I currently only have minor funds on NEO Finance, Evoestate, Finbee, Debitum Network, Robo.cash, Iuvo Group, Bondora, Housers, Brickshare, Reinvest24, and DoFinance. These are platforms that I am currently testing, new platforms or just interesting platforms that I may put more money in later. I try to diversify both on loan type and loan provider but also on sector, country and platform. In the pie chart below, you can see my distributions on March 1st 2020.
Overall income and losses
I have been thinking about how to best display my total gains and losses, loss of princical, and how to visualize the interests that I previously earned, but for Envestio may or may not turn out to be true. In the end I decided to make three graphs instead of one like I did in the past. I think this gives a much better overview of it all.
The first one is purely interest income. As I at least for now consider all interest income earned at Envestio as lost, I gathered all the interest I earned over time at Envestio and subtracted them from my earnings from other platforms in in January 2020. If some interest income will later be recovered from the Envestio lawsuit, they will be added as income at that time.
The second graph shows the loss of principal. Right now there is only the loss from Envestio. Some money could later be recovered in court, but for now I consider them gone! If I later have a project that defaults or a loan provider that folds and some principal eventually in lost, I will add the loss of principal to the below graph as well. If you want some more information on what happened with Envestio and Kuetzal and see how I decided to change my strategy after the loss, you can find more information in my January 2020 update. This will make my full portfolio stronger and with more secured loans. If you want to know what type of platforms I think involve a greater risk than others, I also go into a bit more detail in my update for January 2020.
THe third graph show the total gains and losses combined. I this this is the most important one as you can here see the full picture in one graph. Remember that I have only tracking my earnings since the start of 2019, even though I have been invested since the start of 2018.
My total gains from crowdlending investments including the latest losses!
January 2020 was a big hit to my portfolio and a worst case scenario of losing all earned interest and principal on a single platform, but I am still in plus with 3789,81 EUR since I started my crowdlending adventure.
How does bloggers report their income and especially losses?
There is a big difference on how bloggers invested in Kuetzal and Envestio reported their loss. Some have a big plus for the month, even though they had huge losses! I think it is important to show the full and horrible truth to your followers, so I wrote an article about it. If you did not already read it, you can do it here. Some are cooking the books a bit too creatively!
Still in São Paulo while the Corona virus panic grows in Europe
I am still located in Sao Paulo and the carnival is over. Now it is time to work. I have been rebalancing my portfolio heavily and have also been looking into a new potential opportunity for real estate investing here in Brazil.
The foreign ministry in Denmark is currently advising all Danish citizens to go back to Denmark as soon as possible. I tried to get a ticket out early, but the booking service I used had errors. I got a ticket where only two of three flights got booked and later one of these flights were canceled. The call centers for changing tickets are extremely overloaded and kicks you off the call eventually. So there is no chance of getting trough during the next couple of days. The prices are elevated. I will give it a try later, but for now I am still in Brazil where all events, television filming, football matches and gyms are closing down. There is still not a lot of cases here, but it is growing.
The Corona virus is making its impact on the stock market and creating new opportunities there for investors. I see a lot of people moving all of their funds from crowdlending and moving all the money into stocks. I do not plan to do this. I had 15000 EUR set aside, earmarked for this opportunity. I have about 10% of my portfolio in crowdlending. I think that is a good percentage. But if I start moving everything I have in crowdlending into stocks, I will lose the diversification I have between stocks, real estate and crowdlending. I may take the profits out and invest in stocks though.
If you want to follow my travel adventures and get even more content you should consider following my Facebook page, Instagram or YouTube channel where I also publish videos from my platform visits in the Baltics and Southeast Asia.
During the month I did not really release a lot of content. I did however finally publish an article about my favorite books about crowdlending, finance, investing and personal development. Most of them are audio books and you can get one of them for free! See my favorite books and get one of them for free here! .
Learning about a potential new investment for short term rental
Like I told you about in last months review, I am looking into investing in a short term rental apartment here in São Paulo. The building I decided is the most interesting is the project “Downtown Nova Republica“.
The reason I find this building especially interesting is the location and the architecture. This will be the second part of a two parts building, where the first building has a maskulin architecture and the second has a female architecture. The building is unique and I am sure that an apartment here will both rent and maybe later sell fairly easy.
The masculine building is already constructed and in use. Last year I rented an Airbnb there to check out the facilities and it was wonderful. Perfect for short term rental. You also have the opportunity to leave the short term rental to the administration of the building as they run a hotel service for investors.
