Before starting my Estateguru review, I am going to tell you a little bit about how I got started with peer to peer lending, which sometimes is abbreviated by p2p lending.

If you don’t know what peer to peer lending is, take a look at my guide on peer to peer lending.

Peer to peer lending is also known as crowdlending. My first contact with Peer to peer lending was on late December 2018. I was a bit bored during Christmas and I was looking for alternative investments besides stocks. The recent stock market downturn had scared me a bit.

I started to read about Real Estate Crowdfunding, and the 5-7% returns they offered grabbed my attention.

Like most people, I always thought that in order to invest money in real estate I would have to buy a full house. Well, I didn’t want to get into that much trouble, neither had enough money.

The concept of investing in real estate without having to buy a property lighted a bulb in my brain. Was that really possible?

Crowdlending was new to me, so I spent some days reading about it, exploring the concept and reviewing a few companies. The first ones I found required a minimum investment of 50.000 euros, which was way above my expectations. Then I found Estateguru, which let me invest in loans from as little as 50€. Thus my journey in Peer to peer lending began.


What is Estateguru?

It is a peer to peer lending company that allows you to invest in property-backed loans all around Europe.

Lots of people consider them a real estate crowdfuding platform, since most of Estateguru loans are focused on real estate development.

Strictly speaking Estateguru it’s not a real estate crowdfunding platform, but a crowdlending company. This is due to Estateguru loans always have a fixed term and interest rate, something that does not happen on real estate crowdfunding.

I like to say that Estateguru is an hybrid, which I call real estate p2p crowdfunding 🙂

It was founded in Estonia on 2014, and have an impressive track record.
At the time of writing this post, 927 loans have been funded, 139 million euros have been lent to borrowers, and investors have earned 9 million euros , with a 12.10% historical return

Estateguru aggregated stats for all the loans of the platform

The amount of money lent and users is growing exponentially, which shows how well they are doing

Estateguru users and loans evolution since its foundation

Their projects are mainly in the Baltic countries, being Estonia, Lithuania and Latvia the main contributors.

Estateguru is a great platform, and it is very powerful in terms of statistics. If offers you a lot of information, both on your own loans, and on all the loans that have been funded in the platform.

This helps you to get an idea on how much risk you are taking, and how well the platform is doing.

Estateguru is one of the leading companies in the peer to peer european marketplace, helping to finance property developments all around Europe.

No wonder why I consider it one of the best p2p platforms.


How to invest in Estateguru

An important part of my Estateguru review is showing how you can start to invest in Estateguru. It is very easy.

I am going to explain you step by step how to open an account in Estateguru:

  1. Register in the platform through this link (you will get a 0.5% bonus on your investments during the first 90 days)
  2. Input your email and address
  3. Input the bank account you want to use to transfer money in and out of Estateguru
  4. Upload your passport
  5. Wait 24-48 hours so Estateguru can verify all your information

Once Estateguru team has successfully verified your information, you can start funding your account.

When the funds reach your Estateguru account, you ready to start making money investing in real estate p2p crowdfunding 🙂

The picture shows the most recent funded loans and the active loans in Estateguru

If you go to “Primary Market”, you will see the active loans. Click on “Invest” and you can start making money with Estateguru.

When you invest on a loan, a contract is generated between you and the borrower for the amount of money that you invest.

If you have doubts and need more information, you can check the FAQ section on the Estateguru website.


Estateguru Statistics: how risky are loans in Estateguru?

When you review a peer to peer lending platform like Estateguru, it is important to check if the loans are secured, how are they secured, and what are the statistics for the loans repayments.

Some platforms offer buyback guarantee, which means that if the loan defaults, they will pay you back your money, and they will deal with the borrower in order to recover the loan.

This has also its risks, since the loan originator (which is the one that offers the buyback guarantee) can go bankrupt, therefore they will not be able to implement the buybacks on the defaulted loans. This happened with Eurocent in Mintos

Estateguru does not offer buyback, but all the loans are backed by a real estate property. These loans are known as property-backed loans.

