Real estate crowdfunding continues to be a dynamic and ever-evolving industry, growing to an estimated $3.5 billion in 2016. By 2025, the crowdfunding industry as a whole is expected to be valued at more than $300 billion, and online real estate markets are set to capitalize on that explosive growth.
Real estate crowdfunding, together with p2p lending, is one of the easiest ways to start investing in real estate and one of our favorite forms of investment.
This allows you to invest in real estate with a very low amount of money (sometimes from 50 Euros or Dollars), to diversify quickly into many properties, and also to have a completely passive portfolio of real estate. Until recent years, the only way to enter the real estate market was either to buy property directly or to invest in a REIT.
Let’s take a look at three of the top real estate crowdfunding companies we reviewed:
The list is based on our personal view of them. We use a mix of credibility, size, functionality, returns, and risk mitigation.
EstateGuru offers short-term real estate loans to property developers and has financed more than EUR 90 million, making it among the largest crowdfunding site in Europe.
EstateGuru offers a great platform with a good user interface, auto-invest, and very decent returns of 11,84% on average. We like the way the platform looks and the detailed loan information you can get when deciding the loans to invest in.
The returns are slightly lower than the smaller competitors, but of the larger platforms (which we like investing in due to a higher sense of security), EstateGuru offers the highest interest rate.
EstateGuru doesn’t offer buyback guarantees on their loans and doesn’t have a secondary marketplace. Given that the loans are short-term (~12 months on average), a secondary marketplace also makes less sense.
Or continue reading on our EstateGuru Review for an in-depth analysis.
EvoEstate is an innovative platform as it aggregates and curates the best deals from many platforms. The platform was launched in February 2019 and is located in Tallinn, Estonia.
The team at EvoEstate specializes in real estate deals as they believe that this is the investment vehicle that will produce the best and most reliable returns in the next few years.
EvoEstate offers products among three main categories: rental projects, fixed-interest development and business loans, and equity projects
Depending on the product you will decide to invest in, the return can vary from 3% up to 30%.
Or continue reading on our EvoEstate Review for an in-depth analysis.
BulkEstate is a European real estate crowdfunding and group buying platform. It was launched back in 2016 with its HQ located in Estonia. At the time of our review, BulkEstate had 24.000+ investment secured and a weighted average annual return of 14,75%.
BulkEstate has a functional platform with the option of auto-investment and a fine amount of information on all the main product offered, such as project development loans, group-buying deals (co-ownership) as well as making it possible to own the entire apartment as part of a larger bulk deal with others, although not relevant to crowdfunding real estate, which may still be relevant to some investors.
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Or continue reading on our BulkEstate Review for an in-depth analysis.