Overview of BulkEstate
BulkEstate is a company from Latvia, specialized in real estate and property crowdfunding. They also handle real estate group buying but that’s not my purpose.
Interest rate is usually around 14-15% for a duration of one year or less. There are usually only a few investment opportunities at the same time, with a large amount to invest in.
It’s more or less the same situation as with Grupeer loans; you don’t have to check BulkEstate website everyday !
One difference with P2P lending sites is that both principal and accrued interests are repaid at the loan repayment date, there’s no monthly interest repayment.
The minimum investment is 50€, which is higher than for personal loans for example but rather common in real-estate financing.
The website provides a basic description provided for each project; compared to CrowdEstate, BulkEstate could provide further details. The SWOT (Strengths/Weaknesses/Threat/Opportunities) matrix, repayment schedule, company rating and risk profile comparison found at CrowdEstate would be welcome additions !
The loans are not guaranteed. However, the value of the properties the loan is invested in helps mitigate the risks.
There’s currently no secondary market. BulkEstate is supposedly working on it, but didn’t provide any timeline.
Globally, the website could be improved. The English translation is poor, with even more typos than an Alternate Investments post 🙂
One aspect that’s different from other P2P lending websites is that you don’t fund your account. You only have to wire money once you select one or more investments (within a 72 hours delay). If the target amount isn’t reached at the limit date, your funds will be wired back to you.
This can be annoying if you’re not from Latvia, as your funds may take some time to reach BulkEstate’s account. I reserved a part of the investment and wired the fund, knowing that they would arrive one day later. But the next day I received a notification from BulkEstate saying that the target amount was already reached ! This was a very small project however (10k€) and it shouldn’t happen for larger ones.
The investments list is extremely basic, providing very little details. On the other hand, the low number of loans and basic repayment structure partially compensate this lack of details.
As I just started investing, you’ll have to come back in October 2018 to see how well my investments performed 🙂
Conclusion : my opinion about BulkEstate
I enjoy being able to invest in projects that I consider useful. For example by lending money to businesses through Grupeer, I feel more useful than when I invest my money in payday loans. Real-estate crowfunding is another way for me to invest in projects I value, and I’m happy to have to opportunity to do so.
The interest rates offered by BulkEstate are interesting, but we shouldn’t forget that these loans are not guaranteed; equivalent returns can be found at Grupeer for example with the added safety of a Buyback guarantee. I will probably invest only a small part of my portfolio at BulkEstate, both because of the small amount of available projects and lack of buyback. However it’s nice to be able to diversify my P2P investments !
As a result my global rating is a bit subjective : I’ll give it 4 stars although it would deserve less if I took the average of all criteria ratings.
|Interest rate||The interest rate is interesting but the loans are not guaranteed|
|Loans availability||Few loans vailable, with large amounts|
|Buyback||No buyback is available for now|
|Website ergonomics||Readability and translations could be improved|
|Reporting||Reporting is very basic|
|Global rating||I appreciate BulkEstate as an additional kind of P2P investment|
(last update : February 21st, 2018)