Portfolio update December 2018

Portfolio P2P investments Envestio FastInvest Swaper Robo.cash Twino Mintos Bondora Crowdestor Crowdestate Grupeer reviews

Happy new year fellow Financial Freedom and Wealth seekers!

2018 is over and we’re looking into a brand new and exciting year.

I’ll try to make this update short neat without too much chit-chat 🙂

On to the numbers!!


Income Statement: December 2018

Crowdlending Income XIRR Invested Value
Bondora -248,48€ -2,88% 16.100€ 25.110€
Crowdestate 22,46€ 7,12% 7.000€ 7.590€
Crowdestor 121,42€ 18,42% 10.000€ 10.624€
Envestio 383,98€ 22,66% 20.000€ 23.984€
FastInvest 57,57€ 15,34% 4.100€ 4.554€
Grupeer 130,15€ 13,56% 10.000€ 10.887€
Mintos 100,57€ 14,90% 8.000€ 9.495€
Robocash 26,19€ 11,58% 6.000€ 6.772€
Swaper 114,72€ 16,72% 9.000€ 10.734€
Twino 26,07€ 15,73% 1.300€ 2.714€
734,65€ 91.500€ 112.468€
Real Estate Income XIRR Invested Value
First property 660€ 64,58% 18.080€ 26.720€
Total 1.394,65 109.580€ 139.189€
Blog
Affiliate income 19.240,12€
Google Ads -58,98€
19.181,14

My comments to the returns

Income from investments in December was 1.394,65€ (-8,71€ less than last month.) I reached 46,49% of my first goal (-0,29% less than last month).

Crowdlending income

Bondora

Another negative month on Bondora. 179,87€ interest received but 428,35€ principal missed.

To any new readers, I do not recommend investing with Bondora unless you plan to use the “Go & Grow” product only. There’s too many defaults related to the “Portfolio Manager” or “Portfolio Pro” and the costs of recovery is too high. Chances are, that your income graph will look much like mine after a couple of years.

Bondora
Click the graph to watch my detailed portfolio info.
Bondora recovery
166,16€ was recovered from defaults on Bondora in September. Not enough to turn the numbers green.

Crowdestate

One of the projects I invested in on Crowdestate, MMMSprattus OÜ, is not repaying according to schedule. They were supposed to start paying the principal back after the 3rd month, but it has been delayed. Interest has been paid though. No official information has been given since 23.11.2018.

MMMSprattus

The rest of the projects in my Crowdestate portfolio are performing as expected.

Crowdestate
Click the graph to watch my detailed portfolio info.

Crowdestor

With 10.000€ invested at Crowdestor, my monthly income is now well above 100€ and I expect it will continue to grow from here.

Crowdestor
Click the graph to watch my detailed portfolio info.

Crowdestor added 2 new projects in December and one of them is already 100% funded. The next one, “Kabuki Restaurant at megamall Atrium” will be released in 6 days, so if you’re interested you still have time to transfer money and invest in the project.

It’s great to see that Crowdestor adds new projects now that opportunities at Envestio are scarce.

Envestio

Envestio only had a few new projects available for investment in December.

Today they released the 5th (and final) tier of the “Wind turbine farm”. Due to the increased demand the interest rates appears to start dropping already. The first 4 tiers had a 20.55% interest rate. The 5th tier is “only” 16.55% but the 225.000€ loan is already 90% funded after 5 hours.

I’m looking forward to 2019 to see if they can keep up with the demand. It will also be interesting to see if we will see any 20% interest rate projects again.

Envestio promises 2019 to be full of investment opportunities. I’m looking forward to that.
Click the graph to watch my detailed portfolio info.

If you sign up and invest through my referral link, you will get a 5€ bonus when you deposit at least 100€. In addition, you will also get a 0,5% cash back on all your investments the first 270 days.

FastInvest

My FastInvest review was published recently.  Many of you are still skeptic and that’s perfectly fine. Some of you are pointing out:

  • “Simona was a member of the board of a company that went bankrupt.”

