CrowdEstate is a European real estate crowdlending platform based in Estonia. It offers two types of real estate loans for rental projects and development projects. Investors can invest in real estate and business loans and earn an average annual return rate of 14.47%. Most of the real estate projects are from countries like Estonia, Latvia, Finland, and Italy. The minimum investment amount is €100. CrowdEstate is open to all investors from the EU. CrowdEstate has features like a secondary market and auto-invest strategy. However, it does not have a buyback guarantee.
CrowdEstate Review: Quick Facts
- CrowdEstate is a European real estate crowdlending platform offering loans for rental and development projects.
- You can invest as low as 100 and earn an annual return of 14.47%. You can invest in the platform as an individual or a business.
- CrowdEstate has features like a secondary market, auto-invest feature, and buyback guarantee.
CrowdEstate was founded in 2014 in Estonia and has so far raised over €118 million and funded over 480 projects.
- 1 Who Can Invest in CrowdEstate
- 2 How CrowdEstate Works
- 3 How to Invest in CrowdEstate
- 4 CrowdEstate Features
- 5 Advantages of Investing in CrowdEstate
- 6 Cons of Investing in CrowdEstate
- 7 CrowdEstate Supported Countries
- 8 CrowdEstate Alternatives
- 9 Is CrowdEstate Safe?
- 10 Summary of CrowdEstate Review
- 11 Discover More
Who Can Invest in CrowdEstate
You can invest in CrowdEstate as an individual or an organization. To invest in CrowdEstate, you need to meet the following requirements:
- Be at least 18 years old
- Have an EU bank account
How CrowdEstate Works
CrowdEstate is an investment platform where real estate developers or borrowers submit real estate projects to secure funding. On the other hand, investors provide funding for these projects and earn a passive income through interest rates from the money they have invested. CrowdEstate evaluates the loan request by the borrower following due diligence. Then CrowdEstate approves the borrower’s request and lists the loan on the platform.
Investors can then select the project they want to invest in and the amount they want to invest. Once they have invested in a project, they will start receiving interest rates and the sum invested periodically.
How to Invest in CrowdEstate
To start investing in CrowdEstate, you need to follow these simple steps:
- Sign up – Create an account on the CrowdEstate website. You need to provide an email address and then create a password.
Verification – A link will be sent to your email and you need to use it to verify your account. Click on the link in your email. Then upload documents like your ID or company documents in case you are an organization.
Fund your account – The next thing you need to do is to fund your account. You can fund the account using a normal bank transfer, an online bank like Wise, or use your card.
Choose a project to invest in – You will find many real estate projects listed on the CrowdEstate website and you need to select one to invest in. You can set an auto-invest strategy so that the system can automatically select projects to invest in when they are available.
In case you want to exit the investment platform, you can sell your portfolio in a secondary market at a fee.
CrowdEstate has the following features for investors:
CrowdEstate Secondary Market
CrowdEstate has a secondary where investors can sell off their investment portfolio prematurely. Therefore, if you need your money, you can sell your loan in CrowdEstate secondary market. You can use the secondary market to diversify your portfolio and invest in various loans. You can find different real estate deals in the secondary market to invest in.
CrowdEstate Auto Invest
CrowdEstate has an auto-invest feature that can help you automate your investments in CrowdEstate. This will help you save time by automatically selecting deals to invest in. For instance, you can set an auto-invest strategy to select loans from particular countries and a certain interest rate. When there is a loan that fits the criterion you have selected, the auto-invest feature will select it for you.
Advantages of Investing in CrowdEstate
There are many benefits you will enjoy by investing in CrowdEstate. They include:
- High returns. You earn annual average returns of about 14.47% by investing in the platform.
- Auto invest strategy. You can set an auto-invest strategy that can help select loans you can invest in. This will save you a lot of time and effort.
- Safe option. CrowdEstate does due diligence before listing a loan on their platform. This ensures that your investments are safe and secure.
- Secondary market. In case you want to exit the platform, you can sell your investment portfolio in the secondary market at a fee.
Cons of Investing in CrowdEstate
- No buyback guarantee. CrowdEstate does not have a buyback guarantee that protects investors from losses when borrowers default in repayment.
- 2% secondary market selling fee. You will be charged a 2% fee when you sell your portfolio in the secondary market.
- Does not support some countries. CrowdEstate does not support countries like USA.
CrowdEstate Supported Countries
You can invest in CrowdEstate in a majority of countries in the world. CrowdEstate supports over 126 countries across the world, most of them in Europe. However, you cannot invest in CrowdEstate from countries like the USA, Afghanistan, Botswana and Somalia.
You can invest in these other investment platforms as an alternative to CrowdEstate.
Is CrowdEstate Safe?
CrowdEstate is a safe and secure investment platform. CrowdEstate does due diligence when vetting borrowers to borrow from the platform.
CrowdEstate has a 60% “Bad” rating on TrustPilot with many people complaining due to its lack of buyback guarantee and delays in loan repayment by borrowers.
Summary of CrowdEstate Review
CrowdEstate is a European real estate crowdfunding platform you can use to invest from anywhere across the world. Some of the features you will enjoy while investing in the platform include an auto-invest strategy that you can use to automatically select loans to invest in. You also get to access a secondary market where you can prematurely sell your portfolio at a fee. You will be earning annual returns of about 14.47% from your investments. However, CrowdEstate does not have a buyback guarantee feature that protects investors’ funds in case of late repayment.