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, as this platform is somehow victim of its success ! EstateGuru’s long list of successfull investments (as well as the way they managed their only defaulted project) 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 overall.

Detailed ratings

Interest rates

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

More than 1 year

Loans kind

Real-estate

Minimal investment

€50

Buyback guarantee

NO buyback guarantee

Currencies

Euro

Real-estate 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%. While the financed amounts vary greatly, they recently ranged from €25 000 to €440 000.

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).

One of EstateGuru’s loans

Buyback guarantee

There’s no buyback guarantee. However, EstateGuru‘s website lists a long string of successfully repaid projects. As I’m writing this article, there were 184 repaid loans, 4 defaulted ones and 1 recovered. The recovered loan 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, we don’t know what the outcome for the defaulted loans will be.

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

Platforms features

Secondary market

NO secondary market

Auto-invest

Auto-invest available

Secondary market

EstateGuru doesn’t feature a secondary market.

Manual investment

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.

Auto-invest feature

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.

EstateGuru’s auto-invest configuration

Website’s ease of use

Languages

English, Estonian, Latvian, German, Italian

Funding methods

Registration process

Opening an EstateGuru account is rather quick, in spite of the additional KYC (know your costumer) 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 to days, but in my case my account was ready after a few minutes.

Account funding

Account funding is done via a SEPA transfer only. As usual, the platform provides you with an identifier that you have to use as the reference for the transfer. The funds were available on my investor’s account two business days after I sent them, which is the standard delay for processing incoming transfers.

Website’s design and ergonomics

I find the design of the double menu at the top slightly confusing; more generally, the readability could be improved. In spite of this, the website is rather easy to use and is rather complete.

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.

Actual performance of my EstateGuru portfolio

As I just started investing, I can’t compute my portfolio’s XIRR yet. However, in order to have more regular returns, I will focus mostly on loans returning interests monthly; I will be able to publish my returns in December 2018.

EstateGuru’s competitors

Their main competitors are Grupeer, CrowdEstate, Envestio, Crowdestor and BulkEstate. EstateGuru‘s competitors usually offer greater returns, as their projects are more speculative. However, the platform’s excellent liquidity will appeal to investors wishing to invest in more conservative projects.

EstateGuru’s facts and figures

Location

Tallinn, Estonia

Number of investors

15 481

Loans amount financed

€ 80 434 507

Historical return

12.29%
As of October 2018

Who can invest

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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