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Best European Real Estate Crowdfunding Platforms in Europe in 2020

Best European Real Estate Crowdfunding Platforms in Europe in 2020

Last Update: / by Marco Schwartz

Real estate crowdfunding is my favorite way to invest in real estate, as it allows me to quickly diversify over several deals, and to build a completely passive real estate portfolio. I am often asked what are my favorite platforms to invest in, which is why I decided to write this article in which I'll tell you what are my four favorite real estate crowdfunding platforms.

Real estate crowdfunding is the fact to invest in real estate along with other investors, usually through a platform that will propose real estate deals and take care of all the work, like listing deals, doing all the legal work, and then managing the property. This allows you to invest in real estate with a very low amount of money (sometimes from 50 Euros or Dollars), diversify quickly into many properties, and also have a completely passive real estate portfolio.

Crowdestate
Yield
8.21%
Rating
Platform Type
Loans
Auto Invest
Sec. Market
Min. Investment
100€
EstateGuru
Yield
7.73%
Rating
Platform Type
Loans
Auto Invest
Sec. Market
Min. Investment
50€
Reinvest24
Yield
7.4%
Rating
Platform Type
Equity
Auto Invest
Sec. Market
Min. Investment
100€
Bulkestate
Yield
10.32%
Rating
Platform Type
Loans
Auto Invest
Sec. Market
Min. Investment
50€
#1 - Crowdestate

The first platform I wanted to mention here is Crowdestate, which is a platform based in Estonia. Crowdestate mainly proposes development loans, meaning that you loan money into a real estate project. For example, financing the development of a new apartment building. Compared to actually investing directly in already existing real estate, investing in development loans means that you are not concerned by all the day-to-day things that can happen, like a tenant not paying back or something breaking in the apartment. However, there is less potential for capital growth, as the rate on the loan is fixed at the start of the project (usually around 12-15% per year).

I really like Crowdestate as they really focus on high-quality projects, and because they have an excellent history of paying back investors. The interface of the platform is also very easy to use, and they also have an auto-invest feature that makes it really easy to automate your investments on the platform. As for some other platforms in this article, they offer the possibility to buy shares in loans from other investors via a secondary market.

So far I had no issues at all with the platform after more than a year of investing, with successful exits on all projects I invest in. Therefore, I really recommend Crowdestate as a real estate crowdfunding platform that should be in any investment portfolio.

Crowdestate Pros
Projects with great returns
Wide diversity of projects types
Auto-invest function
Secondary market
Crowdestate Cons
Not enough new opportunities
#2 - EstateGuru

The second platform I will mention here is EstateGuru, which is also a platform based in Estonia and quite similar to Crowdestate. It also mainly proposes to invest in real estate development loans, meaning you get a fixed-rate at the start (usually around 10 - 12%). What I really like about this platform is that they usually offer monthly repayments on the loans they offer, meaning that you will actually get passive income coming in every month when you invest in those development loans. On EstateGuru, the minimum investment in each real estate project is also lower than other similar platforms, at 50 Euros per project. This means that you can actually easily diversify your investments on the platform.

The interface of EstateGuru is also very nice and easy to use, and each project is very well detailed & documented. They also offer an auto-invest function which is quite nice if you want to completely automate your investments on the platform. For all of those reasons, I really recommend having EstateGuru in your investment portfolio.

EstateGuru Pros
Solid returns
Auto-invest function
Secondary market
Projects in several European countries
EstateGuru Cons
Limited auto-invest parameters
#3 - Reinvest24

The third platform that I wanted to mention in this article is Reinvest24. Based in Estonia, this platform allows investors to invest in equity real estate crowdfunding. This means that you will actually become the owner of a share of the properties you invest in and receive a monthly rent just like you would if you invested in 'classical' real estate. Plus a possible capital growth gain once the property is sold. This is really a form of real estate crowdfunding that I really like, as you get passive income coming in every month.

Reinvest24 offers high-quality investments, usually around Tallinn. They usually select properties with a high rental yield, so the returns on the platform are quite attractive at around 7%. Combined with the potential capital growth after the end of a project, you get a total potential return of nearly 14%. They also propose many different types of investments, for example, commercial real estate like small shops & even restaurants, which makes it a great platform to quickly diversify your portfolio.

So far, they also always paid the rental income on time and with returns within the expected yield, so Reinvest24 is really a real estate crowdfunding platform I would recommend.

