Peer to Peer Lending: Portfolio update Oct 2018
Hello fellow alternative investment seekers!
And happy Halloween/All Saint’s Day/… for those that celebrate it.
Time really does fly and we are nearing the end of the year. As my initial goal was to invest up to EUR10000in different platforms and I think around year end I will be able to start investing again.
The idea is to maybe invest a bit more in Envestio, as this is currently outperforming the other platforms and add one or two more to keep diversifying the risks. I have 3 platforms in mind with around 15% returns. So more investigation in those will determine which to me feels the most comfortable choice.
I had hoped to do this a bit sooner, but then I had some unexpected investments to do on my apartment which I decided to take a bit further than initially planned and that set me back around EUR15000 for new windows, new roof and new boiler/heater.
But first off, please find the results of this month below:
All in all almost EUR75 this month on my EUR5500 initial investment mid-June is nice progress if you ask me.
Mintos is slowly recovering in my opinion, but they are not back to their previous level yet. When I started investing with them there were plenty of 14% loans. Then they had dropped to around 10% for a while which was very alarming. Right now they landed somewhere in the middle with 12% loans.
Will they get back to previous form? Not sure, but I think they will if you look at their history. For now I’m mixing my investments in some 12,5% longer term loans, and some 11-12% short term loans (less than 30 days) to keep enough of my portfolio with them liquid should the rates go up again.
With Bondora I didn’t have a very big month, but looking at the global returns so far compared to the other platforms I invested twice as much in, they are holding their own. The platform is a bit too crazy for words however, because I’m getting loans of 36 months each for pieces of EUR1,00.
Think about it… lending 1 euro to someone for 3 years… And this 100+ times. That is how my portfolio is looking at the moment. I had contact with their support asking for a “minimum bid” option (for example 5,00 or 10,00) but right now they only have a maximum bid and no plans of changing this. Reason why the EUR1,00 are happening is because there is a lot of demand for the loans I’m getting through Portfolio Pro.
Let me know if you would like to see how this is set-up.
Single digit returns on a EUR1000 is not something I like to see in my p2p platforms. A lot of the loans with Robocash are getting to Buyback status. Luckily Robocash pays the principal amount and interest, but it takes 60 days longer to get a return on 30 day loans.
On one hand it’s great that you can be sure you receive everything (and also interest for the overdue time), but on the other hand I don’t think Robocash can keep buying back all the defaulted loans without getting paid by the borrowers themselves.
So I’m a bit sceptic about where this platform could be headed. On the other hand, I have had some contact with their support and I must say they really did an effort to reply swiftly each time and put time in answering in a very detailed way.
So that is a big plus for them at least. Hoping next month they will pick up in returns.
Not much to say, steady EUR15 return each month because I’m only invested in 1 project with EUR1000. Unfortunately with the EUR50 return on the platform so far, I can’t invest yet in another project because the minimum investment is set at EUR100.
I was looking a bit at their newest project, which is INCH² … but to be honest I’m not really comfortable with the way they have presented it. The interest rate is set at 17% + 5%.
So basically this is 17% with an added 1% based on success rate. The success rate is based on annual turnover, which the goal is over 5 million EUR for getting 1% extra. With the full 5% extra being a target of 10 million EUR. The company has had 3 million EUR net sales over the last 12 months… so their goal is very optimistic.
In short it would mean if they double (so 6 million), investors would get 17%+2% interest rate. Just showing this to point out reaching the +5% extra is nearly impossible because that means more than tripling the total Net Sales in 2019 against last twelve months.
For now I’ll just let my interests build and hope at some point interesting new opportunities will present themselves on the platform when I’m able to invest again with the minimum amount, not as “shady looking” as the current option.
At the moment I’m a bit worried about Grupeer. They were my second favourite platform for a while, because they have good interest rates, live webcam to see their biggest real estate project and loads of loans available.
The reason I’m worried now is because there is not a single loan available at this moment. Since I started invested with them, this hadn’t happened yet and is a first to me. I did receive an e-mail from them recently that in November a lot of new projects will be added. The steady interest rate with them of 15% has been slowly dropping to loans of 14% and even some of 13%.
So I’m crossing my fingers they will go up instead of down interest rate wise on those new upcoming projects. I also hope the supply of new loans will exceed the request or at least cover the amount of investors.
Until now there hasn’t been a single day that I was either worried or not happy with my investments in Envestio. So three months in a row now they get my recommendation within my current portfolio.
Not only because of the (much) higher interest rates, but the steady amount of new investment options are impressive. One of my colleagues at work has started investing with them since this month and will start receiving the first full month interests in 10 days. So exciting times there… Especially since all new loans during the month of October had an average interest rate of 20%!
I’ve mentioned this earlier in the post, but most likely towards the end of the year I will strengthen my position with Envestio, which will then be the first platform I’m putting more eggs in the basket with.
I think at that point if I can steadily average a little over EUR100 each month from my investments in these Peer to Peer platforms I will already feel very happy and could/would feel like the first goal of financial freedom for me personally has been reached with a reasonable investment amount. Who doesn’t want to earn EUR100 extra each month? And we all have to start somewhere small… right?
Thank you for reading and for your interest in Crowdlending.
Feel free to fire any questions you might have my way, I will be more than happy to respond.
Have a great day/evening all & talk soon!