project.
To spread the risk, we recommend having a balanced portfolio, consisting of a variety of deals. To increase the security of your investment, you can also choose to invest purely in projects that are secured by a first-rank mortgage.
Note that if you choose to only invest in projects that the co-founders invested in, you might limit your diversification and it can take quite some time until your funds get invested. Temporary cash drag isn’t uncommon within the real estate industry, however, you should be interested in investing your money, rather than leaving it uninvested in your investor’s account.
Another unique EvoEstate feature is the ability to cancel any investments made with the auto invest tool within 24 hours. With this feature, if your automated investment invested in a deal that you don’t like, you can cancel the investment within 24 hours and receive your whole investment amount back in your account.
Liquidity has always been a concern within the real estate P2P lending sector. Usually, there aren’t very many options for those who want to withdraw their money before the end of the loan period. Some platforms, such as EstateGuru and Crowdestate, offer a secondary market that allows investors to sell their investments for a discounted or premium price, should there be the demand for it.
But not all P2P lending platforms allow you to do that. Crowdestor, for example, does not offer a secondary market yet. That’s where EvoEstate comes in.
EvoEstate’s Secondary Market
EvoEstate allows you to buy and sell deals on the secondary market. You can place bids and offers on individual projects. In fact, 50% of the projects listed on EvoEstate’s secondary market without premium prices are sold within 24 hours.
Some investors even use this secondary market to increase their returns.
Unlike other P2P platforms’ secondary markets (like EstateGuru’s), EvoEstate’s is free of charge.
You can also buy and sell investments from project originators like , that don’t primarily offer a secondary market option.
EvoEstate’s Customer Support
As you might have noticed, EvoEstate has a very small team. At the moment, the customer support is handled by one person - Claudia. If you, however, have more in-depth questions, the chances are high, that Gustas, CEO of the company, will get back to you.
EvoEstate does not currently offer a live chat function. The best way to reach out to EvoEstate is by sending them your request to their inbox at firstname.lastname@example.org.
EvoEstate Review Summary
EvoEstate is a real estate P2P lending aggregator, that offers investors the opportunity to broadly diversify their real estate portfolio, starting from €50 per investment. You can invest in projects from 20 project originators across 11 countries. All the repaid loans generated over 16% of interest per year.
EvoEstate allows you to invest in projects from various platforms, without the need to create individual investor accounts. You can also access deals that are often only offered to residents located where the platform primarily operates.
Furthermore, EvoEstate gives you the option to sell your investments on the secondary market, even though the platform might not offer this on its own.
While we certainly value the benefits of EvoEstate, we should not forget that it’s still a very young startup, with only four employees.
If you were looking for an easy way to diversify your P2P real estate investments, EvoEstate might just be the right solution for you.
Our EvoEstate review should have given you enough information to evaluate whether the platform is the right fit for you. Investors that sign up on EvoEstate through our link, will receive a 0.5% cashback bonus as a small incentive.
As big an EvoEstate fan we are?
What’s the Minimum Investment Amount on EvoEstate?
The minimum investment per project on EvoEstate is only €50. Most of the real estate platforms offer the same minimal investment amount requirements.
How is My Investment Secured?
Your investment is secured by a mortgage. Depending on the investment type, the investment might be secured by a first-rank or second-rank mortgage. We suggest that investors always double-check the collateral of every project before investing.
Does EvoEstate Offer a Secondary Market?
EvoEstate does offer a free of charge secondary market, should investors want to sell their investment before the end of the investment period. It is up to you as to whether you sell it for a discounted, premium or the initial sale price.
Does EvoEstate Offer an Auto Invest Tool?
EvoEstate allows you to define certain investment criteria and automate your investment strategy. If you aren’t satisfied with the automated investment of your funds, you can cancel any investment within 24 hours.
|Address:||Office- Giedraiciu 3, 22nd floor, Vilnius, Lithuania|
|Phone:||+370 675 93 335|
|Opening Hours:||Weekdays from 8AM - 11PM|
|Social Media:||Facebook, LinkedIn|