My p2p lending portfolio is growing (March update)

Published by Daniel on

(Last Updated On: April 24, 2019)

My p2p lending portfolio didn’t suffer any major changes since last month. I’ve only moved around some of the funds I had on PeerBerry to other platforms.

It’s been 9 months since I’ve made my first investment on Mintos. 9 months since my first 25 EUR put into a 10% loan with a buyback guarantee, because I was too scared to invest in unsecured loans with no guarantee. (I still am scared, and I think it’s a good attitude).

Half of my investments are still on Mintos and FastInvest and I’m not planning to change that soon for 2 reasons.

One is that they’re good platforms with good and constant returns.

The other is that this month was my first without a paycheck. My partner and I decided to take a 6 months vacation and travel around the world. For the past 5 weeks, the vacation was great. I have nothing to complain about it. The only downside is that my employer doesn’t want to pay me for the 6 months I’m away (obviously). I’ll be eating away my savings, but at least I’ve got a tan.

I can proudly say that I’m making progress turning my p2p investments into passive investments. There are times when 2 or 3 days pass without me logging in to one of the platforms. It’s just a side effect to me not having access to the internet, but it’s still great.

My p2p lending portfolio overview

I’ve added 1000 EUR to my portfolio (leftover from PeerBerry split between p2p and real estate investments).  My portfolio is worth now a bit over 16.000 EUR and it gave me 143 EUR in profit since last month.

My profit would be a bit larger if I wasn’t investing in Neo Finance loans covered by provision funds. I’ll stop doing that in the following months. And interest payments received from Neo Finance will be invested in secondary market loans (with the provision fund enabled, of course).

It’s the first month I didn’t forget to compute the average interest rate across my entire portfolio. 13.35% per year doesn’t sound that bad.

My investments grouped by country

My investments are spread enough across Europe. Spain and Denmark are on top of the list because that’s where my Fast Invest loans are from.

My investments grouped by loan type

I thought grouping my investments by loan type would show me some meaningful data. It only shows me that 64.4% of the loans I’ve been investing in are consumer loans (split between Consumer Loans, Personal Loans, Car Loans and Short-term Loans).

That’s ok, because all the consumer loans I’ve invested in, come with buyback guarantees. As opposed to the business loans that in most cases have no buyback guarantee (they are secured though against company assets so they’re not that bad).

Some notes on the platforms I’m investing in

Fast Invest

Fast Invest seems to be the victim of its own success. It received a new facelift last month, with some better stats on people’s investments. It also restarted its “refer a friend” program. Each time I access the website, there’s almost no loan available (except some 10% interest ones I’m not going to touch). The auto-invest still works and every morning my funds are invested in some 15% loan, so there’s nothing really to complain about.

PeerBerry

I’ve reassigned almost all my investments on PeerBerry to long-term loans (either consumer loans or real estate ones). Unfortunately, those types of loans are not that many. If the situation doesn’t change, I’ll move part of my profits to other platforms as well.

Viventor, Grupeer and Neo Finance

All 3 have a minimum investment of 10 EUR. On Viventor and Grupeer I’ve set up an auto-invest profile that keeps reinvesting my funds whenever my balance reaches 10 EUR.

On Neo Finance I still need to play a bit more with the platform to see what auto-invest setup would really work for me. For the 800 EUR invested, I’m getting each month around 20 EUR in interest payments, so this platform should show good returns soon.

If you don’t have an account on Neo Finance, you might as well create one using my referral link. It will give you 25 EUR just for signing up. You can’t withdraw those funds right away, so you’ll need to invest them in a loan from the primary market, but you also don’t need any extra funds deposited on your account. It’s basically free money. 

Crowdestor and Crowdestate

I’ll limit my investments on these 2 platforms for now. The projects do look good, especially on Crowdestate, but the 100 EUR minimum investment is a bit high for me, especially since I wouldn’t have any stable income in the following months.

Envestio

I’m not planning to add any new funds to it, but I’m reinvesting any interest payment received back into the available projects.

Since the projects are not that many, I’ve also created an account on Kuetzal. The platform and the projects look similar to the ones on Envestio. Except that the site is badly translated to English, there are empty pages on the website and the management team looks just finished college and has almost no experience. I’ll give it at least 6 months before I’ll actually consider investing in a project from Kuetzal.

If you think about registering to Kuetzal, use this promo code SPRING2019 and you get 10 EUR to your account. You might as well use those 10 EUR to test out the platform.

EstateGuru

A few weeks back somebody from EstateGuru contacted me and asked me if I’d want to promote their website on my blog. The users that would register through my referral link would participate in a raffle and will have a chance of winning one of 2 prizes of 50 EUR investment credit each. You can see more details here.

I didn’t have a reason to say no since I’m already invested in EstateGuru and have nothing to complain about them. So I said yes.

4 people in total registered using that link. 50% chances to win, that’s not that bad.

Bondora and Twino

I still have some residual funds on these platforms, but they’re small enough to ignore them so I didn’t include them anymore in my report.

Future plans

Debitum Network

I’ll be playing a bit with Debitum Network and see how the platform works. I’ve had an account there for a while and now I have enough time to dig in and see how they’re using cryptocurrency tokens in p2p lending.

DoFinance, RoboCash and Assetz Capital

These 3 platforms offer the closest thing to passive investment. You just add funds to your account and they’re automatically invested.

Even more, DoFinance just added back their 11% interest rate portfolio. It’s high enough to be tempted to invest in it.

Assetz Capital has lower returns for passive investments, at around 5-6%. This looks bad, but on the short term the British Pound should recover, so the actual return in EUR currency should be a lot higher than 5%.

See you next month.


Daniel

Learning and sharing what I learn about alternative investments.

2 Comments

Finance Freedom · April 8, 2019 at 8:09 am

Hey Factor Nerd!

We can see that you have 13% Spain loans in your portfolio. Isn’t that worrying you or are you so sure, that they will pay back?

While I was investing at Bondora, I had way too many Spanish loans and most of them were complete gargabe, close to all of them defaulted and Bondora didn’t do anything about it. Yet, some of them paid the incredibly high 65-80% interest.

    Daniel · April 9, 2019 at 5:59 am

    Well, most of the Spanish loans come from Fast Invest, that promises to buyback any loan that is 3 days late with their payments.
    I don’t know what the end interest rate for the borrowers are, but I assume it’s enough to cover for the defaults and still pay me 13-14% interest rate.

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