Brickstarter review 2023
Is Brickstarter a great platform for real estate crowdfunding? Find out in our Brickstarter review below:
Brickstarter
Pros:
Cons:
Review summary:
Brickstarter is probably the best crowdfunding platform for investing in vacation properties right now. The projects have zero debt and are secured with the properties as collateral. The default rate on the platform is 0%. Brickstarter even has skin in the game on all properties featured on the platform, which means that they are investing alongside investors. The investment return comes from a combination of rental yield and capital appreciation. Combined, the average annual return on the platform is around 10%.
It’s free to use the platform.
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Introduction to our Brickstarter review
Are you considering investing via Brickstarter? Then read on. We’ve written this Brickstarter.com review to help investors determine if Brickstarter is the right choice for them.
Below you will find an overview of the things that we will discuss more in detail in this Brickstarter review. Simply click on the links to jump directly to the thing you want to know more about.
Learn about this in our Brickstarter review:
- What is Brickstarter?
- Key features
- Who can use Brickstarter?
- How safe is Brickstarter?
- Our experience with Brickstarter
- Brickstarter reviews on Trustpilot
- Best Brickstarter alternatives
- Conclusion of our Brickstarter review
What is Brickstarter?
Brickstarter is a real estate crowdfunding platform focused on vacation properties in Spain.
Brickstarter was launched in 2017 and is operated from its headquarters in Valencia, Spain. The company behind the platform, Brickstarter OÜ, is located in Estonia.
Since its launch, the platform’s investors have funded over €2 million worth of real estate projects in Spain.
Investors on the platform can invest in buy-to-let investments and earn from both rental yield and capital appreciation. The combined average annual return is around 10%.
With as little as €50, you can open an account and start investing at https://brickstarter.com/.
Brickstarter statistics:
| Founded: | 2017 |
| Investment Type: | Real Estate |
| Investment Period: | Varies |
| Investments Funded: | € 2.000.000 + |
| Brickstarter Users: | 1.000 + |
| Minimum Investment: | € 50 |
| Maximum Investment: | Unlimited |
| Brickstarter Interest Rate: | 9.98% |
| Loss of Investors’ Money: | 0% |
How Brickstarter works:
Brickstarter has a process that differs a bit from other real estate crowdfunding platforms. Basically, the lifetime of a project on Brickerstarter follows this process:
- Brickstarter finds a property using big data considering more than 50 variables
- The project is funded via the platform
- The Brickstarter team renovates and improves the property
- The best rental policies are determined
- A manager is appointed for the property
- A big data analysis is conducted to find the best time to sell
- The property is sold and capital gains distributed to investors
Frequently asked questions:
Key features
We have already taken a look at some of the reasons why Brickstarter has become a popular choice among both project originators and investors.
In the following part of our Brickstarter review, we take a closer look at some of the key features that make it nice to invest via the real estate crowdfunding platform:
1. Brickstarter big data algorithm
Brickstarter has developed its own algorithm to determine the best rental policies, the best selling time of properties, and more in order to maximize income.
The algorithm is based on big data and is basically used by Brickstarter to optimize the return for investors.
2. Brickstarter skin in the game
Brickstarter is the first investor in all the investment opportunities on the platform. This means that you’re co-investing with Brickstarter when you invest in any project.
Brickstarter having skin in the game is a very good sign. This is due to the fact that their interests are aligned with other investors on the platform and they are incentivized to find the best deals possible.
Who can use Brickstarter?
Both individuals and companies can use Brickstarter.
Individuals
If you want to invest as an individual, you must at least meet the following requirements:
- Be from a European country
- Be at least 18 years old
If you live up to these requirements, then you can probably start investing via the platform.
Companies
Only companies registered in Spain can invest via Brickstarter.
If you want to invest in real estate crowdfunding via your company from outside of Spain, you might want to consider other real estate crowdfunding platforms in Europe. Most of these allow companies from all over Europe to invest.
Available countries
It is possible to invest via Brickstarter if you are a resident of any European country. The website is available in English, Spanish, and German.
If you live from outside of the EU and want to invest in real estate crowdfunding, you should check out ReInvest24, EstateGuru, or Max Crowdfund.
How safe is Brickstarter?
To determine if Brickstarter is safe, we have taken a look at some of the potential upsides and downsides of investing via the platform in the following part of our Brickstarter review.
1. Brickstarter profitability
We haven’t been able to find an annual report to figure out the financial situation of Brickstarter OÜ. For increased transparency for investors, we hope to see publicly available annual reports in the near future.
2. Main risks
In the following, we go through some of the main risks of using Brickstarter that we have considered. Keep in mind that you should always do your own research before investing:
Payment default risk
With the properties on Brickstarter, there is a payment default risk. All the properties on Brickstarter are insured against this.
But payment defaults will be rare since most vacation stays are charged in advance.
Brickstarter bankruptcy risk
The risk of any company going bankrupt is always present. This is also the case with Brickstarter.
In the unlikely event that Brickstarter becomes insolvent, Brickstarter will be required to perform all actions that are needed for a third person to take over the administration and management of claim rights.
This means that your investments would still be serviced in the event that Brickstarter goes into bankruptcy.
Financial turndown risk
However you choose to invest in real estate, you take on risks related to real estate. This is also the case with Brickstarter.
Therefore, a financial turndown in real estate could affect your investments on Brickstarter due to the fact that a real estate crash could cause a decline in property values.
Is Brickstarter safe?
Brickstarter seems safe with 0 defaults.
To avoid developer risk, only developed investment opportunities are published on the platform. All investment opportunities on the platform have no liabilities like mortgages, bank debt, etc.
Since the investments are backed with collateral and the team behind the platform is very experienced, Brickstarter is a platform that is expected to perform well in the longer run.
Our experience with Brickstarter
Our overall experience with Brickstarter is very positive. If you compare the platform to competitors, it is definitely a good platform.
The real estate crowdfunding platform thrives on team experience, data usage, and user-friendliness.
We also believe that there is a reasonable balance between risk and return on the Brickstarter platform.
Nothing is concerning about the platform at the moment.
Brickstarter reviews on Trustpilot
Trustpilot is a great place to learn what other investors think about Brickstarter. We have collected some relevant Brickstarter reviews from Trustpilot for you to take a closer look at:
There are currently no relevant Trustpilot reviews of Brickstarter in English.
Best Brickstarter alternatives
Not sure Brickstarter is the right choice for you? Then there are also some good Brickstarter alternatives to consider. The following are some of our favorites:
- PeerBerry (consumer lending platform)
- ReInvest24 (real estate crowdfunding platform)
- AxiaFunder (litigation crowdfunding platform)
- Debitum (P2B lending platform)
Even if you use Brickstarter, it might actually be a good idea to take a closer look at some of the above platforms. By using more than one of the best P2P lending platforms in Europe, you can reduce your platform risk and diversify your portfolio further.
Conclusion of our Brickstarter review
Brickstarter is probably the best crowdfunding platform for investing in vacation properties right now.
All the projects have zero liabilities in terms of mortgages, bank debt, etc. At the same time, they are also secured with the properties as collateral. This means that the projects should be fairly safe from an investor’s standpoint. This also shows in the default rate of 0%.
Brickstarter is the first investor in all projects and has skin in the game. This is a very good sign, as the interests of the investors and the platform are aligned.
The average annual return on the platform is also quite good at around 10%.
Brickstarter is overall an excellent choice for a real estate investment platform.
