P2P lending and real-estate crowdfunding platforms comparison

So many reviews, so little time…

Alternative investments features detailed reviews for many P2P lending, business and real-estate crowd-lending platforms. However, reading them all in a row may look like a daunting task !

In order to guide you in your choice, I’ve listed my favorite platforms for each investor’s profile.

Beginner investor : which crowd-lending platform ?​

Grupeer is perfect for beginners. Their website is extremely easy to use; the small amount of loans makes it easy to build your portfolio without configuring auto-invest[?]. Moreover, although the platform only provides business and real-estate loans, they all come with a buyback guarantee, making it a safe choice. And what about the returns ? Well, they’re actually great, as most loans offer annual interest rates between 13% and 14%.

Investing at Ekassa is even simpler; it’s simply a matter of choosing the desired investment duration, and decide whether to invest in guaranteed loans or not. As of February 2019, returns for the Guaranteed strategy are slightly above 7%. Expected returns for the Profitable strategy vary between 7% – 9% per year for very short-term investments (one month), and 9% – 11% per year for 6 months.

Secured loans​

Loans covered by a buyback guarantee[?] are the safest way to invest in loans. While this guarantee isn’t absolute, having a diversified loans portfolio will help reduce the risk of an originator going bankrupt.

Note that most of the following platforms only deal with individual loans. The only exceptions are Grupeer, which features secured development deals, and Mintos which also offers business loans with small amounts.

Short-term loans (one month or less)​

Peer-to-peer platforms offering payday loans are basically the only choice for such a short investment duration. In spite of the very short time frame, most loans yield a 12% yearly interest rate.

Compared to Robocash, Swaper‘s interface is much more streamlined. Now that both platforms offer the same interest rates, Swaper’s superior usability makes it a better choice.

As of December 2018, they offer a 12% interest rate. As this is the same rate as Swaper, Robocash’s slightly confusing interface and approximate translation now Swaper a better choice.

Medium-term loans (one year or less)​

Investing for up to one year allows to access a wider variety of secured loans; this will allow you to diversify your portfolio among different loans kinds.

As mentioned above, Grupeer is currently my favorite platform. It is easy to use, and the returns are excellent for secured loans.

Mintos has been there for a while; they had time to build a very large offer, with many originators . Note that they also feature unsecured loans, for those seeking hgher returns at the cost of an increased risk.

Long-term loans (more than one year)​

Switching to even longer durations won’t usually bring much in term of returns, although investors bold enough to survive Omaraha’s interface may be able to invest small sums in higher-yielding loans.

Omaraha‘s interface is painful for the eyes and the nerves. However, for a long time, the platform’s interest rates more than compensated the steep learning curve. Unfortunately, they have gone down, as has the loans quantity. It’s thus getting harder and harder to invest large amounts there.

Mintos is one of the few platforms that offers to invest in long-term loans secured by a buyback guarantee.

Unsecured loans

Investing in loans that don’t come with a buyback guarantee allows you to expect higher returns. It can also enhance your portfolio’s diversification, by investing it partially in business loans or real-estate projects.

CrowdEstate is my #1 choice for business and real-estate loans. They regularly add very large projects offering very interesting interest rates. Unfortunately, the platform is kind of victim of its success, and the opportunities fill up very quickly.

EstateGuru is an excellent complement to CrowdEstate. This platform offers a truly impressive amount of real-estate and business projects; thanks to this, it’s much easier to invest there than at CrowdEstate.

Envestio is another newcomer in the business crowd-lending area. They offer to invest in highly diversified projects, which offer great returns. However, because of their speculative nature, these loans are rather risky !

Crowdestor is a recent business crowdfunding platform. It allows to invest in real-estate projects, as well as in more speculative business loans. Some projects offer truly impressive interest rates, but their risk shouldn’t be under-estimated !

Kuetzal is very similar to Crowdestor; both offer great interest rates for investors who are ready to take some risks.

Once again, the huge array of loans offered on Mintos allows you to invest in basically any loan kind; you’ll find plenty of unsecured loans to invest in.

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