I currently only have minor funds on BulkEstate, Swaper, NEO Finance, Evoestate, Finbee, Debitum Network, Robo.cash, Iuvo Group, Bondora, Housers, Brickshare, Reinvest24, and DoFinance. These are platforms that I am currently testing, or platforms with high liquidity where I will put more money in later when I rebalance, as I recently withdrew money to invest in real estate. 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 June 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 and Grupeer that 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 and Grupeer 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. I did the same for Grupeer in March 2020. If some interest income will later be recovered from the Envestio and Grupeer lawsuits, they will be added as income at that time. I also had some secondary market fees that wiped out my earnings for April. From May I am now back on track, earning again!
The second graph shows the loss of principal. Right now there is only the loss from Envestio and Grupeer. 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, Grupeer and Kuetzal and see how I decided to change my strategy after the loss, you can find more information in my January 2020 update and update for March-May 2020. 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 and especially March 2020 was a big hit to my portfolio and a worst case scenario of losing all earned interest and principal on two platforms. I am still in negative with 5076 EUR since I started my crowdlending adventure.
Still in São Paulo while Brazil has become the new epicenter of COVID-19
It has been quite a while since my last update. 2020 has been a very different year than the last one so far. I wish I could just uninstall it and then reinstall 2019 again, because 2020 definitely came with a virus! In the worst case I lost almost 19% of my crowdlending portfolio in a matter of a few months. It did not happen from defaulted projects or bad loans as expected, but from platform fails or possible scams. That is still to be determined. As you already know I choose to look at the worst case case scenario, unlike some P2P publishers, and that means that all principal invested and the accrued interest is completely gone. I have learned an important lesson in terms of the real platform risks of crowdlending. As investors, we need to know a lot more about these companies and I will do my part to deliver a lot for information in the future.
On the other hand, this year has also brought about some amazing opportunities! The last months I have been focusing a lot on stocks with discounts of 30%, 50%, or even 70% on many shelves. The 13000 EUR I had set aside for this is now down to 4000 EUR. I had a feeling that something would happen in the market. Any investor did. It had to, after more than 11 years of bull market. But who could have imagined a pandemic like this with months of quarantines and lockdowns worldwide.
Never in my life have I experienced anything that comes even close to this. Some stocks have recovered somewhat in a short time and some of the tech stocks have skyrocketed during the crisis. It looks like we are almost back on 2019 price levels with some indexes. However, I don’t believe that it is over yet. It usually takes a little more time than a few months for everything to catch up and we could see another big dip in some parts of the stock market during 2020. A lot of other things could happen as well. The USD value is very high. The global real estate market will for sure take a hit, and depending on how long this goes on, travel will be restricted. As long as there are places in the world with a large number of new cases, travel and movement will be restricted and the countries that cannot successfully lower the number of cases fast, will hurt bad economically. I think that a lot can still happen. Just have a look at Brazil and the daily number of new cases.
Does it look like Brazil has been in quarantine for the last two months? Not really, right? For the first month people took it half way seriously. Now the number of people on the street and on public transport looks like a normal day out of quarantine. I am of course staying far away from anywhere with crowds like this! Restaurants, gyms and everything is still closed down, but clearly a lot of people are working behind closed doors. As long as there are still a lot of new outbreaks, the world cannot go back to normal. Even if things are opening up in Europe. USA, Russia and Brazil are still pulling big numbers and this will restrict travel and things going back to normal. The longer this goes on, the bigger the impact in the longer run. Just have a look at some pictures from the evening news here in Brazil. Does it look like Brazil is in a quarantine?
My other channels and articles published during the last month
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 last three months I did not really release a lot of content. I wanted to see how everything developed in the crowdlending industry. I am now back on track and will start to release more articles. During May stopped my comparison of Bondora Go&Grow and Mintos Invest&Access and moved the data to a separate article. You can read my final comments about the two products and see which one I will continue to use in the future.
New investment in real estate?
For the last months I have been mostly focusing on other types of investing than crowdlending. Apart from buying cheap dividend stocks, I have been looking at real estate in Brazil for a few years. The Brazilian currency was historically low before COVID-19 and the last three months it has dropped even more. Just look at the buying power of the Euro here in Brazil at the moment! Very cheap! This is probably not the worst time to buy real estate in Brazil. However, the currency could recover fast. But for now, there are some very good options in my price range. I have looked at many different projects in the last months.
What specific real estate development projects am I looking at?
If you are interested in learning a bit more about the properties I consider investing in, these are the three projects I am currently looking into. They are all in very good central locations in one of the biggest cities in the world.
Well, enough about that for now. I will fill you in on how things develop on that front, in the the next few monthly updates. Please let me know what you think about me adding a bit of information on my other investments as well. Now, let us get back to crowdlending.
How will the purchase of another property affect my crowdlending portfolio?
In the start of March I stopped most of my autoinvest strategies. As I spend most of my cash on stocks, the money will have to come out of my crowdlending portfolio. I will need somewhere in the area of 31000 EUR depending on the price of the apartment and the value of the Real at the time of the transfer. This is about half the value of the apartment, but if I pay this amount up front, I can negotiate a good discount on the price and take advantage of the current situation. The rest can be split up in smaller monthly payments. Most of the money will come from Mintos, Peerberry, VIAINVEST, and Swaper. EstateGuru are long term investments and Crowdestor has a pause in payment due to their nature of having only business loans. From the rest of the platforms I will only withdraw smaller amounts. Where I withdraw the most money from is not a sign of which platforms I think are the weakest. It is simply the platforms that has the most liquidity at the moment. Later, I will rebalance everything with the amount I want on each platform like I have done earlier. Illiquidity is actually one of the downsides of crowdlending, especially in the current environment. It takes some time to either sell investments or wait for projects and loans to mature. You cannot just sell everything when you need the money for something else, like you can with stocks. The liquidity on the secondary markets, where they exist, are very different.
I has actually been really sad that I did not have a chance to write about investments in the stock market and real estate investing. My blog is purely on crowdlending. At least until now. I don’t even believe that you should have all your money in crowdlending anyway. I used to have 10% of my investments in crowdlending. This will now be lowered to about 7%. Stocks and real estate are old and proven methods of investing and I could write about this as well. I would like to write more about a full picture. Real estate, stocks, crowdlending and compare the 3. I am sure other investor are also interested in other asset types as well and how they perform next to crowdlending. Let me know, by leaving a comment, what you would think about me changing the scope of the blog to include my other asset types and comparing them.
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 7% 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, 40% in stocks and now 3% in cash. Crowdlending is the only thing I actively work on at the moment, besides looking into a new real estate deal. 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. For March through May you can see the big withdrawals I made to be able to invest in another real estate deal.
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!
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.
My latest crowdlending investments
If you want to get some more information on what type of crowdlending and other investments I have done recently, you can read more in this article about how I invested my available funds and rebalanced my portfolio last month.