Crowdestor review : a new real-estate crowdfunding platform

Crowdestor review : a new real-estate crowdfunding platform

Crowdestor’s overview

Crowdestor offers real-estate and business loans. Their interest rates are usually in the 15%-20% range, for durations varying from one to two years. A partial buyback guarantee is provided through a warranty fund.

My opinion on Crowdestor

In spite of its youth, Crowdestor features a very large array of projects, and many more are added regularly. The expected returns are great, and the various sectors they belong to allow to diversify one’s portfolio. In addition, the availability of a buyback fund helps to reduce the risk. This platform is an excellent complement to the more senior CrowdEstate and BulkEstate; it’s very comparable to its competitors Envestio and Kuetzal in many aspects.

Detailed ratings

Interest rates

The interest rates for the current projects are great, especially now that they’re partially protected by a warranty fund.

Loans liquidity

There are several new opportunities each month; their amounts vary greatly, from €30 000 to €750 000.

Reporting

Reporting is rather basic.

Buyback guarantee

Crowdestor provides a buyback guarantee through a warranty fund.

Website ergonomics

Crowdestor‘s website is basic but works well.

Crowdestor’s pros & cons

Pros

  • Very interesting interest rates
  • Projects in diversified sectors
  • Partial buyback guarantee though a warranty fund
  • Projects are added regularly

Cons

  • The platform is very young
  • High-yield projects sell out quickly
  • No auto-invest feature
  • No secondary market or early exit

Loans characteristics

Interest rates

12% – 21%

Loans duration

1 month to 1 year

More than 1 year

Loans kind

Business

Real-estate

Minimal investment

€50

Buyback guarantee

Buyback guarantee available

Currencies

Euro

Overview of Crowdestor’s loans

Although it’s a recent platform, Crowdestor already features many projects. Their duration is one year or shorter; the interests rates vary from 12% for classical real-estate projects to a crazy 36% (!) for a crypto-mining farm. The amount needed for each project is usually rather small (around €100 000 – €200 000), so they get funded rather quickly.

One noteworthy aspect is that the investment opportunities are part of various sectors, allowing for some diversification in your portfolio :

  • Real-estate
  • Restaurants
  • Retail shops
  • Hotel
  • Energy production plant
  • Transportation
Excerpt of Crowdestor's loans list
Excerpt of Crowdestor’s loans list

Many details are provided; while the description isn’t as rich as at CrowdEstate, it’s still very detailed and provides many documents.

Part of the description of a project
Part of the description of a project

Minimal investment amount used to be €100 per project, but has been lowered to €50. However, unlike CrowdEstate, the invested amount doesn’t need to be a multiple of €50. This allows you to reinvest interests quickly !

Another interesting aspect is that interests are computed from the day you start investing, instead of the day when the project is completely funded. And even if the project doesn’t get successfully funded when the deadline comes, you still get interests for the period between your investment and the deadline !

There are new projects coming every two weeks or so; while I initially considered that Crowdestor lacked behind Envestio in this area, now it seems to be the other way round.

Projects history

As of July 2019, Crowdestor‘s website features more than 35 funded projects. Out of these, four were repaid in time (one of them was actually repaid early by the borrower). There’s been no default, and from I could gather, no late repayment either.

Crowdestor’s buyback guarantee

In late February 2019, Crowdestor announced the creation of a buyback fund. It will be used to reimburse the investors in case the borrower defaults. The initial amount was €50 000; it grows thanks to a commission on new projects. As of early June 2019, the amount reached €73 700.

Currently important details are missing, such as the delay for triggering the guarantee; we also don’t know whether or not the interests are covered by the guarantee. As the buyback fund is a new feature, I expect Crowdestor to provide more information later.

Platform’s features

Secondary market

NO secondary market

Auto-invest

NO auto-invest

Secondary market

Unlike CrowdEstate, Crowdestor doesn’t provide a secondary market. There’s no early exit mechanism either; as a result, you won’t be able to sell your investment early.

Auto-invest feature

There’s currently no auto-invest feature; with very few projects available, it’s hardly a critical feature. However, the recent high-yield projects were very popular among investors and sold out quickly. I would recommend you to connect to Crowdestor‘s website as soon as new projects open in order to be able to invest in them !

Website’s ease of use

Languages

English, German, Portuguese, Spanish

Funding methods

Account funding

It’s apparently mandatory to input to amount transferred on Crowdestor‘s website before actually transferring it. It’s also the case on BulkEstate‘s website, and although it’s not a big deal, it’s easy to forget it. The transferred funds are usually processed quickly : they appear on my Crowdestor account as early as the next business day.

Website’s design and ergonomics

Crowdestor‘s website is simple but well designed and properly translated. The advantage of business and real-estate crowdfunding platforms is that the number of projects is rather low and there are not many options available.

As a result, these websites are usually very easy to use. Administrative operations such as creating your account, funding it and investing in projects are easy to carry.

Reporting​

Just like most of its main competitors, Crowdestor doesn’t provide a cash-flow forecast. It’s a pity as it would be useful, especially if the projects list grows. Overall the portfolio overview could be improved; it’s too basic to be really useful.

Actual performance of my Crowdestor portfolio

15,66%

At the end of juillet 2019, XIRR for my Crowdestor portfolio reached 15,66%; check out the latest portfolio review for details, including charts showing historical performance and competitors performance.

As expected, Crowdestor‘s performance is among the highest of my loans portfolios. It’s slightly lower than one would expect though, as not all projects started yielding interests yet.

Crowdestor’s main competitors

Crowdestor’s facts and figures

Location

Tallinn, Estonia

Founded in

2017

As of November 2018

Who can invest

You must be at least 18 years old and You must have a bank account in one of the European Union or EEZ banks.
Crowdestor FAQ

Disclosure

Please note that this review may contain affiliate links. It means that I will earn a commission if you decide to invest after clicking through the link – at no additional cost to you, of course -. Please understand that I have experienced all of these companies, and I recommend them because they are helpful and useful, not because of the commissions I make if you decide to invest through my links.