Hardly any other platform has triggered such a rollercoaster of emotions in me as Evoestate. When I noticed the platform in spring this year, I just thought, ok, I don’t need that. That was probably because only a few projects were accessible and I had been there myself on most platforms. As I am, I ignored Evoestate for about half a year and would probably still be doing so today if a nice Twitter user hadn’t asked me why I wasn’t participating. Couldn’t really answer the question and “had to” take a closer look at the platform. Well, suddenly I mutated into a fanboy and thought everything was great, but after a few weeks some disillusionment has spread again. Today I have a neutral to slightly positive attitude towards the platform. Why this is so, I will explain in the next paragraph (be careful, this will be a long post, if you don’t want to wait, you can scroll down, it also has a bonus or cashback offer).
Who are the founders?
Behind the platform are Audrius and Gustas, two Lithuanians who live in Spain. Unfortunately they have no experience in real estate, which I would have expected in this context. With Investments and IT they know themselves nevertheless out. According to their own information the venture capital company Start up wise guys has invested in Evoestate, but Evo does not (yet) appear in the portfolio. I read that they are in the current batch. I think you can believe that, if it is not true, they are dead to me anyway. By the way, Wise guys is also invested in Estateguru. The platform is domiciled in Estonia, as this is more advantageous than elsewhere for tax reasons.
What does Evoestate actually do?
Via Evoestate, investors can invest their money on currently 18 (and counting) European real estate platforms and more will be added in the future. (I’ll save a more detailed description of the platforms here, Phil already did that and you can find an interview about the platform there). Evoestate bundles the investors’ investments and invests the money directly in the respective projects of the platforms (and acts as a legal entity. This also means that the investments are made in the name of Evoestate and you have the proportional claim of your investment against Evoestate). This happens in real time, as Evoestate has an interface to the connected platforms. At first sight it looks like it makes no difference whether you make an investment directly or via Evo. But at second glance there are already differences, which I noticed by a test investment at Brickstarter and Evoestate. Another difference I noticed by chance at Reinvest24.
Brickstarter & Reinvest24 vs Evoestate
I invested in the same project at Brickstarter and Evoestate and wanted to see how it compares. The first payout came a few days ago and was posted about the same time on both platforms. Brickstarter informed me about this via email, otherwise I would have seen this later. From there everything good and equal. But Brickstarter still informed me about the amount of withheld taxes and shows the amount separately
(all Spanish platforms hold back a certain part of the interest as tax for non-Spanish people). Unfortunately I don’t see that at all with Evoestate. But soon there will be an evaluation for the taxes. Brickstarter is working on a solution to exempt non-resident investors from the tax retention. Evoestate is planning the same. Evoestate will only withhold taxes from the Housers platform, nowhere else. Brickstarter still withholds taxes, but these will be completely refunded in January, they have found a solution to waive the tax retention.
In the case of Reinvest24 there was a special case in which the payments for a project were paid out on the exact day of the investment. Evoestate had a hard time with this and had to tinker around a bit, the payment arrived at Evoestate investors a few days later than at Reinvest24 investors. But here as said a special case… …but Evo has to adapt again with every change on the part of the platforms.
Drawbacks and advantages
I see the tax aspect as a supposed disadvantage of Evoestate, at least for the time being. In addition, there can always be delays because Evoestate has to adapt to the platforms (usually special cases). Another disadvantage I see in the fact that here you as an investor have a claim on Evoestate and not directly against the respective platform. Evoestate also has to take care of forwarding updates from the platforms to the investors.
The main advantage of Evoestate is certainly that you don’t have to register on countless platforms and you get access to platforms in various regions and projects which are actually reserved for large investors (high minimum amounts etc). In addition, Evoestate also gives short ratings to the projects and tells you why (= skin in the game, the founders invest in the project themselves), or why no investments are made. The final decision is up to the investor to follow the “recommendation” or not. I am not always impressed by the ratings, I must admit. But it is certainly an advantage if someone has already looked over it and you don’t have to or don’t want to do it yourself. A huge plus point of Evoestate is the secondary market.
A secondary market is always an advantage, especially since Evoestate already has many users and you can also sell projects from smaller platforms. I have put some projects into the secondary market without a surcharge, which were bought within a few days. The offers and requests in the secondary market expire automatically after a few days. However, I have not succeeded in buying at cost price. You can determine the markups or markdowns yourself and you can buy any project, no matter if you are already there or not. Here you can see an excerpt from the secondary market. The transactions on the secondary market are currently free. You just have to consider that if you buy for example 50 Euro from a Reinvest24, you will receive 48 shares of it. This is because Reinvest24 charges a 2 percent fee for the investment. So you buy the fee as if you had invested directly with Reinvest24. So on the secondary market everything is stated in gross values. This is for your understanding.
Below you can see my current portfolio, which is still under construction. I would like to invest mainly in projects that pay out monthly or at least quarterly. I will only participate in equity projects in very special cases. As you can see I am currently only invested in Rent (i.e. rental projects like Brickstarter, Reinvest24) and Loans (loans like Estateguru, Nordstreet etc). The amount is not too high yet, because on the one hand I missed the projects and on the other hand I had invested several hundred Euros directly with Reinvest24 (in retrospect this was probably a bit unwise, because of the missing secondary market. But I plan to keep the projects in the long term and Reinvest24 will bring a secondary market at some point. But to have a possibility for liquidation is never wrong).
Also the Autoinvest was thought of, you can see it below. It has all necessary settings. A very nice feature is that you can reverse investments made by Autoinvest within 24 hours. Currently I don’t use the Autoinvest, because I like to have a look at everything in peace and quiet and the listed projects are usually not fully invested immediately.
How does Evoestate earn money?
In equity projects, a predefined portion of the profit is always retained by Evoestate. The values are always recorded in the project description. For all other projects this is not noted in the project description. I read once that Evoestate receives 1 percent from the partner platforms, but I don’t know if this is true. But it is certain (and this is logical and ok) that Evoestate is somehow compensated.
Conclusion & Cashback or Bonus
As mentioned at the beginning, I have a positive attitude towards the platform. However, a lot has to happen in the next few weeks
and the first thing to come is the tax reporting. Tax reporting is now available. I also want to see how updates to projects are handled.
If you intend to take a look at Evoestate, the platform currently offers two possibilities for new investors. 1) 15 Euro after the first investment (use the previous link to register) 50 Euro minimum investment is sufficient OR 2) 0.5% Cashback on your investments of the first 6 months is available with this link. This means that option 2 is more lucrative for you if you intend to place a minimum investment of 3’000 Euro within 6 months. For smaller investments option 1 is more reasonable. I receive the same remuneration as you, thank you for your support.
If you have any questions just post them. Greetings