Crowdestor P2P Review – High Returns


Our Crowdestor P2P Review highlights high returns from 12-36%.  Since being founded in Talinn, the capital of Estonia, Crowdestor keeps evolving.  While not really a P2P platform, they focus on business, real estate, transport, and startup financing. Since 2017 they’ve funded about 40 or more projects, some of which have been fully repaid. 

Crowdestor co-invests in every project.  Consequently you travel the road to financial freedom in the same vehicle as they do. 

The contact information for Crowdestor is as follows:

Roosikrantsi 2, Tallinn, Estonia.  Phone: +371 2733 3274.  Email:  [email protected]

The Crowdestor office is located somewhere in this building.

Their Latvian office is at Vīlandes iela 6-6, Centra rajons, Rīga, LV-1004.  It appears they share the building with the Embassy of Kazakhstan. (click to see)

They use one central phone number for all their office calls.

Crowdestor P2P Review - Variety is the Spice of Life

On their website we can find seemingly oddball investments.  I, for one, like a bit of variety.  This shows me that Crowdestor keeps looking for opportunities with eyes wide open.  Consequently we get to benefit not only with the spice of life, but also about some environmentally focused projects.

While they haven’t been around for long, they’re quickly increasing their loan book.  Investments include restaurants, building renovations, energy investments, start-ups, one grocery store, and many others.  I also like their short-term projects with event organizers, as I’m certain it will create repeat business.

Crowdestor practices due diligence in their lending.  With at least five projects fully repaid, all projects are returning income.   This platform is actively improving their services.  As a result this is one platform I will keep working with.

Crowdestor P2P Review of Loans

According to the last 39 projects, Crowdestor offered € 8,426,684 worth of investments.  Reviewing interest rates we can calculate a simple average of 16.76%.  The average loan runs for 11.69 months.  Total interest on all projects would total €1,905,671.  As a result project would return 22.61% through the period of investment.  The weighted average interest comes to 18.36%.

While Crowdestor’s numbers may not be that impressive yet, they are progressively adding to their portfolio.  Not only that, but they’re actively adding to their repertoire by remaining flexible.  I like how they are attracting new kinds of borrowers.  I don’t think Crowdestor will hit 9-digit numbers anytime, but their platform leaves this possibility wide open.  Having looked at similar platforms, I’d say that Crowdestor is growing at a much healthier pace than many others. 

Platform Information

While users access the platform in English, German, Spanish, and Portuguese, investors can only deposit Euros.  The site shows their last 39 investment opportunities.  However, only investors have access to the project details.  While the menus use different languages, Crowdestor generally announces updates in English.

The account overview tells you everything you need to know quickly.  Here you can view details about individual investments and see all your transactions.  Furthermore you can access the payment schedule for each loan here.


Safety of Capital

Crowdestor operates quite differently from well-known Mintos.  While there’s no buyback guarantee, Crowdestor is building up a reserve fund.  This fund will cover possible losses from delinquent accounts.  As Crowdestor doesn’t lend out small amounts, more effort gets put into vetting the borrowers.  As a result all projects are returning interest or have been repaid.  Can a project possibly lose 100% of the funds lent?  Possible, but very unlikely.  However, Crowdestor works to prevent investor losses in that event or to cover smaller shortfalls.  They forecast a value of 100,000 EUR for their fund by the end of 2019.  We hope the fund never sees unwanted situations, but protection never hurt anyone. The buyback fund and collateral can give us peace of mind.  Furthermore we should note that Crowdestor invests into each project itself as well.  That is to say, that the company loses when you do.

How quickly can you get your money out?

Crowdestor offers very high rates of returns.  That being said, we cannot expect to withdraw money anytime.  Once you invest in a project you’ll be able to withdraw according to the loan agreement.  Most projects pay interest every month, while some may repay some principal as well.  I would suggest only investing funds you’re certain not to need for the duration of the project.  We spread our money by investing in different platforms.  As a consequence we have different options available for withdrawing money more quickly. (For investments with higher liquidity check our Mintos P2P Review or our RoboCash P2P Review.)

How do we deal with cash drag?

When money sits idle, you’re not getting returns.  Cash drag shows up in different forms on this platform.  You can’t reinvest the interest you receive each month due to minimum requirements.  Also the available of projects still affects some.  Crowdestor requires a minimum investment of € 50 for each project.  If you have € 1,000 invested at 18%, you’ll get € 15 each month for interest.  Looking at the situation, I see several options.  Firstly you could increase your investments, so that you’d receive enough interest to reinvest.  Secondly you could simply withdraw your interest every time. Thirdly you could add small amounts each month to achieve the minimum investment.  Fourthly you could just let it ride, considering the higher interest more than makes up for it.  Above all you need a way comfortable for you.  I would advise finding a way that’s most profitable and less work.

How much do I need to get started?

Crowdestor requires a minimum deposit of € 50 to get you started.  Furthermore investing in any project takes the same amount.  Investing a little over € 3,000  at 18% could certainly help with cash drag.  However, you should keep your money diversified (For an article about diversification read here). As we continue to review P2P opportunities, we try to update you on any Crowdestor developments.

P2P Platforms Similar to Crowdestor

A great number of crowdfunding platforms operate in similar fashion to Crowdestor.  Envestio attracts similar borrowers with returns in the same range.  Both BulkEstate and CrowdEstate share the taste for real estate investments.  A new platform, TfgCrowd, follows some of the same strategies as Crowdestor.  While we haven’t reviewed these and many other platforms like it, we will be doing that soon.  Keep an eye out for these P2P reviews and more.

Crowdestor P2P Review - Final Thoughts

I would love to put more money into this platform.  I think Crowdestor is making progress with their improvements.  Their website makes investing simple.  Currently I have only € 1,000 invested here.  I would invest a lot more, if I didn’t need funds for a down payment on a house soon.  Their projects look solid and I can already see them building up their clientele.  I expect more projects with event organizers, as that creates an ongoing need for investment.  I feel their way of business provides everything I need.  For people with emergency funds in place for all needs, this platform shines.  While you don’t get a great choice of investments on a given day, you can wait for the one right for you.

While we continue to improve our Crowdestor P2P Review, we hope you can help.

Please, help us make this review and our website better. You can help by doing any of the following: 1. Share our reviews on social networks; 2. Follow us on social networks; 3. Like our posts and pages; 4. Leave comments telling us of mistakes or omissions; 5. Leave comments about the P2P platforms, so that other readers can learn more; 6. Link to our site, pages, or posts; and 7. Just showing your appreciation and encouragement.

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Wishing you a wonderful trip on the Road to Financial Freedom!

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