Real estate crowdfunding is one of the simplest ways to invest in property along with P2P lending, and one of my favorite forms of investment. In recent years, the only choices for entering the real estate market were either directly buying properties or investing in a REIT. Now, we have crowdfunding platforms for real estate, which are quite like those two types of investment.
Investing in online real estate may be a challenging prospect for many new buyers, because they may not be used to mix an offline asset like real estate with internet technology and its intangibility. And that’s why I’d like to lead you to the best and most trustworthy platforms out there.
Keep in mind that different modalities of real estate investment exist within each platform.
After investing in this platform early in 2019, I can confidently say it is one of my favorite real estate platforms. I find their attitude of being transparent and honest with their investors. A secondary market will soon be available for them too. Their focus is currently on Estonia at 100 percent, but they are looking to grow in the future.
Other platforms often publicize risky loans indiscriminately, Reinvest24 is based on ventures that offer return interest across their lifespan. Their idea is to get real esate at very good rates, do some nice refurbishments and then rent it out for some nice monthly returns.
In particular, I would suggest such a platform to someone who wants to create a passive monthly income stream that can fully or partially support one’s lifestyle, which is what has popularly become known as financial independence, and closely related to the FIRE (Financial Independence, Retire Early) movement.
EstateGuru offers investors the opportunity to invest in real-estate loans. The projects generally yield a little more than 10 percent and are on average a year long.
Besides mere real estate development loans for new developments, they have put up on the platform the following forms of loans:
- business loans
- bridge loans
- reconstruction loans
Most loans on a montly basis return interest although some have other arrangements. EstateGuru’s main market is Estonia but I have also seen loans from Latvia, Lithuania, Finland, Spain and Portugal. I expect they will continue to diversify geographically as they grow in the coming years.
EvoEstate is a creative site, as it aggregates and curates other platforms’ best offers. EvoEstate’s team specializes in real estate dealing because they believe this is the investment strategy that will produce the highest and most stable returns in the next few years.
I like Housers very much because they allow me to invest through one platform in different countries. I’ve invested in real estate in Spain, Portugal and Italy since joining Housers. There are several different types of property and investments available on Housers, and they have also given an opportunity to invest in an art piece.
Bear in mind that the gains on Housers’ investments will be taxed at source. I don’t like this about this website, because it takes a chunk out of your earnings. Profits from Portuguese profits are taxed at 28%, while those from Italian properties are taxed at 26% and those from Spain at 19%.
Because of this, while I have in the past invested in Portuguese and Italian properties to learn more about the property market there, in the future I will stick to the Spanish ventures and thus get a lower tax cut. Also, there is the possibility to seek a tax refund from these countries if your country of residence has a double taxation arrangement with them that essentially reduces the withholding tax due. I consider that too much of a hassle, though, as getting this refund isn’t a straightforward process.
Having said that, I’m overall pleased with the returns I got and the amount of support I earned after more than two years of being on this site. Whenever I needed something, it was easy to contact Housers both by email and telephone and they do have English-speaking workers.
In my view, this is UK’s best real estate website. In their analysis of each investment opportunity, they are very well organized and professional, which allows me to make informed decisions about my investments.
Germany is one of the top countries to look for when investing in real estate, and luckily the iFunded platform makes it easy for investors to obtain a slice of the German real estate market. They also need to completely improve the English version of their content (especially their newsletters that are currently only sent out in German), but that’s nothing that Google Translate can’t fix for you.
Crowdestate was founded in Estonia in 2014 and has a very strong track record with upward returns of 20 percent and up to now more than 40,000 investors. I love their platform because it’s very easy to find stuff and it’s a pleasure to search through all the investment opportunities.
There’s also a secondary market for your assets helping to preserve liquidity. I’ve been able to get 13.28 percent returns on this platform to date.
As the name suggests, the Bulkestate platform allows crowdfunding apartment bulk deals for real estate investment ventures at a price lower than the market value.
The overwhelming majority of deals on Bulkestate are in Latvia, though I’ve seen one in Bulgaria, too.
The average annual return is over 14 percent which is very good. You can invest in loans for property construction or participate in group purchasing of apartments, which is maybe a unique aspect of this platform and one that you should keep an eye out in the months to come.
I have invested heavily in Property Moose but due to the changing conditions in the UK (especially in the South East) caused by Brexit, the company has had to undergo some restructuring and is no longer accepting new investments. All shares were transferred to UK Diversified Property, which has exciting plans to become the first such crowdfunding platform listed on the UK stock exchange. They’re currently undergoing a process of reorganizing the assets and getting revaluations of each of the several properties under control. I still have high hopes of getting a decent return on the money invested there eventually.
I do have an eye on the following sites to test soon:
Let me know if there are other platforms that need to be checked out.