P2P Good or Bad Deal?

Since the last week or so, we are seeing so many Estateguru loans on secondary market with a huge ROI of upto 40%. Clearly, someone is trying to liquidate their portfolio. If you haven’t noticed this, you should check them out. However, the investment size is huge, upto 50,000 euros.

One project which caught my eye is #0158 Bridge Loan with 23.12% AROI. But this project is clearly running late. Is it worth buying?

Lets examine some facts about this property.
1. Borrower
Borrower is Silverfox Accounting Finance, a recent company founded in 2019. Their main competence seems to be helping launch crypto currencies. They have also not submitted 2019 annual report and neither have they paid penalty. The borrower has missed the very first payment schedule of this loan. All this information doesn’t inspire confidence in the borrower’s business.
2. Property location
It is located in the outskirts of Tallinn and the area doesn’t seem developed, so it is likely not that liquid.
3. Property Status
Property consists of an apartment and land. Apartment seems to be in good condition and was expected to generate rental income of 2500 euros. But did they successfully rent?

Since there are plenty of high APR loans on secondary market, this is a hard pass for me.

DisclaimerI am not a real estate expert nor a financial advisor. This is my personal opinion and I can be very well be wrong.

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