P2B crisis: How to start due diligence

Hello everybody! Today I am writing about the events of the past few weeks at Kuetzal and new developments at Envestio and effects on the entire P2B industry. But that’s just the plug, actually I want to show you which sources you can choose to get information about projects on the platforms and do your own due diligence in the P2B crisis.


Podcast – P2P deep dive

You can also hear the whole thing about Kuetzal in the podcast (only in German), because I was a guest of Thomas from p2p-game.com. Together with Dirk, who is also invested in Kuetzal, we summarized the events with a bit of gallows humor, tried to evaluate them and showed possible options for further actions. First of all, there will be at least one more episode.


Kuetzal

I simply link here to the German-language document that Dirk created. The most important is summarized chronologically here. Unfortunately I had no time to translate it. I and certainly other investors have filed a complaint with both the German and the Estonian police and are also considering taking legal actions.

Kuetzal – die schillernde baltische P2B-Plattform

Telegram-Gruppe Kuetzal


Envestio

Since January 13, many investors have been waiting for their withdrawals. As early as December there was an increase in requests for buybacks. You could see this quite well by the fact that older, fully funded projects were suddenly open again.

On January 15, the following statement was published on the official Envestio Facebook page:

p2b crisis due diligence

After the pressure apparently got too big, a change of personnel was carried out and Mr Ritsmann was praised away as Head of Sales. Mr Kukin is said to return as COO. In the meantime, buy-back inquiries continued unabated. At Envestio, the fees are ‘only’ 5%.

On January 21, the whole situation worsened with the following message:

p2b crisis due diligence

And then it went quickly:

  • The Envestio website has been down since January 22nd
  • The new and old COO Kukin has deleted his Facebook and LinkedIn accounts
  • Nothing was found looking for the offices (although bloggers have already been invited)
  • ECN responded with a complaint

That’s the situation roughly summarized. As for Kuetzal, there is a Telegram group for German investors, and there is also an international one. In the former you will also find a template for an advertisement with the Estonian police. Either way, an report is essential. In Germany it might also be advisable to be able to prove something for the tax authorities.

Telegram-Gruppe Envestio

UPDATE 29.01.2020

I visited the address where Arkadi Ganzin lives, due to the information of the contracts. Big surprise. No such name name on the door bell nameplates and also the people there don’t know the name and also didn’t see the person on Ganzin’s pictures in the past.


Reactions of other platforms

Wisefund and Monethera temporarily suspended the buy-back. In my opinion, this was the only way to survive for these two platforms and shows the general problem of such buy-back or early exit options. For younger platforms with a smaller volume that are then suddenly withdrawn (justified or not is irrelevant here), this would inevitably lead to a broken neck. Even a fee of 20% (at Wisefund) did not prevent many investors from applying for a buy-back, even though there are no rumors regarding SCAM etc. at the platform as mentioned today. Of course, one can now ask whether something like this is legal.


How to due diligence

Now we come to the topic of due diligence. Yes what is that again? Roughly speaking, the careful examination of projects in our case projects in which we invest. Ideally before the investment ;). Unfortunately I also have to admit that I have been neglecting this topic so far and I had to ask myself why obvious ‘red flags’, for example at Kuetzal,  were not noticed.

Artificial pressure

The platforms don’t make it easy either. Countdowns to projects and auto invests, such as those at Envestio, that invested before the project started, put pressure on the investor. It would of course be fatal to miss a great project ;). In addition, not all information are visible on many platforms at the start of a project and one would have to ask the platforms themselves. The expenditure of time certainly discourages many.

Due diligence – Which sources you can use

Nevertheless, you should and have to take the time to check the projects thoroughly. Since many of the projects are located in the Baltic States, I will concentrate on them first. But let’s get started.

