My new investments in May 2019

My new investments in May 2019

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This month I went for a trip to Barcelona with my niece. It was a wonderful trip. I really love this new found freedom to travel and spend more time with my family. I have also been planning a trip to Latvia to attend the P2P conference in Riga. It should be the biggest crowdlending event of the year and I will of course share everything I learn there with you! I am flying out tomorrow, on a one way ticket. It feels weird. I am still not use to not having to be back at a specific date. This was also the month for the last payout from my former job as a consultant. I now have some extra money to invest in crowdlending for the rest of the year. I hope to learn a lot about where to place the funds at the conference in Riga. 

During the month of May, I added to my investments on two different platforms. Crowdestor and Robo.cash. I actually made a deposit to Iuvo Group as well, but I transferred the funds back without investing. Those funds will go to Robo.cash as well next month.  I have been having minor amounts invested on some of my platforms as they seemed riskier or suffering from cash drag when I first signed up. Now some time has gone by and it is either time to clean up and get out of the platforms or invest more funds with them. Robo.cash will be the first of these to expand. The funds I transfered was invested over night. Here is how I split up the funds on the 2 platforms. 

Robo.cash: 1200 € 
Crowdestor: 1.466,97‬ € 
In addition, all earnings during the month was reinvested into other investments on the same platforms. 

Let’s go through the different projects I invested in at Crowdestor and Robo.cash

Increase of fleet with gas-powered IVECO with Crowdestor

A UK based transportation company is planning to raise expansion capital to lease 4 new units of the most cost effective heavy truck in market today – IVECO STRALIS NP 460. 

The gas-powered IVECO Stralis NP 460 in 2018 has completed what is believed to be the longest ever journey by road on a single fill of LNG  – completing the 1728 km road journey from London to Madrid without needing to refuel, exceeding the vehicle’s official range of 1600 km, and set a new distance record. This equates to an impressive 40 % cost saving comparing to Diesel. 

The borrower is an active company incorporated on 11 October 2013 with the registered office located in Birmingham, West Midlands. Orange Square Transport Ltd has been running for 5 and half years. It manages 2 units of new, fully insured Mercedes Benz Actros heavy trucks, and has received a licence to increase fleet up to 6 units of heavy trucks. 

The borrower provides logistics services for the transportation of cargo by road in territory of United Kingdom. 

The investment opportunity offered Crowdestor investors to make a loan with 16 % annual interest rate which is paid every month for 12 months. 

Grocery store with Crowdestor

At Crowdestor i invested in a project for a Latvian based real estate company who is raising capital to renovate and lease out premises in Satiksmes street 3, Riga, to a leading retail chain in Latvia. A non-breachable 10 years long-term contract is signed ensuring stable and predictable cash flow for the borrower. 

Cooperation is based on a built-to-suit lease model – agreement to reconstruct and suit premises for a single tenant on a long-term contract. 

The investment opportunity offered Crowdestor investors to make a loan with 17 % annual interest rate which is paid every month for 9 months. 

Biomass boiler house with Crowdestor

At Crowdestor i invested in a project for an energy company. SIA “Olaines Enerģija” is establishing an SPV “Olaines BIOenerģija” and planning to raise capital to develop a 5 MW biomass boiler house located in Olaine city. Energy production plant is going to be connected to district heating operator of Olaine city – AS Olaines ūdens un siltums. 

District heating system in Olaine is owned and managed by municipality owned operator AS “Olaines ūdens un siltums” which buys thermal power from independent energy producers and sells to end users. 

SIA “Olaines BIOenerģija”, is going to be a part of SIA “Olaines Enerģija” which is an experienced energy producer in Olaine – owns and manages 2.97 MW natural gas cogeneration plant. 

The investment opportunity offered Crowdestor investors to make a loan with 18,50 % annual interest rate, paid monthly after the first 6 months. For the first 6 month interest payments are capitalized and paid in bullet payment together with the loan principal payment. The loan repayment happens in full at the end of the loan term. 

Renovation of eclecticism style building with Crowdestor

The investment opportunity offered Crowdestor investors to make a secured loan to developer of project Artileria Apartments. Funds will be used to purchase two historical eclecticism style buildings built in 1900, in Artilerijas street 26, Riga, and to start renovation of the property. 

Based on increasing demand for small apartments, the developer plans to construct small and mid size apartments in a range from 20m2 to 45 m2 with total number of 24 apartments in the project. 

Crowdestor loan will be repaid from the pre-bookings and sales of the apartments or refinancing by a long-term bank loan. 

Current investment opportunity offers Crowdestor investors to make a loan running over 9 months with 21,00% annual interest ratepaid monthly after first 6 months. For first 6 month interest payments are capitalized and paid in a bullet payment together with the loan principal payment. The loan repayment happens in full at the end of the loan term. 

