I was investing mainly in loans in Germany since I thought probabilities to get defaulted are lower. As a result I'm sitting on a 60% default rare and 35% delayed rate. It's ridiculous how lack of communication applies from estateguru. Same vague sentences used to update us for all loans, no timelines, no info on when we will get our money back. My trust is broken. Once I get my money back, I'm out.
Germany is a developed market, the borrowers that go to estateguru have probably been denied by the many financial institutions in the country. The same may not apply to the Baltics, where EG has enhanced know-how and potentially deals with less bureaucracy. Markets outside of the Baltics were an attempt to expand the EG offering, and therefore a much higher risk that investors should have understood.
@@matteomarcarino9955 Maybe but I think it is not always the case. You do get good borrowers/developers who do not want to go to the bank and want loans quickly. Especially bridge loans. I think what is happening to Germany is more related to the general economy, inflation, cost of development & materials and the already existing property bubble
It would be really interesting to have further information on what went wrong internally. Please press for further transparency in that field, as I believe trust can be rebuilt if the company acknowledges their own shortcomings in the internal loan origination process. Cheers!
And as we speak....now the loans in Finland and Estonia are starting getting prolonged or defaulting. So it is not contained in Germany but it is systemic in EG. Very disappointed :(
Love how these platforms are so pumped with advertisement when they are looking for investors but completely disappear once things start going wrong. Investors are just used and abused as they like. No information is provided, nothing, they just don't care since the most important is already done, which is getting our hard earned money.
I think investors lack information about the risk in lending. LTV only tells us about the coverage but not about the borrower and this information should be provided.
Much of it is probably confidential, and the borrower would probably never allow such information to be shared with investors (which are many, therefore highly likely for such information to be shared everywhere on the internet).
@@matteomarcarino9955 no it is not confidential. Why should it be confidential? In other platforms you can see ALL the information about who is the borrower, what companie(s) they are running and what are their past and current projects as well as their financial reports. I think this has nothing to do with confidentiality but rather the general approach of EG to sharing information and clarity.
@@vasileioszografos9318 Either what you are saying, or the agreements they have with the borrowers. If the contract says that for valuation purposes the information is shared with the platform but cannot be shared with investors (as not to divulge it publicly, as I stated in the first message) then EG has its hands tied. As to whether this is the case, or if it is a good practice, I won't comment on.
25% defaulted portfolio team present! Unbelievable what is happening to EstateGuru. Naturally, I won't be putting more money for the time being. Honestly, I was very naive. There are German platforms who offer similar services like EstateGuru, and their return was around 5-6%... I am curious to hear from their internal investigations. Thanks for conducting the interview, Jakub
Not only increased my default rate on estateguru, I also have constant problems logging in on the platform. Sometimes I can't login for days (the SMS never gets send to me). I am so pissed about their platform
and... I am out! I had enough. 50% defaulted 38% delayed. And I have to wait until Germany loans reach their peak? Thanks but no thanks! Today I started selling in secondary market. Lesson learned. No regulatory authority can oversee human greed. Estate fell victim to its ambition. I am not going to watch its demise.
Hi Jakub, have I read it correctly that on defaulted loans on estateguru they charge an extra 15% annually on the outstanding loan to the borrower? "What this means is that the rate of default interest is the interest rate referred to in the principal loan terms to which fifteen percent (15%) per annum is added. For example: if the interest rate provided for in the principal loan terms is 10% per annum, the default interest, which shall be calculated from the arrears from the moment the obligation becomes due until it is performed, is 25% per annum."
Hi Jakub, would it be possible to have another update about defaulted loans on Estateguru ? In Germany the defaulted loans are now at 90% ! What was supposed the be one of the safest P2P platforms, because backed by a 1st rank mortgage, now seems to be very risky. I am confident all funds will be recovered eventually, but if this takes 2-3 years for every defaulted loan, that's a very long time. Will the interest rate continue to count during those years of default/in recovery ? And do you know if the +15% p/annum default penalty is also paid to us as investors or does it go into EG pockets ? It would be great if you could create an update every 2-3 months or so as the situation is volatile and for the moments seems to worsen rapidly.
Here is an update directly from EG: th-cam.com/video/iVgKmLm9DZk/w-d-xo.html Additional follow-up interview would not result in any more value at this point in time. The platform also regularly shares updates about DE with affected investors via email.
Hello Jacub. It would be interesting to make a video on platforms that aim to be regulated, and what are the news on it, as well as performance on platforms that are already regulated
There is no news on crowdfunding regulation. From what I know, it has been postponed. There seems to be no clear correlation between the platform's performance and the regulation. A regulated or nonregulated platform can perform well or bad. Performance is rather a risk management question, whereas regulation is relevant to legal tasks.
