EvoEstate is a P2B marketplace for real estate projects. You can invest in a variety of real estate projects from 20 platforms. More than 1,500 investors are earning 13.11% in interest per year by investing in mortgage-backed projects. Learn more about how to earn money on EvoEstate in our comprehensive review.
- 15/06/2020 - EvoEstate added two new "Skin in the Game" projects which were funded within one day
- 10/04/2020 - In Q1 2020, eight projects on EvoEstate were repaid with a combined yield of 10.34% XIRR
EvoEstate in Numbers
EvoEstate is a marketplace that does not originate their own development loans but instead lists projects from other real estate crowdfunding platforms like Reinvest24, Profitus, Nordstreet, Brickstarter, Rendity and others.
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 investor's money:||0%|
|Average portfolio size:||-|
|Latest financial report:|
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 1,500 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, if you're joining the marketplace and register with our link.
You'll receive a 0.5% cashback bonus calculated from their average investment amount from six months after registering.
Although sign-up bonuses should not be the main reason to invest on EvoEstate, this one is certainly a nice incentive, especially if your goal is to invest a larger amount of money.
Grab your EvoEstate bonus!
EvoEstate’s New User Requirements
You can register if you meet the following criteria:
- Private investors and companies
- 18 years old
- European bank account in your name
No EUR bank account? No problem
During the registration process you'll need 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.
You might get asked to type in a special EvoEstate referral code. This isn't required if you have signed up with our link.
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.
Ready to become a real estate investor?
EvoEstate Risk and Return
Before we can determine the ratio between risk and return, let’s have a look at how the platform works.
EvoEstate 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).
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.
You can learn more about peer-to business (P2B) platforms that are backed by mortgage here.
3. Investing in Equity
With this type of investment, you 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, you 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 you the possibility to sign up and invest directly instead of through EvoEstate.
You're probably thinking that investing your money via EvoEstate will result in lower returns than would be the case if you invested directly on the platforms themselves.
In fact, on EvoEstate you'll earn the exact same interest rates that you would earn if you would have 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 you.
While this is true, in certain situations, you might want to also invest directly on the platform. Some platforms, such as Crowdestor, offer you a 1% cashback campaign, which can be higher than EvoEstate’s 0.5% in six months. Read our P2P lending reviews to see whether there is a higher bonus when investing directly with an individual platform.
How's your money secured?
According to EvoEstate, there are a few ways they look after your money:
- firstly, all loans listed on the project are secured by a mortgage
- secondly, all investment assignments are made between you and borrowers - EvoEstate is simply a financial agent
- thirdly, your 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 your 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 back to you.
EvoEstate is an agent of real estate investments. The platform facilitates the transactions and stores your 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. There's a dedicated budget assigned for this, so it won't be deducted from your investments.
‘Skin in the game projects’
EvoEstate’s co-founders inform you that they invest at least €1,000 in every ‘skin in the game project’. This should help you to decide which projects they should invest in, as the co-founders claim that those projects are the ones they believe in.
Note that the skin in the game projects get funded very fast. Set up your Auto Invest to not miss out on those.
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.
As 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.
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.
Fact is that Lithuanian P2P platforms are much more regulated and the requirements to run a business model such as EvoEstate is doing are quite strict. A brokerage licence would, however, certainly increase the trust towards EvoEstate.
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 - Auto Invest
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 4.12 - Storage of Funds
EvoEstate stores your uninvested funds on separe bank accounts which are excluded from EvoEstate's assets.
This is standard practice within the P2P lending space. A more secured way would be, however, to offer dedicated IBAN accounts like it's the case on NEO Finance.
Clause 1.4 - Amendments to T&Cs
EvoEstate reserves the right to amend the terms and conditions without prior notice.
We haven't noticed any changes to the T&Cs lately, however, we aren't huge fans of this clause as we have seen other platforms exploiting it before they shut down their operations.
Can Investors Access Individual Loan Agreements?
While the loan agreements aren't available before you invest yourself, you can find your contracts in your portfolio section.
Potential Red Flags
- EvoEstate can amend the terms and conditions prior notice
What's our opinion about EvoEstate?
During our due diligence, we haven’t found any suspicious information about any team members or contract clauses that need further explanation.
We like the fact that you can invest in mortgage-backed properties while building a well diversified portfolio which is hard on most of the smaller real estate platforms.
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 that some real estate project won't get funded as fast, meaning your money won't earn you interest during that time.
We are currently investing on EvoEstate to monitor the performance and update our EvoEstate to present you with the latest updates.
Ready to earn money with 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 you 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.
- Skin in the Game Project
- Loan Types
- Portfolio Size
- Min. Investment Amount
- Mortgage Rank
- Project Originator
Ideally you should build 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.
Tip: Set up one Auto Invest just for the Skin in the Game projects as it's very likely that you won't be able to invest into those manually as they're typically funded very fast.
We recommend to invest manually and evaluate your real estate investments individually as there're a lot of factors to consider. Learn more about it in this guide about real estate crowdinvesting.
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.
How Fast Can You Withdraw Your Money?
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.
Both mentioned platforms do charge a secondary market fee.
EvoEstate’s Secondary Market
EvoEstate allows you to buy and sell deals on the secondary marketfor free.
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.
You might even use this secondary market to increase your returns.
You can also buy and sell investments from project originators like, that don’t primarily offer a secondary market option on their own platforms.
We haven't used the secondary market on EvoEstate yet, which is why we can't comment on how long it takes to sell your investments. Typically this depends on the availability of loans and demand for investments as well as the discount you're offering.
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 email@example.com.
EvoEstate Review Summary
EvoEstate allows you to build a broadly diversified portfolio that's backed by mortgages. You can expect to earn around 13% interest by investing at least €50 per project. So far, our experience with EvoEstate has been positive. You should, however, keep the short track record of EvoEstate in mind, when investing on the platform.
Key Takeaways from our EvoEstate Review
- No secondary market fee
- Good availability of real estate investments
- Good diversification option
- Skin in the Game projects
- Auto Invest refund within 24h
If you were looking for an easy way to diversify your P2P real estate investments, EvoEstate might just be the right solution for you.
Ready to become a real estate investor without all the hassle?
Or explore other real estate platforms.
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 you 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 you want to sell your 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
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 to 11PM|