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%-17% 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 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 is a nice 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 patially 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, although there are few details about it.

Website ergonomics

Crowdestor‘s website is basic but works well.

Crowdestor’s pros & cons

Pros

  • Very interesting interests 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

Loans characteristics

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

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 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 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 March 2019, Crowdestor‘s website features more than 15 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.

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 April 2019, the amount reached €61 950.

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 informations later.

Platforms 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 recomment 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

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 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 rather recent. After a few months, I consider my returns to be realistic.

At the end of february 2019, the XIRR for my Crowdestor portfolio was a very nice 16.46%, one of the highest among my loans portfolios. Only my Omaraha portfolio performed better, with my Envestio investments being very close (16.36%).

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.