What is Bulkestate?
Bulkestate OU is a real estate crowdfunding platform with a focus on funding new development or re-development projects as well as structuring group buying deals to acquire small size (such as one apartment) real estate at wholesale prices (sales price of an entire building).
What laws regulate actions and operations of Bulkestate?
Bulkestate operations are regulated by general commercial legislation of Estonia and European Union. In order to operate as a financial institution, Bulkestate has received a financial institution license in Estonia.
When was Bulkestate founded?
Bulkestate was founded and commence operations since December 2016.
What makes Bulkestate different from other real estate crowdfunding platforms?
Our main difference is a combination of both lending and group-buying services. It provides an efficient solution if initial loan arrangements fail and we might have to foreclose and sell the real estate mortgage. This way the security of our investment project increases, providing more guarantees for our investors. A significant part of our team are experts in the field of real estate development and organisation of the sales process, which is another important differentiator as we have hands-on experience with the due diligence and approval process. Furthermore, we have the necessary capacity to take over management of projects, which do not proceed as planned and deliver the promised result.
How can I add funds to my Bulkestate account?
To add money to your account, choose an option "Add funds", set the deposit amount and make a transfer from your bank account (minimum of EUR 5).
How long does it take for a bank transfer to reach my Bulkestate account?
The bank transfer typically takes 3 to 5 business days to complete after initiating a deposit. Bulkestate makes your funds available in your account as soon as the payment is received.
What does Bulkestate do with the funds in my account?
All funds transferred to your Bulkestate account are kept safe in a separate bank account. Deposited money in Bulkestate account is available for withdrawing to your bank account at any time. The withdrawal of funds may take up to 3 business days after placing a request.
How do I withdraw money from my Bulkestate account?
You can withdraw your funds at any time. To withdraw money from your Bulkestate account, choose an option “Withdraw Funds” and set the amount of money to transfer to your bank account. Once you complete the withdrawal steps, we will receive your request, which will be processed within 2 business days. Please note that bank transfer might take up to additional 3 business days to arrive in your account.
How can I add a new bank account to my profile?
Make a payment for at least a minimum amount of 5 EUR from the new bank account and it will be stored automatically in your profile.
How can I get help for adding or withdrawing funds?
Bulkestate support is available from 9:00 am to 5:00 pm EET on weekdays. Call us at +371 24202024 or send an e-mail to [email protected].
Where can I find my existing investments?
Your account displays all the investments under the section "My Investments".
How can I view my full transaction history?
To see past transactions, visit the "Transactions" section in your user account.
Where can I set the language preferences?
You can set your language preference before you log in your Bulkestate account in the upper right corner of the webpage.
Who can invest?
Any company and any person over the age of 18 can invest in any of the active investment opportunities on the Bulkestate platform.
What is the minimum investment amount?
The minimum investment is 50 EUR.
What is the maximum investment amount?
There is no maximum amount, yet it cannot exceed the loan amount.
Is it possible to invest more than once in a particular investment object?
Investments may be made several times till the investors reach the goal of the funding for the particular investment object.
Are there any fees for investors?
There are no investor fees for joining Bulkestate and accessing the investment opportunities. We do not collect additional fees for investment payments, however, please pay attention to your residing countries tax rules and your bank’s price list for possible transfer fees or taxes.
Is it possible to withdraw the money before the end of the investment period?
We do not offer the possibility to withdraw invested money before the scheduled repayment date.
How will I receive profits from my existing investments?
You will receive the profit and the principal investment amount to your Bulkestate account within 15 business days after the loan repayment date of the particular investment object. Once you receive the funds into your account, you can transfer money to your bank account or invest in another investment opportunity.
What is Auto Invest?
Auto Invest is an investment tool that automatically invests available funds on behalf of investors, basing on their chosen criteria. Once investors set their investment criteria, Auto Invest automatically places orders for matching settings. Investors can review, adjust or pause Auto Invest at any time.
How do I get started with Auto Invest?
You have to specify and save your investment criteria to start using Auto Invest. Auto Invest will NOT invest if there are no funds in your Bulkestate account.
How does Auto Invest work?
Once you set up the Auto Invest feature in your Bulkestate profile, it will start investing on your behalf as soon as an investment object that coincides with your set criteria is launched on the Bulkestate platform. The Auto Invest collects investments chronologically, which means that firstly the investments are collected from those investors that had set up their feature first. Auto Invest does not guarantee that the investment will be collected, however, it optimizes the possibility to participate in the crowdfunding. If you have made any changes to your criteria the tool will consider it as a new setup.
Is there a minimum deposit for Auto Invest?
You have to deposit a minimum of EUR 50 into your Bulkestate account to use the Auto Invest tool.
Can I still place manual orders if I use Auto Invest?
Can I pause or cancel Auto Invest?
You can choose to pause or stop Auto Invest in your account settings. It does not cancel any previous or pending investments that have already taken place. Once you stop Auto Invest, it will no longer invest on your behalf.
How do I update my Auto Invest settings?
You can update your Auto Invest settings anytime to fit your investment goals. To update saved settings, follow the steps below: 1. Log in to your account. 2. Click on Profile > Auto Invest. 3. Select the saved settings that you wish to modify. 4. Click Save.
Can I cancel orders placed through Auto Invest?
No. Once Auto Invest has invested your funds according to your settings, cancelation or withdrawal is not possible.
