- 0% of their loans have defaulted
- Buyback guarantee fund
- Up to +21% in return annually
My Crowdestor review is updated on a regular basis with my own personal experiences.
I have been following the platform in recent years and decided to invest in February 2020.
On the Crowdestor platform, you quickly get an overview of their current investment opportunities but only basic knowledge about their platform.
I have therefore been in contact with them to clarify some factual information that we all request when investing.
Let’s look into it 🙂
Table of contents
What is Crowdestor?
Crowdestor is a popular and growing European investment platform within real estate crowdfunding. They also offer opportunities that are business-related and with up to 21% in return. It’s some really high returns and therefore very interesting to many investors.
You simply invest in loans and get monthly interest. just like passive income!
In the following, I will uncover much more about the platform and the company behind it.
What kind of returns can I expect?
You can expect some high returns. Most projects have around 14-21% in return.
The average interest rate is +15.10%.
7 quick facts about Crowdestor
- They started the real estate crowdfunding platform in early 2018.
- The company is located mainly in Riga, Latvia but they also have an office in Tallinn, Estonia.
- Crowdestor is registered in Estonia and works under the Estonian regulation of crowdfunding.
- They exceeded EUR 600.000 in cumulative investments by investors in 2018.
- 10+ projects have been funded in 2018.
- More than +10.000 investors have joined the platform.
- They always invest 2-10% in the projects and sometimes help in project development.
Okay. Let’s look more into this Crowdestor review… 😊
The platform is dynamic and has a nice interface. It’s also mobile friendly and in English, German, Portuguese, and Spanish.
CEO Janis Timma has a business-minded background. He has previously been in the energy sector since 2010, focusing on development and capital increase.
The signup process
You can easily sign up with your email adress, facebook or google account.
To use the platform you must be at least 18 years old and have a European bank account in order to invest.
You can also use an EEA Bank account (account from Iceland, Liechtenstein, or Norway).
After registration, they ask for more information before you can invest. You can’t use the platform before this process is done.
They ask for your contact details:
- Address and country
- Date of birth
- Phone number and email
- Personal identification document
- Bank information
- PIN code to approve transactions.
Transfer money is very quick and easy
I transferred euros to my Transferwise account to save fees. You get the real exchange rate and there are no hidden fees like the banks.
I was very surprised that the money was in my Crowdestor account within hours of the same day. Really impressive!
You can also make a normal bank transfer (SEPA).
Is Crowdestor safe? – The Buyback guarantee fund
Crowdestor does not have a normal buyback guarantee on the platform, but there are various securities to protect your investment.
They have established a “Buyback Guarantee Fund” of 50.000 EUR. This fund will receive a commission of 1-2% from each project.
The Buyback Guarantee Fund is currently more than +300.000 EUR.
I think it sounds like a really good initiative but I still prefer a 100% buyback guarantee no matter what.
0% of the loans have defaulted
No loans have defaulted since they started. It’s very impressive!
Additionally to this buyback guarantee fund:
- In real estate, they usually offer investors first-hand pledge on the land and a guarantee by the project development company.
- In operational businesses or a startup, it is guaranteed by the company, in some cases additional guarantee by the shareholder.
The INCH2 loan is secured by a guarantee of the company. Additionally, the loan and equity injected by INCH2 shareholders will be subordinated to the Crowdestor investors loan.
This means current shareholders of INCH2 will not be allowed to pay back their loan prior to 100% of Crowdestor investors loan is paid back.
The real estate crowdfunding investment
No auto-invest tool
Right now Crowdestor, unfortunately, has no opportunities for auto investing. As the platform is new with few investment opportunities, I think their focus is to grow first.
However, that’s something I really prefer in my own setup as it makes it all much easier to manage.
You can invest with the minimum amount of EUR 50.
When the money is in the Crowdestor account you can start investing in projects immediately.
The interest rate offered is really great and it’s around +14-21% and sometimes even more.
Most loans are short-term (12 months).
They send no information about the investment to any Tax Agency or deducts any taxes. You must do it yourself.
Crowdestor platform opportunities
You can invest in real estate, business, transport, and startup projects on the platform.
There are not many investment projects on the Crowdestor platform, but the projects give you a good opportunity in terms of diversification.
It’s some pretty different investment opportunities than the more well-known platforms.
All projects have detailed information depending on the type of investment. However, it takes time to understand the various investment projects to minimize risk.
You can find information such as project summary, loan type, target loan, loan term, interest rate, interest payment, collateral, detailed project information, pictures, location and files to download about the project.