EstateGuru is an online peer-to-peer investing platform based in Estonia, Latvia, and Lithuania. It offers both investing opportunities in secured property loans and developers borrowing from international investors.
In order to lend with EstateGuru, one must be over 18 years old and have a bank account within the European Economic Area or in Switzerland. Companies registered with banks in Estonia, Latvian and Lithuania can borrow through EstateGuru, provided they pass the approval process. EstateGuru requires a minimum investment amount of € 50 and offer annual interest rates from 8% to 13%.
UK and European bank account holders are eligible to register with EstateGuru as investors. Once your investment account is set up, you can transfer your capital. You can then read the background information on projects, select the opportunities that appeal to you and invest any amount above € 50.
Each P2P investing project is open for a period of two weeks, during which time you can commit funds alongside other investors. If the predetermined fundraising amount is not reached, all funds are returned to the individual investors.
When target amount is reached, investors can release funds to borrowers at a fee payable to EstateGuru. Funding is committed after borrower’s security has been assessed and signed terms and conditions.
EstateGuru returns principal and interest from borrowers in accordance with the repayment terms initially set. The interest received by investors can be withdrawn or re-invested. Payments are monitored through personal account portfolio pages.
EstateGuru conducts rigorous vetting process for secure loan issuance. All loans are secured with mortgage backing, which always includes a third-party appraisal report to assess collateral value.
EstateGuru has not had any borrower default payments to date.
After loans are backed by mortgages, the mortgages are held by an entity separate from EstateGuru. The purpose of this is that the security agent protects investors, should EstateGuru go bankrupt.
Clients can work with an attorney through the loan application process. The attorney then takes care of all their business plans from them. Attorneys safeguard your property and create a living trust. Attorneys help you consolidate your affairs without the involvement of courts. They also advise you on payment of lowest estate taxes.
No automatic reinvestment
At the moment EstateGuru does not offer auto investing. Combined with property backing, auto investments could attract a good portion of new investors. They also currently offer relatively few loans per months.
What distinguishes EstateGuru from other platforms?
EstateGuru has extensive experience in real estate investments and is therefore capable of managing and selection good projects.
Many investors have invested through EstateGuru with a high level of satisfaction. The secure backing of investments with property at EstateGuru allows for settling defaults by selling the property and retrieving the investments.
In addition, the returns combined with low risk makes EstateGuruan attractive choice for P2P investors.