January 15, 2020 update
Privalore confirmed in December 2019 what was already an open secret: that after 4 years offering direct crowdfunding campaigns, they have decided not to continue crowdfunding for good. The platform hadn’t offered any new project since February. Privalore will not launch new crowdfunding campaigns and will focus on managing ongoing investments as usual, sending the corresponding reports and updates, and returning the invested funds and profits once completed. As before.
So all I have to do is get my last three active investments refunded (all delayed over a year) and goodbye to Privalore. A real pity, since Privalore was the only direct real estate crowfunding option, unlike the indirect one, that is, that a Participatory Financing Platform (PFP) launches the campaigns fundraising of funds and then give them to a real estate developer who will manage the project.
Privalore will continue to be active offering technologically based real estate services to individuals who need to sell or buy flats to reform.
Privalore was the third platform I started using, back in March 2017, attracted by the highly favorable comments in all blogs consulted. Since then, I have invested in all the opportunities that have become available (except for a couple I missed). I’ve changed the invested amount per project, gradually reducing it to the minimum allowed (due to the declining return rates). I will only continue investing (the minimum) in each project, if before, some of the projects that are delayed are sold. Look at my portfolio analysis for the latest updates.
- Platform Type: Real Estate Crowdfunding.
- Start: 2015, Spain.
- Modalities: All projects so far have been rehabilitation, construction and sale (equivalent to Housers’ Investment opportunities.
- Geographic focus: In Spain only. In February 2018, the focus radically changed from offering projects only in Barcelona, to offering them only in Madrid.
- Currencies: EUR
- Return rates: Privalore estimates an important range of returns for each property depending on the time it will take to sell and the evolution of the markets, which I think is correct given the intrinsic uncertainty of the real estate market. In any case, the announced returns of the projects already closed have been decreasing over time: from around 20% in 2016 (19.7%, 6 completed projects), return rates were significantly reduced in 2017 (9.2%, 6 projects), and even more in 2018 (8.6%; 4 projects). We must bare in mind that to these announced benefits we must reduce not only the usual taxes, but also 1% (on the total invested!) of the Spanish Transfer Tax and Documented Legal Acts (ITPAJD). As of January 2018, only three of my projects have been completed, so it is difficult to analyze the profitability obtained (6.5, 7.7 and 4.6%), which is considerably lower than similar profile projects (investment) of Housers.
- Investment flow / Cash Drag: Relatively low: 5 projects in 2016, 9 in 2017 and 5 in 2018.
- Minimum investment (per loan): 1,000 euros. By far the highest of all platforms I use.
- Payment modality: The principal plus interest is paid at the end. The balance doesn’t stay in the platform, but is automatically transferred to the bank account of your choice.
- Terms: Privalore calculates a minimum of 6 and a maximum of twelve. In my case, three completed projects: 1 at eight, and two at twelve months. From the remaining ones, there are three that have already exceeded 18 months.
- Defaults: None so far. You can check the latest rates of defaults and delays for all the platforms in my last portfolio analysis.
- Buyback: None, like for other real estate crowdfunding platforms.
- AutoInvest: No AutoInvest (manual investment only). The platform sends an email a few days before marketing each new opportunity with the date and time financing will be opened. Projects have a lot of demand and often get 100% financed in less than an hour, so you have to be very alert and make sure to connect the day and time when financing starts (at 14:00).
- Secondary market: Doesn’t exist.
- Interface / Tools: Not too many tools. For example, in the section “my investments” you cannot even see which projects have been closed and the generated benefits.
- Taxes: Taxes are withdrawn.
- Customer Support: They have answered every question I’ve had within 24 hours, always satisfactorily and professionally.
- Languages: Español.
- Welcome promotion: None.