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Best Real Estate Crowdfunding Platforms in Europe (October 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.

Crowdestate
Yield
13.72%
Rating
Platform Type
Loans
Auto Invest
Secondary Market
Minimum Investment
100€
EstateGuru
Yield
11.31%
Rating
Platform Type
Loans
Auto Invest
Secondary Market
Minimum Investment
50€
Reinvest24
Yield
7.4%
Rating
Platform Type
Equity
Auto Invest
Secondary Market
Minimum Investment
100€
Bulkestate
Yield
13.4%
Rating
Platform Type
Loans
Auto Invest
Secondary Market
Minimum 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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John 5 days 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 a month ago
Are there any platforms that cover the whole of Europe rather than just one country?
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Marco Schwartz paul 16 days 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 2 months ago
Thanks
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Lena 4 months 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 25 days 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 7 months ago
Very complete article and description, helpful and interesting! Thank you for sharing your experience
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Erika 8 months 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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Sergio Pirelli 8 months ago
I think it would be nice if you did a similar piece on UK based platforms. The UK real estate is very profitable and there are a good number of platforms operating since 2013. I have used crowdlords.com and will like to know your opinion on how they rate versus their competitors. Have a great day!
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Marco Schwartz Sergio Pirelli 8 months ago

Hi Sergio, I invite you to check my review of Property Partner: https://marcoschwartz.com/property-partner-review 

Alex Cohen 8 months ago
Just as some general feedback, it would be helpful to point out some more detail on specific platforms and also give more variety. I find that the general challenges of European real estate crowdfunding are: 1) unclear profiles of the businesses being funded. I compare to Crowdstreet for example in the US, where the deals are much larger 2) unclear legal recourses in case of default or failure. 3) lack of available opportunities to compare, and the size of the opportunities is quite small. Usually these seem to be small-scale developers who are looking for funding. There is not a lot of visibility into their background, how or if they were vetted, and there are often not a lot of repeat investments. A search on the marketplace on Crowdestate shows several opportunities which are not returning. 4) unclarity about how return occurs. On Crowdstreet, I see in a few lines of statistics how and when return events will occur. Looking into more detail shows comparison to similar business cases, and more details about the structure. With most European real estate crowdfunding, it's cumbersome to sort through the opportunities, find out when the distribution to shareholders is meant to occur, and establish what is certain and what is a risk factor. 5) geographical overconcentration. Most sites are country-by-country, and even then most deals are concentrated in one or a couple regions. In general it seems that most sites offering crowdfunding have poor dealflow, and so it's not clear that they are at all discerning. For me personally, the risk factor in most of them seems very high even if the underlying investment is relatively safe, and since I think most readers here are going to be inexperienced passive investors, it's worth signalling the risk factors.
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Marco Schwartz Alex Cohen 8 months ago

Hi Alex, I agree that in general there is still a long way to go compared to the biggest platforms in the US. However, I think European platforms made a lot of progress during the past years, especially platforms in the UK (at least for buy-to-let deals). Also note that it is impossible for most EU investors to invest on the US platforms (unless you have a million dollar and create an LLC to invest). 

Plamen 9 months ago
Soon I'm using reinvest24.com. Registration is quick and easy. Each project has its own "Special Investment Company" (SPV). An advantage is also that the investment is in euro. Such platforms exist in the UK, but the investment is in British pounds, which entails a currency risk for European investors, and Brexit introduces additional uncertainty. If someone else also has experience with reinvest24.com let him describe it.
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D Chan 10 months ago
thank you for the information - hard to believe ROI still 10%+ nowadays - Real Estate market is really booming at Europe !
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Johann a year ago
Have a look at wealthmigrate
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Randolph Johann a year ago
Thank you very much, will do