    • Lursoft.lv or firmas.lv
      The Latvian site provides a good overview, provided you translate it into English or German using a browser. I’m looking for example after the company behind the latest Monethera project SIA Nord Wood Products, which looks like this:

      p2b crisis due diligence
      • Here you get a lot of information, such as the address, contact and e.g. the accumulated tax debts below. Approximately 179 € are not that wild, I would think. There is also more information about taxes and the annual reports.p2b crisis due diligence p2b crisis due diligence
      • B2Bhint.com
        The site pulls information from the company registers of different countries. I find this very interesting to make the connections between companies more visible. This information may help to rethink an investment decision that has already been made.

The (un) licensed activities and the founder field are interesting too. If, as with a project, the actual activity is gastronomy and then a project in the area of cloud computing services is to be financed, this is an incentive to look more clearly. In the screenshot below you can see SIA IC Trading (it’s a coincident that it’s also from Monethera). Here you can see which companies were also founded by the same person.

    • Teatmik.ee
      After the search for culprits in the Kuetzal case, it was looked up to see who is really registered as a shareholder. And lo and behold Miss Gortsak is the lucky one.

Platform transparency

Before you get to the projects, you should of course take a closer look at the platform itself. So which points are important?

  1. Professional team with a good reputation and verifiable background and history (track record)
  2. It is clear where the head office is and what is maybe just a virtual office
  3. There are no major changes in the company (keyword sale of the platform in the case of Envestio)
  4. The terms of use are reasonable and do not change (as with Kuetzal)
  5. Support answers questions, possibly even the management itself
  6. Sufficient information about projects is available or available on request
  7. Ideally a longer track record of the platform itself

These points just occured to me in a quick way and are not complete.

Which sources do you use?

So since I’m not omniscient, I want to pass the ball to you. Which sources do you use for your research? I have certainly forgotten some or simply overlooked them.

If you have read this far, I would like to thank you 🙂 We will be reading again soon!


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 stumpled 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 skeptical 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)!


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 (invest diversified) 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!

 

Portfolio-Update July 2019

Hello everyone.

Today I would like to launch the Portfolio-Update July 2019 series, in which I would like to present my portfolio and performance approximately every one to two months. I’m just going through all the platforms and try to explain any XIRR anomalies and have a look at some of my investment decisions.

Kuetzal

On Kuetzal I have been invested in three projects since May with just over 1.100€ and the interest payments so far have been arriven on time. Of course, you have to wait and see. Currently, Kuetzal the XIRR ranking by a clear margin and 18.51% (+2.85% compared to the previous month).

As I am writing about the platform, I would like to point out again the cashback marathon . It runs until 31. October.

Unfortunately there is a small catch. You have to invest minimum 1000€ in a single project if you want the cashback.

Envestio

Since beginning of April about 1300€ have moved from me to one of Envestio’s countless bank accounts. However 160€ is still waiting for a new suitable investment opportunity. XIRR is down and is currently at 13.37% (-0.38% compared to June), but is approaching the forecasted 16%. I have invested in five projects there. By the way, I handle this in such a way that I put the money first in larger sums per project and then in smaller sums of €50. The newly introduced auto-invest makes it a little easier when new projects come in. They were always gone very quickly. However, a minimum investment of 100€ is also required. I personally would prefer 50€. Nevertheless, everything at Envestio has been working smoothly so far.

Crowdestor

My favorite platform Crowdestor is ranked 3rd in the XIRR ranking with 12.87% since April, gradually approaching the 17.01% displayed in the dashboard. In the previous month it was 12.25%, so an increase of 0.62%! If you’re wondering why there’s a difference here (and on other platforms too)? Easy to explain. On the one hand, I haven’t invested that long, on the other hand, there are e.g. on Crowdestor projects that pay interest only once a quarter or half-year. So the whole thing becomes really meaningful only after round about one year. My investment is almost 2000€ and will certainly get bigger :). An auto-invest and a second market will (hopefully) be added soon at Crowdestor.

