Secured by Property
Invest from €50
Table of Content
Investing in properties is everyone’s big financial goal. With the current property prices in Europe most people can’t afford to invest in properties. Fortunately, there is a solution – EstateGuru.
EstateGuru is an Estonian P2P platform that offers you investment opportunities in property-backed loans. Meaning, you are investing in housing projects, backed by collateral, personal guarantees, and mortgages. In fact, more than 95% of the projects listed on EstateGuru are secured by a first-rank mortgage.
Anyone over 18 years of age and a European Bank Account can sign up on EstateGuru and invest. Even investors from the UK or the U.S. are eligible to join EstateGuru. For transferring funds to EstateGuru I use my TransferWise, as well as Revolut, will work just fine.
You can start investing on EstateGuru from only €50. Your money is secured by real value – in most cases: collateral, personal guarantee of the borrower as well mortgage.
EstateGuru is suitable for any investors who don’t mind locking their funds for at least 12 months. However, in exchange for a secondary market fee, you can withdraw your money sooner.
Is investing on EstateGuru safe?
Since I have joined EstateGuru I never had any defaultedInvest in P2P – Create Passive Income with P2P Lending loans on EstateGuru that had not been recovered. In fact, no investor ever lost money on EstateGuru. This cannot be said about investors who invested in Kuetzal and Envestio.
EstateGuru is doing a great job of protecting your money. I have visited their office myself and conducted an interview about the risk and securities for investors on EstateGuru. Read the report here.
As mentioned before, all your investments are backed by property. The P2P lending platform does not list development projects with a higher LTV than 75%, meaning the real-estate developer needs to pay at least 25% of the property value from its own funds.
EstateGuru has experienced risk managers on board, that make sure, that only those projects are listed on the platform, who can afford to take the loan.
Find out more about the risk and securities of your investment on EstateGuru in the following interview.
|Investor’s earnings:||+ €12 M|
|Total loan value:||+ €187 M|
|Amount of investors:||+43.000|
The investor base of EstateGuru is growing rapidly. What I appreciate the most is that EstateGuru is doing a great job in finding suitable development projects, while maintaining the quality of the investment. I get daily emails about newly listed projects – which isn’t the case with every platform that offers property-backed loans.
For more details and financial KPIs, refer to the EstateGuru’s annual financial report.
- Secured investments
- Higher liquidity with the secondary market
- Very good due dilligence and risk assessment
- Easy Sign-Up and fast money transfer
- Sign up Cashback 0.5% during first 90 days
- 2% fee for early withdrawals
- ot suitable for short-term investments
- Not so many diversification options
- More funds are required in order to achieve solid diversification
Watch the full EstateGuru review here:
EstateGuru offers moderate diversification options when comparing to other P2P platforms.
However, if we look at their mission, which is funding real estate projects, the diversification options are quite impressive.
The minimum investment amount of €50 is a bit higher when compared to the competition that lists short-term loans, which makes it harder to diversify your investment.
Currently, EstateGuru offers you the following diversification options:
Minimum Investment: €50
6 Countries: Estonia, Latvia, Lithuania, Spain, Finland, Portugal
Loan Period: 6 – 36 months (most of the loans have a loan period of 12 – 24 months)
Surety: personal surety, first-rank mortgage, second rank mortgage
Buyback Guarantee: No
Auto Invest: Yes
One disadvantage is EstateGuru’s basic Auto Invest. Investor’s that want to diversify and automate their investments and aren’t willing to invest at least €250 per project can’t use the advanced Auto Invest settings, meaning you will be only able to define the investment amount, loan period and loan types.
However, there is a trick that can unlock all the Auto Invest functions even if you only invest €50. In order to get this feature you need to invite at least 50 friends that invest on EstateGuru.
Only investors that invest at least €250 in one project can access the advanced options such as LTV, Security, Interest, Stage loans and Refinancing.
The basic Auto Invest options are not very valuable as most of the investors invest in loans based on the interest, security and the LTV.
Most of the investors will, therefore, diversify their portfolio manually. Read more about how to invest on EstateGuru here.
The P2P lending platform EstateGuru collaborates directly with the borrower which is not that common in the P2P lending niche.
The real estate projects on EstateGuru are further secured by mortgages as opposed to unsecured personal loans on other platforms.
The risk of losing your investments on EstateGuru is naturally much lower as compared to loans that aren’t secured by any collateral, which makes EstateGuru a great Mintos alternative.
The historical annual return from investments on EstateGuru is 11,88% which is more than most of the P2P platforms offer. You can influence the interest by investing manually into individual loans.
The ratio between the risks and returns compared to other P2P lending sites is very competitive. Earning more than 11% of interest on your investments in property-backed loans is a very attractive deal.
