BitOfProperty is a new Estonian real estate crowdfunding platform specialized in the generation of passive income through rental of properties that reminds us a lot of other consolidated platforms such as Reinvest24 also in Estonia or Brickstarter, but that provides differential elements such as a very active secondary market from day one and a very careful selection of assets that makes it a frankly interesting option for the crowdlenders interested in diversifying in real estate.
We have been among the first to thoroughly test this platform and in this MEGAreview we tell you our impressions and all the information you are looking for … are you ready? 🙂
What is BitOfPropety – Statistics and Global Data
BitOfProperty OU is a company with a presence in Estonia and Singapore specialized in the generation of passive income through a diversified portfolio of real estate properties . It stands out especially against other similar proposals for rental-oriented real estate crowdfunding such as Reinvest24 and Brickstarter for the presence of a very liquid secondary market from day one and the treatment of operations such as buying and selling of shares or property titles.
First Steps in Bit Of Property
Registration in Bit Property is a very simple process, similar to that of other real estate crowfunding platforms that will not take us more than a few minutes and includes the following steps:
➊ Fill in the initial investor registration form.
➋ Confirm the email address by clicking on the corresponding email.
➌ Provide proof of identity to carry out the verification (including ID or passport and selfie photography).
➍ Make the first contribution of funds by bank transfer.
Requirements to create an investor account in BitOfProperty
+ Be of legal age
+ Registration is open to citizens of ALL nationalities.
Deposits How to add funds to our BitOfProerty OU account
Contributions can be made by bank transfer. Specifically, BoP works with the Estonian bank LHV Bank and – once our identity has been verified – in our account they will provide us with the account number and identifier to make our contributions.
BitOfProperty Bonus – New Users Bonus
Bit of Property currently offers a very attractive promotion for new investors who want to try the platform, consisting of a bonus of 10 euros simply by registering. To access this promotion, you simply have to register from here
How Bitofproperty OÜ Works – Fees
BitOfProperty does NOT have sales or maintenance commissions, but as usual in real estate platforms it does have management costs, which in this case are 10% of the gross income obtained from rents for the management of leased properties .
How to Invest in BitOfProperty Crowdfunding Real Estate in 2020
In BoF, similar to the vast majority of real estate crowdlending platforms, we can invest MANUALLY by selecting the projects that most interest us from just 50 euros per operation . Next we will take a look at the parameters that define the operations published in your marketplace.
Inversion Manual BitOfProperty Analysis – Most Important Parameters
In the INVEST NOW (Go to Properties) section we will find a catalog with the operations in which we can invest, both recently published (Invest in Campaign) and those that have been published a while ago but have shares for sale that we can buy (Buy shares).
In any case, on this screen we will find a series of parameters that we can evaluate to decide whether or not we enter this project, including:
➊ Asset Class and Country
In this area of the project we can see general information of interest such as what kind of asset we are buying (Residential, Commercial, Industrial, etc.), in which country it is located, etc.
Here we can see what is the cheapest price for an action in this opportunity (usually it will be in the range of about 50 euros and will be the minimum investment for this particular opportunity).
➌ Rental Return
Net profitability of the rental of the property after expenses. A useful value to get an idea of the profitability month by month that we will be able to obtain with the income of this project.
➍ IRR (Internal Rate of Return)
The IRR or Internal Rate of Return is a metric that gives us an approximate idea of the annualized net profitability that we can obtain with this specific opportunity based on rental income and the appreciation of the expected property value. In BitOfProperty the range is usually between 7 and 10%
By clicking on the corresponding button we will access a screen with more details prior to the confirmation of the investment such as the one shown below.
➏ Est. Capital Growth (Estimated Appreciation of the Property)
Annual revaluation planned for this property (which will be added) to the income we have obtained from the rents at the time of the sale of the asset (this is only an estimate).
➐ Asset Liquidation (Expected Date of Sale)
Estimation of when the asset will be sold. Keep in mind that even if the operation is planned for several years, we can always undo positions on our properties by selling their shares to potential buyers.
➑ Documents (More Information)
Bit of Property offers us a very abundant and precise information of the property in which we are interested in investing, from a market study to the exact address of the asset. If we wish, we should not miss this flow of data to make an appropriate investment decision.
➒ Confirm Operation
When we are clear that we want to participate in this project, we will press the green button and fill out a small form to formalize our operation.
BitProperty How Autoinvest Works (Automatic Investment) – Step by Step Tutorial and Configuration
The platform has no Autoinvest function. Although it is always an interesting function, like most real estate crowdfunding pages, Bit Property has a perfectly manageable volume of opportunities in manual mode, which is why we do not consider this lack a priority.
BitOfProperty Secondary Market and Liquidity
BitOfProperty has an interesting secondary market WITHOUT buying and selling commissions, ideal to buy real estate shares that we did not go to in the initial offer or to sell our ownership interests because we want to obtain liquidity. In this sense it is a platform designed from the beginning with this functionality integrated in its core.
BitOfProperty Buyback Guarantee
Like the vast majority of real estate crowdlending platforms, BitOfProperty protects our investments with the real estate asset behind them, so there is no Buyback or Buyback Guarantee.
BitofProperty Crowdlending Originators
There is no Originator figure in BitOfProperty. All investment opportunities are managed by the platform itself creating an independent company for each project in order to safeguard the interests of investors.
