Bulkestate - P2P Lending Investment Review
What is BulkEstate?
Bulkestate is a crowdfunding platform that serves the real estate market. Private investors can invest in property and buy with a minimum of €50. The loans on this platform have a term of an average duration of 12 months.
Bulkestate has been in operation for three complete years now, and in that period, it has seen more than 18000 investments completed through their platform. The Estonian laws govern this crowdfunding platform since it is currently based in Estonia.
What sets Bulkestate apart from its competitors?
It is no secret that a successful business has to have something that separates it from its competitors. Bulkestate differs from other real estate crowdfunding sites by being able to offer both buying and lending services to its users. This allows investors to invest their money in projects as well as buy parts of the project with a group of other investors.
Another factor that sets Bulkestate apart from its competitors is that it has a team of individuals with great expertise in the real estate sector.
Investing in Property Development Loans
This portfolio has loans issued to property developers. It allows investors to use the auto-invest tool, which makes the investment process quite passive. The tool automatically makes investment decisions based on the strategy put in place by the investor. It is important to note that investors have the liberty to review and change the settings applied to their auto-invest tool anytime they wish. If you choose to stop the auto-investing tool, all investments in progress will continue.
You can invest with a minimum of 50 EUR, and there is no restriction on the amount you can invest, only that you cannot exceed the total loan amount. You should note that Bulkestate does not provide a secondary market; hence, investors cannot withdraw from an investment before the scheduled repayment date.
What happens if Bulkestate declares bankruptcy?
As an investor, it is not good news to hear that a company you had invested in has declared bankruptcy. This could mean an extended repayment period, which can greatly inconvenience your investment plans. However, Bulkestate declaring bankruptcy will not affect your investments at all. Once you invest in the loans, you buy a share of the loan together with its underlying collateral.
In the case that bankruptcy is declared by Bulkestate, the person in charge of liquidating the security will take charge of all investor assets. They can liquidate the security to pay investors back if the borrower is not also able to pay; otherwise, they will manage all the loan repayments until the loan term is complete.
The group buying deal happens when a property owner approaches Bulkestate with a property that they would like to sell. The sale has to be of the entire property and not part of it. Bulkestate will publish the offer, and investors can purchase more than one unit of the building. A group buying deal is considered successful if the entire building is sold out.
The group buying feature is the most captivating about the Bulkestate platform. Bulkestate structures the property deals so that investors can buy given units at a wholesale price instead of the original market price of a single unit. Buyers can arrange for a pre-visit to the apartments before they make the purchase.
Extra features of the Bulkestate
- Interest rates
Bulkestate offers great interest rates. The rates vary from 12% to 16% from one project to another. It is advisable to invest in more than one loan to spread out the risk and balance the returns earned.
Loan Duration and Secondary market
It takes approximately one year for the loan to be repaid on Bulkestate. Unfortunately, Bulkestate lacks a secondary market on its platform. This means that investors are stuck with their investments until the end of the loan term. Payment is made within 15 days after the agreed loan repayment date.
The platform does not offer a buyback guarantee on the projects listed. Bulkestate carefully analyzes the projects before listing to reduce the risk of them failing. Every project goes through a committee made of real estate agents, finance, and investment experts. Additionally, all the loans are secured with a mortgage, which can be liquidated to reimburse investors in the future if the borrower fails to pay up the loan.
It is important to note that if a mortgage is sold to refund the investors, interest is also paid, but it might be lower than the agreed rate when investing.
- Bulkestate does not charge any fees for registration on the platform or for payments made. It is however important to note that your bank will charge you bank transfer fees. The investments are also subject to taxation depending on the investor’s country tax rules.
Pros & Cons of BulkEstate
Investing in Bulkestate can help you achieve that financial freedom that you’ve always wanted. With a 14.89% weighted average rate of return, you are assured of making good profits if all market factors remain constant.
However, if you are not sure about a specific aspect of the Bulkestate platform, it is advisable to contact them for help. Their team of qualified personnel will help you accordingly.