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 above 15%, for durations shorter than one year. No buyback guarantee is provided, as is often the case with such loans.

My opinion on Crowdestor

In spite of its youth, Crowdestor already allows to invest in several very interesting projects. The expected returns are great, and the various sectors they belong to allow to diversify one’s portfolio. This platform looks like a nice complement to the more senior CrowdEstate and BulkEstate; it actually looks a lot like Envestio, but new projects come less frequently.

Detailed ratings

Interest rates

The interest rates for the current projects are great. Just keep in mind that the loans are not guaranteed !

Loans liquidity

There are a few new opportunities each month; however, their amount is rather small.

Reporting

Reporting is rather basic.

Buyback guarantee

There’s no buyback guarantee, as usual with these kinds of investments.

Website ergonomics

Crowdestor‘s website is basic but works well.

Crowdestor’s pros & cons

Pros

  • Very interesting interests rates
  • Projects in diversified sectors

Cons

  • The platform is very young
  • Low loans volume
  • The platform seldom adds new projects

Loans characteristics

Loans duration

1 month to 1 year

Loans kind

Business

Real-estate

Minimal investment

€100

Buyback guarantee

NO buyback guarantee

Currencies

Euro

Overview of Crowdestor’s loans

Although it’s a recent platform, Crowdestor already features several projects. Their duration is one year or shorter; the interests rates vary from 15% for classical real-estate projects to a crazy 36% (!) for a crypto-mining farm. The amount needed for each project is usually rather small (less than €100 000), 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.

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

Most projects will start paying interests monthly right after the start of the investment period. This differs from most investments made through Crowdestor’s competitors, however it may be different for future projects.

Minimal investment amount is €100 per project. However, unlike CrowdEstate, the invested amount doesn’t need to be a multiple of €100. 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 only one or two new projects each month; compared to Envestio, Crowdestor clearly features less projects.

Buyback guarantee

The provided projects don’t come with a buyback guarantee. This is a common practice for real-estate and business loans.

Platforms features

Secondary market

NO secondary market

Auto-invest

NO auto-invest

Secondary market

Unlike CrowdEstate, Crowdestor doesn’t provide a secondary market. However as the loans duration is rather short, it’s not really a deal-breaker.

Auto-invest feature

There’s currently no auto-invest feature. However, with very few projects available, it’s hardly a critical feature. The only use I may have for such a feature (provided by CrowdEstate) is when the required amount for a project is very small, as it may get filled up very quickly. But for now, Crowdestor’s small investors base make such a situation unlikely !

Website’s ease of use

Languages

English, German, Portuguese

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 real-estate crowdfunding 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

As Crowdestor‘s projects pay interests monthly, I can publish an XIRR in spite of my portfolio being very young. As of the end of June 2018, my XIRR was 14.84%. I expect this value to increase over time; indeed, the monthly delay between loans repayments tends to mechanically decrease the returns for recent portfolios. Moreover, the time required for the projects to get totally funded also lowers this result. These two factors will become less important as time goes by.

In late June 2018, one of my Crowdestor investments was repaid early by the borrower. It happened to be the most speculative investment in my portfolio, the one yielding 36%. The successful exit for this project is a good sign for Crowdestor, and has increased my confidence towards this platform !

Crowdestor’s competitors

Crowdestor’s facts and figures

Location

Tallinn, Estonia
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.