Grupeer

With 12.13% (+0.28% compared to the previous month), Grupeer is in 4th place. I’m actually quite happy with the platform. The interest rates are getting in quite slowly, but at the end of the month I am always surprised how much interest came in. I am invested at Grupeer with 1250€.

Mintos

Yes, what can be said about my biggest position Mintos (~6300€). It’s running perfect and so I also profit. In the previous month XIRR was 11.45%. At the end of July 12.01%. The jump was made due to the current interest rate high and the sale of some older loans, which are still approximately 10% and had to give way to new 15/16% loans. The weighted interest rate of my loans at Mintos is approx. 14.20%, so XIRR will continue to rise.

Mintos offers you a bonus to start on the platform.

IUVO

Smooth 12% indicates portfolio performance for IUVO, at 1050€ investment. The platform itself shows 14.21% in the dashboard. The difference here is due to the fact that IUVO or the loan originators do not pay interest on late loans. Nevertheless, the internal interest rate is steadily increasing and I am very, very satisfied with IUVO. This is one of the platforms that once set up properly, just run. No auto-invest problems and a very fast and nice support!

By the way, IUVO offers you up to 90€ for the start on the platform. If you’re interested, just send me a short message.

PeerBerry

11.15% is attributable to PeerBerry. The Auto-Invest is set at 12% and the platform itself shows 12.31%. I used to have some 11% loans in my portfolio, so I think that explains it. PeerBerry actually runs top, only the bank statement doesn’t work for some time now, which is a bit annoying. I’m invested there with approx. 1200€.

Viainvest

Since April I have been investing at Viainvest with just over 1000€. Why? I said goodbye to Twino, searched for a replacement and found it in Viainvest. An XIRR of 9.34% is very good for this short time, especially since there are only 11% loans on the platform anyway. So approach is coming bit by bit.

You get 10€ for the start at Viainvest. For this a minimum investment of only 50€ is necessary.

Bondster

I just realize that I have many favorite platforms. Bondster is one of them. On the Czech platform there are already 6 loan originators and you can achieve a fairly good diversification. In addition many 13% loans are offered. The start of the investment was with a small sum of approx. 400€ in May, which is why the 9.08% already look very good. Highly recommended!

With the promo code 05772, Bondster has 1% on top in the first 30, 60 and 90 days!

Bondora

Child of sorrow… For me the loan portfolio at Bondora consists only of red loans, I sold all other loans after 4 years of investing. Through the recovery process I hope that something remains. Of course I could sell them with high discount, but I’m not reliant on the ~380€. Therefore, the money stays where it is for the time being.

I can’t really recommend Portfolio Pro. If you stop putting in more money, the return drops very quickly into the basement. Although Bondora’s recovery process is one of the best in the p2p industry, there are plenty of alternatives.

NeoFinance

As a ‘replacement’ I wanted to have another ‘real’ P2P platform in my portfolio. I found it in NeoFinance, where I invested 1000€ since March. But huh, 10.24% last month and only 7.80% this July? Yes, I once tested the sale of an overdue loan. This is, of course, directly reflected in the XIRR. So far I am quite satisfied with NeoFinance, but a real conclusion can only be drawn here after some time has passed. By the way, the return calculated by the platform is 18.46%! And this despite the deduction of 15% withholding tax (can be reduced to 10%, by the way).

At NeoFinance, there is a 10€ bonus for an investment of at least €150 within the first 90 days.

Viventor

I am a bit disappointed with the performance at Viventor. Here I have invested a little over 1000€. My loans range somewhere between 12% and 16%. The XIRR is however really miserable at 6.64% (+0.18% compared to the previous month). About 1/3 of the loans are delayed. Maybe Viventor just needs some more time. I’ll keep you updated!

Bondora Go & Grow

The better product despite a capped interest rate of 6.75% is Go & Grow. I mainly use it for a small part of my cash inventory. Since there are some debits taking place here and there and you have to pay a fee of 1€, the XIRR is slightly lower with 6.22%. However, I do not want to miss the liquidity available here.

