Crowdestate Analysis

Crowdestate @ Savings4Freedom

Crowdestate Account Update

Investment Start Date: February 2019

Total Deposits: 0,00€ (August 2019)

Asset Value: 0,00€ (August 2019)

Crowdestate Platform Review

Last Update (01.09.2019)

Crowdestate is mainly a real estate crowdfunding marketplace offering pre-vetted investments. They claim that only 5% of the projects that they examine actually end up on the platform. They also have some business related loans, and that accounts for a growing number of the available projects.

I started to invest at Crowdestate in February 2019 and I’m quite impressed with the platform, projects, and returns. Crowdestate positions itself as a transparent, easy and trustworthy. Extensive background information, business plans, and financial models combined with low minimum investment make investing quick and easy.

Although the platform is already operating for some years it does not offer a buyback guarantee for the investors while most P2P lending platforms do (even the ones that are recently launched). If the borrower delays the payment for a longer period of time (other platforms usually give 60 days), Crowdestate is not obliged to buy back the investor’s share in the loan. This clearly reduces the security of investments, even if they report an impressive default rate of 0%.

Creating a Crowdestate investor account was pretty simple and straightforward. It took less than 5 minutes. An ID/passport verification step is needed if you want to withdraw money. However, if you just want to explore the platform, you do not need one. Once your account has been opened, what you need to do is deposit at least 100€ into the account. The money will reflect in your account within one day.

You need to take special attention to the different types of capital and their meaning in Crowdestate:

  • Equity is the capital placed in the company by its owners. The owners are paid the last after all liabilities have been paid.
  • Mezzanine is a hybrid capital (subordinated loan or preferred equity) that lies between equity and secured loan. It has a lower risk than equity – mezzanine financing is repaid before equity, but after all bank obligations have been fulfilled. In addition to the usual interest, bonuses that depend on the profitability of the project may be added to the mezzanine capital.
  • An unsecured loan is a layer of capital between equity and secured loans. They are riskier than secured loans, but also more profitable. Unsecured loans are repaid to the owner of the capital after all secured debts have been repaid.
  • A secured loan is the safest and thus the least profitable type of capital. The loan is secured against collateral, which is usually a mortgage on the assets of the company or some other type of collateral. Secured loans are always repaid in the first priority.

 

Analysis TopicPersonal Take
13 - Type of Loans

Type of Loans Available

Real Estate | Business | Equity
1 - Interest Rate

Average Interest Rate 

~15%
2 - Buyback

Buyback / Secured Loans

No buyback guarantee but the reported default rate is 0%. Some secured loans available
3 - Liquidity

Early Exit / Secondary Market

Yes
4 - AutoInvest

Auto Invest Feature

Yes
12 - Control Over

Control over Loans Invested

Yes, you choose
5 - Money Drag

Money Drag

Low
11 - Hiden Fees

Hiden Fees

No
6 - Time

Loan Duration

4 months to multiple years
7 - Reporting

Reporting Tool

High Quality
8 - User Experience

User Experience

High Quality
9 - Rewards

Sign-up Bonus

You can sign up and invest in Crowdestate through my referral link.
10 - Evaluation

Overall Evaluation

8/10


My Crowdestate Account

Crowdestate Account @ Savings4Freedom

Crowdestate Income Graph

Crowdestate Returns @ Savings4Freedom

Do you want to Invest?

Check among the P2P crowdlending opportunities available on Savings4Freedom, always taking into consideration that all information is entirely based on my personal experience.

Investe @ Savings4Freedom

Share your opinion on this topic!

This site uses Akismet to reduce spam. Learn how your comment data is processed.