Investing P2P Reviews

Bulkestate Review: P2P Real Estate Crowdfunding Investment Platform

Bulkestate is a real estate investment and crowdfunding platform with some great returns on offer. Read our full review
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Bulkestate is a real estate investment and crowdfunding platform that provides investors with different opportunities to invest in real estate projects around Europe and to receive ongoing returns.

Like most P2P lending platforms, Bulkestate works to connect projects with investment capital. It is a well thought out platform that gives investors both direct and indirect exposure to real estate projects.

Bulkestate a good option for private investors who want to invest in real estate in a simple, safe and clear way. In order to do this, Bulkestate only focuses on funding real estate development projects with high returns. Interest rates usually vary from 14% to 17%.

Bulkestate at a Glance

Bulkestate Real Estate Crowdfunding - Visit
Product TypeP2P Crowdfunding in Real Estate
Potential Return10% - 15%
FeesNo Fees
Min Investment50
Property TypesCommercial & Residential in Latvia

Visit Bulkestate

The Bulkestate Team

Bulkestate strives to provide real estate investment opportunities to everyone by maintaining a team of real estate professionals who follow the latest market trends and allows individuals to invest in fund development projects and to purchase apartments.

Bulkestate
Bulkestate is a real estate crowdfunding and group-buying platform

Currently, Toms Birzulis is the project manager who creates marketing strategies for the business, and Igors Puntuss is the head of operations.

Business AreaReal Estate Lending & Equity
Founding Date2016
Co-FounderIgors Puntuss
Country of OriginEstonia
Company StatusPrivate
Country of operationLatvia
Number of Investors4885
Average Loan12 months
CurrencyEuro

Bulkestate Property Types

In the Baltics, there are historical buildings that are in various stages of dilapidation. Dating prior to the 20th century, the properties were abandoned or altered after the Soviet occupation. Clearly, there could be a lot of opportunities in a market like this, and Bulkestate is working to connect projects with capital.

There is little doubt that these buildings are inexpensive, but their possible structural instability makes them unsafe and unwise real estate investments. As a result, Bulkestate has a real estate evaluation team to inspect the buildings to ascertain their viability.

If you are interested in investing in real estate that could be worth a lot in the medium-term, Bulkestate could be worth learning more about. It also offers geographic diversification, which may appeal to investors who have a concentrated position in developed markets.

Properties
Some of the previous property investments in offer

How does Bulkestate work?

Bulkestate works in an easy and simple manner where the available real estate projects are featured in detail on the website. There are typically two different investment opportunities, with the first being development projects and the second being group-buying.

Development projects involve different borrowers who want to build and to invest in real estate projects throughout the Baltic area. These featured projects are thoroughly vetted, and Bulkestate only chooses those of high quality and integrity. As mentioned earlier, the project team carefully evaluates all properties.

The second option is real estate group-buying which is self-explanatory. Anyone can invest as a group. The opportunity occurs when the owner of an apartment building seeks to sell the complete building. In such a situation, investors can specify investing in one or multiple apartments. Other investors contribute as well, and Bulkestate offers secure loans and mortgages.

What is Group Buying?

Group buying is also termed “bulk deals”. This option may be more appealing since it allows people to invest in smaller amounts. As described above, group buying occurs when a property owner intends to sell an entire apartment building. and investors may acquire part of an apartment at wholesale prices.

Initially, the investor will select a particular apartment for purchase, then make a reservation and pay a security deposit that is equal to the price of one square meter of the apartment. When a reservation is complete, confirmation is required via bank transfer. Upon completion of the process, the investor will have legal title to that apartment. Viewing and site inspection of the property is available prior to purchase.

Group Buying

Buy apartments with a discount within time-limited bulk deals

Who can Invest via Bulkestate?

Getting started on Bulkestate is quite easy. After registering with them, both investment opportunities are accessible.

As per the Bulkestate website, both individuals and businesses can be registered investors.