It is located right by a park, so the right apartment would deliver a spectacular view over the two buildings, the skyline and the park. The location in the new center, with a metro station right outside, is just perfect. There are many interesting things within a short walking distance.
The Brazilian currency is historically low these days. Even more with the coronavirus. During the time, until the project is turn-key in 3 years, the value of the property apparently rises about 35%. I still need to verify this though. If the brasilien Real goes up then that would be an added bonus.
All that being said, as this time it would be very risky to invest in real estate, just on the plan.
Back to my portfolio status
I have only shared the statistics from my portfolio from April 2019 and not all the way back from when I started investing. I guess I am a lazy investor. I don’t want to look at the numbers all the time. But this year I started keeping track and counting up all the income from the different platforms.
The deposits to my crowdlending portfolio
Deposits can swing from month to month depending on my travel activities and expenses.
You may wonder how I am able to make these big deposits while traveling on a lean FIRE budget and not having a day job. The thing is, that I only share my crowdlending portfolio as this is what the blog is about. I am reinvesting all of my earnings from this. My crowdlending portfolio is only 10% of my full investment portfolio. I also have passive income in the form of dividends and rental income. I have 50% procent in real estate and 40% in stocks. Crowdlending is the only thing I actively work on at the moment. The rest is fully passive. The large deposits has been coming from savings and a bigger payout I got when I left my job in December 2018. Than money is almost fully invested at this time. So the time of the big monthly deposits are over.
Which is the better product - Bondora Go & Grow or Mintos Invest & Access?
In the start of June 2019, during the P2P conference in Riga, I published an article about the new Mintos Invest & Access product. This is in some ways similar to the Bondora Go & Grow product. I wanted to transfer money back into Bondora Go & Grow. When I visited the Bondora office in Tallinn, they told me that 1/3 of their investor portfolio is in Go & Grow. This paints a clear picture that this type of product is really popular with investors and has great potential. Bondora has been in operation since 2007, but the Bondora Go & Grow product is fairly new. Both Bondora Go & Grow and Mintos Invest & Access promise that the investor can sell their investments and get the money out right away. With Bondora Go & Grow you can get all the money out no matter the status of the loans you are invested in, but offers a lower interest rate than Mintos Invest & Access. On the other hand, with Mintos Invest & Access investors can only get the money out that are currently not late. Some loan providers at Mintos also does not offer interest payments on late loans. So it is not quite clear which product is the best.
I therefore decided to transfer 500 euros to each platform at the 1st of August 2019. I invested the money at the same time and I will not deposit any more money to the two portfolios. Every month I will then do a status of the progress and earnings, to share with you which portfolio is currently ahead on different parameters. This will be interesting!
Below you can see the results for both portfolios by the 1st of March 2019. Mintos Invest & Access still has the lead in terms of earning as expected. However, 192.78 euros of the money invested in Mintos Invest & Access is not available for instant withdrawal. This is an increase of 12.55 euros compared to last month. So this month Bondora Go & Grow is ahead in terms of liquidity and Mintos Invest & Access is ahead in terms of returns with 27.28 euros versus 18.43 with Bondora Go & Grow. During February, for the first time during this test run, the average interest rate on Mintos Invest & Access went up. From 9.36% to 9.50%. Not a lot, but at least a move in the right direction.
Here you can see the change in available amount for withdrawal and interest rate for Mintos Invest & Access since the start of the experiment. Bondora Go & Grow always has the same values. 100% can be withdrawn at any time and the interest rate is 6,75% capped. These are probably the numbers that will decide which is the best of the two products for you. You want to earn well, sure, but you may also want a certain level of liquidity.
Get started on building your own crowdlending portfolio today!
If you would like to get started building your own crowdlending portfolio I am currently gathering as much knowledge about the top platforms and I will share everything I learn here on the blog to inspire you. I am not an investment advisor and the risk you take is yours and yours alone. I am just sharing my own experiances investing in crowdlending and hope my learnings can give you some insights if you want to get started or expand your current portfolio. Here are some of my favorite platforms and the information I have gathered so far. More to come! All the below platforms are free to sign up to and free to use. If you want to know some more about crowdlending you can view the videos and the panel discussions I shared from the first pure P2P conference in Riga, in the start of June 2019.
Transfer and exchange money for investing for free with Revolut!
I do almost all of my crowdlending investments in the currencies EUR or GBP. As my main bank account is located in Denmark, the money on my account is in DKK. So whenever I want to invest I have to first exchange to another currency and then transfer the money to my investment account abroad. If I use my netbank for this I will pay a fee each time, both for the currency exchange and the transfer. The first time I transfered money I did it using my netbank. Then I found out about a wonderful free product you can use to do both. Completely for free! The product is called Revolut and you can order it for free right here. Then you can invest the money you save in crowdlending instead!