EstateGuru never lost any of the investor’s money, which is a good indicator that the platform is able to protect your investment.
Do you want to learn more about EstateGuru and its risk assessment? Watch my interview with EstateGuru!
EstateGuru’s interface is quite intuitive if you are already familiar with other P2P lending sites. The platform is fairly simple to use and it does not include any complex features.
Here are some of the features that you will find on EstateGuru.
1. EstateGuru Autoinvest
The Auto Invest function is one of the most basic automated investment tools in the P2P lending niche. There aren’t many options to filter and some of the options are only available to investors with a minimum investment of €250.
If you are basing your investment decisions on the LTV you will need to invest manually, which takes more time.
2. Secondary Market
This feature has great potential for those who are looking to withdraw money from EstateGuru.
There are, however, a few things to keep in mind when using the EstateGuru Secondary Market.
Investors can currently buy claims on the Secondary Market manually. Investments on the Secondary Market are not automated via Auto Invest.
Sellers will be charged a 2% fee when using the Secondary Market.
Buyers won’t be able to sell their claim within 30 days from the purchase on the Secondary Market.
3. International expansion
The platform is currently translated into six languages, meaning EstateGuru is trying to make its P2P lending site accessible for investors from other countries. Furthermore, the platform is also constantly expanding in new territories that help you with your diversification efforts.
EstateGuru isn’t currently the most developed P2P platform, however, it is constantly improving, which is a good sign for the investors.
If you have difficulties signing up or start investing on EstateGuru you can read my step by step guides.
So far I haven’t had any major issues. All of the questions were answered within a few days. You can contact the EstateGuru support via email at firstname.lastname@example.org.
EstateGuru was also keen to invite me to their office in Tallinn and visit some of the funded projects in the area.
My overall impression of EstateGuru is very good. It is certainly one of the leading P2P platform.
EstateGuru’s main focus is to fund real estate projects via crowdfunding and give smaller investors the opportunity to benefit from the positive trend in the real estate market.
I am not familiar with any better platform with the same vision.
My EstateGuru portfolio
I started investing in the Estonian peer to peer platform EstateGuru on the 27th February 2018 and I haven’t had any defaulted loans (that were not recovered) since then.
My portfolio is with only 26 loans rather small compared to over 1.000 that I invested through the competing P2P platform Mintos.
EDIT February 2020: The current portfolio value is around €1.900 with an annual interest rate of 14.50%.
Since I have signed up on EstateGuru the P2P platform underwent a major revamp in design and user experience. EstateGuru is now much more user-friendly and you will find all of the information just with a few clicks.
EstateGuru proved its concept and so far I have not had any bad experiences with the platform.
Having the opportunity to participate in the real estate market and benefit from its increasing trend, with relatively small capital and risk, is a huge benefit in my opinion.
If you want to invest in the real estate market but fear the risk or don’t have enough capital yet, sign up on EstateGuru and invest in secured real estate projects.
What is LTV?
LTV represents the ratio of a loan to the value of the asset. If you as a borrower want to borrow €50.000 for the purchase of a house worth €100.000, the LTV will be 50% (50.000/100.000*100). This metric is mainly used by the peer to peer lending platforms within the real estate niche.
What are Full Bullet loans?
Full Bullet loan on EstateGuru is a loan, where the full amount, as well as the interest, is being paid at the end of the loan period.
What are Bullet loans?
Bullet loan on EstateGuru is a loan, where the full amount being paid at the end of the loan period while the interest is paid according to the loan contract, mostly monthly or every quarter.
EstateGuru Review Summary
My experience with EstateGuru was up until now very positive. I also value the fact that there are always available loans to invest in.
This isn’t the case with all P2P platforms that are focusing on a specific loan type such as real estate investing.
That means that your money won’t sit in the account due to insufficient loans on the platform.
EstateGuru is a trustworthy P2P lending platform with a solid track record. I myself visited their office in summer 2019, which resulted in an amazing interview about the risks connected to P2P lending.
If you have some saved money and you don’t know where to invest, EstateGuru gives you a good opportunity to let your money work for you and earn up to 12% of interest every year.
The main reason to invest on EstateGuru isn’t only the high interest. It’s the security that comes with your investment. Your money is protected by real estate and therefore real value. Not every P2P lending site can say the same.
Use my EstateGuru referral code to get a cashback bonus of 0,5% on your investments on EstateGuru.
EstateGuru Review after 24 months | Best P2P Lending Platform in 2020?
In the last 24 months I have invested almost 2,000€ in various projects on EstateGuru. Here are my experiences and opinions about the Estonian real estate platform.
Product Brand: EstateGuru
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