Best Real Estate Crowdfunding Platforms in Europe (November 2019 Update)
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.
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.
Projects with great returns
Wide diversity of projects types
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.
Projects in several European countries
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.
Great rental yield around 8%
Large diversity of projects
Easy to use platform
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.
Easy to diversify
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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