Crowdestate is a real estate crowdfunding marketplace offering high-quality, pre-vetted real estate investments. Their close relationships with different local real estate developers and brokerage companies give them access to a large number of off-market real estate investments. Only the best investments surviving the due diligence process are published for investing.
While all relevant information required for making proficient investment decisions are attached to each investment, all investment decisions are made by the investors based on their personal investment preferences and risk tolerance. Extensive background information, business plans, and financial models combined with a low 100 euro minimum investment are making real estate investing quick and easy.
Online marketplace and underlying technology provide access to the real estate investments regardless of your location or time zone.
At the same time, Crowdestate is a perfect partner for real estate entrepreneurs having a bright investment idea but lacking etiher capital or liquidity. Crowdestate is their professional funding partner, consolidating hundreds or thousands of smaller investment orders into a single lump sum.
How it works and who can invest?
You should be a registered user to gain access to the investment opportunities. Before investing, you are expected to provide Crowdestate with necessary information and confirmations required by the law.
As a registered user, you can open one or several investments accounts (for instance, one for your personal holdings and the other for your investment company). All your transactions (investments, distributions, payments etc) will be reflected on your investment account.
You should have sufficient free funds on your investment account to start investing. Funds can be added to your investment account through wire transfer, please always use investment account’s unique reference number to ensure smooth transactions.
Please review investment opportunity before making any investment decisions. Crowdestate’s investment opportunities
are of different length, risk profile and return expectations. Please consider the suitability of any investment opportunity to your personal risk tolerance and investment horizon. If the available opportunity does not match with your preferences, please do not invest in it. We are regularly adding new real estate investment opportunities and in time you will find a suitable one.
If you have found a suitable real estate opportunity, please start investing by entering your investment amount and concluding the necessary agreement. At the moment of signing the agreement, Crowdestate will make the reservation in your investment amount on your investment account.
In case the funding campaign is successful (the investment opportunity gets funded before the deadline of the funding campaign), Crowdestate
will proceed to concluding the investment transaction. During the settlement process, your investment amount will be debited from your investment account and transferred to the Sponsor.
In case the funding campaign fails (the investment opportunity falls short of full funding before the stated deadline), your investment agreement and the reservation on your investment account are automatically cancelled.
Investors from all countries are welcomed in Crowdestate loans
except US citizens (due to the regulations the US government has set).
Investment minimum and maximum amount
The minimum amount of any single investment is usually EUR 100,00 (one hundred euros), and investments can be made with 100 euro intervals (i.e 100, 200, 500, 1000 euros etc).
Any new investment opportunity opens with a 24 hour prebooking period. This is a period where one investor can make one investment order within the preferred maximum investment amounts. The final investment amount will be determined by the number of prebooking investors. It will remain between 100€ and your submitted maximum investment amount.
Different types of capital and their meaning
Equity is the capital placed in the company by its owners. The owners are paid the last, after all liabilities have been paid.
Mezzanine is a hybrid capital (subordinated loan or preferred equity) that lies between equity and secured loan. It has a lower risk than equity – mezzanine financing is repaid before equity, but after all bank obligations have been fulfilled. In addition to the usual interest, bonuses that depend on the profitability of the project may be added to the mezzanine capital.
Unsecured loan is a layer of capital between equity and secured loans. They are riskier than secured loans, but also more profitable. Unsecured loans are repaid to the owner of the capital after all secured debts have been repaid.
Secured loan is the safest and thus the least profitable type of capital. The loan is secured against a collateral, which is usually a mortgage on the assets of the company or some other type of collateral. Secured loans are always repaid in the first priority.
Different types of real estate investment and their meaning
Rental – Investments to projects with available cash flow.
Development – Investments to property development projects (the construction and sale of buildings).
Speculative – Risky early-stage investments to a property where the main parameters of the development project are known, but they can change significantly during the implementation of the project (e.g. the development process of the detailed plan and its duration as well as building rights).
Various asset classes and their meaning
Working capital is a capital needed for financing the running operations of a company.
Investment is a capital placed in the development of a company, in particular in its main assets.
Bridge financing is a temporary short-term financing, usually later replaced by a long-term and more stable financing solution.
M&A is financing mergers and takeovers of businesses.
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