EstateGuru.eu, a real-estate P2P lending and crowdfunding portal is looking at introducing two products that would offer potentially higher returns to investors. We are interested in hearing your feedback and preferences which product is more attractive for our potential investor base:
Product 1 - Pure equity loan – pays 30%-60% in the best case scenario, but in a downturn investor will lose potentially everything, including the principal. Such products are popular in the US and also offered by one of our competitors in Estonia
Product 2 – a ‘success-linked’ loan. Example: The loan pays a guaranteed coupon of 5% and in positive scenario (successful completion and sale of a project) an additional 0-15% (depending on the exit price or realised cash flows), with a total return of 20%. The principal is guaranteed the same way as it is with the current real-estate backed loan.
Which product is more attractive for you? What are your thoughts about the two loans? Would you make an investment in one of those loans?
Scenario 2 sounds the safer bet but 1 - I personally would consider provided there was extensive background information on both the property and borrow(s).
At this moment in time though until you are fully registered with the UK FCA then I would not consider either. I am aware of the EU financial cross border financial arrangement but there has recently been some adverse publicity in the UK about this. I'm not suggesting that the Estonian equivalent of the UK FCA is inferior but confidence in the P2P company is paramount in my book.
A tricky question . Product 1 Pure Equity loan is a bit scary as we would not have any real knowledge of the situation .
Investors will be provided with extensive information about the property, borrower and loan, including different scenarios and outcomes. After successful funding Estateguru will be responsible for looking after the investments and reporting to investors. Also, every investment will be hold in separate SPV.
What kind of information you would like to see when you are screening projects that are often not presented by other platforms (e.g. market current situation, overview and expectations?).
It is our plan for near future to acquire UK FCA.
Definitely it's necessary to have confidence in platform, where you make investments, therefore we are communicating and asking opinions from investors.
Sorry to hear that you still have problems with access to our platform. IT-department said that they had deployment yesterday at one point. I sent you personal message.