BulkEstate review : interesting real-estate crowdfunding opportunities

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.

Unsecured loans

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 !

Past and current BulKEstate investment opportunities

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 !

An example of project description at BulkEstate

Initially, investors didn’t have the opportunity to fund their account; money had to be wired at time of investment. This could cause troubles if the transfer took too long, and was overall bothersome. Fortunately, an upgrade introduced the opportunity to send funds ahead of time, like most competitors allow.

Auto-invest feature

Opportunity to use auto-invest was added in April 2018. It’s really easy to configure it; the required inputs are maximum investment amount, minimum return and maximum term. Note that thanks to the small number of available projects, it’s still very easy to invest manually.

BulkEstate's auto-invest configuration

Buyback

The loans are not guaranteed. However, the value of the properties the loan is invested in helps mitigate the risks.

Secondary market

There’s currently no secondary market. BulkEstate is supposedly working on it, but didn’t provide any timeline.

Website ergonomics

I was initially not very satisfied with the usability of the website. However, things have improved and it’s much more pleasant to use now.

Reporting

The investments list is extremely basic, providing very little details. The expected revenues are displayed, but there’s no graph for the planned cash-flow.

On the other hand, the low number of loans and basic repayment structure partially compensate this lack of details.

BulkEstate investments list

Actual performance

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 rateThe interest rate is interesting but the loans are not guaranteed
Loans availabilityFew loans vailable, with large amounts
BuybackNo buyback is available for now
Website ergonomicsReadability and translations could be improved
ReportingReporting is very basic
Global ratingI appreciate BulkEstate as an additional kind of P2P investment

(last update : April 17th, 2018)

 

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