@@P2PEmpire Then, given that a regulated platform would provide a level of security or at least a feeling of security, a video on regulated platforms wouldn't be a bad idea. There are some regulated, if I'm not mistaken, but not in your portfolio though. Maybe you could also explain why you dont trust them
If you are looking to sell your debt on Estateguru today is your lucky day. I have good news and bad news. The bad news is that you are going to have to sell it for more than 40% of its value. The good thing is that in less than a day you will probably sell it. First press the button to sell your loan, then you set a price lower than the minimum (for example if the minimum of the project is 30 you can set 10) and then quickly press the sell button. Do it quickly because the page updates the minimum price in 2 seconds. You will see that on the next page the discount has already been applied to you. If you apply a 90% discount you ensure that you sell your debt quickly (1 day maximum). Repeat the process with all your projects and get rid of the debt. I hope you can sell your debt :)
some quick numbers for EG from p2p-banking. Dec. 2020 loan volumes originated vs previous month = -22%. Loan volumes vs Dec 2021 = -50% quick check on Linkedin: web developers/software developers are leaving New CEO installed one moth ago
So what do you conclude based on this data? EG stopped issuing loans in Germany, it makes sense that they will be originating less. It's no secret that there won't be much new development until a significant portion of the defaulted loans will be recovered. The CEO has been with the company since the beginning as the COO, what does it matter when he got announced as the CEO? He has been running the operations on EstateGuru for years, he's not a newcomer.
@@P2PEmpire What is happening with EG is not just from Germany. Even their upcoming expansion to UK is uncertain. In his words: "While we remain strong in the Baltics and Finland, the planned expansion to new markets, such as the UK and Spain, has been postponed. We plan to re-evaluate the situation in the 2nd half of 2023. " If you dont see the signs then I am not sure what else I can say. Good luck getting your money back in 2025
I was investing mainly in loans in Germany since I thought probabilities to get defaulted are lower. As a result I'm sitting on a 60% default rare and 35% delayed rate. It's ridiculous how lack of communication applies from estateguru. Same vague sentences used to update us for all loans, no timelines, no info on when we will get our money back. My trust is broken. Once I get my money back, I'm out.
Germany is a developed market, the borrowers that go to estateguru have probably been denied by the many financial institutions in the country. The same may not apply to the Baltics, where EG has enhanced know-how and potentially deals with less bureaucracy. Markets outside of the Baltics were an attempt to expand the EG offering, and therefore a much higher risk that investors should have understood.
@@matteomarcarino9955 Maybe but I think it is not always the case. You do get good borrowers/developers who do not want to go to the bank and want loans quickly. Especially bridge loans.
I think what is happening to Germany is more related to the general economy, inflation, cost of development & materials and the already existing property bubble
It would be really interesting to have further information on what went wrong internally. Please press for further transparency in that field, as I believe trust can be rebuilt if the company acknowledges their own shortcomings in the internal loan origination process. Cheers!
what I would like to know is why the new CEO that was replaced only a month ago
In April no update on defaulted loans, lack of communication from the is not really great
75% of loans defaulted here. Not only Germany. Spain Finland and Lithuania too. I believe it is a scam platform. No updates too.
all is said !
And as we speak....now the loans in Finland and Estonia are starting getting prolonged or defaulting. So it is not contained in Germany but it is systemic in EG. Very disappointed :(
Love how these platforms are so pumped with advertisement when they are looking for investors but completely disappear once things start going wrong.
Investors are just used and abused as they like. No information is provided, nothing, they just don't care since the most important is already done, which is getting our hard earned money.
I think investors lack information about the risk in lending. LTV only tells us about the coverage but not about the borrower and this information should be provided.
Much of it is probably confidential, and the borrower would probably never allow such information to be shared with investors (which are many, therefore highly likely for such information to be shared everywhere on the internet).
@@matteomarcarino9955 no it is not confidential. Why should it be confidential? In other platforms you can see ALL the information about who is the borrower, what companie(s) they are running and what are their past and current projects as well as their financial reports. I think this has nothing to do with confidentiality but rather the general approach of EG to sharing information and clarity.
@@vasileioszografos9318 Either what you are saying, or the agreements they have with the borrowers. If the contract says that for valuation purposes the information is shared with the platform but cannot be shared with investors (as not to divulge it publicly, as I stated in the first message) then EG has its hands tied. As to whether this is the case, or if it is a good practice, I won't comment on.
estateguru continues its policy of false reviews on trustpilot while projects are facing monumental delays. It's a shame
25% defaulted portfolio team present! Unbelievable what is happening to EstateGuru. Naturally, I won't be putting more money for the time being.
Honestly, I was very naive. There are German platforms who offer similar services like EstateGuru, and their return was around 5-6%...
I am curious to hear from their internal investigations.
Thanks for conducting the interview, Jakub
I would steer clear of the Germany property bubble atm
@@vasileioszografos9318 Yes! Totally agree, unfortunately I think I learnt that lesson a little bit too late...