Investors must be over eighteen years of age, and follow the steps below:

  1. Create an account
  2. Add funds in your account
  3. Start investing in projects

The Signup Process

The signup process is quick, with options of registering via Facebook, Google or email.

There is no need to share personal identification information.

Investors will have to provide the following basic information:

  • Your name
  • Email
  • Country code
  • Phone number
  • Password

After registration, an email confirmation will be sent and the investor can start using the platform.

Dashboard
The Bulkestate dashboard

Interesting Facts about Bulkestate

  • They have offices in Tallinn, Estonia and Riga, Latvia.
  • The company started earning impressive profits in 2017 and continued in 2018.
  • Bulkestate raised nearly 5 million EUR since the launch of the platform.
  • It has 3000+ investors (1500 registered) from 90 different countries.
  • It requires a minimal investment of 50 EUR.
  • The default rate is 0% (according to the company)
  • The interest rate varies between 12–15%.

Bulkestate Information

  • Loan Duration: The loan duration is more than 1 year normally.
  • Loan Type: Bulkestate focuses on real estate investments only.
  • Loans Volume: There are usually 2 or 3 new investment opportunities each month.
  • Minimum investment: 50 euros
  • Currency: The platform makes payments in euros.
  • Reporting: Bulkestate reporting displays are straightforward, so an investor can easily review their account and investments.
  • Loans Volume: There are usually 2 or 3 new investment opportunities each month, with a large amount to invest in.
  • Website: The Bulkestate´s webpage is well designed and user-friendly.
  • Languages: Their website offers five languages: English, Russian, Ukrainian, Estonian and German.
  • Secondary market: Unfortunately, the platform does not have this investment tool
  • Auto-invest: Bulkestate has an auto-invest feature, so if the investor is interested, he or she can install according to their preferences.
  • Chat Support: There’s no live chat available online, but should there be a need to contact BulkEstate, there is a customer care email with a quick response time.

How the Deposit & Withdrawal Process Works

Depositing of funds can be done in 3 simple steps.

  1. Transfer money into the Bulkestate account by using Bank transfer, Revolut and/or Transfer wise.
  2. Funds will be available for investment within a day of confirmed arrival and the transfer usually takes 1-3 banking days.
  3. An email confirmation is sent when the funds are received and added to the account.

Withdrawing funds is equally easy since there are no withdrawal restrictions and no additional fees or commission for withdrawal.

  1. Visit the website and click the “withdraw funds” button.
  2. Enter the available amount and then wait for the 1-3 business days.
Deposits
Deposits are sent via bank transfer

What Returns are on offer?

Bulkestate rates are similar to its competitor CrowdEstate, which we reviewed here.

They range from 12% to 19%. There are incentive payments to investors that are willing to put up large initial sums.

Normally, investors making EUR 10,000 or higher investment will receive a 1% incentive payment from the invested figures, and the investors providing EUR 25,000 or more will receive a 2% incentive payment from the invested numbers.

Bulkestate Competitors

There are many competitors working in the real estate industry and they are all very similar in their product service offerings. A list of competitors includes the following:

P2P lending platforms are freely available to investors in the EEA and Switzerland, and it is a good idea to check them all out, so you have a good idea of what kinds of P2P loan arrangements exist. Each platform offers something different, and diversification is key to any investment strategy.

Auto-Invest
It’s possible to setup auto-investing

How safe are the investments?

One of the most significant issues when deciding upon a crowdlending platform is security. With constant threats of data breaches, online data protection, particularly with online investments, is of utmost importance.

On Bulkestate, each loan is secured with a real estate mortgage and select by professionals after careful evaluation. If the borrower does not pay, then the mortgage is sold in order to compensate the investors.

Bulkestate Loans are only issued for those projects that the team deems profitable. On the site, there are opportunities to diversify investments which reduce the level of risk.

The Latvian Market in 2020

Currently, the Latvian market is the most underdeveloped in the Baltics, which means that Bulkestate can get great returns. Residential properties are mostly in Tallinn or Vilnius and are around 11% higher than those in Riga. However, many investors are cautious about real estate developments in the Baltics.

