Estate Guru is an Estonia-based p2p lender of mortgage backed loans.
Currency: Euro.
SWOT Analysis
Advantages
- Loans backed by real estate
- LTVs are usually less than 75%
- Few competitors in Europe having mainland EU based property as collateral
- Interest rates are around 9%
- Another portal that will allow you to diversify your holdings
Opportunities
- Estateguru will hopefully expand both the business model into p2p property equity and extended the p2p property loans both in quantity and geographically.
- By using this link to register you will get a bonus of 0.5% of all the funds you deposit in the first three months: EstateGuru Review
Disadvantages
- No Autoinvest at the moment, and when it is implemented it will be good for some and bad for others.
- Few loans per month
- Whenever a new loan is launched an email is sent, by the time I click on the email link, 25% of the loan is already bought up and many times I arrive on the site when all the loan has been sold. Because of this, it is important to have some money deposited before loans are published.
- Some loans are bullet loans; this means that interest is paid at the end. The impact being
- 1) Higher risk because you are not being paid any interest and thus can get back less than the capital you have put in.
- 2) You can make interest on the interest during the life of the loan
Threats
- If the collateral is not evaluated properly and loan defaults, there is an increased risk of not getting your money back.
- There will be similar competitors in the future.
- If Estateguru defaults they can no longer process of loan payments and delivering them to investors.
- If there is a war with Russia the Baltic state is most likely to be the point of entry, however, in that case, your p2p loans evaporating will be the least of your problems. (warning dark humour) Or the loans could just be converted to Ruble.
Register on EstateGuru today and you will be automatically informed when the next loan is available.