5€ is available at Bondora right after registration. If someone has a larger sum and want to invest it in Go & Grow, just write me a short message (I’ll share my bonus then).

EstateGuru

Now let’s move on to EstateGuru and the 18 projects I’m invested in. XIRR currently stands at 5.97%. That’s ok, because some of the projects are final or pay per quarter. I’m invested there with 1200€. There are (yet) no defaults. So far I can highly recommend EstateGuru in the real estate sector and I will also expand my investment there.

At EstateGuru there is 0.5% cashback on your investment in the first three months.

Monethera

Since I am a bit more risk-taking on the road here and there, I also had a look at Monethera. I have been investing there since June with a small amount of 275€, but I invested another 250€ a few minutes ago. The first interest rates were already there. You can find an interview with CEO Andis Tauber on my blog. I set XIRR to 0.00% because it’s not yet indicative. But all the available projects offers interest of >18%!

Bulkestate

1150€ I have invested in Bulkestate. XIRR = 0.00%. What’s the reason? All projects are final. In the event that there are no defaults (which I hope so, of course), the return is expected to be around 15% commute. I will also increase my investment at Bulkestate

Exporo

Unfortunately this investment posibility is only for investors from Germany, Austria, France, Hungary, Ireland, Luxembourg and Switzerland. (yet). I am invested in an stock property (so an existing building which is already rented) at Exporo with 1000€. The expected return is expected at 4.5% and payments come in every quarter. However, I would like to expand the investment in the future.

Exporo does also offers real estate development projects. Here everybody can invest. Maybe for diversification it’s interesting for you.

By the way, Exporo offers you 100€ cashback for your first investment.

Crowdestate

My third-largest position with 1500€ I invested at Crowdestate with a dashboard return of 15.25%. Yesterday I already received the first interest of two projects, skin in the game I have at 6 projects. The negative XIRR is due to a purchase of a project via the secondary market. Also Crowdestate, will develop slowly I think, as some projects are final or pay interest only per quarter. Nevertheless, due to the good track record and the previous projects, I am very optimistic.

ReInvest24

For ReInvest24 the 2% fees per project have a negative influence. The first dividends have already arrived and there is also a new project, which looks very interesting (have a look 😉). Almost 600€ are invested here.

Outlook & Summary

Of course the top performers are  the crowdlending platforms. Led by Kuetzal and close behind Envestio and Crowdestor. High returns, high risk, but as we all know, you can’t get something from nothing. Grupeer and IUVO are developing very well and Mintos will continue to be my biggest position, which will certainly be increased again. All in all I’m curious to see what how the portfolio develops in August.

Disappointed and skeptical I’m with Viventor, which would normally have to deliver up to 14%.  There will also be a new platform in my portfolio in August. So be curious! See you on the next portfolio update!


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 stumpled upon Revolut.

After being skeptical at first I’m now a big fan of the app. Transactions to the different platforms and also withdrawals are executed 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)!


About new projects on Twitter and Instagram

On my own behalf, I would like to mention that I also present new projects on Twitter and Instagram, in which I invest myself. So just follow me :).

Why am I starting this blog?



Now why I started this blog? Good question. I think it’s a mixture of enthusiasm, curiosity and also a little bit of discontent.

Enthusiasm because the topic of ‘investing’ is my passion. Curiosity, since I have never dealt with anything like blogging so far (other than consuming other blogs).

But why discontent? I think that despite the limited or restricted and less profitable investment opportunities (at least in Germany) there are far more if you just look a little outside the box. Of course this blog is initially about P2P and crowdlending but it should also offer a different view of the whole topic of investing.

My goal is to show these possibilities to the readers and to deprive them of some fear of investing. For this purpose I will upload monthly interviews with CEOs of some platforms and generally present platforms where I’m personally invested in.

With that in mind, have fun reading! 🙂

Schreib etwas oder tippe / zur Blockauswahl

PS: Do you have questions about certain topics? I’m happy to answer these.