Been now 14 months since I've been defaulted, absolutely zero updates.
It just looks like a plain scam to be honest...
Not only increased my default rate on estateguru, I also have constant problems logging in on the platform. Sometimes I can't login for days (the SMS never gets send to me). I am so pissed about their platform
Never had that problem. Did you contact their support?
and... I am out! I had enough. 50% defaulted 38% delayed. And I have to wait until Germany loans reach their peak? Thanks but no thanks! Today I started selling in secondary market.
Lesson learned. No regulatory authority can oversee human greed. Estate fell victim to its ambition. I am not going to watch its demise.
la unica explicación coherente que recibo. Gracias. 10% default y subiendo
Hi Jakub, have I read it correctly that on defaulted loans on estateguru they charge an extra 15% annually on the outstanding loan to the borrower?
"What this means is that the rate of default interest is the interest rate referred to in the principal loan terms to which fifteen percent (15%) per annum is added.
For example: if the interest rate provided for in the principal loan terms is 10% per annum, the default interest, which shall be calculated from the arrears from the moment the obligation becomes due until it is performed, is 25% per annum."
afaik they take half from the default interest
Hi Jakub, would it be possible to have another update about defaulted loans on Estateguru ? In Germany the defaulted loans are now at 90% ! What was supposed the be one of the safest P2P platforms, because backed by a 1st rank mortgage, now seems to be very risky. I am confident all funds will be recovered eventually, but if this takes 2-3 years for every defaulted loan, that's a very long time. Will the interest rate continue to count during those years of default/in recovery ? And do you know if the +15% p/annum default penalty is also paid to us as investors or does it go into EG pockets ? It would be great if you could create an update every 2-3 months or so as the situation is volatile and for the moments seems to worsen rapidly.
Here is an update directly from EG: th-cam.com/video/iVgKmLm9DZk/w-d-xo.html
Additional follow-up interview would not result in any more value at this point in time. The platform also regularly shares updates about DE with affected investors via email.
This is why I never invested on real estate p2p. Defaulted loans and delayed means no interest for that period.
Hello Jacub. It would be interesting to make a video on platforms that aim to be regulated, and what are the news on it, as well as performance on platforms that are already regulated
There is no news on crowdfunding regulation. From what I know, it has been postponed. There seems to be no clear correlation between the platform's performance and the regulation. A regulated or nonregulated platform can perform well or bad. Performance is rather a risk management question, whereas regulation is relevant to legal tasks.
@@P2PEmpire Thank you for your answer
@@P2PEmpire Then, given that a regulated platform would provide a level of security or at least a feeling of security, a video on regulated platforms wouldn't be a bad idea. There are some regulated, if I'm not mistaken, but not in your portfolio though. Maybe you could also explain why you dont trust them
This all stages gets same money is new information for me too. Not very pleasant with this.
I think this undermines their whole lending and risk management model.
If you are looking to sell your debt on Estateguru today is your lucky day.
I have good news and bad news. The bad news is that you are going to have to sell it for more than 40% of its value. The good thing is that in less than a day you will probably sell it. First press the button to sell your loan, then you set a price lower than the minimum (for example if the minimum of the project is 30 you can set 10) and then quickly press the sell button. Do it quickly because the page updates the minimum price in 2 seconds. You will see that on the next page the discount has already been applied to you. If you apply a 90% discount you ensure that you sell your debt quickly (1 day maximum). Repeat the process with all your projects and get rid of the debt. I hope you can sell your debt :)
Įtampa kyla
Terrible Experience. Bondora and Robocash, despite being different, are much better
estateguru is terrible ..i think peerberry is the best
they are different. EstateGuru was performing well before the major f*ck up
Learn more about the best performing loans on EstateGuru: p2pempire.com/en/review/estateguru
some quick numbers for EG from p2p-banking.
Dec. 2020 loan volumes originated vs previous month = -22%.
Loan volumes vs Dec 2021 = -50%
quick check on Linkedin: web developers/software developers are leaving
New CEO installed one moth ago
So what do you conclude based on this data? EG stopped issuing loans in Germany, it makes sense that they will be originating less. It's no secret that there won't be much new development until a significant portion of the defaulted loans will be recovered. The CEO has been with the company since the beginning as the COO, what does it matter when he got announced as the CEO? He has been running the operations on EstateGuru for years, he's not a newcomer.
@@P2PEmpire What is happening with EG is not just from Germany. Even their upcoming expansion to UK is uncertain. In his words:
"While we remain strong in the Baltics and Finland, the planned expansion to new markets, such as the UK and Spain, has been postponed. We plan to re-evaluate the situation in the 2nd half of 2023. "
If you dont see the signs then I am not sure what else I can say. Good luck getting your money back in 2025