Reinvest24 Pros
Great rental yield around 8%
Large diversity of projects
Easy to use platform
Reinvest24 Cons
No auto-invest function so far
No secondary market
#4 - Bulkestate

The last platform I wanted to mention here is Bulkestate. It proposes to invest in high-quality property development loans, usually in Latvia. Compared to other platforms, the returns are really strong at around 14%. You can also invest from just 50 Euros, which is one of the lowest minimum amounts of similar platforms.

Bulkestate also has a unique feature compared to other platforms, which is the possibility of group-buying appartments. As they propose apartments in bulk, the prices are lower than if you went yourself to buy a similar apartment. This is an interesting opportunity if you have a larger capital to invest, as you can easily diversify in several apartments that you are buying with a nice discount. 

They also have a very strict due diligence process to select which deals end up on the platform and have the possibility to step in on some projects if something doesn't go as planned, meaning more safety for the investors. Overall, Bulkestate is really a platform I recommend having in any real estate crowdfunding portfolio.

Bulkestate Pros
Great returns
Auto-invest function
Easy to diversify
Bulkestate Cons
No secondary market
Auto-invest a bit too basic

So that's my top 4 real estate crowdfunding platforms in Europe, and also the platforms that are working great for me. People often ask me which one I would pick first. What I always answer to that is to invest in all four of them, even if you are just starting out. The reason is that will allow you to diversify in several countries, projects, and also in terms of the type of platforms as I recommend a mix between platforms that propose loans & equity crowdfunding investments. Also, it's completely free to open accounts on each of those platforms and to just try them out. 

Do you also have a favorite platform for real estate crowdfunding investments? Do you agree with my selection? Don't hesitate to comment below!

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Bruno W. a month ago
Dear Marco, Nice post, thank you for keeping it updated! I wonder what's your perspective about these platforms and, in general, about the real estate crowdfunding "industry" in these turbulent times. What would be your suggestion of a good investment strategy for this crisis that is already starting? Thanks a lot!
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Bruno W. Bruno W. a month ago
Hi Marco and all, I wonder if anybody has any comment about my previous comment. Much appreciated!
Brambler a month ago
Have a look at CrowdProperty in the UK. They have been going since 2014. They have a fully automated investment option. Almost all loans are for 8%. They all have 1st charge legal cover. They also do a lot of due diligence. So far they have 100% record of payment of loans. They normally have 2-3 new projects per week to invest in.
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Linda 6 months ago
Thank you so much, because of your reviews and YouTube videos,I have started to invest in European crowdfunding platforms. How often should you invest in the platforms you have chosen.Should you always invest the minimum? Thanks.
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Marco Schwartz Linda 4 months ago
You are welcome! I invest every month when I take money from what I earn from my online business. You don't need to always invest the minimum in each project, just make sure you split your money across many good projects on each platform.
Anthony Barbosa 7 months ago
Hi Mark, I appreciate and thank you for the real estate information you provide. Actually I am buiding units in Cascais, Portugal where real estate is booming now. I'm looking for interested investors for this and other identical opportunities. Could you please inform about investors I could contact for this kind of projects? Thank you in advance for the interest in the matter.
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Thalia 7 months ago
Nice Article in this Blog we read the best information about the Real Estate. Thanks for the sharing this Blog
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John 8 months ago
Beware of Crowdestate. Crowdestate is heavily moderating inquisitive comments on their Blog, they are not transparent and they are trying to withhold and cover “bad” information from investors. If this is not a red flag, I don’t know what is. My post highlighting an issue with one of their projects where delay on repayment was more than 100 days already yet the loan was not marked as “red” and no information to investors was provided on actions being taken while the loans from the project were barred from secondary market (without any prior announcement), was not approved. I wonder why. https://ibb.co/vYykKCn Pulling all the money from there.
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paul 9 months ago
Are there any platforms that cover the whole of Europe rather than just one country?
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Marco Schwartz paul 8 months ago

Most of them in this article actually :) There is also a new regulation coming soon that will allow platforms to propose deals in other EU countries much more easily.

