In my search for cash-flow with a low cost of entry, i have come across many different P2P lending platforms. Bulkestate is another European P2P lending platform that i have found a potential interest in. Other P2P lending platforms such as Envestio, Crowdestate and Crowdestor which also has real estate projects, has revoked an interest for real estate investments through P2P lending. Due to the high cost of entry for private real estate investing, investing through P2P lending platforms would enable me to understand and get a feel for the real estate investing industry.
Therefore, I will do the research for you so you can determine if you want to invest on the P2P lending platform Bulkestate.
The Bulkestate review is 100% unbiased and based on my personal findings. In the Bulkestate review i will give my personal opinion of their services. I will include the subjective aspects which i personally like, and the objective facts – like statistics.
Bulkestate is a real estate P2P lending platform. They accept investors with European bank accounts. The loan term is between 3-24 months. Furthermore, all loans are offered in Euro. While Bulkestate has no buyback guarantee, they are secured by real estate property and other strong incentives to protect investors. The minimum investment per project is €50.
- Loan types: Real estate crowdfunding
- Loan terms: 3-24 months
- Interest rate: 12-18%
- Auto-invest: Yes
- Buyback guarantee: No
- Fees and costs: No fees
- Minimum investment: €50
- Currencies: EUR
- Secondary market: No
- Sign-up link: www.Bulkestate.com
What is Bulkestate P2P Lending Platform?
Bulkestate is an Estonian registered P2P lending platform founded in 2016. Bulkestate is focusing of development or re-development of real estate projects. Furthermore, Bulkestate offers a “group buying” structure, which allows investing to participate in acquiring small sizes of real estate at wholesale prices. The two types of investing is therefore:
- Development and re-development of real estate projects
- Group-buying of wholesaling real estate
Bulkestate is both for companies and individuals. The only requirement to invest on Bulkestate is that you have to be at the age of 18 or above and have an European bank account.
Development of Real Estate Projects on Bulkestate
Bulkestate has the development of real estate projects as the most common investment opportunity on the platform. The loans are to borrowers which seek to build or renovate properties.
Bulkestate follows some clear and strict in-house guidelines when selecting real estate projects to offer the investors. Through an evaluation of the project team, quality of the project and the demand of the particular real estate property, Bulkestate selects the best suited investment opportunities for their investors.
Group-buying on Bulkestate
The group-buying deals is provided when an owner of an apartment building wants to sell all the apartments in that particular building. Bulkestate publishes the buildings on their platform, for investors to purchase one or more apartments in the buildings. However, the deal is only successful if all apartments within the building are purchased.
When group-buying you are buying the actual apartment, and gain a full legal owner title to that apartment. You can even visit the property before buying it.
How Does Bulkestate Work
Bulkestate can be used by anyone older than 18. Furthermore, Bulkestate supports 5 different languages: English, Russian, Ukrainian, Estonian, German.
Bulkestates has as just described two investment opportunities; the development projects and the group-buying. The development projects are found through borrowers who wants to build real estate projects around the Baltic area. Through their strict guidelines Bulkestate only select the projects with the best quality, project teams etc.
Bulkestate states that their priority is 100% customer satisfaction and enabling the right choice for their investors. Furthermore, they provide transparent information regarding investment opportunities, provide security and are subject to any requirements specified by Estonian or European laws.
How Safe is Bulkestate?
Bulkestate differentiate based on the lending and group-buying options, where normal crowdlending/P2P lending platforms offers consumer loans or business loans. Bulkestate offers a mix of loan investing and real estate purchasing. Furthermore, it provides an good solution if the initial loan agreements fail and Bulkestate has to foreclose and sell the real estate mortgage. This enables a security for the investors if the projects fails. Therefore, if a loan is not repaid Bulkestate resells the mortgage to another credit union paying a lower price for the loan (or expected price + interest), hence you might receive what you invested, maybe more, maybe less. Keep in mind that Bulkestate does not provide any buyback guarantees.
Another major incentive to reduce risks by Bulkestate is the fact that after 15 days of late payment Bulkestate contacts borrowers on behalf of the investors. Bulkestate has the rights to terminate the loan contract forcing the borrower immediate repayment of the entire loan. In addition, Bulkestate uses the support from a legal bureau called “Fort”.
Bulkestate claims that loans are only granted for projects which future value provide a safe exit route for investors in case the borrower fails to repay.