Project is developed by sister company of Crowdestor OU – SIA Crowdestor Investments, an SPV registered for investment management. 

A lot of Microloans at Robo.cash

At Robo.cash I invested in 1200 different loans. Robo.cash offers great diversification over loans, as their minimum investment in one loan is just 1 euro! On most other p2p platforms it is minimum 10 euros per loan. On the project sites the norm is 50 or 100 euros. 

My crowdlending portfolio at the end of May 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 June 2019, you can find my updated portfolio on the My Crowdlending Portfolio page. 

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52926 € in my crowdlending portfolio
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497 € of passive income every month from crowdlending

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. 

Learn how Grupeer works

Grupeer is a crowdlending platform that lets you invest in mortgage loans, business loans and development projects. Grupeer is very simple to set up, is easy to use and require a minimum of maintenance while making good profits. This is one of my favorite platforms. 

Review and walkthrough of Envestio

Envestio is currently one of my preferred investment platforms. A whopping 16-22% annual return! What is even better is that the loans come with a 90 % repurchase guarantee

This Post Has 2 Comments

  1. Kim Andersen

    Hi Georg

    May I ask why you added funds to Iuvo, but transferred the funds back without investing?
    Just curious as I have though about trying out the platform in the very near future. So if you have a bad feeling or other concerns I would really love to hear them 🙂

    1. Georg

      Hi Kim,

      First of all, thank you for taking an interest in my portfolio and my blog. I am always happy to help with any question you may have about my experiences with crowdlending.

      I have been invested in IUVO group for a while. However, at the time I included the platform in my portfolio, there was a bit of a cash drag so some of my funds were sitting idle on the platform. After some time I moved the uninvested funds to other platforms and left the invested funds to follow the development. Last month I started cleaning up my portfolio to either invest more funds or exit the platforms, that I was only invested in with a lower amount of money. IUVO group is one of these platforms.

      Now, IUVO group has interest rates of 5-15% depending on the level of risk it holds the loans hold, with a simple average of a little over 9 %. That seems very attractive, but it comes with a catch. Only the principal is covered by the buyback guarantee. That means that when a loan is not current, it does not earn anything for you. The buyback kicks in usually after 60 days or 16 days for the loan originator they just added yesterday and not the more common 30 days. Sometimes for periods, loan providers offer 30 % buyback though. The reason for this is according to IUVO group that paying interests on a non-current loan puts extra pressure in the loan originator and they want to keep then strong and stable.

      My dashboard currently shows an interest rate of 13.58 %, but this is not the true XIRR. This percentage is the best case scenario in which all loans are current. I would prefer if they would show the true XIRR. At the end of last month, I wanted to add more funds to the platform, but just after I made the transfer I realized that 67 % of my loans were non-current. So I transferred the funds back and invested them in Robo.cash instead. I then tweaked my auto invest portfolios to only accept 16 and 30 % buyback. I am currently waiting for the buyback to kick in on the non-current loans and it seems to be improving as it is currently down to 42 %. I hope that it will go even lower in the coming weeks. However, do not put too much weight into these numbers as I currently have very little funds interested. So even a single loan non-current makes a difference. As they now have a much higher amount of loans, I would like like to invest more next month or the month after that, ones the percentage goes even lower with my new auto invest settings.

      Another thing I am not to keen on is that the secondary market isn’t free, but has an associated fee of 1% for the investors who sell.

      There are good things to say about the platform though, so I think it will be a good diversification option for me. My plan is over time to raise my portfolio value to 2000 euros. One plus about the platform is that they require loan originators to keep a 30 % stake in the investment or ‘skin in the game’, as it is sometimes called. That keeps the loan providers more careful in obtaining solid loans as they will also lose money if they default.

      At Iuvo Group the investment structure for all loan originators is indirect. This basically means that you are lending money to the loan originator who then lends money to a borrower. The repayments depend on the borrower’s payments, but your claim is against the loan originator, not the borrower. This would probably mean that you would lose most of your invested funds if a loan originator goes bankrupt. On some other platforms like Mintos with more loan originators, you can choose to exclude loan originators with direct structure from your auto invest if you want.

      One thing I really like about IUVO group is that they are adding loan originators at a slow pace and only ones with a good track record from stable countries within the European Union. Yesterday, for example, they added the new loan originator Ibancar who only have A-rated loans and an interest rate of 10-12 %. The buyback also kicks in after just 16 days. So that is actually a pretty good development.

      I hope that clarified your question and if not, please feel free to ask some more. I would love to help as much as I can! If you follow my portfolio development over the next months, that should also offer some more insight into IUVO group.

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