My opinion on Crowdestor
Crowdestor’s pros & cons
- Very interesting interests rates
- Projects in diversified sectors
- The platform is very young
- Low loans volume
- The platform seldom adds new projects
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.
The provided projects don’t come with a buyback guarantee. This is a common practice for real-estate and business loans.
Website’s ease of use
English, German, Portuguese
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 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 facts and figures
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.