Yes, that is true, but she was only one out of many board members and she didn’t own that company. The company was declared bankrupt because their license was withdrawn by the regulators. They didn’t commit any crime (as far as I can see). I would like to think she learned from the process and now knows how to avoid similar situations.

  • “The reason why they wont disclose loan originators might be because they own some of the loan originators.”

If that is the case, there’s nothing wrong with that. Other P2P platforms like Robocash, Swaper, PeerBerry and Twino also use this business model.

After spending 2 days with FastInvest and more than an hour on the phone with Simona afterwards, I feel comfortable enough to keep my money there and keep reinvesting. I look forward to adding to my investment once the loan originators are disclosed.

FastInvest
Click the graph to watch my detailed portfolio info.

Grupeer

After a few weeks with no investment opportunities at Grupeer, they added a big amount of 14% loans on December 6th. Another project was added on December 21st and 27th so there’s still plenty of loans available.

My monthly income from Grupeer is now steadily over 100€ as well. That’s really nice to see.

Grupeer
Click the graph to watch my detailed portfolio info.

Mintos

Many loans on Mintos are now back on 14% interest rate. I tried to sell out some of my 11-12% loans on the secondary market without discount and, surprisingly enough, half of them were sold within a few hours. I guess some people prefer 12% loans from Mogo rather than 14% loans from Varks. I’ll try my luck with the higher percentages.

Mintos
Click the graph to watch my detailed portfolio info.

Robocash

Robocash is still giving a nice profit and effortless investing experience. All loans now come with a fixed 12% interest rate but I’m okay with that for now. The days with cash drag are over 🙂

They resumed the referral program so they’re hungry for new investors again.

Robo.cash
Click the graph to watch my detailed portfolio info.

Accrued but unpaid interest (because loans are still outstanding) is slowly building up every day. This amount will be paid out when the 1-year installment loans mature.

Swaper

The cash drag on Swaper is becoming a real concern now. 40% of my funds are currently idle and doesn’t earn any money for me 🙁 Swaper needs to up the game and find more loans to invest in if they want to keep me there.

Swaper
Click the graph to watch my detailed portfolio info.

Twino

My children’s savings account returned 26€ in December. With an account value of 2.700€ it should stay above 25€ per month from this point. It’s hard to keep everything invested though, as Twino still has problems with cash drag.

Twino
Click the graph to watch my detailed portfolio info.

Real Estate

Everything is still going fine with my rental property. I’m hungry for more 🙂

In November, one of the tenants was late paying the rent and when it finally came in I was paid 10€ less than planned. I was told that he/she had no more money and would pay the difference with next months rent.

In December I received the 10€ from November as promised and the rent for December was paid on time.

Savings rate

My savings rate for December was only 41,79% (-24,12% compared to last month). Why so low, you might ask?

I had to pay 1.050€ for a small paint scratch incident we had in our rental car during the summer. I never pay for extra insurance, so when something happens I’ll have to pay out. That’s just the way it works.

Without this unforeseen expense I would have hit a total savings rate of 60,39% for 2018. Instead it ended up at 58,71%, which I’m satisfied with after all.

Total savings rate for 2018 = 58,71%.

Blog statistics

The blog traffic reached new heights in December.

Visitors: 8.461 (+18,97% compared to last month)
Page views: 35.102 (+13,83% compared to last month)

825 subscribers (470 WordPress, 355 Sumo) (+139 compared to last month)
445 Facebook likes (+41 compared to last month)

FinanciallyFree is hosted on SiteGround for the incredible low price of 3,95€ per month. Even with 35.000 pageviews per month it’s still pretty fast don’t you think?

Blog income

Blog income continued climbing higher in December to more than 19.000€ in one month.

I’m quite certain that it will be substantially lower next month though. Primarily due to the lack of projects on Envestio in December, where a good portion of my income is coming from.

Income from blogging

Until next time!

2019 will be a great year in many ways.

