Based on the types of loans the p2p lending platforms offer, they can be split into 3 main categories:
- focused on consumer loans – offering loans to private persons for different reasons
- offering business loans – funding businesses operations and expansions
- focused on real estate development loans
There are many European p2p lending platforms that let you invest in property-backed loans and gain good interest rates for your money. Some of the ones I like the most are on this list.
Housers is a real estate crowdfunding platform from Spain that offers investors opportunities from Spain, Portugal or Italy.
Housers offers 3 types of investments on the platform:
- Buy to sell – these generate no monthly income and the investor recovers their investment only after the property is sold
- Buy to let – investors get monthly rental income and the sale of the property is not considered in the short term; these last from 5 to 10 years
- Development loans – these have an estimated term between 12 and 60 months; the interest is paid monthly to investors
50 EUR bonus after the first investment
EstateGuru is a peer to peer lending / real estate investment platform that offers short-term property-backed loans from Estonia, Finland, Latvia, Lithuania and Spain.
The historical return for investors of 12.03%. (See more stats on EstateGuru here).
EstateGuru doesn’t offer a buyback guarantee policy but so far it didn’t lose any investors funds. Out of more than 1000 issued loans, 43.1% have been already repaid and 3.7% are currently in default.
All loans are secured by real estate property. The average LTV (loan-to-value) ratio for the loans issued on the platform is at around 58%. In case of borrower default, it would take a while, but the invested funds would be recovered.
I like that they’re transparent and publish annually their financial statements. They also publish regular updates about their future plans and projects.
0.5% cashback on all investments made in the first 3 months
Crowdestate is a real estate crowdfunding platform based in Estonia. You can either finance or get funding for a real estate development project.
You can invest in the real estate market through credit loans or invest in business loans and mortgage-backed loans.
All real estate development projects offered on the platform are ended with the sale of the property. Some of the projects might close earlier than the expected term, if specific conditions are met, like “a 30% increase in the value of the property”.
Things I like about Crowdestate
- they have a very liquid secondary market
- they offer a constant flow of projects
- you have an auto-invest tool
- they’re very transparent and publish annually their financial reports
Bulkestate is one of the newer players on the real estate crowdfunding landscape in the Baltics. It offers investors loans secured by real estate mortgage with a period of 12 to 24 months.
Bulkestate does an evaluation of the investments and then makes them available on the website. All loans on the platform are secured by real estate properties.
Besides basing this evaluation on their experience, they also only allow loans where loan-to-value is less than 70%.
They mostly invest in renovation projects around Riga, and the projects are usually small and get funded quickly. It’s one of the best property lending platforms to invest in the Baltics, but it doesn’t have an auto-invest and you need to be online at the exact hour a certain project starts funding in order to get a piece of the pie.
Brickowner is a relatively new property crowd-investing platform in the UK.
The interesting thing about Brickowner is that they invest in institutional-grade real estate projects small investors wouldn’t have access to under normal conditions. They act as an aggregator of investors funds, and with these funds, it invests in parts of large property development projects.
The investments are structured either as bonds or as equity shares, depending on the property.
The projected returns on the investments start from around 8% and go up to 20% per year. Typical investment periods range from 1 to 5 years.