The distribution of my investments by category remains more or less constant. The most notable is the decline of my stock market investments due to the general decline in the markets.
During October, my investments in participatory platforms can be summarized as follows:
- I increased my positions especially in Housers, Estateguru, Fast Invest, Crowdestate and Finance Linked
- The best returns have been October 1) Real Estate: Bricks & People and Estateguru; 2) P2B: Envestio; and 3) P2P: Swaper, Grupeer and MINTOS
- The best platforms in terms of IRR are 1) Real Estate: Bricks & People and Estateguru; 2) P2B: Flender; and 3) P2P: Finbee, Swaper and Grupeer.
The profitability of October maintains the levels of September with a 6.1%. Crowdlending platforms (both P2P and P2B) have improved their profitability compared to September to 11.7 and 8.7%, respectively, unlike those of crowdlending real estate, which have fallen to 3.3% .All interests are calculated before taxes
As for delays and defaults, the behavior of all platforms is quite acceptable:
- Notably October the first default in August, and delays fairly sleazy Linked Flender and Finance (the same company: Irish Premier Golf Tours Limited).
- Delays and defaults Finbee fall within normal, being a platform without Buyback. Similarly, the “delay” of real estate platforms such as Housers, Inveslar or Privalore not miss – property sales take time and time delays are only a couple of months.
- Estateguru delays are around soweth 5% of the loans and so far, they all end up being paid. Only one of them is more than 10 days.
- Crowestate easily check does not allow delays. There are some, but it is difficult to define how unless we consult the projects one by one.
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Profitability fails to take off. In October I think I’ve reached the point where the benefits will allow me to spend on each project without further input. Although not rule out making off revenues if it increased the number of projects, my intention is not to increase my position in the short or medium term.
For already a couple of months, I started investing half in the projects Madrid, who were clearly over-represented in my portfolio, reaching more than 50%, coupled with the continuous news from overheating housing market Madrid and other large cities (Barcelona and Mallorca).
During October, Housers has offered the first building of a new category: Green Investments (sustainable investments), although in fact no longer a fixed term.
At Inveslar, returns have been constant at around 1.5% for more than a year. The low profitability at the moment is due to the fact that most projects are fairly long-term (7 of my 12 projects are for 36 or 60 months), and all the interest received is for rentals. Of the 12-14 month projects, none have yet been completed since I started investing, but there is only one slightly delayed (1.5 months). The platform has been little active for several months. The last two have been fixed-rate mortgage loans.
Privalore, offering investment opportunities only (rehabilitation), it offers little constant returns. The platform now offers only opportunities in Madrid, whereas previously focused exclusively in Barcelona. Two of my seven active investments are delayed, so I decided not to invest in new opportunities until they catch up.
Moment, when all long-term investments, do not begin to see returns until December 2018. In any case, the returns offered are excellent (always above 13%), so I will continue to invest in all new projects.
Crowdestate continues to offer excellent returns. Some payments are delayed, but end up arriving with compensation for the delay. About half of my portfolio are projects that pay in full at the end. The monthly profitability and IRR should increase considerably in the coming months up to 13-14%, when the first projects that are paid at the end begin to end. My strategy is to continue investing in each new project.
Estateguru continues to behave excellently. There are always around 5% of projects delayed a few days, which, at least for the moment, always end up being paid. As with Crowdestate, the monthly profitability and IRR should increase considerably in the coming months up to 10-11%, when more projects than are paid in the end begin to finish. My strategy is to continue investing in each new project.
I have only been investing with Envestio for two months, but in the second month it has become the platform with the best rate of return (19.1%!). All but one of the projects I invested in in October offered returns above 20.5%. Keep in mind that many of the projects that are appearing are actually new tranches of financing for the same project, so by investing in them, we do not increase our diversification. With the offered returns and Buyback, my intention is to increase my positions in the coming months.
Flender’s yields are excellent, progressively increasing to almost 9% in October. The current IRR is almost 23% thanks to a summer promotion for which 10% in cash was obtained from the amount invested, provided that the investment per project exceeded 300 euros. The only downside is what it looks like is going to become the first default in a Flender project. This is the Premier Irish Golf Tours Limited project, which was also funded through Linked Finance. My intention is to continue investing in all new projects.
The Irish platform is by far the most active of all the P2B platforms I use. The returns are progressively increasing and I calculate that they will reach the maximum profitability potential of the platform in the coming months. The only downside is two projects (out of 246) with delays, one of which is looking pretty bad (the Premier Irish Golf Tours Limited project that it had also funded through Flender).
October (ex Lendix)
Lendix has changed its name and image this month. The rest remain the same. The platform has performed really well in recent months, with monthly returns progressively increasing to peak platform performance, which should be around 5%. The only problem was Technofirst’s confirmed non-payment in August, which falls within normal limits. My intention is to continue investing in all new projects.
