Nordstreet review shows that Nordstreet is Lithuanian-based real estate crowdfunding platform. Nordstreet is regulated by the Central Bank in Lithuania.
The Nordstreet platform brings together individuals and potential investors who are willing to finance a given loan. Nordstreet is a new player in real estate crowdfunding market. Based in Lithuania it is operating in a market with few competitors. Founded in 2018, Nordstreet, has loaned over €5.82 million to date. To date the average Nordstreet investor has enjoyed a 11,39% annual return.
Key facts about Nordstreet
Estimated annual returns: 11,39%
Loan security: Real estate as collateral
Provision fund: No
Buyback guarantees: No
Registered investors: 3713+ in January 2020
Minimal investment: € 100
Time to become invested: Depends on loans availability
Time needed managing: Low
Regulation: Regulated by the Lithuanian central bank
Country of operation: Lithuania
Defaulted loans: N/A
Borrowers verification: By the platform
Accepted currencies: Euro
Accepts investors from: Worldwide
Nordstreet Review: Pros and Cons
– User-friendly and intuitive dashboard for investors
– Investment policy can be tailored to purchase whole loans based on pre-defined criteria or invest into fractional loans across the market
– Fast ID verification and time to become money invested (in my example one day)
– High interest rates up to 13%
– Supervised by the Central Bank of Lithuania
– No Buyback guarantee
– A company of two people
Mintos, EstateGuru, Crowdestate, Profitus, Rontgen
Nordstreet review: What I have experienced so far
Firstly, some words about opening account at Nordstreet. For me it was easy process, all I needed was to click login with Google account (you also can choose to do that with Facebook or do full registration). And that’s it. Later you have to do verification at Paysera and become a verified user (I already had account there, so verification took only few seconds). Add funds to Nordstreet account also is easy. If you already have account at Paysera (then it can be synced with Nordstreet).
Secondly, some facts about my experience with Nordstreet investments. There are always several real estate projects requiring funding. Real estate crowdfunding is trending at the moment in Baltic States, so demand from investors is constantly increasing. As an investor you can earn from 8 till 13% annual returns. As an investor you have to be careful before you make the decision which real estate project to fund. Even if the returns are attractive and loans have real estate as collateral, you must think about liquidity of your investment if the borrower defaults. One of the indicators you should be looking is LTV (loan-to-value). Lenders assess the LTV ratio to determine the level of exposed risk they take on when underwriting a mortgage. The lower the LTV, the better it is. I would personally prefer loans with lower than 45% LTV (especially knowing that the risk assesment done by the platforms might not be up to date).
All in all, Nordstreet is facing a tough competition in the real estate crowdfunding market (as there are already 3 players operating in Lithuania). Interest rates are good. The platform is supervised by the Central Bank of Lithuania (it gives extra creditability). Already more than 2370 investors have trusted this platform and funded more than 2.4M EUR of real estate projects.