My opinion on Crowdestor
Crowdestor’s pros & cons
- Very interesting interest rates
- Projects in diversified sectors
- Partial buyback guarantee though a warranty fund
- Projects are added regularly
- The platform is very young
- High-yield projects sell out quickly
- No auto-invest feature
- No secondary market or early exit
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 :
- Retail shops
- Energy production plant
Many details are provided; while the description isn’t as rich as at CrowdEstate, it’s still very detailed and provides many documents.
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.
As of June 2019, Crowdestor‘s website features more than 30 funded projects. Out of these, three 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 €73 300.
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.
Auto-invest featureThere’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 the project opens in order to be able to invest in them !
Website’s ease of use
English, German, Portuguese, Spanish
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.
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 mostly pay interests monthly, I can publish an XIRR in spite of my portfolio being rather recent. After a few months, I consider my returns to be realistic.At the end of May 2019, the XIRR for my Crowdestor portfolio was a very nice 15.53%, one of the highest among my loans portfolios. It’s slightly lower than one would expect though, as not all projects started yielding interests yet.
Crowdestor’s facts and figures
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
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.