Summary of returns April 2020

Spring is here with seemingly endless feeling of isolation. These times it is essential to have a routine. Both mental and physical – if possible. April was a good month from the weather perspective and also can not complain about returns in this stagnant time.

Previous month I announced withdrawing from all platforms due to uncertainty. I will give you an update on that. There are several other news around platforms and I will try to summarize most of them.

You can see below how did it go for me in April 2020. I sincerely appreciate all those who started investing also in these turbulent times.

I see another 2 persons who counted as investors with Fast Invest. There is a time delay in the affiliate payout process as one of the investors invested in 19th of Jan. 2020. I hope both of them are aware of my warnings.

Below you can see (almost) the income from my investments in April 2020, that is 24.28 EUR.

Highlights for April 2020

CrowdEstate introduces secondary market fee

As previously mentioned, yet there is another platform similarly as Mintos introducing a secondary market fee. In case of CrowdEstate it is 2%.

From CrowdEstate announcement email

Mintos boosting their transparency

Lately the news feed from Mintos has blown up with different information. What I like the most is that they share troublesome loan originator status list. This increases confidence that they keep things in check and sends message that my 221 EUR from Finko (Varks AM UCO CJSC) and 3 EUR from Aforti (Poland) are not forgotten.

12 of about 60 loan originators are in serious trouble.

Mintos representatives read comments under their posts and after feeling overwhelming pressure from investors – post even more relevant information. This sets a good sign and a good example for all crowdlending platforms. Of course not everything is perfect, but the transparency trend seems to go in the right direction.

If you are invested with Mintos, on top of following their blog, I recommend to keep yourself updated by using ExploreP2P loan originator list.

Corwdestor teaming up with Monify’s CEO and raising funds via Equity campaign

Recently, Crowdestor joined forces with Monify’s CEO Artur Geisari. He will maintain his current role as CEO and will be Crowdestor’s head of SME. Shortly after, you could encounter different loans under 15 thousand EUR. E.g. something like Freight transport by road (SLT) (link from Google cache).

I am not sure what kind of agreements they have, however, there is definitely something more than soil employee-employer relations. Fact is that Monify’s loans started appearing at about the same time Artur joined.

EstateGuru raising funds via Seedrs

Another crowdlending real estate backed company, EstateGuru recently launched a campaign which intends to attract more capital for the company. This capital could potentially be used to develop the platform further, thus gaining edge over competitors.

By the looks of the campaign, it is already successful with 646 investors taking part.

Status on my crowldending exit

In the last monthly update I wrote the following.

My estimate is that I could reduce my overall investment portfolio for about 80%. I will let you know in the monthly update about the status.

Let us see how did I do.

In total before the sell off I had 4075.95 EUR deposited.

The current number is 2647.81 EUR. That means I withdrew 1428.14 EUR and reduced exposure by 35%.

Worth to note that I do not use discounts. The only expense was the one deducted from selling in the secondary market of Mintos.

Needless to say my estimate was way off. I was too optimistic about the liquidity of market under sell pressure.

Those who panic make their exit with discounts and those who take advantage of the panic, buy these discounts. I seem to be in neither group.

Here is my top of platforms for withdrawing.

  1. Twino – by far no. 1, no doubt. Reduced exposure by about 90%.
  2. Mintos – made few sales at par value.
  3. Viventor – made no sales at par value.
  4. CrowdEstate – did not even try to sale this time. Tried before with delayed loans at par value. No luck.
  5. Reinvest24 – no secondary market. Not even a theoretical option for liquidating the investment.

Summary

Generally, the global infection curves are starting to flatten or even slightly change their course downwards. These are great news!

Global economy though is facing a challenge. However, more than half of investors in Mintos survey answered that they do not plan on changing anything or increasing their investments.

I guess I belong to the shy 11% who are withdrawing. Please note that this survey asked about all asset classes. I am sure this number would be higher for those who are in similar position as me without too many asset classes at hand.

Most important is that whichever decision you take you are comfortable with it. It is your hard earned money.

Thanks for stepping by for the April 2020 update and please keep safe!

4 comments

  1. Nice update despite your pessimistic/cautious approach to investing in P2P. Better safe than sorry though! I like your starting line with word of warning to Fast Invest investors, being invested with them myself I know they can offer helluva rollercoaster. Personally I think you don’t have to worry that much about Crowdestate (depending on your loans choice that is!) as they have generally well-researched investments. Your Reinvest24 exposure is small enough to have a decent night sleep despite keeping money with them. Mintos is perhaps the best bet for now despite issues with some of the LOs, they do chase them to pay back and although it will take time (in some cases 3 months to see first funds, the more the bigger impact on Mintos reputation) I believe they are still very sound as a business. Viventor isn’t exactly most sought after just now but being sort of Mintos smaller brother but assuming you have low-risk loans with them they should be good too. All in all don’t kill yourself too much for only 30%+ cashing up rate. Normality started to return back in some European countries already so investors will be on the lookout for somewhere to allocate their funds, they may as well but your loans at par value.

    1. Thanks Marcin! I truly appreciate your comment and feedback.

      Please re-consider Fast Invest, for what it is worth Martins Sulte also says – “For some of the platforms, it took me only 3-5 minutes to conclude that I wouldn’t touch them at all, there is red flag after red flag, for example; platforms with non-disclosed loan originators, people with dubious experience who are running the platforms, etc,” (https://blog.mintos.com/takeaways-ama-ask-mintos-anything-with-mintos-ceo-martins-sulte/).
      Is it worth extra 2% when there are so many other platforms which fully disclose the loan originators? Also from what I read in Telegram groups, withdrawals are taking up to 2 weeks.

      Regards CrowdEstate, unfortunately all my loans are delayed.

      I must agree Mintos is doing a good job by communicating with investors. This has definitely improved in the course of last couple of months.

      Viventor also does a good job with their latest webcasts on different states for their loan originators. Nevertheless as you say, I did try to follow the ExploreP2P suggestions when started with them (https://www.investingsmall.eu/2020/01/19/setting-up-auto-invest-for-viventor-with-diversification/).

      Thanks again for the comment and congrats with starting your own place for documenting the journey! May it be joyful and fruitful!

      1. Cheers for kind words! I’m at the beginning of documenting it but as they say – upwards and onwards! Fast Invest is currently taking nearly 4 weeks (!!!) to process any payouts + charges 1.5 EUR for the pleasure, regardless of value 🙁 Sent investors what I can only describe as nasty email pushing people into investing and stop withdrawing. Nevertheless managed to withdraw another chunk from them today to move to much safer platforms. Good luck growing yours too!

Leave a Reply

Your email address will not be published. Required fields are marked *