FRANK EDOGUN 9 months ago
Thanks
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Lena a year ago
Hi Marco, Like your site and learnt many new things from you. You might want to doyblecheck about Housers. the Spanish crowdlendig forum ForoFintech.org has a lot of negative reviews about Housers. At least two projects were not paying interests for months.
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Lisa Lena 8 months ago
That is a true comment, Lena. I've been investing with Housers and got already 3 of their development loan projects announced that they are delayed return period from 12 months to longer and a couple of buy-to-let projects that did not pay any return at all. I understand Housers is just a platform but they should really raise their criteria higher or investors will get more unpaid projects from their platform.
Masha a year ago
Very complete article and description, helpful and interesting! Thank you for sharing your experience
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Erika a year ago
Thanks for the insightful review. Would be great to get your opinion on how easy it is to sell your shares on Houser in particular (also the other platforms if you don't mind commenting on them as well). Also what do you think about the fees Houser has? Much appreciate it!
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Best European Real Estate Crowdfunding Platforms in Europe in 2020
Best European Real Estate Crowdfunding Platforms in Europe in 2020
Best European Real Estate Crowdfunding Platforms in Europe in 2020

I will definitely continue to invest on Mintos in the future, and I can’t wait to see them adding more loans originator in the future!

Are you also investing on Mintos or considering doing it? Don’t hesitate to share below!

We can see that it is a quite recent site, but it already gets a significant amount of traffic (55,000 visits during the past month). This is a good sign, as that's a good amount of traffic to make money in this niche.

This is exactly the kind of product that I love to find: it is right in the niche, it has plenty of reviews (meaning people will be likely to buy when visiting the page), and it's in the sweet price spot (not too expensive but also not too cheap). Therefore, I definitely like what I am seeing on Amazon for this niche.

You should also make sure that there are decent commissions in the niche you are considering. For example, general consumer electronics goods (like TVs) sound like good ideas for a niche, but the commission on those products is very small and therefore should be avoided. You can find the up-to-date list of commissions here.

At this stage, you can actually estimate how much your future website (or your competitors) will make per month. Let's take again the coffee example, with our competitor has 55,000 visits a month. From my own websites, I see that on a good page reviewing products, about 25% of the persons are clicking on the links and going to Amazon. Then, about 10% of those persons actually buy on Amazon. We also know we have a 4.5% commission on those products, and that the average product is at $50. Therefore, I calculated that this website is making about $3100 per month. Not too bad for a website started just some months ago.

Future Opportunities

Inside the next step of the process, I like to look at future opportunities for the niche. For example, I love niches where I can actually sell my own products in the future. This can be a digital product like an eBook or video course, a physical product, or a piece of software. For example, in one of my niches I created video courses that perfectly complement the physical products I am recommending on the site.

For the example that we took in this article, it might be possible to come up with an eBook about coffee. However, it might be very difficult to sell your own physical product or to come up with a piece of software to help your audience in this niche.

Note that here I am really talking about future opportunities as I really don't recommend thinking about your own products when you are just starting a site, as you don't know yet what works and what doesn't work.

Selecting the Niche

It's finally time to make a decision and select a niche for your authority website! There are many things you can do at this point, but what I usually like to do is first to eliminate the ideas that I am sure won't be profitable. For example, a niche where there is no traffic to the keywords I want to target, or no way to make money from affiliate programs. After that, I give a mark to each of the niches at each step of the process, over 5 points (for keyword research, competition analysis, initial monetisation, and future opportunities). I then simply select the best niche in my list, and store the rest for future websites.

I really hope that this process will help you find an idea for your next profitable website, and if you have any questions or comments let me know!

Best European Real Estate Crowdfunding Platforms in Europe in 2020
Best European Real Estate Crowdfunding Platforms in Europe in 2020

Bondora

The second platform I will mention here is Bondora, which is actually the first one I invested in. Based in Estonia, this platform was for a long time the biggest platform in Europe outside of the UK. It has a very nice interface, a lot of loans available, and also an excellent portfolio manager that allows you to choose your level of risk and automatically invest for you. This makes it an excellent platform and I believe you should definitely allocate some part of your P2P lending investments on Bondora.

There are two things that I, however, don't like so much about Bondora. The first thing is that there is no buyback guarantee on the loans proposed by Bondora, therefore exposing you to more risk compared to other platforms like Mintos. However, the returns are usually higher than other platforms. The second thing I don't like that much is that there is no way to invest by hand, you need to use their portfolio manager. However, the portfolio manager is working very well and has given me consistent returns since the time I started investing on Bondora.

Lendy

The third platform I will mention here is Lendy, which is a platform based in the UK. Compared to other platforms, all the loans on Lendy are attached to some real estate projects, for example renovating a building. This makes it really interesting, as you are both investing in P2P lending loans but also indirectly in the UK real estate market. They don't have a fully automated way to invest in new loans, however, you can pre-allocate some of your money so it will be automatically invested once new loans are available.

