Crowdestor Key Facts:
- invest into real estate and commercial projects
- typical loan durations from 6 to 18 months
- interest rates from 12% to 20%
- Crowdestor is involved in all investment projects as co-financier or co-developer
- the investment projects are carefully selected and are protected by a buyback fund
- so far 0% of late or defaulted projects
updated May 6th 2019
My experience with Crowdestor
Crowdestor is one of the more recent crowd-investing marketplaces that I started using. It is a very young company and run by a small team of financial entrepreneurs with an office based in Riga, Latvia. They seem to have a pretty solid process for the acquisition of investment projects and so far managed to have zero projects that are running late or defaulted.
The investment projects offered at Crowdestor typically come from the real estate and service industry sector with loans ranging from 30,000 EUR to 750,000 EUR. Loan durations range from 3 months up to 2 years and investors can expect interest rates anywhere from 12% to 20% (average around 16-17%).
The Crowdestor website and user interface is kept very simple which makes it easy to find your way around. Currently, four languages are available for using the website: English, German, Spanish and Portuguese.
Becoming an investor is just as straightforward as on any of the other marketplaces. You register your account with email and password and validate it by uploading photos of your ID card or passport along with an up to date proof of residency (like a recent bank statement or utilities bill).
Funds are added to your investor’s account via SEPA bank transfer. You will need an active bank account in an EU or EEA member state to do so. Withdrawals work the same way: Crowdestor will transfer the requested amount to the bank account from which the deposit had been made. A security PIN which you can choose yourself is required to verify a withdrawal. The minimum investment into a project is 50 EUR.
Due to the large project sizes you won’t be able to invest into hundreds or thousands of loans like on crowdlending platforms. Over the past year, Crowdestor opened about 3 to 4 projects per month for investment so that’s the amount of diversification that you can expect. Since Crowdestor is still such a young marketplace I expect that these numbers will increase within 2019.
The nice thing about Crowdestor is that new projects are announced some days in advance so the investors have enough time to transfer funds to their accounts. Interest is usually paid on a monthly basis and the loan principal is paid back in full at the end of the loan term.
Almost all loans on Crowdestor are secured loans for which the borrower provides additional legal insurances like mortgages, collateral (e.g. goods, machines, real estate) and personal insurances. In case that a borrower is not able to pay back the principal loan amount at the end of a project, Crowdestor will protect investors through the buyback fund which is in the process of being set up.
You can read more about Crowdestors’s investor protection here: https://crowdestor.com/buyback-fund/
Unfortunately, Crowdestor currently does not offer a bonus for new investors. But if you’d like to start investing on Crowdestor and to support this blog at the same time you can open an account through this link.