Bulkestate is a Estonian online real estate crowdfunding and group-buying platform, but almost all activity and deals available for investment are in Latvia. Founded in December 2016 by Igors Puntuss that is the public face of the company and a “invisible” co-founder that I was not able to track. Bulkestate facilities the financing of real estate investment projects and apartment bulk-deals for a price lower than the market value.
Bulkestate offers a very different investment proposition to crowd investors. Bulkestate established partnerships with real estate agencies in the Baltics to identify real estate opportunities, these real estate agencies evaluate properties, take care of the purchase process and after the project execution deal with the real estate selling process with profit. Instead of relying on their own investment funds, Bulkestate opens these projects to peer-to-peer investors lowering financing costs and providing an attractive share of profits through interest.
What this means is that instead of funding real estate promoters, you in fact are financing Bulkestate operations. The entire project life cycle is controlled by Bulkestate that aims for purchase properties at discount through their real estate agency partners, get funding from small investors across the world, develop the project, then sell at a premium. All this in one of the most dynamic and underdeveloped real estate markets, Latvia. All these reasons can be among the justifications for Bulkestate to present until the moment a 0% default rate in their projects. There are usually 2 or 3 new investment opportunities each month, with large investment amounts. However, these projects tend to get filled rather quickly.
All loans are backed by real estate collateral with a low LTV ratio of around 55%. However, the risk profile of the loans can vary considerably and it is, as always recommend to perform a careful due diligence and selection before investing. Bulkestate is not a P2P platform that should be left alone through the use of the auto invest feature.