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How to change your account details?
In order to change your account details such as bank account details, e-mail account or your name, please contact EstateGuru support via firstname.lastname@example.org and we will do the change for you.
How to share your account with other selected users?
In order to share you account with family members or your third party service providers, please go to "My account" sheet and enter the invitee's e-mail under "Account sharing" tab. After sending the invitation, you can choose whether the person can only view your transactions and investments (role: viewer) or make transactions and have full right on the virtual account (role: editor).
What is EstateGuru?
We are an online peer-to-peer (p2p) debt funding platform where property developers and entrepreneurs can borrow funds from abroad international investor base and investors can invest in secured property loans. Currently, the borrowers and properties are in Estonia, Latvia and Lithuania whereas investors come from 45 countries
What payment options are accepted by EstateGuru?
Users are welcome to make their deposits to EstateGuru via SEPA payments, LHV bank link, but also through third party service providers such as Transferwise, Lemonway, Trustly and Paysera. A user's first deposit is the means to verify the bank account, hence the first deposit needs to be done from the investor's personal bank account!
How is my investment secured?
All the loans are backed with a mortgage. Once the loan is fully invested, the borrower has to go to the notary office and enter into an agreement with the Security Agent to create a mortgage. The mortgage will then be registered at the Land Register (with the Security Agent as mortgagee on behalf of the investors). The Security Agent is a separate limited liability company whose primary purpose is to hold securities for the benefit of investors making investments via EstateGuru. The name of the entity is EstateGuru Tagatisagent OÜ. The entity is controlled by the leading Baltic law office of Triniti
What is the EstateGuru referral program and how does it work?
The EstateGuru referral program allows our users to earn extra money. In order to become a part of our referral program, you'll have to register with us. Once registered, you can share your personal referral code with your friends. If your friend registers using your referral code and makes an investment, we will add a 0.5% bonus of the total confirmed investments made by your friend into successfully funded projects to your and your friend's accounts for the first three months of their EstateGuru membership. With this money, you can make investments, pay back loan repayments or withdraw it to your bank account!
What are the benefits of investing via EstateGuru?
EstateGuru makes it easy for investors to access a variety of real estate investments with a relatively small amount of capital. The minimum amount for investment is €50, which enables investors to create a diversified portfolio. All loans are secured with a mortgage.
I have registered, but have not received my confirmation email.
If you have not received the confirmation email after registration, please check your spam folder first. In most cases, you will find the email there. If you still have not received the letter, please send us an email to email@example.com
What happens to my established contracts if EstateGuru goes into bankruptcy?
EstateGuru is a facilitator of real investments, we do not offer the management of assets. All investment contracts are signed between the borrower and the investor, EstateGuru simply facilitates this transaction. All client funds are separated from EstateGuru’s operational funds. Should EstateGuru suffer financial difficulties or go bankrupt, client funds are safe and can still be accessed. In such an unlikely event, a contractual entity will be appointed to take over the role of EstateGuru to serve all the investments.
What regulations apply to EstateGuru?
The Estonian Financial Conduct Authority (FCA) has confirmed in 2014 that any laws or regulations that apply to credit institutions or to broker-dealers do not apply to us as EstateGuru is not a finance provider but a facilitator. The FCA expected to release a new marketplace lending specific regulation in 2017.
Does EstateGuru guarantee my loans?
EstateGuru is not a bank, thus we do not fall under the scope of banking laws and regulations. Like with most forms of investing, peer-to-peer lending carries a degree of risk. We reduce this risk to our investors by conducting thorough due diligence and by taking asset security on every loan, in case the borrower is unable to repay their loan. EstateGuru does not guarantee your loans.
If all loans are secured, why don't the borrowers approach banks?
After the credit crunch and the resultant recession, the risk appetite of banks was reduced significantly, which means that banks have tightened their lending criteria. Banks have strict criteria, which is not borrower friendly and thus many loan applications are rejected by banks. EstateGuru is a small and flexible organization which is willing to help companies that are denied financing by banks despite their strong business plan and solid collateral.
What is the difference between secured and unsecured lending and why is secured lending better?
An unsecured loan is a loan which does not have any collateral in place, such as land or apartment, and is solely based on a borrower’s credit history and potential ability to repay. Secured loans have assets as collateral so that, if a borrower cannot repay the loan, EstateGuru's partnering law firm Jesse&Kalaus will start the asset sales process. Hereby, the risk of losing the money is minimized.
How do I start investing in EstateGuru?
First you need to sign up as an investor on our platform. Then you need to visit your email account and activate your user account. Before you are allowed to start investing, you are required to send us an accurate copy of your government-issued identification document. Transfer money to your EstateGuru virtual account. Choose a loan you would like to invest in. All loan repayments and interest accrued is held on your EstateGuru account
What are the fees for investors?
No fees apply to investors. All expenses are covered by the borrower.
Where is the investors' money held?
Investors' money is held in a separate LHV client bank account. The account is separate from EstateGuru’s operational bank account and is protected in the unlikely event that anything happens with EstateGuru. Any uninvested money that is in your account can be withdrawn instantly.
Is it possible to invest though a company?
Yes. You need to create an investor account with your own name and in the end of the registration form, you have to choose “Select this if you represent a company”. Make sure to add the full name of your business and the correct registry code. Before investing you are required to send us an accurate copy of your government-issued identification document.
Is the interest rate fixed?
Yes, the interest rate paid by the borrower is fixed throughout the loan period. The payment frequency and interest rate can vary depending on the loan type.
Am I obligated to pay tax on interest that I receive?
The interest that you receive from borrowers is gross income, which means that EstateGuru does not deduct any tax from the amount. All interest earned from loans is treated by tax authorities as investment income and thus subject to income tax. Investors have the possibility to postpone paying the income tax by investing through a juridical entity, but will still be liable for tax. EstateGuru does not provide tax-related advice and recommend that you turn to a local tax advisor for additional information.
Which documents are required to apply for a loan?
Requested loan amount, period, interest and repayment schedule Description of the project – how will be the money used; description of the mortgage (location, condition). Appraisal report Business plan Pictures If applicable, information about previous projects and introduction of the borrower. All documents can be uploaded in the loan application form. Additional documents can be sent to firstname.lastname@example.org
Once I apply for a loan, how long will it take to get processed?
We will make contact with potential borrowers soon after an enquiry or application has been made. We will go through the loan application in detail and ask more questions or for additional documentation where necessary. It will take approximately 2-3 days to evaluate the application and write the loan application, assuming all paperwork is in place. After the final examination is made the loan will be opened for investing on the platform. The syndication process can take anything from a few minutes up to 2 weeks. How fast the project is funded depends mostly on the attractiveness of the project.
What are the fees for the borrower?
EstateGuru charges 3-4% of the total loan amount in case of the successful funding process and a 0-2% annual administration fee. In case of a delay in the loan repayment, several penalty fees need to be paid by the borrower.