First of all, we expect our third child in July! We don’t know the gender, we like to keep it a surprise. While we are thrilled and happy about this, it’ll be quite a challenge to keep the savings rate near 60% as in 2018. With 3 kids we’ll probably need a bigger car that fits 3 children’s seats. Luckily we’ve saved all equipment from our 2 daughters so we don’t need to buy a lot of other stuff. Unless it’s a boy, then we need a complete new wardrobe 🙂

2019 is also looking good when it comes to investments. Crowdlending is growing rapidly, Mintos expects a 200% increase in their investor base in 2019!

Now, I could continue babbling for a while but I already failed to keep this update short, as I stated in the introduction.

So, I wish you all a successful investment year in 2019 and, as usual, if you enjoyed this post, please smash that like button below and/or share it with your friends.

P.S. I will update all the other pages and numbers on the blog tomorrow, I’ll have to get some sleep now 🙂

50 Replies to “Portfolio update December 2018”

  1. Hi, Jorgen. Thanks for your effort in documenting your steps towards the financial freedom and generously sharing it to your followers too. This is a great place to find the real experience in various new ways of the investment.

    I have two questions.

    1. How does XIRR get calculated?
    2. The actually blogging is in fact bring you much higher affiliate income than the investment itself. So it feels like you are very smart to actually profit from your investment journey not primarily by the investment itself. Is that correct?

    Thanks for your time and happy new year to you and your family.
    Ben Duan

    1. Hi Ben,

      You’re welcome my friend.

      1. If you Google “How to calculate XIRR” you will get a lot of good examples on how to do it 🙂
      2. Yes, blogging now exceeds my income from investments. It’s not a reliable source of income though, as terms and conditions can change without further notice. That’s why I focus on my investments, they are very predictable.

  2. Thanks Jorgen!

    Love your updates, it is always inspiring to have a look at the numbers and use them as a benchmark for our own portfolios. Thanks for sharing!

    Any plans on joining any of the new platforms i.e. REINVEST24, DEBITUM NETWORK, KUETZAL…?… we had a look at them and they seem promising -each in its group (Real Estate Crowdfunding, Invoice Trading and Crowdinvesting respectively)…

    Thanks!

    1. Hi Jesus!

      Thank you! I don’t have any plans for joining any new platforms at the moment, but I follow everything that happens in the industry closely. I’m saving up for Rental Property #2.

  3. You must be making up those affiliate income numbers, those can’t be true, right?!?
    19k € from affiliate links, usually 1% per euro goes to the referrer, so your blog readers invested up to 1.9 million euros?
    THAT’S INSANE! 😀

    1. it is 2.5% commission for Envestio where ‘a good portion’ of the affiliate commission comes from.

    2. It’s true of course. Affiliate links generate from 0.5% to 5% depending on the platform. Some only pay for the first deposit and some pay for all investments made over several months. I estimate that my readers have invested around 1 million EUR in December.

  4. This is great news on all your success, and more importantly, congratulations on the pregnancy.

    I have to agree with the last poster with my surprise in your amazing success in the numbers there from your blogging. Well, so much the better. May this trend continue!

  5. Thanks for the update! Very impressive numbers. Just wondering – how are you getting 22,66% XIRR on Envestio? Is that including some referrals?

    1. No, referrals are not included in my XIRR calculations. It’s the “magic” of reinvesting the interest I receive.

      1. thanks for your fast reply Jorgen!

        Interesting, My Envestio IRR is at 16,59% since starting in October, I also reinvested everything right away. I’m only counting the interest I already received (under ‘Earned’), not the total accrued interest in the charts. Maybe that’s the difference? 🙂

        1. I also only count the interest earned. You started in October, it takes time for the XIRR to build up. My XIRR was also around 15-16% in the first months, it will grow over time.

    1. Crowdlending might not be for everyone. I like the monthly predictable returns and that I don’t have to worry about buying/selling or bull/bear markets. It’s great that we have more and more investing options available, that means there’s something for everyone’s taste. It makes more people invest in general, which is a good thing.

