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Monthly cash flow for November
Bondora returned 130,82€ (-90,09€ less than last month)
Twino returned 119,10€ (+5,61€ more than last month)
Swaper returned 75,43€ (+2,26€ more than last month)
Robocash returned 31,24€ (-1,52€ less than last month)
Crowdestate returned 46,31€ (-7,11€ less than last month)
Mintos returned 12,17€ (+0,11€ more than last month)
This gives me a total of 415,07 (-90,97€ less than last month)
which equals 13,84% of my first goal (-3,03% less than last month)
I stopped reinvesting in Bondora
The down trend is clear. Even Bondora knows it and one of their latest blog posts “how to successfully liquidate your portfolio” is more relevant than ever. Current amount (green loans) decreases month after month while more and more go into default.
26.080€ invested 2 years ago with continuous reinvesting only returned 130,80€ last month. According to Bondora my account value is 35.244€. If that was true I should receive at least 300€ net interest every month. Of course with some ups and downs but I have only seen one 300€ month since december 2016. And it seems to get worse and worse as time goes by.
I’m still waiting for the trend to reverse but it doesn’t seem to happen any time soon. I haven’t sold any loans on the secondary market yet, not even freshly obtained loans.
I’m in contact with the Bondora team and I will give them one final chance to convince me that it would be wise to keep reinvesting.
Twino
Investing with Twino is still a lot of manual work. I have to login daily between 22:00 and midnight to be able to get 11% loans. I’m only staying to reduce my overall risk by being invested into multiple platforms. Twino used to be my favorite. A part of me is hoping the loan volume and interest rate will go back up.
Swaper
Monthly return on Swaper was really high in November as well. I’m not sure how it’s possible but I received a 75€ return on a 5.300€ investment with 14% interest rate. Technically I should only receive about 62€ on average. But who am I to complain? 🙂 I expect the return to come back down to this level next month.
Robocash
The cash drag on Robocash seems to be gone (at least for now). From November 14th the auto-invest robot gave me new loans every day. I’m very happy about that. I expect December to be a new record month for returns on Robocash.
Real estate
Buying investment property is not easy when you’re just starting out. Getting a mortgage for a business is a jungle compared to private mortgages. Every property with more than 1 apartment is a business according to danish law (unless you live in one of them). I was rejected by 3 mortgage lenders. Not even taking your economy into consideration, the mortgage lenders often reject offering a mortgage, just because the property value is low and they think it’s too much work for the hassle. WTF? I would never have guessed that when I started searching for real estate investments.
I would have made a separate post last month about the financing situation but I couldn’t get any response from the banks.
Mortgage size on real estate investments
This is just a small side note to the Danish investors reading my blog. 9 out of 10 banks in Denmark will try to screw you. They will tell you that only 60% mortgage is allowed for business investments and 80% is allowed if you’re buying it for private use. That is not true. According to the danish law a 80% mortgage is allowed no matter what.
The current situation
Working with bank no. 4, I’m currently working on taking over the existing mortgage from the seller. The mortgage lender agreed to do this, if they considered my finances to be good enough. They got all my details yesterday and I’m waiting for the evaluation. My economy should easily be good enough for a cheap property like this but you never know with those mortgage lenders!
Subscribers
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Plans for December
No new funds will be invested this month. I want to make sure I have enough cash to pay for the property once everything is settled with the bank. The lawyer also needs to be paid and I’m also considering hiring an accountant who specializes in real estate.
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