The interest rates for the current projects are great. Just keep in mind that the loans are not guaranteed !
There are new opportunities several times a month; however, their amount is rather small
Reporting is rather basic
There’s no buyback guarantee, as usual with these kinds of investments
The website is basic but works well
Who can invest
English, German, Portuguese
Overview of Crowdestor
Although it’s a recent platform, Crowdestor already features a rather impressive number of 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. Unlike CrowdEstate, the invested amount doesn’t need to be a multiple of €100. This allows you to reinvest interests quickly !
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 !
The provided projects don’t come with a buyback guarantee. This is a common practice for real-estate and business loans.
Unlike CrowdEstate, Crowdestor doesn’t provide a secondary market. However as the loans duration is rather short, it’s not really a deal-breaker.
The 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.
Just like 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.
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 !
Conclusion : my opinion about Crowdestor
It’s always tricky to review a new platform. As P2P lending and crowdfunding are basically unregulated, the question of trust towards the platform is fundamental. And due to their lack of track record, it’s hard to put a lot of trust in new platforms. As such, I strongly advise you to be cautious and invest only a small part of your P2P portfolio through recently created companies. Later, as they get more traction and more projects are completed, you’ll always have the opportunity to grow your portfolio !
However, Crowdestor currently seems like a nice complement to the more senior CrowdEstate and BulkEstate. It actually looks a lot like Envestio, maybe with more speculative opportunities. The interest rate for the currently featured projects are great, and the provided documentation is convincing. I invested a small sum in several projects, and plan to invest in the next ones in order to get a better insight of their performance.
As usual, I’ll complete this review as time goes by. Stay tuned !
(last update : July 19h, 2018)