The loan amount is not allowed to be more than 75% of the value of the property (also known as LTV – Loan to Value).

Review of the loan stats of the Estateguru, including repaid, late, default and funded information

As you can see on above picture, Estateguru statistics show there has been no project with loss of capital since Estateguru started to operate, which is a very good sign. The number of defaults is low, currently sitting on 3%. The loans delayed are 3.8%, which is acceptable for me.

Going into my personal experience, you can find below my stats, which show that 7.1% projects are late, and 1% are in default (I have one defaulted loan).

Portfolio showing the default loans, delayed and repaid

This makes sense since I only started investing 10 months ago and the loans average term is 12-18 months.

One of the advantages of the investing platform Estateguru is that the loans are short term. This means that you don’t need to lock your money for long time in order to obtain profits.


My results in Estateguru

I started investing in Estateguru in January 2019. The great performance of the platform and its returns have impressed me, so I have increased my investment in Estateguru platform during this year.

Currently Estateguru represents 9% of my portfolio. If you want to learn more about my investment portfolio and the returns I am obtaining, take a look at my latest portfolio update.

I invested in many loans in April-May, which explains why we see an increase in the returns since June.

Bullet loans are my favourites, since pay periodically, typically every 1, 3 or 6 months. As you can see on the graph below, the monthly return has been stable on 0.8% since July.

Estateguru monthly returns during 2019

If we take a look at the accumulated return during 2019, we have achieved a 6%. I am hoping I will get to 7% by the end of the year!

Estateguru accumulated return during 2019

Borrowers are consistently paying the interests. There are some delays but only a few, so I am very happy with Estateguru performance.

Estateguru platform makes it very easy for you to manage your investments. On the portfolio overview section you can see the status of all your loans, the passive income generated every month, and your loan portfolio by countries, loan type and mortgage type.

That helps a lot for investors to track their investments.


Is Estateguru safe?

In investing your capital is never 100% safe, but you can do your homework in order to reduce the risks.

Not even your money in the bank is safe, since there could be a huge financial crisis where the government decided not to rescue the banks (like it almost happened on 2008).

It’s important to make sure that your money is in “safe hands”. That’s why I always apply extra caution when it comes to researching the companies where I am investing.

This is my main check list, in order of importance:

  1. The company is officially registered as a business in the country where it is based
  2. I can withdraw money successfully
  3. There is no mention to scam on any reviews across internet (checking Trustpilot in detail)
  4. Their financial annual reports make sense, there is nothing out of order or that looks made up. Also, it’s important to look how the company is doing (is it profitable?)
  5. Support team replies properly to any question
  6. They provide borrower details
  7. At least one borrower has to confirm that they have currently a loan with Estateguru
  8. They attended the P2P 2019 Conference in Riga and/or they belong to the ECN (European Crowdfunding Network)

I am happy to say that Estateguru review passed all the checks, so in my opinion it is safe!

If you want to learn more about the risks when investing in p2p lending, take a look at my peer to peer lending guide.


Secondary Market

The secondary market is a feature that allows investors to buy and sell loans to other investors.

If you want to know more about the secondary markets on crowdlending platforms, take a look at my peer to peer lending guide.

Estateguru started offering a secondary market on September 2019, so this is a new feature. The secondary market is useful if you have invested in a loan, and you want to sell it before the end of the loan term.

You can also use the secondary market to invest in loans when there are no active loans in the primary market.

The problem I see are the high fees on the sell. Estateguru charges 2% to the seller on the total amount of the loan. There is no fee for the buyer.

This fee is much higher than other peer to peer platforms that offer secondary market, like Crowdestate.

I have not yet used the Secondary Market feature, and due to the high fees, I don’t recommend to use it to sell loans, only to buy them.


Auto invest Review

Auto invest is a feature that allows you to invest automatically in loans.

You just need to chose the configuration settings and activate it. After that, you can set the auto pilot and you don’t need to do anything else to make money with Estateguru.

Below you can find my settings.

How to configure auto invest feature in order to maximise your profits and reduce your risks

The main thing for me is to invest on “only bullet with interest” loans, since they pay you periodically. This is important for two reasons.

