EstateGuru review

EstateGuru review

EstateGuru’s overview

EstateGuru focuses on real-estate loans. The projects are rather conservative, usually yielding around 11% for durations of one year or more.

My opinion on EstateGuru

While the interest rates offered by EstateGuru‘s projects are lower than at Envestio or BulkEstate, they provide great investment opportunities for those who want a more conservative portfolio. It’s also an excellent complement to CrowdEstate‘s real-estate loans.

EstateGuru’s long list of successful investments (as well as the way they managed the defaulted projects) help build confidence in this platform. It took me a long time to invest there, as I initially targeted more speculative loans. However, I’m planning to grow this portfolio regularly, in order to have a more balanced loans portfolio.

Detailed ratings

Performance

The interest rates at EstateGuru are usually lower than those offered by its main competitors; however, they’re also less risky. Overall, the risk/reward ratio seems great for investors who don’t want to take much risk.

Loans liquidity

There are many projects with large amounts, sometimes more than € 200,000.

Reporting

The reporting tools are complete and well designed. I especially appreciate the ability to export data as CSV files.

Buyback guarantee

There’s no buyback guarantee.

Website ergonomics

EstateGuru‘s website is rather straightforward to use.

EstateGuru’s pros & cons

Pros

  • Large loans volume
  • Long history of successfully reimbursed loans

Cons

  • No secondary market

Loans characteristics

Loans duration

Long-term : more than one year

Loans kinds

Business

Real-estate

Minimal investment

€ 50

Buyback guarantee

Buyback guarantee NOT AVAILABLE

Currencies

Euro

Overview of EstateGuru’s loans

Unlike what the platform’s name implies, EstateGuru‘s loans aren’t all real-estate related. Many of them are also used to finance businesses.

Overall, they have rather diverse purposes, such as :

  • development loan
  • business loan
  • bridge loan
  • reconstruction loan

Loans durations are usually above one year; their yearly interest rate is around 11%. Most loans will have their interests reimbursed monthly, but a few of them will have a different reimbursement frequency.

While EstateGuru mostly operates in Estonia, this marketplace also offers loans from Latvia, Lithuania, Finland and Spain. In August 2019, Portugal joined this list as well.

Recent loans at EstateGuru
Recent loans at EstateGuru

For investors with large amounts available, a 1% bonus is available for selected loans when the invested amount is above a given threshold (usually €10 000 or €20 000).

Loans volume

While the financed amounts vary greatly from one loan to another, they recently ranged from €33 000 to €385 000.

One of EstateGuru‘s greatest strengths is the large amount of loans available; sometimes, there are several new investment opportunities a day ! For investors with a large portfolio, this allows for some extreme diversification.

Buyback guarantee

There’s no buyback guarantee. However, EstateGuru‘s website lists a long string of successfully repaid projects.

As I’m updating this article in August 2019, 2.4% of the total loans portfolio are in default, while 3.6% are late. At least three past defaulted loans were already successfully recovered; they didn’t incur any loss for investors. On the other hand, as the public auction is still being set up by the bailiff’s office for the other defaulted loans, we don’t know what their outcome will be.

Investors who are curious to know what happened when a loan defaults should read their blog post about their first defaulted loan.

Platform’s features

Early exit

Early exit NOT AVAILABLE

Investing methods

Auto-invest

Manual investing

Secondary market

EstateGuru unfortunately doesn’t feature a secondary market. As a consequence, investors won’t be able to resell their loans before term.

Manual investing

Due to the auto-invest restriction evoked below, I only invest manually at EstateGuru. Investors are notified of new loans availability by e-mail. Although they usually get filled up quickly, it’s totally possible to manage a portfolio manually.

The projects are described in great details, including information about the collateral and borrower. I only regret the lack of an independent risk assessment, as provided by CrowdEstate.

Auto-invest

For some reason, if you choose to invest less than €250 per loan, you don’t have access to detailed criteria; you can only choose the maximum loan duration. Otherwise, you will be able to use many criteria including interest rate, LTV, loan type and loan security type. This restriction will unfortunately force most investors to invest manually.

Website’s ease of use

Languages

English, Estonian, Latvian, Lithuanian, German, Italian

Funding methods

EstateGuru’s registration process

Opening an EstateGuru account is rather quick, in spite of the additional KYC (know your customer) checks.

Investors first need to provide basic information about themselves. The second step is to take a picture of themselves using a webcam, as well as one of some identification. Checking the documents is supposed to take as long as two days, but in my case my account was ready after a few minutes.

Account funding and funds withdrawal

Website’s design and ergonomics

EstateGuru‘s website’s was redesigned in late 2018. It’s now much more readable and its usability was greatly improved.

Available languages & translations quality

The English translation on EstateGuru‘s website is excellent

Reporting

The reporting is rather complete : transactions list, portfolio, account balance… I especially appreciate the fact that data can be exported as PDF, CSV or Excel file.

Documentation

The FAQ is very detailed and well structured. Similarly, the “How to invest” document is rather complete; however, as the top of the page lists the available loans, users may believe that they land on the wrong page.

Finally, the platform’s blog regularly features interesting articles.

Support

The helpdesk can be contacted by phone during business hours; it’s also possible to get in touch by e-mail.

Communication from the platform​

Investors can configure which notifications they wish to receive, a feature that many investors will welcome. Indeed, by default, EstateGuru will send a notification for each new loan on the platform; as there are many of them, many messages will reach the investors’ inbox.

Other notifications include a monthly activity report, as well as news about the investments on your portfolio.

Actual performance of my EstateGuru portfolio

10,44%

At the end of July 2019, the XIRR for my EstateGuru portfolio was 10,44%.

The performance actually fluctuates a lot, as part of my portfolio is invested in loans yielding quarterly interests. Right after these interests are paid, the XIRR is around 11%, close to its theoretical value.

Don't hesitate to read my most recent crowdlending portfolio review for detailed platforms performance comparison as well as historical performance.

EstateGuru's main competitors

For a detailed comparison of the different real-estate and business crowdlending platforms, check out this article.

EstateGuru's facts & figures

Location

Tallinn, Estonia

Founded in

2013

Number of investors

27,194

Loans amount financed

€ 132,521,721

Historical return

12.15%

As of August 2019

Who can invest at EstateGuru

You must be at least 18 years old and have a bank account any of the EEA member states or in Switzerland in order to lend through EstateGuru. We also have to perform certain “know your customer” checks on you before you can start investing on EstateGuru.

EstateGuru 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.

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