      1. Hi Jørgen,

        Thank you for putting the work in to make a great blog.

        Could you possible elaborate on your comment that you do not have to worry about bull/bear markets, because you invest in crowdlending?
        What is the reasoning behind it?

        In my opinion if we were to have a bear market, it could affect mortgages (a lot of people might have to default their mortgage, especially on short interest loans), it could make businesses insolvent etc.

        And if people and businesses doesn’t have any money left to pay back their loans then the banks are fucked (The banks being us in this case).

        I myself invest about 50% of my portfolio in crowdlending because I am young and very risk averse. But I still consider it as the riskiest investments I have. Because however small the chance to loose all of your money, the chance is there in crowdlending.

        In my opinion you do not have the same risk in for example real estate because the value of your property will never go to zero as it could do in crowdfunding. In case of a “Black Swan” event.

        1. Hi Altmann,

          My reason for not worrying about bull or bear markets in P2P lending is that my all investments have buyback guarantee (except Bondora where most loans are defaulted already). In case of a recession I feel certain that the loan originators/platforms will honor the buyback guarantee. If they don’t, they’ll be out of business for good, as they would loose all trust from investors. Instead I believe interest rates for new loans will be lowered significantly to widen the interest gap. This will make the security margins wider for the loan originators.

          They could also choose to change buyback guarantee to payment guarantee like Twino introduced for some loans. This ensures that investors get the promised interest but in case of default the loan originator has more time to pay the loan back as it will continue to follow the original loan schedule.

          With real estate you can also have the risk of not being able to get rent for a longer period of time. But (in my opinion) crowdlending and real estate is much less volatile than the stock market, which is why I don’t worry about it.

  6. Thanks for the great blog, Jorgen! I early in my career as an investor, but I also have a similar goal as you, so I will read your posts with interest. 🙂

    Happy New Year!

    Regards from Bulgaria!
    Dejan

  7. A pleasure reading your words and numbers, as usual. May 2019 be as successful or more than 2018. Congrats for your third child, someone will get very busy I can see.
    Cheers 🙂

  8. Hi, Jørgen!

    I have been following your journey from “the shadows” for some time now, and like many others I have been very inspired by your adventure so far.

    Your dedication and integrity is admirable, and it seems very fair that you are now rewarded for it – I have contributed to that myself. Keep it up!

    Enough with the flattering, I have a short question too: ;o)

    How close are you to buying your next rental property? With the affiliate income your are receiving, I am guessing that 2019 will be the year?

    Happy new year!

    Jesper/The Trading Dane

    1. Hi Jesper!

      Thank you for the kind words. I should be able to buy the next rental property within 3 months. It’ll be exciting to see if the one I have in mind is still for sale at that moment 🙂

  9. Hi Jorgen,

    Did you ever take a look on PeerBerry? It’s a investmentcompany that was listed on Mintos but they split and went to build their own investmentplatform. Stats are looking good, they are transparrant and are running for several years now, there is no cashdrag.

    Kind Regards,
    Mick

    1. Hi Mick,

      Yes, I looked into PeerBerry but decided to skip it. I don’t like that they don’t pay interest for delayed loans. So the overall return will be lower than most of the platforms I invest in. They have been running for 13 months, not several years 🙂 Many people have complained about cash drag as well, but I don’t have an account there so I can’t say for sure. If you like the returns they offer it seems like a solid platform.

  10. Congrats on another great month!

    Two comments:

    1. For the upcoming birth (congratulations!) look at things you can get from the community. I mean, we almost didn’t buy anything Equipment not cloth. We keep getting those from friends and family and if needed we have a wonderful community (giveaway whatsapp groups). People giving away a lot of kids stuff , as it’s always good just for a season. If we do need to buy something we find it 2nd hand. We really save a lot of money through this method.

    2. I don’t understand why you don’t calculate your savings rate that will include your blog income. Yes, It’s not predictable but it’s definitely part of your income.

