I haven’t written anything about my real estate crowdfunding portfolio since July. Enough changes happened in between, so I’m ready to provide new updates.
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Real estate crowdfunding is a way in which you can directly invest in a real estate property without having the capital to buy the full property. Real estate crowdfunding platforms gather capital from multiple investors and use it to make real estate loans.
You invest in shares of a real estate property and receive payments either from rental income or from the sale of the property. Or you can invest in highly profitable real estate development projects and receive a hefty interest payment for your investment.
Real estate crowdfunding is a good alternative to REITs (real estate investment trusts) or buying your own property for sale or rent.
The list below contains Europe’s best real estate crowdfunding platforms. I’ve included in this list only platforms that accept overseas investors and also only platforms that have a decent English version.
I’ve grouped them into 2 separate categories:
I’ve created an account on each of them and went through the approval process of each one. I don’t invest in each one of them, as many share similar characteristics, but I considered them at some point valid candidates.
If you don’t want to go through the entire list, here’s the short version of it.
Real estate crowdfunding platforms focused on buy-to-sell and rental properties:
Real estate crowdfunding platforms focused on property development projects:
Brickstarter is the newest platform I joined. This Spanish platform launched in 2017 and its only investments is in short-term rental vacation properties. It makes use of big data to analyze the market and find the properties with the most potential on Airbnb, buys and renovates them, and then puts them back on the market for sale.
Until they’re sold, the properties are listed for rental and investors receive rental dividends from it. When the sale is finalized, investors share the sale profits.
The average investment term is 1 year, and the returns for investors are around 9% – 10%. They only accept investors from the EU, and the minimum investment is only 50 EUR.
While investing in vacation rentals looks interesting, the platform also comes with shortcomings:
British Pearl is a UK property investment platform that launched in 2010. It lets you invest in properties as either shareholder or lender.
If you invest as a lender, you’ll receive monthly income from the loan interest payments. As a share investor, you’ll receive monthly dividends from rent income.
You can start investing from 50 GBP, although I don’t know why the website is saying in their FAQ that the minimum investment is 100 GBP.
The investment terms in each property are expected to last up to 5 years, and the expected annual returns are from 4% to 12%, depending on the investment type (share or loan) and property.
I found about British Pearl while they were looking for funding on Seedrs at the end of 2018. I liked them and invested a small amount in their available properties.
Things that I like so far about them:
One thing that concerns me about British Pearl is that they struggle to grow. As of July 2019, the properties listed on the platform have been there since at least 6 months. Only 3 of them are completely funded and available for resale on the secondary market.
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:
They launched their platform in 2016 and they accept investors from all over the world. The minimum investment is 50 EUR, and the average annual return for investors is around 8%.
I started investing in Housers’ projects at the end of 2018, and so far I like these things about them:
There are also things that I don’t like about them:
Property Partner is a UK real estate crowdfunding company that buys properties for rent or sale. One type of property they focus a lot and I like it is student accommodation properties.
They launched their platform in 2014 and accept investors from all over the world (except US citizens). There’s no minimum investment (1 GBP) and the expected investment terms are up to 5 years. The expected annual returns are between 4% and 10%.
Things I like about Property Partner:
Things I don’t like about Property Partner:
Reinvest24 is a new player on the real estate crowdfunding market from Estonia. It lets you buy shares of residential and commercial properties and receive rental income for life.
Besides rental properties, they also invest in development projects. They buy land or an old house, renovate it, maybe convert it into multiple apartments to increase rental yield and then either sell it or rent it.
They only launched their platform in 2018 and they accept investors from all over the world. The minimum investment is 100 EUR and the expected annual return is up to 15%.
I’ve been highly sceptical about Reinvest24 at the beginning of 2019. Since then, I’ve begun to change my opinion about them.
Things I like about Reinvest24:
There are still things I don’t like about them:
The previous platforms focused on buy-to-let or buy-to-sell properties, and most of them let you buy equity in the properties. The next ones only offer property development projects and the investments offered are structured as loans.
