New crowdlending platform in my portfolio

As you might know, I am already in Grupeer and Bondster. Now I have decided to diversify my crowdlending investments further and inspired by financiallyfree who has praised Crowdestor on several occasions I decided to take a closer look at that platform.

They have not as many open investment opportunities as Grupeer or Bondster but interests are high and furthermore, they have a buyback fund. Grupeer provides a buyback guarantee on most of their loans but this works differently.

Crowdestor has initially invested € 50,000 in its Buyback Guarantee Fund. Furthermore, they devote 1-2% of each investment project into the fund and their goal is to reach € 100,000 in 2019. With this fund, they are able to compensate investors if the borrower’s loan defaults.

It’s a relatively young platform as they opened up for investments in 2018. But they have done well so far and almost all their projects are 100% funded. It goes really fast when they open up for a new project, so you need to have funds available on your account if you want to invest in a specific project.

Initially, I would have invested in a drum school in Latvia (my 5-year old son plays drums so I had a personal interest. It’s a project worth € 40,000 but I was too slow. The project was funded a few hours after opening up for investments. Too bad, but lesson learned.

Whit that opportunity our of sight I turned against a Riga based hostel renovation project. This is the 2nd stage of the thorough refurb which will bring the next building levels and its furniture, toilets, and kitchens up-to-date.

The first renovation project was worth € 200,000 and fully invested. The maximum target for the 2nd stage is € 450,000 and as of writing it’s 58% funded which makes € 191,410 still open for investments.

The project opened up for investments yesterday (August 8th) meaning I expect it to be fully funded within a day or two.

The loan period is 12 months and the interest rate is 15%.

What I like about Crowdestor’s project is the amount of information about each project provided. You can even watch a small video about the hostel project on their homepage.

As you can see from the below screenshot it’s secured by the Guarantee Fund and interest payments start from day one of your investment.

A small platform review (I know, it’s not even a review, merely information about my new investment).

Oh, I almost forgot: I used Revolut for the transfer to my Crowdestor account. It worked well as the money I sent was ready for investing the day after I pressed “send”.

I wish you a nice weekend 😊      

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