One thing I don't like (and that I actually discussed a lot with some of you) is that there are actually a lot of loans going to default on Lendy. However, there are loans that will go to default on all platforms, and it's up to you to diversify your investments in as many loans as possible to reduce the risk and keep a good return rate.

Twino

The last platform I wanted to mention here is Twino. Twino is also based in Latvia, and also proposes mostly loans that come with a buyback guarantee, so it's a really safe platform to invest in. As of 2017, they have been active for 5 years, and also have been profitable which is very good sign of stability in the future. You can also completely automate your investments, so it's also a platform where you can make a completely passive Peer-to-Peer lending investments. The only issue I got at some point with Twino is that they didn't have enough good loans to invest in (loans protected by the buyback guarantee), so I had some money sitting there for a month or so. However, they quickly introduced more quality loans, and I didn't have the problem since.

What Platform to Choose?

Those four platforms are really my favorite, and as you can see in the details of my portfolio I currently have investments in all of them. People often ask me which is the number one platform that they should invest in. It's difficult to really give an answer as I recommend diversification in several platforms, but to start I really always recommend Mintos as my favorite platform to get started in Peer-to-Peer lending investment.

The platform is easy to use, most of the loans come with a buyback guarantee, and also they are always diversifying into more and more countries & loan originators. So definitely my number one pick when it comes to Peer-to-Peer lending.

Do you also have a favorite platform for P2P lending investments? Do you agree with my selection? Don't hesitate to comment below!

The results from KWFinder show that for my main keyword, there is a lot of monthly searches (I usually look for above 10,000 searches a month), but that the difficulty (how hard it will be to beat the competition) is also quite high, which is not such a good sign at this point. However, we see that there are other keywords that are more interesting, like drip coffee makers.

Note that this tool also gives us a lot of ideas in the niche, so make sure to keep those results in order to generate articles ideas in the future.

Competition research

After the keyword research step, the next step is to look at your competition. It's important here to know why we are doing that. Indeed, I see so many people give up at this stage, just because they see there are other websites already existing in the same niche. 

On the contrary, the fact that there are other competitors in the niche is actually a good sign. It means that people are actually interested in the niche, and that other persons are running profitable websites in the same niche. You just want to make sure that at least on some keywords you can actually beat those other sites.

To find competitors, the easiest way I know is to simply type your main keyword in Google, followed by 'reviews' or with the suffix 'best'. I am doing that because we will monetise our site via reviews of products in the niche (more about that in the next step), so we want to know if there are competitors that already wrote about that. Here is the result when searching for reviews of coffee makers:

As you can see, the first results from Google show big sites like CNET and consumer reports having reviews on coffee makers. That's a bad sign for this particular keyword and for our niche idea: it will be very difficult to rank well for this keyword on Google, and also that's not websites we want to include as competition as it's huge sites talking about all sorts of products, not only coffee makers.

Therefore, one thing you can do at this point is to decide to niche down to find real competition. I decided to search for 'drip coffee makers', the keyword that we found from the previous step.

Indeed, this leads to much better results, with smaller sites appearing on top of the Google first page. I picked one of them to show you what to do next. Here is the first page of this site:

Initial Cash Flow Sources

This step is all about focusing on how we are going to monetise the website when we launch. I want to point out here that we are just looking for a way to monetise the site: the purpose of a site should always be to serve your audience, and your monetisation strategies are just a way to do that, not the end result.

There is one way that I really like to monetise an authority website initially: affiliate commissions. Basically, recommending some products to your audience, in exchange for a commission on each sale made of this particular product. And one program that is really easy to use is the Amazon Affiliate program, as there is a ton of products that are available on Amazon.

Therefore, I always start this step by simply making a search on Amazon.com with the main keyword of the niche. Here is one product that I found by looking for coffee makers:

This is exactly the kind of competition we are looking for: an authority website that looks exactly like the one we want to build. This means that somebody already made something in the niche, and might be profitable. We'll also use this site along with the others we found to find what we can do better when building our own site.

Now, we still need to find out if this website actually gets significant traffic. To do that, I use another tool called SimilarWeb, that basically grabs information about all websites on the web (given that it is big enough), and gives us an estimate of the traffic of the site, as well as other information about the site.

Here is the result when putting the site I found about coffee makers: