EstateGuru General Frequently Asked Questions

We are an online peer-to-peer (p2p) debt funding platform where users can borrow from and lend money to each other to fund real estate projects. Currently the projects are in Estonia.

You must be at least 18 years old and have a bank account in Estonia or in another member state of EEA in order to lend through EstateGuru. We will also have to perform certain "know your customer" checks on you before you can start investing on EstateGuru.

Only companies registered in and with a bank account in Estonia and/or Latvia can currently borrow through EstateGuru. We will have to perform "know your customer" checks and approve your real estate project before you are allowed to post your loan request on EstateGuru.

Only real estate projects in Estonia which are approved by our team can access funding through EstateGuru. However, there is no limitation on the type of projects that can be submitted for approval. As long as the project has a property element to it and the property is capable of being used as security for the debt, please feel free to submit it for approval.

1. The borrower signs up on EstateGuru and fills in the loan request. 2. EstateGuru will assess the borrower’s credit worthiness, business plan and the appraisal report of the mortgage, to make sure that borrower is able to make the loan repayments and to avoid the situation, where investors lose their money. 3. After approval of loan request the loan will be opened on EstateGuru platform, where investors can assess the risk and invest into loan. 4. When the loan is funded, the pledge will be created and the loan will be paid out to borrower. 5. In case the loan do not get funded, the contracts will end instantly and all the invested funds will be released to investors accounts. 6. The borrower is obliged to make the repayments according to agreed repayment schedule. Investors can track repayments on portfolio page and withdraw or reinvest all the receivables.

You are asked to specify the target funding amount and your desired pricing when you apply for funding on EstateGuru. Once we have approved your project and performed all other checks, we will discuss and agree an appropriate interest rate level with you before you can publish your loan request. All loans are with a fixed interest rate. The target funding amount can be from EUR 20k to EUR 1 million. Loans are amortising with a tenor of 6 months to 5 years.

Minimum investment amount is 50 eur.

Depending on the project characteristics the annual interest rate can be from 5% to 20%

All the loans are backed with mortgage. The mortgage is held by entity separated from Estateguru business. Once the loan is fully invested the borrower has to go to the notaries office and enter into security documents with the Security Agent to create a mortgage. The mortgage will then be registered at the Land Register (with the Security Agent as mortgagee). 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 Baltic leading law office Jesse&Kalaus.

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 send the recommendation link to your friend. If your friend registers with your Referral Code, and makes an investment, for the period of 3 months, we will add from our side 0.5% of the total confirmed investments made by your friend into successfully funded projects to your and your friend's accounts. With this money you can make investments, pay back loan repayments or even ask us to transfer it to your bank account!

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 euros, which enables to create much diversified portfolio. All loans are secured with mortgage.

If you have not received confirmation email after registration, please check your spam folder first. In most cases, you will find the email there. If you still don’t appear to have received it, please send us an email to info@estateguru.co.

The short answer is - no. EstateGuru is a facilitator of real investments, not offering the management of the assets. All investment contracts are signed between borrower and investor, leaving out EstateGuru. All client funds are separated from the EstateGuru’s operational funds. So in case of EstatGuru´s financial difficulties or even bankruptcy, the client funds are safe and can still be accessed. In this unlikely event, the law firm Jesse&Kalaus, will appoint a company who will take over the role of EstateGuru to serve all the investments.

Estonian Financial Conduct Authority (FCA) has confirmed us in 2014 that any laws or regulations that apply to credit institution or to broker dealers do not currently apply to us. The FCA expects to release a new market place lending specific regulation in 2015-2016.

EstateGuru is not a bank, thus we are not in 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 taking asset security on every loan, in case if the borrower is unable to repay their loan.

Since the credit crunch and start of the recession, the appetite of banks for risk has reduced significantly, which means that they have tightened their lending criteria. Banks have fixed strict criteria, which are not borrower friendly and thereby many loan applications are rejected by banks. EstateGuru is a small and flexible organizations and is willing to help these companies that despite the fact they may not fully meet bank’s lending criteria, can still borrow money.

An unsecured loan is a loan which does not have collateral in place, such us land or apartment and is solely based on a borrower’s credit history and potential to repay. Secured loans have assets as collateral so that, if a borrower cannot repay the loan, EstateGuru partner law firm Jesse&Kalaus will start the asset sales process. Hereby the risk losing the money is minimized.

Anyone over the age of 18 living in the European Union or Switzerland or businesses registered in the EU.

• First you need to sign up as investor on our platform. • Then you need to visit your email account and activate your account. • Before start investing you are required to send us an accurate copy of your government-issued identification document. • Transfer money to EstateGuru virtual account. • Choose the loan application, where you would like to invest in. • All loan repayments and interest accrued is held in your EstateGuru account.

EstateGuru investors do not have any fees. All expenses are covered by borrower.

Once the funds are received by our bank, they are allocated to your lender account at regular intervals during the day, from Monday to Friday. At the weekends this may take a little bit more time. How quickly lenders funds will be on your account, depends mostly on which bank you use. In our experience, it usually takes 1 day in Estonia, in other countries usually up to 3-5 days. For more information, you should ask from your bank and if you require any assistance, please don’t hesitate to contact us. All details required for making the payment can be found on our webpage under contact section. Please note that only one bank account can be tied to your EstateGuru account. The withdrawals are only possible to same account which the funds were transferred. These steps are required to ensure that your funds are not compromised, even if someone manages to get hold of your account access details.

Investor´s money that is transferred to online account is held in a separate LHV client bank account. The account is separated from EstateGuru’s operational bank account and is protected in the event that anything happens with EstateGuru. Uninvested money that is on your account can be withdrawn instantly. After successfully funded project the invested money will be transferred to borrowers’ bank account. The borrower will pay interest to investor´s bank account.

Yes. You need to create a lender account with your own name and in the end of registration form you have to choose „Select this if you represent a company“. Make sure to add the full name of your business and correct registry code. Before start investing you are required to send us an accurate copy of your government-issued identification document

We do not pay interest on uninvested funds. To get the best return from using our platform you should invest your money into opened projects to minimize uninvested funds.

You will start earning interest after the required documentation and creation of pledge is completed. We reserve the right to withdraw an auction at any stage, before the funds are refunded to the Borrower, should new information become available that adversely affects the auction or the perceived risk.

As soon as the borrower is late in a repaying an installment, we will make a contact in behalf of investors to find out the reasons and ask for explanation. In case of delay, the borrower shall pay fine for delay, specified in General Loan Terms clauses 9 and 10. When the borrower faces financial difficulties we will try to find best solution for both parties. If the borrower is not able to repay the loan, the borrower will be given the option to take a repayment holiday. If the borrower is still unable to repay the loan, we will cooperate with law firm Jesse&Kalaus, who will in order to recover the debt.

In case borrower wants to extend a loan period, we will ask reasons behind that and make sure that everything will be sound in the future. If the loan period will be extended, borrower will be obliged to pay a fee to cover documentation expenses.

The aim of inspecting the borrower is to make sure the companies ability to pay back the loan. We control borrowers’ background, creditworthiness and current obligations. If possible then business plan and financial statement, also.

Yes, interest rate paid by borrower is fixed throughout the loan period. The payment frequency and interest rate can vary depending on the type of loan.

The interest that you receive from borrower is gross income, what means that no tax has been paid on it. All interest earned from loan is treated by tax authorities as investment income and thus subject for a tax. Investors have the possibility to postpone paying the income tax by investing through a juridical entity, but still being liable for tax. We do not provide tax-related advice and would recommend to turn to a local tax advisor for additional information.

To apply for a loan you need to register as a borrower, then fill in a loan application and provide us with necessary documentation mentioned in application form. Do not hesitate to contact us once you have a question or facing problems on info@estateguru.co.

1. Requested loan amount, period, interest and repayment schedule 2. Description of the project – how will be the money used; description of the mortgage (location, condition). 3. Appraisal report 4. Business plan 5. Pictures 6. If possible information about previous projects and introduction of borrower. All documents can be uploaded in application form. Additional documents can be sent to info@estateguru.co

We will contact with potential borrowers soon after an enquiry or application has been made. We will go through loan application, ask additional documentation or questions where needed. This will take approximately 2-3 days to evaluate the application and write the loan application if all paperwork is in place. After the final examination is made the loan application will be opened on platform. The syndication process can take up to 2 weeks. How fast the project is funded depends mostly on the attractiveness of the project.

EstateGuru is charging 3-4% of total loan amount in case of successful funding process and 0-2% annual administration fee. In case of loan delay several fees needs to be paid by borrower.

We do not charge any fees for paying loan back earlier. In case of prepayment of a loan, the remaining balance of the administration fee must be fully paid simultaneously with the prepayment of the loan. More can be read from General Loan terms clause 16.6.

Yes, borrowers are able to extend the loan period. Before loan extended EstateGuru will ask reasons behind that. If the reasons are acceptable, the borrower is required to pay 100€ to update the contract.

Yes, we do offer loans secured by land or forest.