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Another year of traveling
My trip around the world was supposed to last just for a year, and then I would get back to work. Maybe. However the first year of testing out lean FIRE went so well, so I have decided to do another year of traveling and investigating. This year I will spend even more time in the Baltics to visit more platforms and projects. I also plan to visit more loan originators.
During the month of December, I have been in Denmark, visiting family, friends and fellow investors. I also attended the first meeting in a small group of people in Copenhagen, who all wants to know more about how to create passive income sources. We will have our second meeting tonight and I hope they are all up for the challenge of creating one source of passive income source for themself before the next time we meet. I really hope this will turn into a returning event for all participants. It would be great to share the experiences and getting feedback on ideas.
During the month I released only a few articles. One was about Kuetzal and the troubles the platform is currently in. I wrote them off as a good investment platform a while back, compared to so many others they were not that interesting. I decided not to invest, but I had no clue that it could go so bad for them that fast. The other article was about Stage 2 video presentations from the P2P conference.
I am currently also monitoring the exact cash drag for my investments on my Swaper account and will release the results in about ten days.
How did I rebalance and invest new funds during last month?
During the month of December I did some rebalancing of the platforms. I took some of the money just sitting there waiting for good projects and also interest payments and returned principal. I then simply moved the money to other platforms that I already knew I wanted to make a bigger part of my portfolio. I also added 1914 euros to my portfolio.
Last month I moved 389 euros from Envestio, due to hardly any new projects. I moved them to Swaper and Finbee. I also put 1694 euros towards EstateGuru, as I would like more real estate in my portfolio. I want EstateGuru to be around 9% of my portfolio in the near future.
I made 840 euros during December, which is an decrease of 114 euros from last month, but still 187 euros higher than two months ago. These jumps in payouts for November and December were mainly do to a bullet payment from Bulkestate in November, and a bullet payment from Crowdestor in December, as some of my real estate projects there matured. So I expect the earning to go down a bit again next month. I have been going more into real estate the past year, especially at Estateguru, and there most of my investments have bullet payments, which means I will not be paid monthly interest payments during the projects, but only in the end when I also get the principal back. So these bullit payments will become frequent in the future.
I added to my investments on 3 different platforms. I also lowered the amount of money on 1 other platform. Here is how I rebalanced and split up the funds on the 4 different platforms during the last month.
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 January 2019. Mintos Invest & Access still has the lead in terms of earning as expected. However, 234.62 euros of the money invested in Mintos Invest & Access is not available for instant withdrawal. This is an increase of 60.77 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 19.03 euros versus 12.88 with Bondora Go & Grow. During December the average interest rate on Mintos Invest & Access dropped ones again, this time from 9.58% to 9.55%. Interesting battle! Stay tuned by signing up for the newsletter.
My crowdlending portfolio at the beginning of December 2019
So let us take a look at the stats for my portfolio at the time of writing this blog post. If you are reading this article later than January 2019, you can find my updated portfolio on the My Crowdlending Portfolio page.
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If you have friends who are interested in investing and earning passive income, feel free to share the knowledge of the opportunities by using the sharing buttons below. If you have any questions or comments to my investments or any of the platforms, please leave a comment below. I will be happy to help you and answer any questions you may have.