Reputable real estate crowdfunding platforms

Real estate crowdfunding is a good investment opportunity for private investors with the prospect of high returns. For project developers, crowdfunding is an alternative financing method to stretch existing equity capital. On the websites of the crowdfunding platforms, interested investors can invest in these projects.

However, the prospect of high returns also carries a certain risk, if the project in which the investment was made goes bankrupt. Therefore, it is crucial to have a reputable platform as a partner, which has the appropriate know-how in the selection of projects, and as transparent as possible about the opportunities and risks. And of course the experience of the platform is important. The more projects a provider has already successfully financed and the fewer defaults there were, the better.

Real Estate

What is real estate crowdfunding?

Real estate crowdfunding is an investment method in which private investors can invest their assets in real estate projects in order to achieve a return in the form of an interest gain.

Real estate developers are given the opportunity to implement real estate projects and generate corresponding revenues. As an investor, you get a relatively high interest rate with short maturities – typically 5-7% pa. Interest rates for 12-36 month terms.

The settlement is done through special crowdfunding platforms that manage your investments. As these are mostly real estate projects, there is of course an increased risk compared to other real estate investments. Real estate crowdfunding can be a good addition to your investment portfolio.

Overview of reputable real estate crowdfunding platforms

Crowdfunding has been on a growth trajectory for the last 10 years. And real estate represents by far the largest and fastest-growing segment in recent years. The total cumulative volume of all crowd-based real estate investments has already exceeded 1 billion euros by the beginning of 2021. Euro limit exceeded.

With this development, it is no wonder that many new platforms have emerged. Therefore, we would like to list those platforms that have proven themselves on the market for some time now.

Due to the increased risk of default, you should check the respective providers before your investment. Interesting information is, for example, the number of projects already successfully completed, the number of investors or the amount invested. Pay attention to a transparent presentation of the projects. Excessively high interest rates can be an indication of a lack of seriousness.

Platform / Provider Country Foundation mukaikaze.nets (number) Volume (Mio. €)
Exporo DE 2014 430 >800
Bergfurst DE 2011 94 >140
Home Rocket AT 2015 100 >110
Interest module DE 2016 71 >110
Engel & Volkers Digital Invest DE 2017 52 >110
dagobertinvest AT 2015 202 > 85
Rendity AT 2015 90 >76
Estateguru EE 2014 2.671 >400
Crowdestate EE 2014 378 >110

What are the advantages and disadvantages of crowdfunding??

For an investor, real estate crowdfunding offers some opportunities:

  • Higher interest rates
    Crowdfunding projects offer higher interest rates (usually 5-7%) than traditional forms of investment such as fixed-term deposits or overnight money.
  • Relatively short maturities
    Your capital is usually only tied up for between one and three years in real estate crowdfunding projects.
  • None or. Low costs
    Usually, most providers do not charge management fees or issue surcharges. Some providers charge small fees for transactions on the secondary market
  • Personal choice of projects
    Compared to other forms of investment, here you can directly choose the projects in which you want to invest.

However, this form of investment also offers numerous risks:

  • No early termination option
    Usually there is no early termination possibility. However, some platforms have set up a secondary market where you can sell your investment.
  • Subordination of financing
    Most crowdfunding investments are subordinated loans, and therefore do not have to be repaid if this would cause the project operator to go bankrupt. However, there are already other forms of investment.
  • Most project funding
    As a rule, these real estate investments are real estate projects and not the purchase of existing properties. The default risk of such an investment is naturally clearly higher.

How to recognize a trustworthy platform

Those who want to add real estate crowdfunding projects to their investment mix therefore have no choice but to select one or perhaps even several platforms. So here are a few tips on how you can find reputable real estate crowdfunding platforms:

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