Author: Eric Green

Have you been considering making entry into the European real estate market, but you lack the funds necessary to purchase a property outright?

Carefully read this Nordstreet review to find out how you can become an investor starting from 50euro. 

Let’s jump in!

Nordstreet Review 2022

What is Nordstreet

Nordstreet is a Lithuania-based crowdfunding website focusing on real estate and business development loans. It allows you to finance projects that would otherwise have gone null due to the nature of the risk they possess.

Since its launch in 2018, Nordstreet claims to have facilitated over $5 million in loans with about $250k in passive income. The platform also reports excellent yearly results (Exclusive to investors earning 11.5% per annum on average).

How Nord Street Works

Nordstreet works on a peer-to-peer business model. The platform gathers investments from its members and then provides the funds directly to the property developer.

The Investment process goes like this:

• Borrower’s Application: 

Firstly, developers will request and fill out application forms from Nordstreet. The borrower will state the amount intended to receive and the duration of the loan, then interested investors can invest in the project.

• Project Assessment:

The assessment team evaluates the application, considering the applicant’s financial history. Information such as credit history, business plans, debt-to-income ratio, employment history, and income history are also reviewed.

• Collection of Funds:

Upon successful evaluation, the project will get listed on the Nordstreet platform for funding. After this, Nordstreet members will be allowed to pledge and invest in the project, with the minimum investment being 50 euro

• Loan Approval:

When the project reaches the target fund, the developer signs the pledge and receives funding for the project. This stage usually takes a month to finish. So, there is no need to worry about a delayed investment.

• Loan Repayments:

The developer will make repayments with interest following the terms agreed. In most cases, investors receive interest in monthly repayments. Then at the end of the loan term, the developer pays the principal amount of the loan received.

Nordstreet Requirements

Nordstreet is accessible in all countries, and individuals over 18 years old are eligible to invest. However, investors must confirm their identity by linking their Nordstreet account with a valid Paysera account.

The registration process requires the investor to fill out personal information like their residential address and contact information such as mail addresses and phone numbers. They also have to accept the loan conditions along with Nordstreet’s terms and conditions.

What Happens When Borrower Defaults?

Despite the protective measures utilized by the company and the investor, there’s always the risk that a mischievous developer may attempt to default on their loan payments.

According to Nordstreet, these are the measures in place to handle the situation.

1. If the default duration exceeds forty days, Nordstreet will intervene and step in to manage the loan.                           
2. Nordstreet’s team will then start its primary debt recovery procedure. The team will try to sort things out with through regular channels like phone calls, emails, letters, and site visits.                                              
3. After eight unsuccessful attempts to encourage the defaulter to make the payments, Nordstreet will revert to its secondary recovery process.                                                                                         
4. It will see Nordstreet take legal action against the defaulter. This includes working with a debt recovery agency in the defaulter’s country.                                                                                            
5. In the end, Nordstreet will lay claim to the collateral set up by the defaulter, and in most cases, this will be land.               
6. Nordsteet has a good reputation for dealing with non-paying borrowers: However, there isn’t any guarantee that the platform will be able to recoup the lost funds.

Furthermore, if the recovery process reaches the point where property seizure becomes necessary, there still isn’t a guarantee that the property’s value will match the costs of the loan. 

Keep in mind that like every other investment, your money is never 100% risk-free at Nordstreet.

Pros

• Nordstreet’s minimum investment is only $100.
• The average interest return is 11.5% per annum.
• Nordstreet is open to both local and international investors.
• Nordstreet investments are collateral-backed (backed by real estate).
• Easy signup process and great user-friendly interface.
• Nordstreet is available to both private and corporate investors.

Cons

• Nordstreet is a relatively young platform without a time-tested track record.
• Nordstreet doesn’t offer a buyback guarantee.
• Nordstreet retains the right to alter its terms and conditions without prior notice.

Final thoughts

Nordstreet’s platform operates like every other online real estate crowdfunding program does. Invest your money, and get the chance to turn an annual yield of 11.5% – which is quite huge, – while also gaining experience in the European property development space.

However, potential investors should bear in mind that Nordstreet headquarters and operations are all based in Lithuania.