Becoming a real estate investor is really hard for most people because it usually involves you requiring a lot of money. Not everyone has the funds needed to invest in real estate, so using real estate crowdfunding does make a lot of sense. What makes Crowdestor unique is the fact that it enables you to invest in properties that might be able to offer a good ROI.
Crowdestor is one of those sites that immediately stands out with its great designs. That being said, they provide loans for a variety of projects, and in this case you have hospitality, transport, real estate and startup loans too. First you will need to create an account and then you will start adding funds to it. Unlike other competitors we liked the fact that Crowdestor does allow you to use an international bank account, there’s no need for a local one.
What you will notice right away regarding Crowdestor is that it comes with multiple investment types. The platform immediately shows what projects you can invest in, you will get to see how the project looks like, the amount it needs and the loan period you will have to focus on. We like the fact that they are showing the interest rate too, this brings in transparency and it’s something you rarely get to see in this type of investments nowadays.
Is there an automatic investment tool?
Unfortunately Crowdestor doesn’t have that. And it’s a bit of a drag, because pro investors will always want to have good investment tools right in front of them. Having a way to invest your money automatically should come in handy, but this is not the case here. However, the lack of automatic investments can be a plus because you are the one in control and you get to know and handle how you invest and manage everything in a powerful way. It’s certainly going to come in handy to do everything manually, and the investment process is a lot easier and faster once you know what you are getting into.
Interface and ease of use
Crowdestor is a visually appealing website and at the same time it also comes with a great interface. The focus on ease of use is what a lot of people will like here, just because you get all the value and control you need in a single package. While some things could be improved, for the most part you have all the features and ideas you need to make Crowdestor complete and powerful. It’s also nice that the projects are outlined with a set of pictures and all the information you want.
Serious investors will want to know more, and Crowdestor can be contacted whenever you want during the Riga business hours (where the company is located). You will notice the fact that everyone can invest here, there’s no VPN required or anything like that. The fact that this is open towards people all over the world is very handy since you get to make money as you see fit without having to worry about downsides.
Projects and investors
According to information that’s available online, Crowdestor has more than 10 projects already funded in 2018. This is actually impressive, considering the fact that this company was created in 2018 to begin with. They have around 1000 active investors and none of them seem to share some very bad reviews or anything like that.
Another important thing we noticed during the Crowdestor review process is the fact that this company is actually involved in the projects they are offering here. Most of the time they invest up to 10% themselves and they even help with stuff like project design, development and so on. It’s never easy for an investment company to try and invest itself in projects, but they do that and it’s a wonderful, respectable thing to do.
Guarantees and refunds
When you invest in a company that’s not super old, you are obviously worrying a bit about the potential outcome. Crowdestor doesn’t come with a regular buyback guarantee. They did however integrate some forms of security to ensure that people can get money back. The way they do that is via establishing a Buyback Guarantee Fund. This one is 50000 Euros and the fund receives a 1-2% commission from very project that’s funded with success and great results. Which means in case something happens you always have this protection. Whether it’s a good option or not that comes down to you, but it’s still better than nothing.
According to data found online, no loans have been defaulted, and this really says a lot about the platform. It shows that they are indeed committed to bringing in good value for money, and they have a transparent way to handle everything which a lot of users appreciate and enjoy.
In order to maximize the financial security for Investors in case of default by the Borrowers, CROWDESTOR has decided to introduce a New Program called ‘Buyback Guarantee Fund’. The aim of the Program is to safeguard the Investor’s proper return in case the Borrower is subject to default.
The Program will operate as follows:
- CROWDESTOR makes an initial investment in the Buyback Guarantee Fund an amount of EUR 50,000.
- Since 1st of March 2019, CROWDESTOR is devoting a commission of 1-2% from each project that is funded via CROWDESTOR Platform into the Buyback Guarantee Fund.
- We expect to reach the pool value at EUR 100,000 by the end of 2019.
- In case of a default of Borrower, the Platform will compensate all Investors, in a proportionate amount, according to Distribution Rules of Buyback Guarantee Fund, their contributions to the particular project.
- The current standing of funds available in the Buyback Guarantee Fund at any given time will be published on the website.
In summary, the Buyback Guarantee Fund will operate in a roughly similar way to the Deposit Guarantee Funds of credit institutions operating in the EU Member States. While being a start-up crowdfunding entity, CROWDESTOR constantly strives to offer to its client’s various instruments aimed for improvement of the Investors’ risk standing in an overall balanced and structured approach.
Are the interest rates any good?
Usually the Crowdestor investments will bring in anywhere from 13% to 18% and sometimes well over 20%. Of course, this means you have to make sure that you know what you are investing in and you also have to pay your taxes for that income too. The company doesn’t deduct taxes on its own nor does it disclose any info. This can be a bit of a drag for people that would need such services, but it’s obviously something you would have to expect.
- You get some unique investment opportunities
- Everyone all over the world can invest here
- Great interface
- Not a lot of projects
- It lacks automatic investments
- It’s a new business, not a lot of guarantees
We found that Crowdestor is one of those new investment companies that seems to bring in front plenty of value for the money. It works great, it already has close to a dozen successful projects and more are coming. You are free to choose what project you are investing in. Every project actually has its own interest rate too. Overall, it’s a pretty impressive investment opportunity and if you stick with it you will be quite happy with the results and experience as a whole.