Real estate crowdfunding is my favorite form of investing in real estate, because it helps me to diversify rapidly through many deals and create a fully passive portfolio of immobile assets. I’m frequently asked what my favorite investment platforms are, which is why I decided to write this post, where I’ll tell you what are my four favorite crowdfunding platforms for real estate.
Real estate crowdfunding is the idea to invest in real estate along with other investors, usually through a website that will offer real estate deals and take care of all the work, such as listing deals, doing all the legal work and then managing the land. It helps you to spend very small sums of money (sometimes from 50 Euros or Dollars) in real estate, diversify easily into multiple properties and still have a totally passive portfolio of real estate.
#1 – Crowdestate
I wanted to note the first platform here is Crowdestate, which is a platform based in Estonia. Crowdestate primarily provides construction loans, meaning you are lending money to a real estate project. Funding the construction of a new apartment building for example. Compared to actually investing directly in current real estate, investing in construction loans means you are not worried with all the day-to-day stuff that can happen, like a borrower that doesn’t pay back or anything breaking in the apartment. There is less opportunity for capital growth, however, as the loan rate is set at project inception (usually about 12-15 percent per year).
I really like Crowdestate because they’re only focused on high quality ventures, and because they’ve got a great history of paying back investors. The platform’s interface is also really simple to use, and they also have an auto-investing feature that makes automating your investments on the platform very simple. As with some of the other sites in this review, they offer the option of buying loan shares from other investors via a secondary market.
So far, after more than a year of investing, I have had no problems at all with the site, with good exits on all the projects I invested in. So I really suggest Crowdestate as a crowdfunding site for real estate that should be in any portfolio of investments.
- Ventures with great returns
- Wide range of project forms
- Auto-invest feature
- Secondary market
- Insufficient opportunities
#2 – EstateGuru
The second platform I’m going to discuss here is EstateGuru, which is also an Estonian-based platform and very close to Crowdestate. It also primarily proposes to invest in loans for the construction of real estate, which means you get a fixed rate at the outset (usually about 10-12 percent). What I also like about this company is that they usually offer annual repayments on the loans they sell, ensuring that when you invest in those construction loans, you will actually get passive income coming in every month. On EstateGuru the minimum investment in each real estate project is also lower at 50 Euros per project than other similar platforms. Which means you can potentially diversify your assets on the platform quickly.
EstateGuru’s interface is also very nice and easy to use and every project is very well-detailed and documented. They also offer an auto-invest function that is pretty nice if you want to fully automate your on-platform investments. For all these reasons I really suggest to include EstateGuru in your portfolio of investments.
- Strong returns
- Auto-investment feature
- Secondary market
- Ventures in many European countries.
- Limited auto-investment criteria
#3 – Reinvest24
Reinvest24 is the third platform I wished to include in this post. This site is based in Estonia and helps investors to invest in crowdfunding for equity real estate. It ensures that you would in effect become the owner of a share of the assets in which you invest and earn a monthly rent much as you would if you were investing in a ‘classical’ property. Plus a possible capital gain is included until the property is sold. It is really a method of crowdfunding for real estate that I really like, as you get passive income coming in every month.
Reinvest24 offers high-quality investment, usually in Tallinn city. Generally they pick properties with a high rental yield, so platform returns are very attractive at around 7%. Combined with the possible capital growth after a project has been completed, you get a cumulative potential return of almost 14 percent. They also offer many different forms of investment, such as commercial real estate such as small shops and even restaurants, making it a great opportunity to diversify your investments quickly.
So far, they have always paid the rental income on time and with returns below the planned yield, so I would say Reinvest24 is a real estate crowdfunding platform I would recommend.
- Fantastic rental yield at about 8%
- Large range of projects
- Simple to use platform
- No auto-investment feature so far
- No secondary market
#4 – Bulkestate
Bulkestate is the last platform I wanted to list on here. It proposes investing in loans for the development of high quality assets, usually in Latvia. The returns are very high at about 14 percent relative to other platforms. You can also invest from just 50 Euros, one of the lowest minimum quantities of comparable platforms.
Compared to other sites, Bulkestate also has a unique feature, which is the possibility of community-buying apartments. As they sell apartments in bulk, rates are lower than if you went to buy a similar apartment for yourself. This is an interesting opportunity if you have bigger money to spend, because you can easily diversify with a good discount into multiple apartments that you are purchasing.
They do have a very stringent due diligence process to pick the transactions that end up on the site and if it doesn’t go as expected, they have the ability to step in on those ventures, which means more protection for investors. Overall, Bulkestate is really a site that I suggest you to include in the portfolio of real estate crowdfunding.
- Nice returns
- Auto-invest feature
- Simple to diversify
- There is no secondary market
- Kinda basic auto-investment feature
So that are top 4 platforms in European real estate crowdfunding, and also the platforms that work well for me. People sometimes ask me which one I’d pick first. What I always respond is: invest in all four of them, even if you’re just starting out. The explanation is that you will be able to diversify in many countries, ventures and also in terms of platform type, as I suggest a mix between platforms that offer loans & crowdfunding equity investments. Also, opening accounts on any of those sites is totally safe, and just check them out.
Do you have a favorite investment website for crowdfunding real estate, too? Would you agree with my picks? Let me know!
How to start investing in real estate in Europe?
Investing in real estate may be extremely profitable if you know how to play by real estate rules. This guide will teach what actions you need to take in order to start investing.
Get to know the market you want to invest in. Don’t just rely on recommendations from someone in the field. Check different countries’ markets, like the UK, Germany, France and other the most popular countries.
REIT – is a real estate investment trust. Buying into a REIT enables you to invest in real estate without actually getting the material property. You invest in a company that owns commercial properties, such as apartments, hotels, or office buildings. If you are a new investor it’s the best option for you.
Rental properties are a reliable source of passive income. Learn more.
Remember that investment is a risky business. Start out with only 1 house or a duplex or property. As you are becoming more experienced, you can purchase more property and get more involved.
When investing in real estate it’s vital to have as little debt as possible. Banks and lending institutions look at your debt to income to ascertain whether you may be eligible for a conventional mortgage.
Real Estate Crowdfunding FAQ
- What is real estate crowdfunding?
Real estate crowdfunding (also called property crowdfunding) is a means to raise funds for real-estate investment by going out to a group of buyers to donate a limited sum of capital to the project. Crowdfunding is a way of increasing money for companies and also an easier way to access such ventures for investors. Crowdfunding provides companies access to capital that they may never have the ability to raise.
- Are European countries good for crowdfunding investment?
- How to choose a reliable company for investment?
Choosing the right company to invest isn't easy. There are multiple parameters that are to be considered before investing. One wrong step can cost you a bunch of savings. The easiest way is to read crowdfunding company reviews with the Top 10 trusted visitor's rating.
- In what type of real estate should I invest?
If you think about real estate investing, the very first thing that probably comes to mind is the house. Obviously, real estate investors have tons of different alternatives in regards to deciding on investments, and they are not all physiological properties.
- How can I start to invest in any company?
The best way to increase your earnings is by learning how to invest.
To get started investing in any company, think about strategy based on the amount you'll invest, the amount of risk that makes sense for you, and the timelines for your investment goals.