As of 2020.05.14 the referral bonus had been changed to 0.5% bonus for the investor for the first 6 months, therefore this article is stored for archive purposes only.
The emergence of this blog led me to do more – I was accustomed to investing in FinBee loans and did not look for alternatives. I am currently testing Omaraha and Reinvest24 platforms. When you’re looking for a better one, you’ll find at least as good. Shoot for the stars, land on the Moon.
While reading a German forum on peer-to-peer financing, I found a message that 2% Reinvest24 fee could be avoided through the EvoEstate platform*. This significantly increases your return, so why not try another new platform? Especially since the first investment can earn as much as 55% in 2 years (more about that in the second part of the article).
New platform = FUN
Testing a new platform for me is like a new toy for a child. I wonder where and how everything works. I like to view all the possible platform pages and see how it looks.
Most of the time, when I transfer money to the platform, I get emotional and I want to invest my money as soon as possible. This is not good and leads to mistakes. When I first registered on Reinvest24 I have made mistakes in both investments – I invested three times more money than the recommended 1% of the portfolio to one of the loan, while other loan’s 7% is strongly reduced by Reinvest24 2% management fee. 1% cashback offer makde the situation better and I have learned something new.
What is EvoEstate?
Until last week, I haven’t heard anything about EvoEstate. It turns out that the platform started its activity in February 2019 and was founded by a Lithuanian team. According to them, this is the first platform in Europe where investors can invest in loans with RT collateral from 7 different platforms in six different countries (the Baltic States, Germany, Italy and Spain).
Unlike loan markets, such as Mintos, the contract between the investor and the debtor is concluded directly. On the loan markets, you lend to a pay-day-loan company that lends the money with their margin.
According to EvoEstate CEO Gustas Germanavičius, the EvoEstate gets a little better investment conditions than individual investors because it uses a large amount of money from investors and earns money from this difference.
Instead of joining 7 different platforms, everything can be done from one. This is especially true for those who value their time and want to invest as passively as possible. EvoEstate offers an automatic lending tool where you can choose essential criteria such as loan risk or duration. You transfer money to the portfolio and forget about it.
By the way, forgetting about your portfolio is a great thing. This month, FinBee does not have automatic lending to business loans, so you have to invest manually. I feel that it takes much more time. However, I like to search for hidden gems on offer from which I can expect a better return. 🙂
In one place, you can invest to seven platforms in six different countries. The more you spread your seeds, the less chance that the short-term drought will destroy them all, so you will get more harvest. Picturesque, isn’t it? 🙂 And this is just the beginning of EvoEstate, in the future it is likely to offer even more.
There are no fees for investors on the platform. Currently the platform is even helping to save 2% of Reinvest24’s fee on two active active projects on the platform.
Also, EvoEstate plans to launch its secondary market in the near future. This will increase liquidity for investments, especially on platforms like Reinvest24, where secondary markets are not yet available.
In general, attracting investors is a major challenge for young peer-to-peer funding platforms. EvoEstate solves this problem and, if successful, will bring more life to the platforms. At the moment, the record for the single loan of the Baltic crowdfunding platforms is €800.000. The current record may seem modest in the course of several years due to EvoEstate or similar platforms.
Easy Entry to Real Estate Market
Most crowdfunding platforms have a minimum investment limit of at least €100. EvoEstate offers half the limit, so you can invest from €50. Therefore, you would correctly diversify your portfolio with €5,000 instead of €10,000.
Skin in the Game
EvoEstate invests in offered loans with you. Put your money where your mouth is. I love it. And I also like that the founders of the platform themselves are P2P investors and are involved in this market since its inception.
Like the whole P2P market, this platform is not yet time-tested. As a standard, the platform has a continuity plan, what would happen if EvoEstate ceased to operate. However, it is not clear how this would work in reality and such plans remain beautiful on paper only yet.
Although the platform has been in operation since February and has been working on several platforms, so far there have been only 12 projects available to investors. There are only 4 of them fully financed at the moment.
Interview with Gustas Germanavičius, CEO
I’m glad that EvoEstate CEO Gustas Germanavičius has agreed to share answers to questions that have arisen while testing the platform. The new platform is always not 100% clear, so I very much appreciate very prompt responses from the Head of the company.
Is EvoEstate a loan market?
No, EVOEstate is an aggregator of RT P2P investments. Our platform could not be called loan market because there is a lot of investment on our platform where the investor is a shareholder, not only for development projects, but also for renting what really works similar to the REITs model, but administrative fees are much lower and investors earn much higher return.
Registered in Estonia
How is investor money separated from the platform operational money?
We have set up a separate account for investor money, which is dedicated only to managing investors’ money. This money is not used to cover operating costs.