What Happens if Bulkestate Goes Bankrupt?

In Crowdinvesting there are two types of investment structures: A Direct structure and The Indirect Structure. A direct structure is when a person can make a claim directly against the company, while the indirect structure is involved in a project by investing in a loan issued by a company to the loan originator.

Bulkestate follows a secure direct investment structure and therefore can guarantee the security of the investors’ funds via a legal agreement that explicitly states that customer investment and company funds are administered separately.

In the case of bankruptcy, undisbursed funds are kept separate from the operational bank account, and if a certain crowdfunding project is not 100% funded, all investments will be refunded to the investor’s accounts.

Risks and Recommendations

In the investment and real estate sectors, risks are an essential element, and with higher risk comes higher returns. There are risks involved in any form of investment, even if it is in real estate.

One factor is there is no buyback guarantee mentioned on their website. The other major risk with all types of properties is overvaluation, so try to do some research and ascertain if the real estate valuation is viable.

Clearly, Baltic real estate is a niche market, and older properties have their own issues. Making large investments in old buildings isn’t the safest way to invest in real estate, so be aware of the market before you make a big investment. There could be an opportunity to profit, but not every project is going to be a winner.

Bulkestate: The Rundown

Bulkestate is very transparent and open about the safe and secure investments on its platform. They have introduced different standards and procedures to avoid any possible negative experience for investors, but like any kind of investment, there are always risks.

Bulkestate Pros:

  • There is no investment fee to start
  • There is also an auto-invest option.
  • They strive for 100% customer satisfaction so there is both security precautions and customer care.
  • It is a specially designed and focused real estate platform that can be used globally.
  • Good returns so far.
  • Offers two different types of projects with real estate loans and group-buying offers.
  • The minimum investment requirement is just 50 EUR.
  • All loans are backed by collateral and secured with mortgages.
  • The Bulkestate Evaluation process involves an Investment Committee and features real estate evaluations.

Bulkestate Cons

  • It is limited to real estate only.
  • There is no monthly interest repayment.
  • There is no secondary market.
  • It has no buyback guarantee.
  • The number of available properties is limited

Is Bulkestate a Good Option for You?

If you are looking for a way to invest in Baltic real estate, Bulkestate is a great niche platform to consider.

While there are many options for P2P real estate investment, Bulkestate is focused on a market that is underserved. There is no way to know if the Baltic real estate market will be a good place to be over the next decade, although it has been less connected to the global money markets for quite some time.

From the standpoint of how Bulkestate has structured its platform, it is a very good site. The option to buy real estate as a group with Bulkestate is great if you are looking for a way to gain direct ownership over a property that has been through a due diligence process.

While Bulkestate isn’t going to give investors the same kinds of options that exist on another P2P lending platform, it is an interesting way to invest in a niche market that may be undervalued (at least in some parts).

If you want to learn more about the platform or create an account, just click here. There is no charge to join, and start looking through projects.

Visit Bulkestate

Bulkestate

8.4

Ease of Use

8.0/10

Fees

9.0/10

Reputation

8.0/10

Customer Support

9.0/10

Design

8.0/10

Pros

  • Great Returns on Offer
  • Auto-Investing Option
  • No investment fees
  • Minimum deposit of 50 euro
  • Solid Platform

Cons

  • No secondary market
  • No buyback guarantee
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Nicholas is an experienced Finance Journalist who has written for a number of prominent online publications. He grew up in Ann Arbor, Michigan with a father that would read him the Wall St. Journal along side of other bed-time fare. He has traveled extensively, and been lucky enough to study a changing global economy in person. Nicholas spent many years in the Southern Cone of South America, sometimes in the middle of the countryside where livestock starts its journey to all points of the globe. Today he is thoroughly bemused with the stance that Central Banks have taken in the wake of the 2008 meltdown. There is no telling what will come out of the global financial system next, but he is glad that he lives somewhere that gold can be bought and sold readily! nick@moneycheck.com

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