Why didn’t Auto Invest collect my investment?
Auto Invest collects investments on every round hour. Thus, depending on the launch time of the investment object, the investment might not be collected right away. The tool collects investments chronologically, which means that firstly the investments are collected from those investors that had set up their feature first. Auto Invest does not guarantee that the investment will be collected, however, it optimizes the possibility to participate in the crowdfunding. If you have made any changes to your criteria the tool will consider it as a new setup.
What are the costs/fees associated with using Auto Invest?
There are no additional costs for using Auto Invest.
What are the key criteria for choosing borrowers?
Bulkestate has clear and strict guidelines when selecting investment projects to offer for the investors. The main prerequisite is clarity in the planned repayment of the loan, which may depend on the market demand for specific properties, quality of the project and quality of the development project team. We carefully evaluate the demand for the particular real estate property. Thus, primarily the saleability of properties is assessed as well as the security of exit options upon completion of the project. Also, the general policy is to finance loans where LTV is 70% or less.
What agreement regulates terms between Bulkestate and the borrower?
A loan agreement will be signed by the borrower and Bulkestate.
How can I apply for the loan?
To apply for a loan, please contact us at [email protected] or call us +371 24 20 20 24.
What is required to apply for a loan?
To start a conversation about a potential loan, we need the following starting information: • Requested loan amount and information on real estate – valuation, location and photos. • Description of the project – how will be the money used and how it will be repaid. • Introduction and contact information of the borrower. All documents can be sent to [email protected]. We will contact you after reviewing the information.
How much does the loan cost to borrowers?
The average commission fee for the borrower is approximately 2-3% of the amount of the loan.
Can individuals receive loans from Bulkestate?
No. We can only provide loans to corporate borrowers due to regulatory restrictions and our policy for project financing.
What are the group buying deals?
A group buying deal or bulk-deal occurs when an owner of an apartment building wants to sell all apartments (entire building) at once. We publish the offer on our platform giving a chance to purchase one or more apartments in the building. The deal is successful if all apartments are bought, meaning that there is a potential buyer for every apartment in the building and a bulk-deal can take place.
Can I invest in a group buying deal?
Group buying deals work differently from crowdfunding. You can be an investor in a group buying deal by acquiring property and then, as a new owner, deciding your next steps with it. This type of investing will require a larger minimum amount than crowdfunding.
Is it possible to visit the apartment before making a purchase?
Yes. Apartment visits are organized together with our real estate agents.
What information do I need to provide to Bulkestate to list my property for group buying?
Bulkestate needs to know the following information: description of the property (location, area, number of apartments, technical condition of the building), target sales price for the building, and latest valuation of the building. Please send all documents and information to [email protected]. We will contact you afterward.
How can I propose my property for a group buying deal?
To initiate discussion on the potential sale of your property, please contact us at [email protected] or call us +371 24 20 20 24.
Security of the deals
What are the guarantees for investing?
All investment projects are carefully selected before offered to our investors. Every Bulkestate deal goes through a rigorous and consistent evaluation process by the Investment Committee, which includes highly experienced real estate, investment and finance experts. Each loan is secured with a real estate mortgage. Loans are granted only for projects, which future value provides a safe exit route for investors in case the borrower might fail to meet loan payment schedule. Bulkestate holds all mortgages and executes them if loans have defaulted.
What happens if Bulkestate declares bankruptcy? Who takes over all its liabilities? How are investors affected?
Bulkestate's solvency does not affect the risk of losing investments not yet disbursed to the borrower, as the investors buy claims rights when making an investment. In case of bankruptcy, the liquidator or bankruptcy trustee manages all investors' assets separately from the assets and creditors of the company. Undisbursed investments are safe in an escrow account separate from the Bulkestate operational bank account. Thus, if a particular crowdfunding project is not successful and fails to raise the necessary funding, all undisbursed investments will be returned to investors' accounts.
How is the security of the customers’ funds ensured?
We ensure the security by signing a cession agreement with the investor, guaranteeing conditions that investors’ money does not represent funds of our company and is administered separately from the company’s assets.
What is FLTV?
Future LTV is a loan against the future value of the real estate property. The future value is determined after taking into account certain contributions to the property which would increase the value of the real estate. The contribution can be any kind of renovation works or any other improvement of the property. Investments collected for this type of loan will be invested in that particular property improvement, thus accordingly increasing its future value. The future value is always determined by a certified valuation company and published on the platform once the investment object becomes available for investments.
What happens if the borrower delays the payment?
If the payment delays for up to 15 days, we would contact the borrower on behalf of our investors to find out the reason for the delay. Bulkestate has the right to terminate the loan contract and require immediate repayment of the entire loan in case of deliberate failure to comply with the terms of the agreement. Nevertheless, we would evaluate the circumstances that led to the delay and find the best possible solution for the investors with the support of the legal bureau "Fort".
If the borrower is unable to repay the loan and Bulkestate sells the mortgage, will investors receive their interest payment?
Our loan structure guarantees that the mortgage secures both the loan amount and the interest. However, there is a risk that if the sale of the pledge should require an extended time, the ultimate percentage yield might be lower than the planned one.
What happens if the developer repays the loan ahead of schedule?
If the borrower repays the loan ahead of schedule, Bulkestate returns all the investments along with the accrued interest payments to the investors' accounts. Regardless the actual time period of using the loan, three months is a minimum term for which investors receive the interest payment.