Are you regulated by the Bank of Lithuania or other institutions? How do you ensure that the money invested is used for that particular investment?
We are supervised by the Estonian Financial Supervision Authority (FSCA), they are perfectly familiar with our model and we have to provide them with our activity reports. Investor money is separated from the company’s operational account.
Why did you choose Estonia as your country of registration and not Lithuania?
Better tax treatment for young businesses, ease of managing the company remotely, and easier communication with financial market regulators.
How do you choose the platforms you work with?
We are more focused on specific projects rather than platforms. There are no perfect platforms and no platform is the absolute worst. Usually, each platform has a very good project once in a quarter. That’s why we work with a broader range of platforms, but we focus most on individual projects.
The amount of money invested through EvoEstate is not being updated immediately on a platform where the project is. What happens to money after investing in EvoEstate?
Until the integration with all platforms is completed, it takes additional time to exchange data on the partner platform. It can take up to 24 hours.
The investment process looks like this:
The investor clicked to invest on the EVOEstate platform, for example €100. Then the money is accounted by us and this amount is reserved on the partner’s platform. When the project is fully funded, the money is transferred in one order.
At the Secondary Market – No Fees
Can the investment be sold on the secondary market also on the platform from which the investment is made (or vice versa)? For example, if I invest to a Reinvest24 loan through EvoEstate, can I sell it myself directly to Reinvest24?
The EVOEstate secondary market will be publicly available within 2-3 weeks. It is currently being tested in private beta. Most of our partners do not have a secondary market and even if they did you may be unable to sell your investment there. Reinvest24 does not buy or sell investments.
Skin in the game – it is the selected projects where we are investing at least €1000 of personal funds with Audrius (CIO).Gustas Germanavičius, EvoEstate CEO
I had in mind if I wanted to sell EvoEstate loan, but there would be no buyers on your platform, could it be sold on Reinvest24 on the secondary market when it will be launched later this month?
No, it wouldn’t be possible. If you are unable to sell on a secondary market, you should either reduce the price, or click the button that you would sell your investment to us at 90% of its value.
What taxes will be applied on the secondary market?
We have not currently chosen the right pricing model. We’ll give investors 5-10 sales for free at first, and then apply either €1 or a small commission of 0.15-0.25% of the amount.
15 platforms planned until the end of 2019
Are you hosting all projects or are you picking them out of the platforms?
Up until now we have been selecting but now we distinguish projects into two types:
1. Skin in the game – it is the selected projects where we are investing at least €1000 of personal funds with Audrius (CIO).
2. Other projects – projects that we do not invest our own money.
Currently not all projects are hosted on our platform because we have not finished full integrations with other platforms. When it is finished, all the loans will be available.
We invest at least €1000 each to the projects and we have invested €4.000 in the project in Tallinn.
We also often invest in other projects, but in smaller amounts of €200-400. However, we do not invest to the other projects every single time with Audrius – so we keep them separate from ‘Skin in the game’.
Our vision is to become an aggregator and leave the generation of transactions to the partners’ platforms and take over the investment aspect from them. However, the fact that our approach to risk is more conservative than others does not mean that we will limit investment to others.
How many platforms and countries may be expected by 2019 and 2024?
Until the end of 2019, at least 15, and by 2024 it would still be impossible to answer, as even Housers has not yet counted 5 years.
What is EvoEstate’s Continuity Plan if the company stops operating?
Investors’ money would be immediately paid to the investors accounts and an administrative company would be appointed to take care of the remainder of the money when the projects reached their deadlines.
One sentence answer, please: why should investors choose EvoEstate?
Investors with EVOEstate can easily invest across Europe with no need to register on many platforms, and there is a wide range of diversification options available – that reduces the risk.
How to Earn 55% in 24 months on EvoEstate?
Clickbait, which can help you financially. 🙂 After signing up through my link and after the first investment, you will receive a €15 bonus. Thus, for example, by investing in the Vinkli site project proposed by Reinvest24, you will be entitled to a monthly rental income from 5 different warehouse tenants and the planned capital gains after 24 months when the plot will be sold (the buyer has already paid a 10% deposit). You will also avoid 2% Reinvest24 platform fee and you would receive a 55% return over two years after the project has been successfully completed.
If you have been waiting for the right moment to invest, maybe this is the right moment? 🙂 This offer is limited in time and funding for this project is coming to an end.
P.S. Be sure to check the platform yourself before you making any investment decisions. This article is only sharing of my personal experience of the platform and is not a recommendation to make investment decisions. Do your own research.
*By clicking on the link you will be able to register on the platform, and I will receive a small commission for this, which will contribute to the maintenance of this blog.