Posted On : December 22, 2022
Nordsteet is a real estate crowdfunding platform, which states to be radically changing real estate investments. Founded in 2017, platform was growing gradually and reached 30,766,205 EUR in capital raised (November, 2022).
Nordstreet is registered and regulated by Bank of Lithuania.
NOTE: This review does not include review or analysis of the projects presented in the platform, neither their performance over time. Selection of investment projects is a sole responsibility of the investor. This review is focused on the quality of the platform, functionalities, ease of use and etc.
As in previous reviews, in this review we focus on how to use the platform, onboard yourself, available functionalities, ways to deposit and other factors.
Investors eligibility - Nordstreet crowdfunding platform
Nordstreet provides a transparent description on who is eligible. They allow to invest for all the individuals above the appropriate age and legal persons.
On top of this Nordstreet’s minimum investment amount should be mentioned - 50 EUR. As as for all of the platforms, you have to pass customer onboarding process.
Onboarding to Nordstreet
Onboarding on Nordstreet starts as usual with simple registration form. Image of that below.
After completing this step, you will get an email asking to confirm your email. Afterwards you are asked for full name, address, tax residency and a phone number.
For the customer onboarding, Nordstreet uses Ondato, the same as Profitus. All these companies are originating from Lithuania, so no surprise, they are working all together.
Ondato’s process is relatively simple, you take a picture of your ID/passport of both sides and a selfie. It took approximately 3minutes to be completed and another 2 minutes for the identity to be confirmed.
After completing this you are good to go. Market standard practice, quick approval.
Deposit to Nordstreet
For the deposit options, Nordstreet offers two ways. Deposit using online banking or via standard bank transfer.
For online banking deposit option, Nordstreet uses Kevin. as a service provider. Kevin. is another Lithuanian based fintech start-up which is growing at a rocket speed. It is a nice and quick way of depositing your money there. Firstly you select the amount, then you are offered a bank selection, from where you want to deposit. This directs you to your online banking and top-up happens in seconds.
For the standard bank transfer, you can find details of Nordstreets accounts. They are using a few intermediaries in this case. Firstly NS Pay. UAB NS PAY is a platform payment partner licensed by the Bank of Lithuania, thanks to which payments are made on the platform. NS Pay is a related entity of Nordstreet.
And for the safeguarding services Nordstreet is using Mano.bank. Mano bank is a first specialized bank in EU, which also originates from Lithuania. Specialized institution, providing standard banking services. However this one is rather small so can be called a boutique service provider.
All in all, very nice two ways of depositing money, one of them allows to deposit this in seconds, the other is rather standard one. Above market average.
Key functionalities of Nordstreet
In terms of functionalities, Nordstreet allows to invest in primary market, secondary market and also offers auto investment. On top of this they are also offering investments into business loans backed by certain kind of collateral (guarantees, surety, cars, etc.) and buy-to-let opportunities. For buy-to-let opportunities, some platforms does not highlight this as a special segment and places at the same bucket as real estate backed loans.
For the primary market, all the opportunities have the same description structure. It starts with the summary of KPIs and followed by a descriptive part.
All the KPIs you would like to see is presented. Nothing to add, nice overview. For the descriptive part and for the ones who would like to dig deeper, you have to scroll down.
The best part of Nordstreet primary market – they are covering Lithuania, Latvia, Estonia and Spain. Quite a diversified selection of geographies compared to other platforms.
For the descriptive part information is quite limited. Perspectives, which are provided in the picture above on the left contains only minimum key information required. E.g. on the Debtor tab, you will only find key information on the entity, you would be looking for more, including detailed financials. Also Strengths and risks tab is very poor, it looks that it is their due to regulators requirement. On the documents tab, there is valuators report. However it is in local language (Latvian) not a big use for the ones who does not understand Latvian. What is important to mention, there is a comments section in the project, which allows to see what other are commenting. Nordstreet is replying to the comments, thus a nice transparency measure.
I have seen other projects in Nordstreet platform with better description and more downloadable documents. However description matches minimum requirements of market standard. But it is not close to the leading practices.
On the secondary market investment options at the time of writing this review, there were 100+ options to choose form.
Besides filtering option, what is nice - project stage, e.g. “Payment delays”, “Recoverable loan”, etc. This allows you to hunt for the deals you are looking for. As always be cautious if you are going for secondary market, you have to asses the risk if it is worth taking.
For the secondary market Nordstreet also gives separate statistics on their secondary market performance. This is very nice.
With auto investment functionality Nordstreet allows you to define investment criteria yourself. You can define amount, duration, risk class, interest, collateral, loan type and even country. And you can create multiple scenarios. From one side, this is very flexible and nice to have multiple scenarios, to adjust your strategy, from the other side it is quite complicated as you do not know how many projects you will grasp.
You would be willing to choose auto investment to reduce your workload on project analysis and other additional thinking. Whereas with Nordstreet auto investment option, you would still have to think how to structure this quite a bit.
All in all regarding functionalities, Nordsteer deliver market standard on this. Most likely auto investment is getting less traction from the investors, but diversified project geographies outperforms some small downsides.
For the dashboard part, Nordstreet divided this via separate screens. Overview presents aggregated view on all of the transactions and your portfolio, whereas on transaction level, you have to click on each functionality, to check how each investment is performing.
For the market practice, this is ok. Customer experience could be improved slightly but this does not affect any decision on the preferred platform.
In terms of fees – mainly free of charge. If you are investing on the primary market and there are no late payments, you are not charged extra.
Nordstreet outperforms other market participants in terms of fees, but it is not the only platform which do not charge investors.
Summary of Nordstreet review
All in all there are small bugs or minor details which could be fixed and improved, but besides that kudos to Nordstreet team on matching market standards and sometimes even exceeding on the main parameters – quick onboarding, flexible ways of deposit, wide selection of project geographies and key functionalities.
Bottom line – 4.5 out of 5.
December 22, 2022
Nordsteet is a real estate crowdfunding platform, which states to be radically changing real estate investments. Founded in 2017, platform was growing gradually and reached 30,766,205 EUR in capital r... Read More
December 22, 2022
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