First, you receive income regularly, which you can reinvest. Second, and more important, if the borrower is not going to pay back, Estateguru can detect it earlier and initiate the procedure to recover your money.

It’s also important to set Security to “First Charge”. This means that you will only invest in First Rank Mortgages, which means that if the loan defaults, you will be the first on the creditor list to be paid.

It’s important to highlight that in order to activate the auto invest advance settings you need to set a minimum amount of 250 € per loan.


Sign up Bonus

Estateguru offers a 0.5% bonus on all the investments that you make on your first 90 days, if you sign up using this link.

Do you want to start making money on p2p real estate with 12% returns? Start now to generate passive income!

If you want to learn more about peer to peer lending and the p2p companies to invest in, take a look at below posts:


Disclaimer

This analysis is entirely based on my opinion and personal experience.

COMPÁRTELO!
Categories: Crowdlending

7 Comments

ปั้มไลค์ · 9 June, 2020 at 13:53

Like!! Thank you for publishing this awesome article.

Marco · 22 October, 2019 at 08:50

Nice article Gonzalo. Really useful! Will explore for sure and let u know 🙂

    Gonzalon@Tofinancialfreedom.co · 22 October, 2019 at 19:08

    Thank you very much for the nice comment Marco. Glad to see you around!
    Please let me know if you have any question, I will be happy to help 🙂

Maria · 17 September, 2019 at 19:13

Hi Gonzalon! I have found this post really interesting, although I don’t know how to start. I feel a bit insecure about investing and maybe I haven’t got it right but I see an opportunity in EstateGuru to give it a try.
Once you sign up in EstateGuru how can you find a loan to participate? And can you do it at any time? Have the loans a deadline or they wait for investors until the loan is complete? Thank you very much for your useful information!

    Gonzalon · 18 September, 2019 at 11:59

    Thank you very much for taking the time to read the blog Maria!
    Let me tell you that it’s normal to feel insecure, investing is an unknown world for many people, and there are risks of losing money, so it’s normal.
    Once you sign up on Estateguru, you go to the “Loans” section, where you will find all the loans offered by the platform. On the top of the list, categorised with an “O” (for Open) you can see the loans that are currently active, where you can invest some money. The platform is getting new loans almost every day, so you should not have any problem in getting your money invested.
    The loans have typically a deadline of 2 weeks to reach their target, and once the target amount is achieved, the loan goes into the fully invested phase, and Estateguru starts the procedure with the borrower to get the loan funded and kick in the project!
    Please let me know if you have any question, I am here to help 🙂

Michael · 16 September, 2019 at 06:26

Hi Gonzalon,
I liked very much your EstateGuru review, especially your check list and the fact that this platform is compliant with these high standards. However, I noticed in your portfolio that you invest also in FastInvest. I doubt if they really pass half these checks. I would like to know you point of view about this. Thank you!

    Gonzalon · 16 September, 2019 at 08:14

    Hi Michael!
    Thank you very much for taking the time to read the post and comment on it. I am glad that you liked my check list approach, it is the way I found to be safe about my investments.
    You are right about Fast Invest. It’s one of the Crowdlending platforms that I decided to start testing recently, and I have to say that I not very confident about it. The main issues for me are that they don’t publish their loan originators information, and that the CEO and some of the current employees were previously working on a company that might be involved in a fraud case.
    I made a small investment, and I am going to leave it till the loan concludes, just to see how it works. I am not planning in making any further investments in the platforms unless they become more transparent and I see better feedback about them on internet.
    Let me know if you have any further doubts 🙂

Leave a Reply

Your email address will not be published. Required fields are marked *

Do you want to invest but you don't know how to start?
I give you my investing guide FOR FREE so you can learn everything you need to start investing.
Thanks for signing up. You must confirm your email address in order to be subscribed. Please check your spam folder if you cannot find the email in your inbox.
You can read our privacy policy here.
Don't miss out. Subscribe today.
×
×
WordPress Popup Plugin