Dofinance is one of the most stable platforms in terms of profitability, always hovering around 10%. The only downside is that for a couple of months, the maximum profitability offered by Dofinance has dropped from 12 to 9%, so that in the coming months I expect a downward readjustment. 9% is a bit low for a P2P platform, but the platform’s performance is so good and easy that I think I will keep my positions for the next few months.
Only two months, but it has already become one of my favorite platforms. Easy use and a continuous flow of loans at 15% has led me to increase my positions by 25% throughout October, so the profitability obtained has not yet stabilized at its maximum. If the loan offer is maintained at the current level, I will continue to increase my positions in the coming months.
Although the returns at the moment are excellent, being a platform without Buyback, I am still pending on how the platform evolves once the defaults stabilize. Delayed and unpaid loans account for 10.3% and 5.4% of my portfolio, respectively. My AutoInvest selects only loans above 18%. In my opinion it would not make sense to invest in loans without Buyback below that figure, since there are platforms that offer up to 15% with Buyback (Fast Invest and Grupeer). At the moment my strategy is to maintain (reinvesting the profits). In a couple of months, once I see at what levels the returns stabilize, I will decide whether to increase my position or withdraw funds.
One of my favorite platforms, with consistent results and regular flow of loans. Over the last month, perhaps the flow has slowed down a bit, generating still acceptable Cash Drag levels. The average interest on loans acquired throughout October has also dropped considerably to 13.3% (which is still excellent), compared to interest rates above 14.5% in the previous 5 months. We will have to wait to see how the platform evolves in November before deciding whether to maintain or increase positions.
When presenting my results with Mintos, I have divided them according to the currency. Besides, in red the combined results of the platform, converting each currency to euros (each month). It is surprising that the best IRRs are (at the moment) for my investments in EUR (19.0%) and pounds (GBP – 16.7%), mainly due to the excellent promotions from February to May (Mogo, Getbucks and Lendo). In the last four months, monthly returns have stabilized.
In recent months, maximum yields offered by euro loans have been declining at 11.5-12.5% during the month of October. During the month, I started investing manually, both in the primary market and the secondary.
GEL loans are stable in 16% and 17-18% in Tenges (KAZ). There is usually always available both in the primary market and the secondary.
Loans in pounds sterling (GBP) have been really scarce, less than 10% interest.
The profitability of loans in Kazakhstan’s Tenges (KAZ) has surprised me with its very low profitability, below 10% in the last three months, compared to the 17-18% that would be expected. This is because more than 50% are behind, almost all of which are for ID Finance long-term loans. Luckily, all three providers at KAZ pay accrued interest for days past due, so over the next two months, default income should return profitability to expected ranges. At the moment, I have stopped investing in ID Finance loans.
Besides, MINTOS continues to add new originators in Macedonia (TIGO Finance) and Kazakhstan (LF Tech). In addition, several originators have expanded their range of activities in Spain (ID Finance), Kosovo (IuteCredit) and Latvia (Creamfinance).
During the month of October, it has announced the possibility of investing in the secondary market AutoInvest from December 2018. Before that date, customers can access a number of conditions.
Without offering high yields, Peerberry makes up for its amazing regularity (always returns around 11%), and zero minimum follow Drag Cash. I intend to keep my position while performance is maintained.
Robocash is a platform that started with surprising returns, but was later seriously affected by a Cash Drag problem that lasted all summer, sometimes exceeding 50%. Throughout the month of October it seems to have been solved thanks to a new originator from Russia (Z Finance), although the loans offered are mostly 12%, compared to 14% offered before the summer. Another important point is that the interest on longer-term loans (180-365 days) is charged at the end, so the rate of return should increase considerably in the coming months, when the first medium-term loans begin to mature. . At the moment, my strategy is to keep my current positions waiting to see how the platform behaves in terms of Cash Drag and offered interests.
Swaper offers incredible returns. During the month of October, it has reached an impressive 19. It is mainly due to the 2 additional points of profitability for amounts invested above 5000 euros, which apparently widely offset the permanent Cash Drag of the platform, which is usually around 10% but can reach 20%. In October, I increased my position by 3.3%. I will continue to increase my positions if the behavior continues.
Another platform of moderate returns but excellent regularity, without Cash Drag and that requires minimal monitoring. Returns are kept between 10 and 11%. Viainvest withholds taxes unlike other platforms, but I present the results tax free for ease of comparison. My intention is to maintain my position as long as performance is maintained.
Excellent regularity and moderate returns: similar to those mentioned Peerberry or Viainvest features. During the last month, the returns offered worsened, so for the first time since I use Viventor, I had to change several times my AutoInvest (to reduce the minimum yield 9%) and have invested manually both the primary market in the secondary. We’ll see how it affects returns in the coming months. At the moment, I maintain my position.