Introduction

EstateGuru is a European P2P lending platform specialized in Real Estate Crowdlending. The platform offers property-backed loans to investors willing to earn dividends from real estate investments. Once invested, the money is given to developers and SMEs (Small and Medium Enterprises) for their real estate projects.

EstateGuru has a long track record with a start in 2014. It has now become one of the biggest real estate crowdfunding platforms in Europe with +200 million euros of investments. Which gives a good sense of stability and security compared to other platforms.

Figure: EstateGuru users number evolution

This investment platform offers different type of investments loans:

• Business loan: is a loan used to raise capital for supporting the day-to-day activities of the firm, business expansion, acquisition of equipment or goods, cover pending obligations (taxes, etc.)
• Bridge loan: is a short-term loan used to meet current obligations before securing a permanent financing option, enhancing the value of the property or selling the underlying asset
• Development loan: is a loan used to finance the development’s planning process or the development/construction of the property itself

Figure: EstateGuru’s loans volume by type

Investments are available in Estonia, Latvia, Lithuania, Finland, Germany, Portugal, Spain and transactions are done in EUR.

How it works

Figure: How works EstateGuru

Performances

This p2p lending platform provides loans generating between 8% and 13% yearly ROI, with an average of 11.8% ROI

Investments team

Most investments have a term from 12 to 18 months, with an average of 12 months on the overall investments’ portfolio EstateGuru proposes.

Minimum investment amount

EstateGuru offers a standard minimum investment amount of € 50 like it is done for Bulkestate. If you are willing to start investing with a smaller amount, you won’t be able to do it on real estate, as all the platforms require this minimum sum. But by investing in Consumer Crowdfunding with platforms such as Mintos you’ll be able to start investing from as little as € 10.

Safety

• EstateGuru has offered its investors a stable 11.8% annual return and €0 loss of capital over 6 years of operations.
• EstateGuru doesn’t provide BuyBack guarantee, but tries at best to reduce risk by doing a due thorough due diligence on borrowers and their projects.
• All the loans are backed with a mortgage. Once the loan is fully invested, the borrower has to go to the notary office and enter into an agreement with the Security Agent to create a mortgage. The Security Agent is a separate LLC company whose primary purpose is to hold securities for the benefit of investors making investments via EstateGuru.
• EstateGuru provides transparent information on the status of their loans, and indicate clearly (as in Figure below) the percentage of In Default, Late and Lost loans. As we can see, 0% of loans generated a loss of capital.

Figure: Status of EstateGuru loans

Below you will find the resulting forecast when investing using EstateGuru compared to investing the same amount in the US stock market (US stock market: 6% average yearly growth in the last 30 years).

By investing €1’000 using EstateGuru for 15 years you might end up with €4’785 (€2’388 more than with the stock market).