The real estate crowdfunding arena is enriched with Crowdestate, a new international player.
Crowdestate is an Estonian operator, active since 2014, which has set out to conquer the Italian market.
He recently opened an office in Milan and arrived in our country to stay there and give Italian investors rich investment opportunities.
Crowdfunding is part of a market that is starting to be full of interesting realities.
Housers, Walliance in the real estate sector, but also Crowdfundme, Mamacrowd in the equity crowdfunding field.
In short, there is no shortage of investment opportunities for those who love new forms of investment and want to experiment starting from small amounts.
And now foreign platforms are starting to arrive in Italy.
This allows Italian investors to differentiate their portfolios by investing in other European markets as well.
I have already told you about an Estonian platform, namely Envestio.
Today I want to talk to you about Crowdestate.
I had already spotted it and put it on my watching list of alternative investments.
Then the other day while I was surfing on Facebook, an advertisement hit me, and visiting the site I learned of their landing in Italy.
But let’s go in order and see how this crowdfunding platform works.
In this article
- What is Crowdestate?
- The team
- How does Crowdestate work?
- How to sign up for Crowdestate?
- Is the Crowdestate investment safe?
- How much do you earn with Crowdestate?
- Conclusions
What is Crowdestate?
Crowdestate is a real estate crowdfunding platform.
It allows investors to select and finance some mainly real estate investment projects.
It, therefore, allows the meeting of supply and demand in the real estate sector.
It connects real estate developers with individuals or companies that have the cash to invest.
It is growing rapidly, with more than 22,000 investors and 100 funded projects.
It was born in 2014 and since 2018 it has also been operational in Italy.
It has its main office in Tallin and Italy an office in Milan in Via Sassetti 32 in the Fintech District.
It is not subject to the supervision of the competent Estonian bodies, as these activities are not (at least for now) by law in Estonia.
The team
The Crowdestate team is made up of real estate and financial professionals.
The Founder is Loit Linnupold.
Loit has a very respectable CV with experience in banking and finance in general and in real estate.
The Italian Country Manager is Niccolò Pravettoni, who is responsible for the development of this new one in our country platform.
Niccolò studied at Bocconi and worked in Airbnb, Google, Luxottica.
Surely therefore a rather lean team, but which will continue to attract young and qualified personnel.
How does Crowdestate work?
Crowdestate is very simple.
Real estate developers, i.e. those who have ideas and need capital, submit projects to Crowdestate.
Crowdestate analyzes the details and financial plans by carrying out proper due diligence.
If the outcome of this process is positive, the projects are approved and proposed to investors.
At this point, investors can view the documents relating to the investment.
The information kit is very broad and concerns both the proposing company and the project.
Crowdestate has an interesting rating system that expresses an evaluation of projects based on some uniform criteria.
The rating makes it possible to compare the different projects and to understand if the expected return is in line with the investment risk.
The investor can then decide whether or not to invest in the proposed opportunity.
Once the collection phase has been completed, the actual investment starts.
The construction or implementation phase of the real estate project then begins.
Once the investment has been made, all you have to do is wait for the deadline to see your profits credited to your account.
If you do not want to expire, you can sell your stake in the project, thanks to an efficient secondary insurance market.
On the secondary market, you can also buy already operational projects.
The minimum investment is only 100 Euros, therefore accessible to all.
Crowdestate finally offers a very useful feature the Autoinvest.
Thanks to this function you can decide to automatically invest the liquidity deposited in your account in projects that meet your investment criteria in terms of expected return, duration, type.
The type of projects does not only concern real estate in the strict sense, but also the acquisition of companies and the disbursement of mortgages linked to investment projects.
How to sign up for Crowdestate?
To subscribe to Crowdestate you simply have to go to the homepage and click on register.
The site is in Italian and you can complete the process very quickly.
To start investing you will need, as the last step, to transfer money to your current account.
Just make a transfer and you will complete the process.
The recipient of the transfer is a foreign bank or the Estonian Bank LHV.
My bank (Fineco) does not charge any fees for the transfer within the SEPA circuit.
In any case, check any costs before making the transfer.
Is the Crowdestate investment safe?
Investing in crowdfunding involves investment risk.
Even in the case of Crowdestate, there are no certainties of repayment of the capital.
However, the selection and monitoring process put in place by the platform helps manage the risk.
In some cases, moreover, those who borrow money also have real guarantees so the investments are protected by these guarantees.
In any case, historically, there have been no cases of project failure.
Finally, it should be noted that, as with all other platforms, based on the regulations, your deposits will be segregated from the company’s capital.
This will protect your money in the event of Crowdestate default.
How much do you earn with Crowdestate?
Given the risk that we can still consider medium-high, you will expect significant returns.
The returns are very attractive.
On average they are higher than 10%, but they reach up to 15% and more.
Obviously the higher they are, the more you risk, so be careful.
Attention also to taxation because on investments made subjects, Crowdestate does not make any withholding tax, at least for the moment.
In any case, you must declare the amount received to the tax authorities when filing your income tax return.
Conclusions
Each new operator in the Crowdfunding market helps to bring innovation, rules, transparency …
And above all, yields.
Nordic crowdfunding certainly has stellar returns.
It will be necessary to see how they will behave in our country when they introduce local projects.
I see that Housers still has few Italian projects on the platform, even if Italian investors like the platform.
Crowdestate is certainly a very interesting operator that will be able to be fully evaluated in a few years of activity.
In the meantime, I have included it among my special observers and I invested the symbolic amount of 100 Euros.