Crowdestor Review: How to Invest in Real Estate & SMEs with Crowdestor

Crowdestor Review How to Invest in Real Estate & SMEs with Crowdestor
My Crowdestor Review
  • Invested in Crowdestor - €1 250
  • Self-reported returns - 17.17%
  • Passive earnings per month - €14
  • Investing time on Crowdestor - 6 months
4.9

My Crowdestor Overview:

At Crowdestor, you specifically invest in personal projects. But every project has a massive difference in the return that can be attained. The return varies significantly from 12 percent to over 30 percent. My current ROI with Crowdestor is stable at 17.17% (screenshot below).

The major risk with crowdfunding platforms with high returns is mainly the investments themselves. The same applies to Crowdestor. 

Crowdestor has made some additional measures to protect you in order to minimize the risk that you take as an investor. Among other things, they cautiously review all potential borrowers before they arrive on their platform.

Both current commitments, financial background, and reputations are examined. Additionally, their loan security, financial reporting, and business plans are evaluated by the Crowdestor expert team.

Nevertheless, it doesn’t stop here. Because in each project offered on Crowdestor, the platform takes part as co-developers and/or co-financiers. Therefore, their interest is affiliated with its investors.

Also, they offer a buy-back guarantee, only in case a project defaults. Which is a very solid decision. So far, I am very satisfied with my Crowdestor results. I will keep watching over the platform and my future results.

*Sign-up through the button below to earn 1% of the investment that you make, continually for the next 90 days.

Crowdestor Review: What is Crowdestor?

Crowdestor is a P2P lending platform specializing in businesses and real estate development projects. Having their first project launched in 2018, Crowdestor is still quite a new crowdfunding platform. However, since its first project, the platform has funded a myriad of other projects.

On the platform, investors can invest in high yielding startup projects, real estate, transport, and business. Since the borrowers pay all fees, there are zero investment fees on the platform. However, the borrowers benefit hugely from the platform, as they can get capital for their projects. This makes it easier for them to lead their projects into real life.

Crowdestor headquarters are situated in Riga, the capital city of Latvia. It is from here; all the daily activities take place. On the platform, you will find experienced professionals who have years of skill in raising capital. Thus, they have a vast knowledge of what raising capital means.

I’ve selected Crowdestor in my list for the best business crowdfunding platforms to survive COVID-19.

Crowdestor Review

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*Sign-up through the button below to earn 1% of the investment that you make, continually for the next 90 days.

What Rate of Return Can You Expect?

At Crowdestor, you specifically invest in personal projects. But every project has a massive difference in the return that can be attained. The return varies significantly from 12 percent to over 30 percent. Also, check out our p2p cashback offers available for new investors.

Thus, the expected return depends on what type of projects you end up investing in. Your return will definitely be higher than for a more conservative investor if you go for high-return projects alone.

It can sometimes be challenging to diversify appropriately since there are generally few, but big projects on Crowdestor. You can benefit from spreading your risk more than you can at Crowdestor, especially when the investments are of high risk.

Therefore, it can genuinely be a pretty great idea for you as an investor to combine the use of the platform with a similar platform, such as Rendity. However, before deciding to do so, make sure to check out our Rendity review. Here is a screenshot of my Crowdestor return on investment.

Crowdestor Review My personal return on investment

Who Can Invest via Crowdestor?

You need to be at least 18 years and above if you want to invest via Crowdestor. Additionally, it’s also a necessity that you own a bank account in one of the member states of the EEA banks or the European Union. It is impossible for you to invest if you don’t have a bank account in these countries.

However, you can research the likelihood of opening a European Economic Area bank account from foreign countries because, in many nations, it is possible. However, since we don’t know where you are located, we can’t advise you directly about the issue.

So, if you are looking forward to investing via Crowdestor, simply make a simple Google search. Alternatively, you can use one of the numerous other crowdfunding lending sites.

Are you interested in investing through Crowdestor? Then click the button below to be taken straight to their site. Here you can register yourself as an investor. Later, you can begin investing via Crowdestor and benefit from the high return.

 Sign-up and Get 1% Bonus

*Sign-up through the button below to earn 1% of the investment that you make, continually for the next 90 days.

Is Crowdestor Safe to Use?

There is always a risk associated with investing your money. Likewise, this risk also follows the return you get. The risk will always be correspondingly high when your expected return is high. So, the high return that can be expected from the platform will generally be described as high risk.

However, you might be wondering what existing risks are connected to investing via Crowdestor. Luckily, in the next part of our Crowdestor review, we take a look at some of the significant risks you face on the platform. Furthermore, we discuss what the platform has done to minimize these risks.

The Main Risk

The major risk with crowdfunding platforms with high returns is mainly the investments themselves. The same applies to Crowdestor.

You can lose the whole amount you have invested in the given project if the projects you invest in via Crowdestor end up failing. However, you can’t lose more than what you have primarily selected to invest in a given project.

Also, if you are looking for more platforms, where you can invest, read my reviews on OctoberRenditySeedrs, Bulkestate, FlenderReinvest24, Yielders.

Investment Risk Management

Crowdestor has made some additional measures to protect you in order to minimize the risk that you take as an investor. Among other things, they cautiously review all potential borrowers before they arrive on their platform.

Both current commitments, financial background, and reputations are examined. Additionally, their loan security, financial reporting, and business plans are evaluated by the Crowdestor expert team.

Nevertheless, it doesn’t stop here. Because in each project offered on Crowdestor, the platform takes part as co-developers and/or co-financiers. Therefore, their interest is affiliated with its investors.

What Happens If Crowdestor Goes Out of Business?

Looking at the worst-case scenario is best is the best way of assessing how really secure a platform. In the Crowdestor case, this will perhaps be if they go out of business. Therefore, in this Crowdestor review, we have decided to take a look at what happens if the platform ends up folding.

By keeping your assets separate from their own is one of the most significant steps Crowdestor has taken to safeguard you as an investor. They achieve this by keeping your funds in a separate company called CROWDESTOR SECURITY AGENT OA. So if the platform goes down, your finances don’t.

Also, they offer a buy-back guarantee, only in case a project defaults. Which is a very solid decision.

Crowdestor Review Final Thoughts

Finalizing our Crowdestor review, we conclude that the safety is well guaranteed on their platform. We trust that some high-security measures have been taken by the platform to protect you as an investor.

However, relatively few different investment opportunities are the biggest problem we can see on the platform. Therefore, it might be hard for you to expand your portfolio appropriately and get a favorable risk divergence.

So, we recommend you take a look at other providers such as Reinvest24 and Flender if you want to spread your risk through even more projects in the business niche and real estate. You will achieve a bigger risk diversification and gain access to more projects by using these platforms together with Crowdestor.

Also, it can be an advantage for you to combine the use of Crowdestor with a crowdfunding platform like Mintos. Their P2P marketplace allows investing in multiple loan types, which will assist you spread your risk even further.

 Sign-up and Get 1% Bonus

*Sign-up through the button below to earn 1% of the investment that you make, continually for the next 90 days.


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