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Crowdestate review 2020

Check out our Crowdestate review, and see if the platform is for you.

Overview of Crowdestate

Risk/Reward

4/5
We find the return compared to the safety favorable.

Beginner Friendly

3.5/5
The Crowdestate platform is very beginner friendly.

Investor Protection

3.5/5
Crowdestate has made some safety measures.

Return

5/5
Investors get an average return of 17.05%.

We Like

  • Solid investment returns
  • Real estate focused platform
  • Auto-invest is available
  • Secondary market is available

We Don’t Like

  • Only a few projects
  • Lack of diversification options

Summary: Crowdestate provides a perfect opportunity for investors who want to invest in real estate and business loans. With an average return of 17.05%, one also well understands why the platform is popular among its investors. However, the popularity has a backside, which means that it sometimes can be difficult to find enough investment diversification via the platform. Still, the platform is definitely worth a try.

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Last updated: May 8, 2020

Introduction to our Crowdestate review

Crowdestate, with its long history, is a platform that is hard to not come across.

But how good are the platform’s features, how safe is Crowdestate really, and how does it compare to similar platforms? We decided to investigate.

So if you are considering investing through the platform, we recommend you reading this Crowdestate.eu review.

By doing so you will rather quickly learn what we like and dislike of the platform and where we might think competitors are a bit ahead of Crowdestate. 

You can, of course, read our full review from A-Z. But if you’re just searching for the answer to something specific, you can navigate the review by using the navigation below.

As you read our review, we would like to point out that this Crowdestate review is based on our own opinion, and should not be regarded as financial advice.

Learn about the following in our Crowdestate review:

What is Crowdestate?

Crowdestate is a crowdfunding real estate platform, which allows you to invest in properties from just €100

This means that you can actually invest in various property projects without having the headache of receive calls from a tenant stating that the toilet does not work.

Crowdestate review

Before listing a real estate project on the platform, Crowdestate performs a preliminary investigation of the project itself.

Together with other investors, you invest in different projects. It also makes it easier for you to spread your risk to more than just one house.

Before you invest, you’ll get the chance to read some relevant background information on the projects, including a SWOT analysis.

Crowdestate has been around since 2014, which means that it is a fairly mature platform with a longer track record.

Main features

In the following part of this Crowdestate review, we go through some of the main features on Crowdestate and why they are important to you as an investor.

1. Crowdestate auto-invest

On Crowdestate, you will find an auto-invest feature that makes it possible to invest in the project on the platform on complete autopilot.

The feature was introduced in 2017 and helps investors to automatically get exposure to projects before they are fully funded.

Crowdestate autoinvest

As most of the investments are rather quickly becoming fully funded on the platform, it can be a very good idea to use the Crowdestate auto-invest.

2. Crowdestate secondary market

Another very important feature you will also be able to find on the platform is the Crowdestate secondary market.

A secondary market allows investors to trade investments which each other. So whether you want to get in or out of a deal, you should take a look at the secondary market. 

Crowdestate secondary market

Due to the fact that there oftentimes is a shortage of investment opportunities on the main market, you can actually use the secondary market to get a decent diversification.

Contrary to a lot of other platforms it is actually free to use this market on Crowdestate.

Do you want to see more features? Tap the button below to get to Crowdestate.eu. Here, you can learn more about other features of the platform and easily create an account.

What rate of return can you expect?

The average return on investors on the platform is around 17.05%. So you can probably expect a similar return if you start investing through the platform.

On Crowdestate, you can choose between different projects. It is thus possible for you to invest in projects that suit your particular risk appetite.

Unfortunately, Crowdestate has been a bit of a victim to its own success, as tens of thousands of investors are ready to invest when new projects are posted. 

This means that there are always only a few investment opportunities to choose from on the main market (see recent investment opportunities).

While this isn’t a problem for smaller investors, as they can easily achieve good diversification via the secondary market – it can be a bit problematic for larger investors that seek proper diversification.

So if you are a larger investor, it may actually be a good idea to combine the use of the platform with other real estate crowdfunding sites.

Who can invest via Crowdestate?

It is both possible to invest as a private person and as a company. However, investing as an individual via Crowdestate requires that you are over 18 years old. 

Crowdestate is one of the real estate crowdfunding platforms that is most widely available, and people from the vast majority of countries can invest through the platform. 

But due to complex and expensive regulations, it is not possible for investors from the US, and some other countries, to invest via Crowdestate.

If you are unsure whether you can invest, you can find an overview of the FAQ via their site. Here you can check whether it is possible for you.

Would you like to sign up as an investor at Crowdestate? Then press the button below. You will then be taken directly to their website from which you can create your user. In a very short time you will then be able to invest via their platform:

Is Crowdestate safe to use?

When you invest your money at Crowdestate, it’s not a secret to anyone that there’s a risk associated with it. In general, this is always the case when you invest. 

But what are the risks associated with investing in Crowdestate’s projects you might wonder? In this part of our Crowdestate review, we take a look at what risks you are facing at Crowdestate and what has been done to minimize them.

The main risk

The main risk when investing via Crowdestate probably lies in the investments themselves. Here you run the risk of the projects ends up failing. Here you can lose both your principal and the interest.

However, in the case that a project ends up being insolvent, your maximum loss is the size of your investment plus interest. Thus, you do not run any additional risk than what you invest in the projects.

What happens if Crowdestate goes out of business?

As part of assessing how safe it is to invest via Crowdestate, we have in this Crowdestate review taken a look at what happens if they end up folding:

For starters, Crowdestate has made the safety measure of legally separating their own assets from your and other investor’s assets.

So instead of your investments being hold by Crowdestate itself, your investments are held by a so-called Special Purpose Vehicle (SPV). This ensures that your assets will not be lost in the event that Crowdestate goes bankrupt.

Should Crowdestate end up going bankrupt, investments can be transferred to a management company.

So this means that your assets are well secured – even in the event that Crowdestate goes bankrupt.

Conclusion of our Crowdestate review

As a conclusion to our Crowdestate review, we believe the platform’s security is okay. The company has done its part to secure your investments.

As you only get exposure to real estate, it may be a good idea to use the platform along with a platform like Mintos. If you use these two platforms in a combination, you get both exposure to real estate, but also ordinary consumer loans. So it’s a good way to spread your risk. 

Our probably biggest reason not to invest via the platform is that there is often a shortage of projects. This is because the platform is quite popular among P2P investors, which means that new investments are quickly being fully subscribed. 

If your goal is to invest in real estate, we recommend that you complement with platforms like EstateGuru, Bulkestate, and ReInvest24 – if you can’t get enough money invested through Crowdestate.

Are you ready to invest through Crowdestate after reading our Crowdestate.eu review? Then by clicking on the button below, you can be taken to their website. Here you can open an account and start enjoying the investments you can make at Crowdestate: