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 10 Euros or Dollars), diversify quickly into many properties, and also have a completely passive real estate portfolio.
You will notice that all of those platforms are located in Europe. Indeed, as a European resident, I can't, for example, invest in platforms in the US, and I am of course only recommending platforms I am using myself. However, most of those platforms accept investors from outside of Europe.
The first platform that I wanted to mention in this article is Housers. Based in Spain, this platform allows investors to invest in real estate in Spain but also is constantly expanding to other countries in Europe, like Italy. They offer high-quality investments, usually in large cities that are actually growing fast like Barcelona. They usually propose to invest in refurbished apartments, so the rental yields on the platform are quite attractive at around 5%. They also propose many different types of investments, for example commercial real estate like small shops & even hotels, which makes it a great platform to quickly diversify your portfolio.
On top of that, the Housers platform also have a great interface, as well as a secondary market that will allow you to buy & sell shares from existing projects, meaning your investment is actually much more liquid compared to other platforms or to an actual real estate investment where you'd be a whole flat yourself. That's actually one of the latest platforms I invested on as it was for a long time limited to Spanish investors, but since they removed this limitation I'm investing more and more on this platform.
The second platform I will mention here is Crowdestate, which is a platform based in Estonia. Compared to the first platform I mentioned in this article, 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 most platforms in this article, they also offer the possibility to buy shares in loans from other investors via a secondary market.
The third 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.
The last platform I will mention here is Property Partner, which is based in the UK, and quite different from the other that I listed in this article. Whereas other platforms usually invest in single apartments or houses, this platform focuses more on larger deals like blocks of 20-30 apartments. This makes it very interesting as well, as those are deals that you can't usually access as a small real estate investor, as it would require a significant downpayment. As they invest in larger cities in the UK like Manchester or even London, the yields are usually lower than on other platforms, but the capital growth is quite high compared to deals in smaller cities.
The interface of the site is also great, and they have a secondary market as well to buy & sell shares of existing projects.
So that's my top 4 real estate crowdfunding platforms in Europe, and also the platforms on which I have the most money invested at the moment & that are working great for me. If I had to pick one at the time I wrote the article, it would definitely be the Housers platform as it's the only proposing deals in several countries in Europe and also have the largest amount of high-quality deals to choose from. Therefore, it allows for a quick diversification of your real estate portfolio, both in terms of number of deals and types of real estate (as they propose commercial real estate as well as residential real estate). However, if you prefer to invest in real estate development loans (where you get a fixed rate of return at the start), I really encourage you to try Crowdestate.
Do you also have a favorite platform for real estate crowdfunding investments? Do you agree with my selection? Don't hesitate to comment below!