BulkEstate review : interesting real-estate crowdfunding opportunities
The interest rates are interesting for investors who don’t want to invest in the more speculative projects offered by the competitors.
There are few loans available, with large amounts
Reporting is very basic
No buyback is available for now
Readability and translations could be improved
Overview of BulkEstate
BulkEstate is a company from Latvia, specialized in real estate and property crowdfunding. They also handle real estate group buying but that’s not my purpose.
Interest rate is usually around 14-15% for a duration of one year or less. There are usually only a few investment opportunities at the same time, with a large amount to invest in.
It’s more or less the same situation as with Grupeer loans; you don’t have to check BulkEstate website everyday !
One important difference with P2P lending sites is that both principal and accrued interests are repaid at the loan repayment date, there’s no monthly interest repayment.
The minimum investment is 50€, which is higher than for personal loans for example but rather common in real-estate financing.
The website provides a basic description provided for each project; compared to CrowdEstate, BulkEstate could provide further details. The SWOT (Strengths/Weaknesses/Threat/Opportunities) matrix, repayment schedule, company rating and risk profile comparison found at CrowdEstate would be welcome additions !
Initially, investors didn’t have the opportunity to fund their account; money had to be wired at time of investment. This could cause troubles if the transfer took too long, and was overall bothersome. Fortunately, an upgrade introduced the opportunity to send funds ahead of time, like most competitors allow.
Opportunity to use auto-invest was added in April 2018. It’s really easy to configure it; the required inputs are maximum investment amount, minimum return and maximum term. Note that thanks to the small number of available projects, it’s still very easy to invest manually.
The loans are not guaranteed. However, the value of the properties the loan is invested in helps mitigate the risks.
There’s currently no secondary market. BulkEstate is supposedly working on it, but didn’t provide any timeline.
I was initially not very satisfied with the usability of the website. However, things have improved and it’s much more pleasant to use now.
The investments list is extremely basic, providing very little details. The expected revenues are displayed, but there’s no graph for the planned cash-flow.
On the other hand, the low number of loans and basic repayment structure partially compensate this lack of details.
As I just started investing, you’ll have to come back in October 2018 to see how well my investments performed 🙂