As always, I would like everyone to know that this is a 100% impartial and unbiased review of Crowdestor.
What is Crowdestor?
Based in Riga, Latvia (the company is incorporated in Tallinn, Estonia), Crowdestor is a crowdfunding platform, which offers the opportunity to invest directly in real estate and business projects. In every project on the platform, Crowdestor is involved as co-financier and/or co-developers, this ensures accountability from their development partners on behalf of their investors. You can start investing from €50 and with annual interest rates from 12%. All loans are listed in EUR.
My personal average is 15.67%, and most of the loans on Crowdestor offer high yields that can be as high as 21%. There was also a cryptocurrency mining farm project that has since been paid back and was yielding 36%! Keep in mind that you start earning interest from the moment you invest in the project and not when minimum funding target is reached.
All loans on Crowdestor are for business loans and vary from development projects and restaurants to cryptocurrency mining farms. The terms are from 3 to 18 months. Also, as you can see in the picture above, the platform gives you a fair warning before a project is live to transfer funds in your account. Some projects are funded rather quickly, so make sure to make your transfers on time. The platform is providing an extensive project description and also documentation that you can download to perform your due diligence.
Crowdestor offers a limited selection of loans, usually, not more than a couple on any given time but their size is decent, their rates are always high and they always post the loan on their platform days before it is available for investment so investors can perform their due diligence and transfer funds into their accounts to invest in the loan.
Crowdestor introduced its BuyBack Guarantee on March 1st, 2019, for more information, click here.
Crowdestor does not offer the option of auto-invest, but this is not a real issue since projects are limited and relatively large. Also, you will get a notification email when projects are about to be available.
Now that Crowdestor introduced its BuyBack Guarantee, the risk is whether its provisional fund is enough to cover the default. So far, no defaults have been recorded on the platform, but then again, it’s a new platform. For more information about the risks from peer-to-peer lending activities, please check the “What Is Peer-to-Peer Lending” article.
There is no Secondary Market offered on the platform.
Crowdestor charges no fees for investing in their platform.
Crowdestor Sign Up Process
The sign-up process is pretty standard. You can click here (by doing that you will also earn 0.5% additional cashback for the first 180 days) and follow the steps as shown on the screenshots below. You will also be required to upload a picture if your ID card. Sign up process is pretty quick and will take about 5 minutes but then you will have to wait for about a day before they verify your ID card so you can transfer funds to your account.
Crowdestor’s main competitors are Envestio, Kuetzal, Monethera, also, CrowdEstate, EstateGuru, BulkEstate and Grupeer. You can click here to check platform reviews and here to see the bonuses that some of them provide.
Crowdestor Review – Conclusion
Crowdestor offers a decent alternative for platforms like Envestio and Kuetzal, however, if I only had to pick one, it would be Envestio since they are operating since 2014 and have a proven track record (Envestio also has a better bonus program for new investors). Although, if you want to diversify away from Envestio or it has a shortage of projects you are interested in then Crowdesor is a great option for you. You can also check their website here.
Over the past couple of months I have re-evaluated my view because of the lack of new projects at Envestio, and the fact that I was able to negotiate a similar cashback offer for you. I now beleive that Crowdestor is the best of the two.
Crowdestor Promo Bonus
This is an 100% impartial and unbiased review of Crowdestor. However, if you would like to invest through the platform I would appreciate it if you could use my referral link which gives you an exclusive 0.5% cashback from each investment made during the first 180 days from your investments.
If you would like to add something about Crowdestor, please leave your comments below.
Until Next Time,