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Estateguru Analysis

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Last updated in May 2022.

What is Estateguru?

EstateGuru was founded in 2014 in Estonia. It has quickly become the largest real estate lending platform in continental Europe and gradually expanded beyond the Baltics into a total of eight European markets (Estonia, Latvia, Lithuania, Spain, Germany, Sweden, Finland, and the UK). It has funded €732.67m worth of loans to date - see EstateGuru statistics for more historical performance insights.

Key Takeaways

  • Series A venture capital-backed platform with a leading investment of TMT Investments - an early backer of Bolt
  • Real estate loans to property developers in eight European markets, backed by a first-rank mortgage on land, residential or commercial property
  • Over 11% historic return with 0.01% bad debt and low shares of defaulted or late loans

Who is Behind Estateguru?

Marek Pärtel is the Founder and CEO. He is a renowned expert, public speaker, and angel investor in the FinTech and PropTech scenes.

EstateGuru has successfully attracted venture capital. In the last funding round (A series) in 2021, the company raised €5.8 million. The lead investor is TMT Investments Plc, a UK VC company that also invested in Bolt and Pipedrive. Other contributions come from Swiss and Czech VCs, and individual investors via a crowdfunding equity campaign.

EstateGuru made a profit of €121,990 in the 2020 financial year (up from a loss of approx. €-0.5m in 2019). The company publishes annual financial reports audited by EY.

Estateguru's Investment Product

EstateGuru offers short- and mid-term property-secured loans to SMEs and property developers. Three categories of loans are available: development, bridge, and business loans. Most investments are structured as bullet loans, which means investors receive periodical interest repayments while the principal is returned at maturity. All loans are secured with a first-rank mortgage on the underlying property, which can include residential or commercial real estate or land. Most loans mature in 12-18 months.

You can choose a ready-made investment strategy (‘conservative’ or ‘balanced’), set up your custom strategy (auto-invest), or invest manually in the primary or secondary market. You can view all live EstateGuru’s projects directly at P2PMarketData.

How Much Can You Earn?

At P2PMarketData, based on the API integration of all live and historical EstateGuru loans, we have calculated the average nominal interest rate at 10.47%. Additional factors such as late payment fees and a referral bonus can increase, while defaults and fees will decrease the real returns. Net of all the fees and bonuses, investors have made, on average, an 11.2% annual return to date, according to EstateGuru.

According to their statistics page, EstateGuru has written off only 0.01% of its total loan volume. The default rate stands at about 2.5%, but most defaults are successfully recovered. Investors can expect 5% of their loans to be delayed on average, but early repayments are also common.

Investors incur a 2% fee on secondary market sales. EstateGuru also charges several borrower fees, including a 2.5%-4% intermediation fee and an annual administration fee of up to 2%. For the whole fee structure, see the price list.

Other Considerations

EstateGuru is continuing its geographical expansion and soon moving into Ireland and Portugal. In an interview with P2PMarketData, Mihkel Stamm - EstateGuru’s COO, draws three priorities for the company - growing volumes, market expansion, and institutionalisation:

We aim to facilitate €5 billion in loans annually by 2025. We have an ambitious expansion roadmap that will see us roll out our service in more European countries to achieve this. We are also stepping up our efforts to partner with institutions to raise volumes.