Grupeer is a great platform with very competent people behind. They mix real estate projects with business loans.
>> Sign up on the Grupeer platform for free.
>> See my platform walkthrough and get help to sign up for their free service.
>> Read or listen to my extensive interview with Grupeer.
>> See me picking up trash from the canals in Copenhagen with Grupeer.
BulkEstate is a platform that focuses on real estate in Riga and Jurmala, an area by the beautiful beach 11 kilometers north of Riga. They are experts in these areas. They only have a few investments objects per month but I think they are very competent.
>> Sign up on the BulkEstate platform for free.
>> Read or listen to my extensive interview with BulkEstate.
>> See the videos I made on site at some of the Bulkestate real estate projects.
I have to say I am pretty impressed with VIAINVEST. The group has been in business for 10 years, the longest track record of any of the platforms I have visited so far. There portfolio and business model has proven to be stable even during a financial crisis. So they “only” have a return of 11% per year but let us be honest, that is actually a pretty good return. The loans you invest in are also short term, so you can free your money and withdraw them in about a month if you need them.
I made an agreement with VIAINVEST, that you will get a 10 euro bonus if you invest at least 50 euros on their platform. But I recommend that you first read the VIAINVEST interview I made on the blog, to see if VIAINVEST is an investment platform that fits you.
>> Sign up on the VIAINVEST platform for free and get the 10 euro bonus.
>> Read my interview with VIAINVEST Platform Lead, Simona, when I visited the office in Riga.
Mintos is one of the most well known and popular crowdlending platforms in the Baltics. I went to visit their office prior to the P2P conference in the start of June 2019 in Riga. This is a platform that most crowdlending investors have in their portfolio. I see them as very professional. It is a big company and you have the possibility to diversify a lot, just on this single platform.
>> Sign up on the Mintos platform for free.
>> See my platform walkthrough and get help to sign up for their free service.
As you can see from the pie chart in my portfolio, I really like Crowdestor. After visiting them several times, both at their office in Riga and also going out with them while they were inspecting potential investment objects, I have absolutely no reservations investing in their projects. They are serious about their investors and projects and very knowledgeable and competent. Their projects have high interest rates and sometimes they have some more exotic projects that you will not find on other platforms. Investment objects with an interesting story. I will soon publish an article about my interview and visits with Crowdestor.
>> Sign up on the Crowdestor platform for free.
>> See the previous projects from Crowdestor.
>> See the videos I made on site at some of the Crowdestor projects.
Peerberry is a platform I have used for a while. They have short term direct to consumer loans and instalments. That means that you can liquify your invested funds within a month. They also have buyback on all their investments. I have a meeting set up with them at their office in Vilnius next week, so I will soon publish a blog article with my extensive interview with the platform.
>> Sign up on the Peerberry platform for free.
>> Read my interview with the Peerberry CEO and see pictures from my visit at Peerberry in Vilnius.
Robo.cash I have used for a while, but at the beginning I did not put a lot of funds as they did not have enough loans. That problem seems to be solved and I recently invested more with them. They have short term direct to consumer loans and have buyback on all their investments. I have a meeting set up with them at their office in Riga in a few days, so I will soon publish a blog article with my extensive interview with the platform.
>> Sign up on the Robo.cash platform for free.
Property Partner is a UK P2P platform, based in London. They focus only on real estate in the United Kingdom. This is not a platform that offers big monthly payouts like the platforms in the Baltics. They usually pay out 2 to 6% depending on the property. But it has a lot of potential for great earnings, but it all depends on the UK real estate market. The way it works is that the platform buys properties, rent them out and then make a company connected to it. They put in an administrator who takes care of everything. You can then buy shares in the company and you will each month receive rent payments in the form of dividends. The share price is normally under 1 GBP, so you can get a really diversified real estate portfolio for very little money. The great thing is, that you can always sell you shares on the secondary market and if the property value has gone up, the value of your shares will go up as well. If you want to get into true real estate investing and not just development and renovation projects, this is actually a really interesting platform! Their functionality and secondary market are very detailed and there are a lot of properties to choose from. You can easily start investing in real estate with very little funds.
>> Sign up on the Property Partner platform for free.
Leave a comment or a question below - Let me know what you think!
If you have any questions or comments, please leave them below and I will get back to you with an answer. Do you already invest in crowdlending? On what platform? If you have not started yet but would like to, what concerns do you have and what information are you missing in order to get started? Use the share buttons below, if you want to share the knowledge.