Before we get started, I would like to point out that my Crowdestor review is unbiased and only based on my personal experience investing on the platform for the past 4 months.
As usual, I am going to be fully transparent about the amount I invested, my returns and the cashflow my investment is currently generating every month.
Crowdestor is a relatively new crowdlending platform, launched in February 2018 by Janis Timma and Gunars Udris. The company was founded in Estonia, but the central office and working team is based in Riga, Latvia.
Similarly to Envestio, it’s main focus are business and real-estate loans, with interest rates typically between 14-21% per year.
As of right now, thousands of investors from all over the world have funded around 9,34 million Euros worth of business loans on Crowdestor.
The minimum investment per project on Crowdestor is currently 50 Euros.
The founders: Video interview with Lars
In my opinion it’s always important to know the people behind a platform, after all we’re trusting them with our hard-earned money.
I think this video (thank you Lars Wrobbel!) gives you a good impression of the two founders of Crowdestor, Janis Time and Gunars Udris. Just start watching after minute 18:21 to skip the German parts:
Buyback guarantee vs. Buyback fund
Crowdestor is the only P2P lending platform I’m invested in that doesn’t come with a typical buyback guarantee.
Instead, Crowdestor introduced a buyback fund a couple of months ago, which is supposed to serve a similar purpose as a buyback guarantee you may know from other platforms.
Since the 1st of March 2019, 1-2% of the amount that is financed via Crowdestor is directly added to the buyback guarantee fund.
At the same time, the company is transparent about the amount that is in the fund at all times. It already surpassed their target amount of 100.000€ which they wanted to reach by the end of the year, probably due to Crowdestor’s increase in popularity.
Skin in the game
In addition, Crowdestor takes part in every project that is offered on the platform, as co-financiers and/or co-developers, to ensure accountability from their development partners on behalf of the investors.
My Crowdestor experience after 4 months
I started my investment journey on Crowdestor about 4 months ago, on April 3rd, 2019.
So far, Crowdestor has been a great way for me to diversify my P2P lending portfolio by investing into more business and real-estate loans. I certainly can’t complain about the interest rates of up to 21% per year.
Plus, they offer some interesting loan opportunities that I haven’t seen anywhere else, like renewable energy and forestry, concerts, restaurants, hotel resorts in South-East Asia and real-estate renovations in Latvia.
My deposits on Crowdestor
- April 3rd: 500€ deposit
- May 20th: 500€ deposit
- June 14th: 125€ deposit
- June 17th: 125€ deposit
- July 8th: 250€ deposit
My Crowdestor account value
I haven’t made any withdrawals yet, as I’ve been very happy with the returns. Interest payments have always arrived on time so far, I hope it stays that way.
My investments on Crowdestor so far
|Industrial Business Center Tvaikonis||Real Estate||21%||261,58€|
|Renovation of Dwelling House in Riga||Cash Flow||20,7%||266,43€|
|Refinancing of existing loan 2nd stage||Business||17%||200€|
Before investing, you get more detailed information about each project: A summary, the loan details, the frequency of the interest payments (monthly, or if they start after 6 months, …), financial information and projections, as well as additional details about the borrower and the market the company is operating in.
You can also check out the detailed loan agreement for every one of your investments (why hasn’t Envestio implemented this yet?).
My monthly Income and Returns from Crowdestor
Most loans on Crowdestor pay interest every month. However, some high-interest real estate loans start paying interest after six months or more, so I decided to track both paid interest as well as accrued interest, as I think that will be more interesting to follow long-term.
Paid interest shows the interest payments I received on a monthly basis, while accrued interest also includes outstanding interest that I should receive at a later date.
My monthly income from Crowdestor has been steadily increasing month after month and reached a new high of 20,21€ in July.
As of July 30th, my internal rate of return on Crowdestor is 14,78%. Since the average interest rate of my account is 18,12% per year, I also expect my IRR to reach 18% or more as soon as I start receiving interest payments from the real-estate projects.
Is Crowdestor the perfect Envestio alternative?
Envestio, another similar P2P lending platform that I’ve been happy with since October 2018, has sadly been unable to offer more than two investment opportunities (for a single project!) in over two months, which has been very disappointing to say the least.
Crowdestor on the other hand, has been able to keep up with its increase in popularity and is doing a great job publishing several interesting business loans every week with interest rates up to 21% per year.
For me, they’ve turned into the perfect Envestio alternative and I’m looking forward to investing more in the future.
To sum things up, I’ve been very satisfied with my investments on Crowdestor over the past 4 months. My interest payments have always arrived on time and I hope it stays that way in the future as well.
The platform allows me to diversify into more business and real-estate projects, offers some of the highest interest rates in the crowdlending space and publishes new, interesting loan opportunities every week. As a result, so far I’ve always been able to be fully invested.
I also like the team behind Crowdestor and their level of transparency on the platform. Therefore, I’m willing to give up on the typical buyback guarantee in exchange for their buyback fund, which should serve a similar purpose.
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What was your experience?
Are you invested on Crowdestor as well? I would love to hear about your experience or opinion in the comments!
Video review of Crowdestor