BitOfProperty Pays – Cash Withdrawals
Bitofproperty allows us to withdraw our available balance at any time and from one euro, without charging any type of commission to the investor . Usually withdrawals are processed quickly and in one or two business days we will have the money back in our bank account.
Is BitofProperty Unreal Estate OÜ safe? Risks and Regulation
BitoFProperty OU is a company registered in Estonia since May 2015, with registration number 12844051 subject to the commercial laws of Estonia and Europe.
Like other real estate crowdfunding platforms, investing in BitOfProperty projects can be a very profitable activity, but not without risks, some of which we indicate below:
Lack of Liquidity Risk
In crowdlending platforms, lack of liquidity is always one of the factors that we must take into account when investing. In BitOfProperty, the predominant asset class is real estate, which usually means that the terms of the operations in which we will participate will be high, often of several years.
In any case, the platform has a useful secondary market that will allow us to provide our investments with liquidity if necessary , although it should be noted that its effectiveness will ultimately be determined by supply and demand.
Risk of non-payment of loans by borrowers
The risk of default by borrowing companies is one of the main risks that investors face in crowdlending platforms. In the case of BoP, it is invested directly in real estate, constituting a specific company for each project, with which there is always a tangible asset behind our investments.
Bankruptcy Risk of one of the Originators
In BitofProperty there are no Originators, so this risk is not applicable.
Platform Bankruptcy Risk
There is no explicit mention in the FAQ or in the T&C.
Ergonomics BitofPropery Web and Reports
The BitOfProperty website is very simple to use, with great simplicity and clarity in the presentation, being suitable for browsing even for the most novice in the world of crowdlending.
If we carry out the study of distance in clicks for the most common operations that we usually carry out, we obtain the following results:
★★★★ 4 clicks to invest in one of its operations.
★★ 2 clicks to see the status of one of the loans in which we have invested.
★★★ 3 clicks to withdraw money.
Which is in the average of the crowdlending platforms analyzed.
Bit of Property Expected Real Annual Yield
✰ BoP has an average gross return of approximately 9 % , depending on the specific opportunity.
✰ It does not present operating commissions, but it does present a commission of 10% of the net income obtained – factor already included in the gross profitability mentioned in the previous paragraph.
✰ A substantial decrease in long-term defaults is not expected.
✰ The estimated annual average net profitability, so it is a 9% base minus (0)% of losses and commissions = *% annual net for a well diversified long-term portfolio , which is slightly below the average platform Crowdlending evaluated on this website, but in line with the average real estate crowfunding platforms.
Taxation BitofProperty Tax Withholding
BoP does NOT practice any withholding of interest earned on its platform. It is our responsibility to declare them in the IRPF / Annual Income Statement. Remember that crowdlending interests are taxed as movable capital yield. If in doubt, please consult with a tax advisor.
BitOfProperty P2P Lending – Contact Information and Customer Service
BitOfProperty has a chat in which we can instantly consult any questions we may have directly with the platform management team. In this regard, we must recognize that the quality and speed of Customer Service in our personal experience has been exceptional.
The Team behind the Company
BitOfProperty has a solvent team of professionals who contribute their experience, talent and expertise to bring to fruition each of the published projects. Captained by Karl Vään, CEO and co-founder of the project and Taavi Pettai, Director of Operations and co-founder, the team consists of:
- KARL VAAN – CEO and founder of the platform
- TAAVI PETTAI – COO and co-founder of the project
- MAJID LASHGARIAN – Senior Developer
- WANDERSON JACKSON – Web Designer
- EHSAN MINAIE ZADEH – Senior Developer
Is BitOfPoperty Crowdlending reliable? Opinion Forums, Networks, Aggregators …
BitOfProperty accumulates positive reviews and reviews by almost all users who have tried it, without any negative comments, and with the following scores in each of the opinion aggregators to date:
Our Personal Investment Strategy in BitOfProperty
✰ Diversification is the key: We will take advantage of the relatively low minimum investment and the opportunities offered by the platform (making use of the sale of shares through the secondary market) to distribute our capital in the maximum possible number of projects.
BitOfProperty 2020 Opinion – Final Conclusion
“BitOfProperty is a young platform that recovers the essence of real estate crowdfunding, seeking the appreciation of quality real estate while generating a constant flow of passive income through rents, moving away from pitches and risk operations and allowing us to diversify from day 1 with an agile and practical secondary market “
Advantages of BitOfProperty – Strengths
Inmobiliario Real estate crowdfunding oriented to the revaluation of properties and passive income, NOT real estate developments of doubtful travel, providing real value and diversification to our portfolio.
➋ Very abundant information in each project, being able to make informed decisions about each of our investments.
➌ Presence of secondary market from the beginning, being a fully integrated function in the core of the platform and providing greater diversification and liquidity.
➍ Bonus of 10 euros just for registering and testing the platform.
Weaknesses and aspects to improve
➊ BitOfProperty is a young company that is increasing its customer and investor base. The performance of its long-term operations remains to be verified.
Alternatives to BitOfProperty Review
More than alternatives, we must take some of the sister pages of Bit of Property as excellent complements for it, all accessible through the search engine or the menu of our website and ALL specialized in the generation of passive income through real estate rentals, such as BRICKSTARTER or REINVEST24.
Do you want to have a space to comment and share your doubts and experiences about this Estonian real estate crowdfunding platform?… Look no further! Here below we enable the BitOfProperty Forum so you can express yourself and ask freely… Write us your comment! 🙂