Getting Started On Bulkestate
Getting started on Bulkestate is really easy. After the registration it is possible to invest in both the real estate development loans and the group-buy deals. The minimum investment on real estate development loans are €50, whereas the price on the group-buy deals varies. However, group-buying deals are to bought in whole, and you cannot buy 1/500 of an apartment.
From here you can participate in project development with an average annual interest of 15,36%. Furthermore, you will join investors who has already made over 12.000 investments on the platform.
How To Invest in Loans on Bulkestate
To invest in Bulkestate loans, all you need is an account on Bulkestate. You can sign up here. When you have signed up you navigate to an investment which you find suitable. On the investment page, you can see a lot of details about the property. You can see pictures of the property, size of the property, loan target amount, use of the funds etc.
Investing is quite simple, and the information which is provided is transparent. You are even provided with an short due diligence report of the property. This can be found in the bottom of the page. While the reports are in Latvian you can use google translate to get the essence of the report.
The report holds some valuable information if you are not known in the area of the property. E.g. condition of the property, car parking spaces, accessibility of the property and much more.
As an investor you are subject to no fees. The fees and costs are included in the expected return on the investments.
How To Invest in Group-buys on Bulkestate
When available, navigate to a property which you want to purchase. You will be presented with a whole apartment/commercial complex. However, you do not purchase the entire complex (unless you are very wealthy).
As illustrated in the picture, there are multiple apartments in the complexes with varying prices. This is an apartment complex which is yet to be released. Investors are signing up showing an interest in the project. While you are presented with an estimated discount rate calculated by an independent third-party, there is no due diligence report for group-buying properties. Here the investors must make the due diligence themselves.
The costs of Bulkestates services is included in the price. Hence when purchasing through the group-buyer deals, the costs of Bulkestates services are already included in the costs, with no separate fees.
Invest With Auto-invest Tool
The auto invest can be used if you want to automatize your investments. The minimum investment is still €50 per loan. Furthermore, you can chose the maximum investment size, minimum return and maximum loan term.
While there is not a lot of customization on the platform, it provides the basic functionalities you need to automatize your portfolio.
Bulkestates Team and Organization
Bulkestate is a team of real estate experts. Bulkestate wants to provide real estate investments to everyone, whether it is to fund development projects or purchase apartments.
They are quite hard to find any real information on. However, Toms Birzulis the project manager, Igors Puntuss the co-founder who is head of operations and Baiba Namike the Client support and relations manager has a LinkedIn.
Looking at Igors Puntuss on LinkedIn, his past experience are within management positions. However, he has not specified what and how he has been managing.
Toms Birzulis the project manager however, has shared his experience. He has been a part time project manager before. He managed anything from company websites, to creating marketing strategies.
Baiba Namike the relations manager has been working within communication her entire career. She has been both a PR specialist, consultant to the secretary general of the parliament of Latvia.
There is no doubt that the Bulkestate team has been in some well established positions, and has some experience within their roles of Bulkestate.
Only one review of Bulkestate, and it is positive. Currently Bulkestate has an 4/5 star score, and a Trustpilot score of 7,4/10.
Fees and Costs
Through the FAQ Bulkestate states there is no costs or fees associated with investing on their platform. However, borrowers have a list of fees to consider when applying for loans.
First Impressions of Bulkestate
My first impressions of Bulkestate is very positive. They seem to be a very professional platform even though they consist of a small team. Furthermore, they provide lucrative returns with good incentives for security of funds.
The main things that i would like to see improve is the following:
- Monthly interest instead of full repayment at the end of loan term. This would provide a cash-flow.
- Due diligence reports in English.
- Buyback Guarantees on development projects
I am investing in P2P and P2B lending platforms to gain a cash-flowing return. Therefore, with Bulkestate i would have to wait between 3-24 months to gain a return.
- Good diversification with real estate loans and group-buying deals i the entire Baltic area.
- The expected return on investments are relatively high compared to other platforms.
- No monthly interest – Loans are paid in full with interest at the end of the loan term
- Not a lot of properties available
Based on the findings from my Bulkestate review, i would not be scared to invest a good amount of my money in the platform. Furthermore, while they have no buyback guarantee they have make some very good incentives for investors to secure their funds.
Bulkestate is a small platform compared to other P2P and P2B lending platforms. However, they act professionally and has an innovative approach, such as the group-buying deals.
The future for Bulkestate looks good, if they keep a positive growth rate on their platform. I could easily see this platform be attractive for institutional investor due to the group-buying deals.