My real estate crowdfunding portfolio (January update)
I’ll try to keep a regular journal on my real estate crowdfunding portfolio in order to better track how my investments are doing.
I’m including here only real estate crowdfunding platforms that offer investments in rental properties. These platforms are:
I also have investments in platforms that offer development loans: Bulkestate, EstateGuru, Brickowner, Crowdestate and Grupeer. I’ve included these investments in my crowdlending portfolio, due to their different risk profile.
This portfolio is just in the inception phase, I’m still testing the platforms and trying to find the ones that I like best.
While I’ll keep building up my European portfolio, I also plan to invest some funds into Fundrise, in the US. It might take me a few months until I’ll feel the need to do this, though.
I’ve only started to invest in these platforms in December, so these are my first investments:
|Platform||Invested capital||Current value||Profit||Currency|
|Property Partner||500||512.08 (+1.03)||12.08 (+1.03)||GBP|
|British Pearl||500||491.33 (+1.33)||-8.67 (+1.33)||GBP|
Legend: The numbers in the parentheses signify the increase since last month.
A few of my investments are just buy-to-sell properties, with no rental income.
Some details on the platforms I’ve invested in
Housers sent me a message this month that one of the platforms won’t issue any rental dividend, because the property was not rented.
“We are contacting you to inform you that the “Palacio Pitti” opportunity, is rented on holiday basis and that, due to the fact that it has not reached the necessary occupation, it will not be able to distribute the dividends. ”
The other investments are buy-to-sell properties, with no rental and with an investment term between 1 and 2 years.
I’ve received my first rental income worth 1.33 GBP. With those funds, I bought the dark side of the moon so the Chinese couldn’t land and establish a base there.
I’ve received 1.01 GBP in rental income since last month. I’ve also bought this month from the secondary market a few shares that were at a discount, so my portfolio looks a bit better than it actually is.
2 of my investments are still in a pending state, and I’m waiting for them to close and pay my dividends.
Only one of my investments is actually a rental. The other is a loan with a term in October this year.
I’ve invested in a second charge secured development loan in central Liverpool that still waits to be fully funded. The loan period is 5 years and the interest rate is 12%.
I’ll receive my payments on this loan only once a year, so there won’t be too many changes in 2019 for this one.
Deposits: 100 GBP
Current value: 100 GBP
Problems with investing in rental properties
I just became a landlord last month, so I’m an expert.
One problem is that the European real estate market is at 2007 price levels and the market started to slow down. If the prices drop, I really hope none of the platforms I’ve invested in try to sell the properties at their lowest price.
Another problem is that while rental income is stable, it’s only at around 4%, a lot lower than the interest received from p2p loans.
Apparently, you can also not get any rent if the property is not rented, so it’s not that stable either.
The biggest problem is that there are not that many crowdfunding platforms in Europe that offer rental properties to invest in.
The UK has the most of them, but it’s not a good idea to put all your eggs into the UK market. France and Germany have a few platforms, but they don’t have an English version, so I don’t want to join them.
The Estonian platform, Reinvest24, I’m not really sure they’re going to survive. I’m hoping they will, but if they won’t gain soon traction or don’t look for funding outside the company, I don’t believe they will.
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