I’ve been investing into P2P sector for more than a year now and I am still learning a lot. My first experience was with investing on Mintos and lately I saw an opportunity to start my Bulkestate experience. There are a lot of P2P fin-tech platforms nowadays and it’s becoming a problem to find a solid one. After some thinking I hope, Bulkestate will be a decent method how to diversify my P2P portfolio and invest more.
Basic overview of Bulkestate
Bulkestate is crowdfunding platform specialising in real estate projects. It was founded in December 2016 and since than has done more than 2200 investments. Bulkestate was originally founded in Latvia, however due to the lack of legislation and support from Latvian institutions the company was moved to Estonia. It seems like the Baltic states are giving us yet another great P2P investment opportunity, after Mintos and Crowdestate.
Statistics and my Bulkestate experience and thoughts
As always, when I start considering investing my money somewhere, I like to look for the real numbers. I didn’t find any financial analysis of Bulkestate as a company directly, however they have published some financial numbers at least.
|Average return||14,59% p.a.|
|Average Loan Term||12 months|
|Minimal Investment||50 EUR|
|Collateral||Mortgage / Equity|
What I like about these numbers, is that having 14% p.a. is great deal. Sure, the loans are not with Buyback guarantee as provided by Mintos for example, so there is higher risk. However since the foundation of Bulkestate they have never had any defaulted loan, so they are obviously doing something right.
I also like the average length of the investment. One year is a decent investing time period. Although, there is a big difference to other p2p platforms and that is, you don’t get monthly payments. Each loan has it’s own repayment date. This means you will only get your investment + interest once the loan term is finished. To be honest, I am not a huge fan of this method and it will be completely new part of the Bulkestate experience for me.
How to start investing on Bulkestate
- Start investing on Bulkestate is very simple. Actually, maybe too much. The registration takes only few moment and the investor can use Gmail or Facebook account to speed it even more. If you want to create your account or just have a look at Bulkestate by yourself.
- Before you send any money to Bulkestate, I recommend to have a look at the investment opportunities, which are currently available. Unfortunately, there aren’t that many of them, but you will get an email approximately once a week about new investment opportunity.
- It’s good to deposit money to your Bulkestate account, so you have the chance to invest, once there is a deal. I personally recommend TransferWise as the best option, how to deposit money to Bulkestate, or send it abroad in general. You always get the mid-exchange rate (How to transfer money without fees). Remember, minimal investment starts at 50€. It’s a good idea not to invest only in one loan, but rather to 5-10 to diversify your investment.
- Once, there is a new loan, you can read a clear investment review on Bulkestate webpage about it and decide, whether you are in or not. From my experience, once it’s Bulkestate approved, there are kind of similar. So rather invest, before it’s sold out to other investors.
- The investment stays “open” for some time and if the loan is funded, then the borrower gets the money and you are officially Bulkestate investor.
How safe is Bulkestate
Even thought the registration process seems maybe too easy, Bulkestate should be taken seriously. The whole Bulkestate operations are regulated by general commercial legislation of Estonia and European Union. They also had to obtain a financial institution license in Estonia.
Bulkestate are also member of European Crowdfunding Network and The Alternative Financial Services Association of Latvia, which should provide us with investors with a good feeling, they are in line with the law and our money is safe for investing.
Autoinvest on Bulkestate
Even thought there is the option to use Autoinvest on Bulkestate, I recommend to invest manually. At least at the beginning. You have time to read the prospect carefully and you will enjoy it more. At least from my experience. Of course, when you will get multiple investments and you want it to be more passive income to you, you can simply set up an Autoinvest rules.
Review of my Bulkestate experience
Even though I am just at the beginning of my Bulkestate investing, I hope the experience will be positive as my Mintos experience (Review of my Mintos experience after 7 months). I am not sure how I will feel about not getting the monthly payments though. The main reason, why I wanted to give a try is to prepare myself for another step in investing and that will be stock market. There will be no monthly payments (well, except the dividend portfolio). So I wanted to test myself and observe, how I feel about the investment, even though I don’t actively manage it. This will be much more passive income. Finally. All in all, it’s part of the experience and you can review on my own mistakes.
Do you already have your own Bulkestate experience or any other investment opportunity, which you could recommend?