Hello everybody! I hope you had peaceful Easter holidays even though it was probably a little bit lonely than we normally know it. In the last blog post I told you I want to show you my platform settings #1 so you see what I changed due to the effects of COVID-19 on the p2p/crowdlending industry.
General investment strategy
In general I try to maximize the return whereever it's possible without fully abandoning the diversification. But that's easier said than done. There are always changes on the platforms and so you have to adjust the investment approach. Especially for Mintos it's the case. We will start with the P2P top dog. Let's go!
Mintos, EvoEstate, IUVO and Viventor
To give you the latest overview I show you some insight from Mintos*-App. But at first let's have a look how I invested a few weeks ago.
In particular I had one auto invest per loan originator which fits my criteria prioritized by the interest rate. The following things were important:
- At least 10% interest rate
- Mintos Rating A to C+
- No troubled loan originators
- Grace period max. 5 days (for pay-day loans)
- ExplorerP2P rating >30
Depending on the ExploreP2P rating I set the total size of each AI:
- 30-49: 200-250€
- 50-59: 500€
- 60+: 750€
I set the investment structure to Direct, Especially for the loan originators which offeres short-term loand and bad rating. In addition to that I only accept the mort. method Full.
In the end all of the setting stillt led to a clustering, especially the merger of the loan originators to Finko.
So what has changed since then? Several loan originators on Mintos got into trouble due to various circumstances (Varks, Alexcredit, Capital Service, …) and certainly other will follow. You cannot rely on ratings in gerneral, ExplorerP2P is no exception here. My consequence was that I deleted all my auto invests.
What you can see clearly is the amount of current loans, which was constantly 70-80% in the last month. Now because of the impacts of COVID-19 it decreased significantly. But I think I can't change this for now.
What you should notice aswell is the approx. double of interests. That's mainly because of my current approach. I buy (only) on the secondary market with discount. The level of the discount is not that important. With this approach I want to reach the following:
- Middle-term equal weighting of the loan originators
- Finko muss deutlich kleiner werden
- Increase the amount of loans (Goal: 800+)
- Strenghtening underweighted loan types (especially car loans)
- Including the country risk
- Middle-term equal weighting of the loan originators
I focussed on car and customer loans but also on panbroaking loans. So I could snatch several of Delfin Group (formerly Banknote/VIZIA) with 16,5% or Stikcredit with 25%. In general the manual investing led to an increase of IRR with now 15,68%.
As of today there are less discounts on the secondary market (but still many with -10%) than in the last weeks and when the situation gets better I will set up some auto invests again.
Mintos* stopped the cashback for investors due to the corona pandemic. Only publishers like me receive onetime 5€ + 1% for 90 days.
On EvoEstate I invest specifically with discounts on the secondary market aswell. If you take a closer look on my portfolio you can see the critical and risky areas in the current situation.
Of course Spain is definitly overweighed. And here the buy-to-let projects of Brickstarter are probably problematic, because they are effected massively through the quarantine and the missing bookings in Spain. This was confirmed by the Brickstarters CEO José Maria Pascual Muguerza in the interview with EvoEstate. So for now I'll skip investing in buy-to-let projects.
But you can also read in the interview that otherwise not many effects are expected. Hence I'll focus on the secondary market on equity and developement projects with discount. Also the ones I'm already invested in with the minimal amount. We'll see if that pays off at the end. As of today there are projects with up to 12% discount available.
On IUVO I deactivated my auto invest temporaily aswell. and buy discounted loans on the secondary market. So far I focussed on loans of iCredit and KFP, because otherwise the 10% minimal limit wouldn't be possible. Due to buying discounted loans I also add Easycredit and Ibancar loans into my portfolio.
That's proving already effective and the IRR increased from below 12% to meanwhile 13,93%. You can find discounts from -0,1 to 10% on IUVO.
- For IUVO there are two different offers. For the first you can contact me because unfortunately it has to be done manually and I have to invite you. You get up to 90€ for the start on the platform. 30€ are available for an investment of 1.000€, another 60€ for 2.500€.
- With the 2nd offer (click on the banner) I get 5€ and had the idea to share my bonus of 200€ if you invest at least 2.500€ within 30 days and give away 90€. But unfortunately the collaboration with three parties (IUVO, affiliate network, me) doesn't work like expected.
On Viventor* I added a little bit not long ago but more to come. Besides my Aforti loans which are propapy default I grabbed two Atlantis Financiers loans with -10% Discount. I will consider the ExplorerP2P ratings for the rebuilding of my portfolio.
If you want to invest at Viventor* unfortunately there is only a bonus of 5€ and 1% cashback for 30, 60 and 90 days for me as publisher.
Preview: My platform settings #2
In th 2nd part I'll write about the platforms I don't have to adjust that much. Stay tuned!
Revolut -My account for p2p and crowdlending
Since I don't want to transfer everything from my regular bank account to the platforms, I was looking for a simpler solution. A few months ago I stumbled upon Revolut*. Since then I use the app for all financial transactions in the area of p2p/crowdlending and also in business context as freelancer with Revolut for Business*.
After being sceptical at first I'm now a big fan of the app. The execution of transactions to the different platforms and also withdrawals is very fast. In addition you can with the free Revolut* VISA card with max. 200€ cash limit per month at an ATM. And that without additional costs!
In addition Revolut* is my faithful travel companion. Since I also work abroad from time to time I also looked for a way to simply exchange currencies. This is easily possible with the Revolut* app. Also without fees (up to 6.000€ per month)!
Using my links for Revolut I get a reward of £2.00-3.00 for a standard card order. For Revolut for Business I get up to 66,35€.
About new projects on Twitter, Instagram and Facebook
On my own behalf, I would like to mention that I also present new projects on Twitter (kaph1016) and Instagram (investdiversified) in which I invest myself. Also on Facebook I have a page. There are also a few insights into how I invest in other areas. So just follow me :).
*Some links in my posts are affiliate or referral links. That means I get a little bonus. For each of those who use these links, however, there are no costs or other disadvantages. On the contrary, there is usually a start bonus or cashback. So if you use these links, you support my blog and for that I say thank you in advance!