Item: Crowdestate
Rating: 0.0
Author: Crowdinform

Crowdestate is a real estate crowdfunding marketplace offering high-quality, pre-vetted real estate, business, and mortgage loan investment opportunities. Its relationships with experienced real estate developers give access to a large number of off-market real estate investments. Extensive background information, business plans, and financial models combined with a low 100 euro minimum investment are making investing quick and easy.

Basic information

64354 investors

776 projects funded

135000000.0 EUR funded amount

Licence/regulation: Crowdestate licensed under European Crowdfunding Service Providers (ECSP) regulation

For Investors

Minium investement: 100 EUR

trending_down Default Rate: 34% in (2023)

Average Returns: 13.4

Functionality

Autoinvest: Yes

Secondary market: Yes

Useful Information

What investments Crowdestate is offering?

Crowdestate offers a variety of investment types to cater to different risk profiles and investment strategies. The primary types include:

Secured Loans: Representing €100 million or 74% of the total volume, these loans are backed by real estate collateral, offering lower risk.
Unsecured Loans: Making up €11 million or 8%, these loans are higher risk as they lack collateral.
Mezzanine Loans: Amounting to €16 million or 12%, these are subordinate to senior debt but higher than equity, balancing risk and return.
Equity Investments: Comprising €8.6 million or 6%, these involve direct ownership in projects, potentially offering high returns with increased risk.

Geographically, investments are primarily in Estonia (€84 million), followed by Latvia, Italy, Romania, Portugal, Finland, Slovakia, and Poland.

What is a risk when investing in Crowdestate?

Investing in Crowdestate involves several risks:

High Default Rate: A significant risk due to potential borrower defaults, leading to capital losses or delayed returns.
Project Delays: Real estate projects can experience delays, affecting return timelines.
Illiquidity: Investments are typically locked in for the project duration (1-4 years). While a secondary market is available, selling investments quickly is not guaranteed.
Market Fluctuations: Changes in real estate market conditions can impact project success and investment returns.

Careful due diligence and diversification are essential to mitigate these risks.