Real Estate investment platforms began in 2012 in the US when Congress enabled non-accredited investors to invest in real estate through crowdfunding.
Several platforms have developed since then and Europeans, where the regulatory framework is much more flexible, often developed their own platforms themselves.
Let’s have a look at the five best real estate crowdfunding investment platforms in Europe.
EstateGuru is an Estonian real estate loan crowdfunding investment platform.
Founded by a team of entrepreneurs including Marek Pärtel and Kaspar Klajuvee in 2013, EstateGuru is today the biggest real estate investment platform in Europe.
The company provides loans to real estate firms in need of quick financing. The money from these loans is invested by the users of EstateGuru. The loans are backed by a mortgage, or by the property.
EstateGuru boasts an incredible 140 000 investors that have earned an average of 11.03% on more than 4100 loans.
Out of the 3.76% of total bankruptcy, only 0.01% of loans were not recovered.
EstateGuru is a safe and reliable platform. It provides loans in Estonia, Latvia, Lithuania, UK, Germany, Spain, Portugal and Finland.
Founded in 2018, Reinvest24 is also based in Estonia.
The company proposes different types of investments, such as loans in construction from their partners or loans for third parties.
While EstateGuru only offers loans, Reinvest24 enables its users to also invest in properties in order to become a real estate owner. This way, your investment can earn you money for the rest of your life.
Reinvest24 investment projects have an average length of 9 months and yielded 15.09% on average so far.
None of the projects have defaulted, which highlights the diligence work of the Reinvest24 team.
Raizers is the equivalent of EstateGuru, but for the French market.
When real estate developers contract a mortgage, they often have to bring in 10% or 20% of equity.
Platforms like Raizers enable these developers to raise the equity instead of investing it themselves.
Raizers has at this stage concluded 263 projects. Investors earned 9.8% on their investments on average, which last around 21 months.
While the platforms above welcome small investments (€50 and €100), Raizers welcome investors that are willing to invest €1 000 or more in their projects.
4. Heavy Finance
Heavy Finance is a loan crowdfunding investment company. While the companies above dealt with real estate, Heavy Finance deals with the agricultural sector.
Investors invest in loans used to purchase agricultural materials or lands. More than 25 million euros have been lent and investors have earned a little more than 12% on their investment.
Heavy Finance began in 2021 in Lithuania, and has since entered Bulgaria, Poland, and Portugal.
And we finish this round with LandEx.
LandEx is a crowdfunding investment company enabling anyone from the EU, the EEA, and the UK to invest in farmland.
LandEx uses a loan agreement by which users can invest in land. This helps LandEx users benefit from all of the financial advantages of investing in farmland without the hurdle of owning it.
Investors in LandEx have earned an average of 11%. The platform is however much more secure since LandEx does not offer loans, but the plots themselves.
As a result, there is no risk of lender bankruptcy.
There are to this date more than 30 real estate investment platforms in Europe.
These platforms operate in different markets, with different mechanisms that entail different risks.
Investors should always make sure that they understand what type of investments they’re getting into, and whether the platform is honest, transparent, and trustworthy.