Brickowner is a new real estate crowdfunding platform from the UK. It lets you invest in institutional-grade property development projects and gain profits after the sale of the property.
They launched their platform in 2018 and they accept investors from all over the world (except the US). The minimum investment in each project is 100 GBP and the expected annual returns range between 7% and 25%. The investment terms are between 1 and 4 years.
Some things I don’t like about Brickowner:
Bulkestate is an Estonian p2p lending platform that lets you invest in real estate development projects. The interest rates on the projects funded so far range from 13% to 19%. They mostly invest in renovation projects from Latvia, where they have the most expertise.
They launched their website in 2016 and they accept investors from all over the world (except the US). The minimum investment is 50 EUR and the loan terms range from 6 months to 2 years.
I’ve started investing in Bulkestate at the end of 2018, and so far the project I’ve invested in then has exited successfully and I received my investment back.
While I like Bulkestate, there are some things that make it hard to invest in them:
CapitalRise focuses on property development projects in the London area. They launched in 2016 and so far they funded loans worth more than 40 million GBP.
They have a decent amount of projects available and also a secondary market where you can exit your investment early. They accept investors from the EU, and the minimum investment is 1000 GBP.
I haven’t yet invested in them, although they do offer good returns, between 8% and 12%, and so far their reviews on TrustPilot are all great.
CrowdProperty lets you invest in property development projects from the UK and offers an annual return of around 8% for its investors. The minimum investment is rather steep, at 500 GBP.
They launched their platform in 2015 and managed to fund projects worth over 40 million GBP. So far, none of their projects defaulted.
I haven’t invested yet in any CrowdProperty project, but it’s on my list of UK good candidates.
Crowdestate is a real estate crowdfunding platform based in Estonia that launched its website in 2014.
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”.
The minimum investment in a project is 100 EUR, and they accept investors from all over the world (except the US). The loan terms are between 6 months and 3 years, and the average annual returns for investors are around 18%.
Things I like about Crowdestate
EstateGuru is a peer to peer lending / real estate investment platform that offers short-term property-backed loans from Estonia, Latvia, Lithuania, Finland and Spain.
They launched their website in 2013 and they only accept investors from the EEA or Switzerland. The minimum investment is 50 EUR, and the average annual returns are around 11%.
The projects offered are relatively safe. They’re all backed by real estate property and the LTV (loan-to-value) ratio has an average of 58%.
I like that they’re transparent and publish annually their financial statements. They also publish regular updates about their future plans and projects.
The main pain when investing in EstateGuru is they don’t have a secondary market. Although they did say it should be available this July (2019).
If you want to open an account with them and use my referral link (in fact, any referral link), they’ll offer you a 0.5% bonus for all investments done in the first 3 months. You can read more about them in this review.
Grupeer is a Latvian p2p business lending company that has real-estate development loans along with more generic business loans.
Since it started in 2017, Grupeer managed to finance loans of around 50 million EUR. It currently has more than 12.000 investors on its platform, coming from 80 countries.
They launched their platform in 2017 and they accept investors from all over the world (so they say). The interest rates offered range between 11% and 14% and the minimum investment is 10 EUR.
All loans have a buyback guarantee, meaning the loan originator will buy back any loan from you that is late with the interest payments for more than 60 days.
Grupeer acts as a marketplace where other lending companies publish their loans and let investors invest in them. The 15 loan originators on the platform are lending companies across Europe that offer loans to either people or businesses. The loans published on Grupeer are already pre-funded, so the investors earn interest from the first day they invest money into a loan.
As with EstateGuru, the main pain point when investing in Grupeer is that they don’t have a secondary market and you can’t exit your investment before the loan matures.
I’ve started investing in Grupeer loans at the end of 2018. So far, my annual returns are at 13.5%. You can read more about Grupeer and view details about my portfolio in my review here. You can also visit directly their website.
Homegrown is a UK property crowdfunding platform that lets you invest in residential and mixed-use property development projects.
