Crowdestate is the first crowdlending platform I personally started investing in.
In this review I will share my experiences from the first 6 months. Key information is in the first half of the review, for those interested a detailed walkthrough of the platform is provided in the latter half of the review.
Table of Contents
Key information Crowdestate
Crowdestate is an Estonian real estate crowdfunding marketplace offering pre-vetted real estate investments. The minimum investment is € 100 and no additional fees to investors are being charged. The company has been around since 2014.
Opening an account is possible for investors across the world, with some exceptions (USA being the main one). Crowdestate is predomininantly offering real estate deals, however it’s also possible to invest in corporate finance and mortgage loans.
A few key figures to get us started:
- 29,192 investors
- € 59,809,810 capital raised
- Return 19.06% across 144 projects
Pros and Cons
- Above average returns, 10% -19%
- Excellent track record
- Website easy to navigate
- Appealing graphics
- Auto-invest present
- Secondary market present
- Quick and friendly support
- Limited active projects, high yield projects fill up fast
- Small portion of projects pays monthly interest
- No buyback guarantee
My Crowdestate Investments
I opened an investor account with Crowdestate in August 2018 and invested my first € 500 ever. Quickly I realized how easy it is to become an investor. As a result, I invested another € 14,000 with Crowdestate during the 6 months that followed.
Find out more about my current portfolio here.
My Opinion and Rating
Crowdestate advertises itself as a leading European online real estate marketplace. Based on the last 6 months, I have no reason to question that statement. So far two projects have exited without problems. I intent to keep Crowdestate as one of the core platforms in my portfolio.
My Crowdestate rating is 4/5.
If you’re interesting in signing up, I appreciate it if you would use this link. It will help me run this blog.
Becoming a Crowdestate investor
Quite frankly, becoming an investor with Crowdestate was easy. I registered through e-mail, but you can sign up with your Facebook or Google account as well.
The platform does not operate with a buyback guarantee, as it common for real estate crowdfunding. Instead risk is limited through thorough due diligence processes. Crowdestate has a solid track record.,
Navigating the Crowdestate website
The website is pretty self-explanatory, but let’s run through some of the most important options.
Hitting the Invest menu will pull up all the active and recently funded projects. All projects have a summary overview available as can be seen in the screenshot. In order to make an educated decision, a lot more details are made availabe. For example, I personally appreciate the risk assessment, SWOT analysis and financing structure a lot.
Most projects have a term between 6 months and 2 years.
So what information is available?
- Executive summary
- Project description incl. area, market and competition
- Location details
- Project sponsor information
- SWOT analysis
- Crowdestate rating
- Financing details and repayment schedule
The Overview menu will pull up your account dashboard. The account graphics are appealing. It shows information such as:
- Account balance and invested amount, over time
- Expected payments
- News on projects in your portfolio
The portfolio overview gives you a quick sense of your expected return rate and remaining terms. Furthermore ou can slice and dice the table or analyse the graph. From the graph you can tell a chunk of my portfolio will reach maturity coming summer. Not surprisingly, that’s about the one year mark since I first invested with Crowdestate.
In addition, the portfolio view also has statistics on your risk rating, asset class and investment type diversification. Finished investments are listed here as well.
Reports and Transactions
It possible to create balance reports and interest reports in PDF with very flexible date ranges. It does the job well. Moreover, you can pull up every single transaction related to your investor account. These reports are now also available in English.
There’s a possibility to use auto-invest, which is great. It uses criteria such as expected return, risk class, investment type and term. I personally stopped using it, because I prefer to invest manually in real estate investments.
The pre-booking notification typically gives me plenty of time to react before projects are fully funded.
Everyone loves options, right? With the secondary market more options have become available in case you want to exit an investment. Through your portfolio you select the investment you wish to exit and assign a selling price. Before putting the investment up for sale, you’ll see expected returns for you and the buyer. In addition, the secondary market is very easy to navigate.
Personally I don’t use the market place often. In fact, I’ve only used it once, I bought a share with leftover funds, because there were no active projects at the time.