Greetings to all of you who are interested getting to know how did it go for my returns for May 2020.
First, I want to congratulate everyone with entering the summer period. Also thank you for being responsible during this time towards least protected. Europe statistically seems to be on a good track and many of restrictions are being lifted.
However, unfortunately, we cannot say that about Mexico, Pakistan, India and several other countries. Potentially devastating fight ahead of for them.
Though I really, hope we do not come to experience the cases of Iran or Saudi Arabia here in Europe.
I know you usually do, but please do some extra research before booking that long waited trip when/after it is possible.
With this reminder being said let’s look at how my “exit in progress” portfolio performed in the month of May 2020.
|Platform||Deposited EUR||Portfolio total value EUR||Interest income EUR||Affiliate commissions & bonuses||XIRR|
My humble thank you all for visiting and using my blog to begin your crowdlending journeys. As one can see most of you chose Mintos.
Finally, as expected nobody came to invest through Fast Invest via my referral.
- They have withdrawal delays of 4 weeks.
- They reduced the overgenerous referral commissions to average market rates.
- Noticed that they have also delays on paying already invoiced referral commissions (pending from March the 20th). Similarly to unfortunate Grupeer’s case.
Here you can (can not) see the returns for May 2020 which are 18.85 EUR.
Highlights for May 2020
I recently published a poll for ideas on how to improve my raffle which takes place once in a while. You are welcome to leave an opinion.
Any feedback is welcome – even if it is “not interested”.
Thanks to all 3 of you who already helped.
Status on my crowldending exit by end of May 2020
In my previous monthly update I wrote about reducing the exposure by 35%.
During the month of May 2020 I managed to exit Twino and the total exposure was reduced by some %. Lets see how far from the exit I am. I still chose not to use any discounts.
In absolute numbers it is as follows.
In total before starting the sell off on 29th of March 2020 I had 4075.95 EUR deposited.
The current total deposit volume is 2202.22 EUR. I reduced the portfolio value by 1873.73 EUR which is about 46% in total. In May it was reduced by 445.59 EUR or about additional 11%.
Here is my top of platforms for withdrawing (no change in ranking).
- Twino – by far no. 1, still no doubt. Exited less than in 2 months.
- Mintos – in April 2020 sold 62.05 EUR and in May 2020 made 33.63 EUR in sales at par value.
- Viventor – made 1 sale on May at par value for 1.89 EUR.
- CrowdEstate – still do not even try to sell. I would call these loans as non-liquid assets.
- Reinvest24 – no secondary market. As before – not possible to sell.
Wanted to remark on what is left in my Twino portfolio. Those are Defaulted Payment Guarantee loans. Something to keep in mind.
For those who are not familiar with Payment Guarantee in Twino.
With buyback you usually get money back if borrower is 60 days late with payments. However, for Payment Guarantee Twino promises to pay all interest and principal throughout all maturity period even if the borrower is not able to pay.
Above mentioned with combination of not allowed to sell defaulted loans in Twino leaves me with “guaranteed money” in up to 24 months. Time will show.
My strategy for future and criteria for comeback
First step would be to differentiate between asset classes. I.e. getting familiar with ETFs/Index funds/Stock picking. This comes late, however, I must admit takes much more time to understand than crowdlending.
I have registered to one of Europe’s largest brokers which you are probably already familiar with – Degiro.
Also would like to get more familiar with real estate crowdlending market and especially with EstateGuru where I plan to invest in the future.
Still trying to figure out which criteria should be met for me to come back to the crowdlending. I think examples of indicators could be the European market growth in Q2 and growth statistics for individual crowdlending platforms. Please do share if you have some ideas.
Situation in Europe is slowly stabilizing and hopefully we will be able to enjoy more sunshine and arrange more social events with friends and acquaintances.
My exit is still in progress, however, already thinking of a comeback strategy. This mainly is around further diversification across different asset classes. Also prioritizing platforms according to my personal experience – now including the withdrawal experience which gives Twino some extra points.
With this I leave you until next post – unless you would love to comment on something. Thank you for spending time on reading this and I hope you have a good week ahead of you!