They launched their platform in 2015, and they accept investors from all over the world (except US citizens). The minimum investment is 500 GBP, and the average annual returns are around 13%.
I haven’t invested in them yet, but they look like a more mature version of Brickowner, a platform I’m invested in.
LandlordInvest is a p2p lending platform where you can invest in loans from landlords based in the UK.
The loans offered are either buy to let mortgages or bridge loans. The expected annual returns are between 5% and 12%, and the minimum investment is 100 GBP.
The loan terms are up to 4 years, but you can sell them earlier on the secondary market.
If you plan to register on their platform, you need to be an EU resident in order to do so.
While I like the look and feel of Landlord Invest and the fact that it has a secondary market, it’s not my first choice to invest in the UK. The platform is relatively small and the new projects are relatively rare.
Profitus is a real estate crowdfunding platform from Lithuania that launched its operations in 2018.
They accept investors from all over the world and the minimum investment is 50 EUR. The average annual return on their projects is around 10%.
I haven’t yet invested in them but I like that they provide a load of data on their projects including company financials, risk assessment reports.
What I don’t like about them is that their English version is half-baked and their website, while suitable for mobile devices, looks horrible on a laptop. While website ergonomics are not the main thing to look at a platform, a really bad looking one doesn’t gain your trust.
Rendity is a real-estate crowdfunding platform from Austria that lets you invest in real-estate development loans. Loans are rated on a risk scale and based on that an interest rate is offered.
They launched their platform in 2015 and they accept investors from all over the world. The minimum investment is 500 EUR and the average interest rates are around 7%.
I haven’t yet invested in them, but they’re a good candidate for diversification. My real estate investments are all in the Baltics, Southern Europe and the UK.
They offer a 25 EUR cashback bonus when you register using a referral link and invest in one of their projects.
Rontgen is a real estate crowdfunding platform from Lithuania that launched in 2017. The minimum investment in their projects is 10 EUR and the interest rates offered are between 7% and 12%.
The platform is rather new and it doesn’t have too many projects. It also doesn’t have a secondary market, so you can’t exit your investment early.
I’m looking at it as an option to invest in only because it lets me invest in Lithuanian projects. I like the details they offer on each project, including a timeline with all the updates related to them.
Tessin is a real estate crowdfunding platform from Sweden. You can either invest in development projects or buy shares in rental properties.
The minimum investment depends on the project and it’s usually a bit high (at least 20.000 SEK ~ 2000 EUR). The interest rates offered are between 7% and 12%.
They launched their platform in 2014 and accept investors from all over the world.
The reasons I’m considering it for investing are the following:
There are also reasons I’m reluctant to invest in it:
The House Crowd is a real estate crowdfunding platform from the UK that lets you invest either in property development loans.
The expected annual returns are around 10%, but the minimum investment is rather high, at 1000 GBP. They launched their platform in 2012 and they accept investors from all over the world.
I’m not planning to invest in any of their loans in the near future, but I like their platform. There’s a decent amount of available projects, the interest rates are good and they have good reviews from other investors on TrustPilot.
I wanted first to write an article about the best 10 real estate crowdfunding platforms I like. I ended up with double the number. I even excluded some platforms, so I don’t make this list too big.
If I group my list by country, I get the following:
One platform I didn’t add here but I think it has good prospects is iFunded. It’s a good platform to invest in German real estate. It accepts investors worldwide, except the US, Canada, Australia and Japan. The interest rates offered are around 5% t0 7%, and the minimum investment varies by project, ranging from 250 EUR to 1000 EUR. I’ve been following it for a few months and it always seems to have some new projects and they get funded relatively quick.
There’s also Crowdestor, another good platform from Latvia, that besides business loans offer real estate development loans with interest rates between 10% and 15%. You can read more about Crowdestor here.
And the list could go on. The UK p2p lending market is slowing down, but the continental Europe market is just catching up and new platforms appear (almost) every day.
You can view a lot more European p2p lending sites here.