EstateGuru Review: My Experiences With The P2P Platform

estateguru-review
EstateGuru Overall Rating
88%
Diversification
80%
Risk / Returns
90%
Functionality & Usability
80%
Support
100%

How much do you earn on EstateGuru?

  • Average interest: 12.07%
  • Investment period: 1 year
Invested amount Balance
€100 €112,07
€500 €560,30
€2.000 €2.241,4
€5.000 €5.603,50
€10.000 €11.207

This is an illustration of possible returns when investing on the mentioned P2P platform. The historical average interest, provided by the platform, is not guaranteed and may vary. The calculated yield does not represent the actual net return of your investment as it does not consider taxes, fees and possible defaults. Be aware that P2P lending is a risky investment that can result in a total loss of your invested amount.

EstateGuru is an Estonian P2P lending platform that offers investors the possibility to invest in real estate properties. Since the inception in 2014 EstateGuru funded over 680 loans worth more than €103 million.

In this EstateGuru review I will be sharing my experiences since I started investing on EstateGuru in the beginning of 2018.

Do you want to learn how earn more than 11% of interest with EstateGuru?

In my EstateGuru review I will be reviewing the following four categories:

  1. Diversification options
  2. The ratio between risks and returns
  3. Functionality and usability of the website
  4. Customer Support

 

Do you prefer to watch my EstateGuru review as a video rather than read? 

 

2:02 How to sign up on EstateGuru
3:28 How to invest on EstateGuru
7:44 EstateGuru Review

Who is EstateGuru for?

Few years ago, real estate property investing was only available to big venture investors. The goal of EstateGuru is to allow small investors to participate in the growing real estate market.

EstateGuru is suitable for any investors that don’t want to take huge risks and get a mortgage but rather invest in real estate projects from only €50.

Reasons to invest on EstateGuru:

  • Protected investments
  • High interest
  • Short-term real estate projects
  • Trustworthy and established P2P lending platform

EstateGuru in Numbers

Statistics will always give you an idea about the P2P platform’s performance as well as its growth.

  • Operating since: 2014
  • Investor’s earnings: > €9.0000.000
  • Total loan value: > €141.000.000
  • Amount of investors: > 29.000
  • Funded loans: > 950
  • Average LTV: 57.8%
  • Average loan period: 12 months
  • Loss of investor’s money: €0
  • Testing since: 27.2.2018
  • My investment on EstateGuru: €1.076

 

How safe is EstateGuru?

All your investments are protected by real securities (property), meaning that in case the borrower fails to pay back his loan, the collateral will be sold and your investment will be repaid.

Securities:

  • First rank mortgage
  • Second rank mortgage
  • Personal guarantee of the borrower

Note, that your investment is always protected by either a first rank or a second rank mortgage and a personal guarantee of the borrower in the full mortgage amount.

EstateGuru employes lawyers and debt managers with long experience in the debt collection process. The platform evaluates each project based on several criteria before listing it on the platform.

It looks into the books, finacial reports, history of the company, background of the borrowers as well as the value of their collateral.

EstateGuru has not lost a single cent of investor’s money since it started operating in 2014. This is a good proof of their due diligence as well as long experience in the real estate business.

Watch my interview with EstateGuru’s debt manager to find out more about the platform’s due diligence process.

My EstateGuru Review

EstateGuru Diversification

Diversification
80%

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, which makes it harder to diversify your investment.

Currently, EstateGuru offers you the following diversification options:

7 Loan Types: bridge loan, business loan, development loan, refinancing loan, reconstruction loan, sale advance loan, construction loan

Minimum Investment: €50

6 Countries: Estonia, Latvia, Lithuania, Spain, Finland, Portugal

Loan Period: 9 - 60 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.

Only investors that invest at least €250 in one project can access the advanced options such as LTV, Security, Interest, Stage loans, Refinancing, the number of funds invested.

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.

EstateGuru Risk / Returns

Risk / Returns
90%

The P2P lending platform EstateGuru collaborates directly with the borrower which is not that common in the P2P lending niche.

Most platforms such as Mintos or Peerberry work together with loan originators which take a cut from the investor’s interest.

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.

The historical annual return from investments on EstateGuru is 12.07% which is more than most of the P2P platforms offer.

I, however, could only achieve a return of 11.5%. This varies across all investors as it depends on the projects you are investing in. You can influence the interest by investing manually.

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 into 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 Functionality & Usability

Functionality & Usability
80%

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.

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.

Another limitation that should be mentioned is that there is currently no secondary market, meaning your investment is locked until the loan is repaid by the owner.

A secondary market should be introduced shortly, however so far there haven’t been any details about how it will work and whether investors will need to pay fees for using it.

The platform is currently translated into six languages, meaning EstateGuru is trying to make its P2P lending site accessible for investors from other countries.

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.

EstateGuru Support

Support
100%

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 info@estateguru.co.

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 isn’t the leading P2P platform out there, however, one can see their efforts and regular improvements.

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 since then.

My portfolio is with only 21 loans rather small compared to over 1.000 that I invested through the competing P2P platform Mintos.

The current portfolio value is around €1.076 with an annual interest rate of 11.48%.

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 into secured real estate projects.

 

Get started with EstateGuru

 

Who is eligible to invest?

In order to invest on EstateGuru you need to be over 18 years old have an account within the EEA (European Economic Area) or Switzerland.

It does not need to be a Euro account but I suggest you get one as the investments on EstateGuru are available in Euros only.

If you live outside of Europe you can open a borderless Transferwise account and get a bank account in Euros within a few minutes.

I am using my N26 black card to transfer funds to EstateGuru. You can read more about the N26 bank here.

Does that sound good so far?

Read my step by step guide on how to sign up on EstateGuru

 

How to invest in Real Estate loans

EstateGuru gives you two options when it comes to investing in real estate loans. You can invest manually or use the EstateGuru Auto Invest.

If you are one of those investors who are using P2P lending as a passive form of investing you will probably just use the EstateGuru Auto Invest.

What I personally like about EstateGuru is their loan listing. It has much more information as compared to personal loans listed on other platforms such as Mintos or Peerberry.

With EstateGuru you only invest in loans secured by a mortgage and most of the times also by a personal guarantee from the borrower.

Read my step by step guide on how to invest on EstateGuru

FAQ about EstateGuru

What is the 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 | Final Thoughts

 

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. This happend to me on platforms such as Mintos or Envestio.

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.

Sign up on EstateGuru trough my link and benefit from an exclusive cashback bonus of 0,5% on your investments on EstateGuru. 

 

Need help? Comment on my EstateGuru review below

If you have any questions about my EstateGuru review, please leave them in the comments. I’m happy to help.

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