This article is outdated ! Read at your own risk 🙂
I’ve written an update in March 2019; readers are strongly advised to proceed to my updated list of favorite crowd-lending platforms. I keep this article online mostly for future reference.
Alternative investments already features a long guide comparing many peer-to-peer lending and real-estate crowdfunding companies. However, it’s a long read, and I understand it can be intimidating. So, here’s a much shorter list of my favorite companies.
Keep in mind that limiting the number of entries is necessarily unfair, and doesn’t mean that the missing ones aren’t worth investing in ! For example, Robo.cash is missing from this list, although it’s a company I strongly appreciate. So, don’t hesitate to check the longer comparison at a later date, or browse all available reviews. Diversification will allow you to reduce risk !
Peer-to-peer lending companies
These companies offer loans that are usually less risky than real-estate and business loans.
Omaraha is still the largest part of my portfolio. In spite of a large cash drag, it’s still possible to invest in quality loans offering around 20% interest rate, for a long-term duration. However, be warned that Omaraha is probably not for beginners. Their website is dated and hard to use, and the loans are only partially guaranteed.
I may not be objective about Grupeer, but it’s probably my favorite P2P lending company. I’m honestly puzzled why there are not more people investing through this company. They offer guaranteed loans with an interest rate of 14% or more for a duration below one year. As time goes by, Grupeer features more and more originators with an increasing loans volume. The website is easy to use and require very little time; the only drawback I see is the lack of a secondary market. As a result, you can’t resell your loan if you find yourself in need of the money.
Mintos‘s offering is truly impressive. There are both business and personal loans, a huge array of originators from many countries, and it offers loans both with or without buyback. In spite of this very rich offering, the website is very easy to use. It’s the perfect offer for beginners; longer-term guaranteed loans currently offer 14% interest rate.
Real-estate crowdfunding offers a great way to invest in real-estate with as little as €100. The returns are usually rather high – I actually cry when I compare them to the returns I get from a traditional real-estate investment I made several years ago -. One word of caution, though : these returns come with an equivalent level of risk. Please make sure you understand the risks associated with real-estate investments before committing your money !
CrowdEstate is by far the undisputed leader in this category. They regularly add new projects, which offer great expected returns. The investments are extremely detailed, and investors have the opportunity to ask questions before the start of the investment period. It’s a perfect way to diversify your portfolio if you already invested in the above companies !