    Keep up the good work!

    1. Thank you for the saving tips Shlomo. I think the main expense will be transportation if we have to buy a new car.

      The reason why I don’t include blog income in my savings rate is that blog income is pre-tax values. Income from my day job is after-tax values. I don’t want to mix those, that would be misleading.

  11. I understand, but even still, when you do pay tax on the blog income that will also count towards your expenses and therefore decreasing your savings rate in another month. Since you are interested in the average, there is no problem with that. Does that make sense?

    1. I will probably keep the blog earnings in a separate company account. So when I pay taxes it will be deducted from the company account, not my personal account.

      I like to keep it separated from my personal economy, it’s also easier to relate to for most of my readers who have a regular day job.

  12. Congratulations with great news for the whole family – all the best!

    I tend to agree with your idea of keeping income in a separate – company’s account. Do you invest from your private accounts?
    I am asking because I would also be interested keeping things separate.

    Kindly,
    Janis

    1. Hi Janis,

      I don’t think it will have much impact at all, because most borrowers are not from Latvia. The law only protects Latvian citizens and most crowdlending companies their focus outside Latvia already.

  13. Dear Jørgen. Did you remove the “crowdlending except Bondora” for the december 2018 update?

  14. Congrats on the baby!
    Have a great 2019!
    Once again thank you for all the free hard work you offer us during 2018, this blog is the reason i started investing in the baltic platforms and im loving this journey!

    Mintos-selling (11-12% loans) and buying (13-14%) just like you.

    Swaper-just like we talk before the confirmation is real, cash drag is a problem, i already withdrew 2000€ (send them to fastinvest) from the initial 5000€ and it is still hard to get loans 🙁

    Cheers,
    Sérgio Costa

  15. You don’t need to invest Jorgen, you’ll get rich from just your blog income at this rate 🙂

    Congrats on another wonderful month! You are still the envy of all FiRE bloggers!

    Keep up the good work my friend 🙂

  16. Hi Jørgen. Congrats with you nice results. I have a question regarding our rental property. Do you have certain criteria needed before a property is interesting for you to buy?

    1. Hi Balder,

      Yes of course. I look for residential properties (not business) with low maintenance and high cash flow. Preferably where 1% of the property price is being paid back in rent every month. Groceries, schools and public transport close by is a plus.

  17. Hi Jørgen,

    Congrats for your great analysis.

    Please let me make a couple corrections, if you don’t mind.

    1. Regarding Grupeer, they didn’t add a lot of loans. They’re just several slices of the same cake, which are two single development projects. No diversification at all hence maximum concentration risk.

    2. As far as FastInvest concerns, the interest rates they state are calculated over the case of continuously reinvested interest, so real interest are quite lower, moreover when they use a French amortization method, which makes interest rate about 18% lower than stated.

    These are quite relevant questions that should be taken into consideration in order to make an accurate, comprehensive review.

    Thanks for your dedication and relentless effort!

    Best Regards,
    Gary.

    1. Hi Gary,

      Let me comment shortly to your points:

      1. I’m fully aware of this, that’s why I said they added a lot of loans. I didn’t say they added a lot of projects 🙂 You’re right, that it’s not optimal for diversification but I still prefer it over cash drag.

      2. The interest on FastInvest is accurate no matter which amortization method is used. You will always get the correct interest rate for the amount that is currently invested. With the French amortization you will get more principal back faster, (which I think is preferable!) so if you want to stop reinvesting and exit, you can do it faster without selling your loans and loose out on interest. You will need to keep reinvesting your principal if you want to keep getting returns, that’s obvious.

  18. Hi Jorgen,

    I thought I would ask Envestio a direct question regarding the drop in interest rates, there response is below.

    We have a few negotiations with new project owners now, and we’re negotiating the interest rates respectively. In general, we are going to attract new project owners and become more competitive, so we plan publishing projects with lower interest rates. For some loan originators, who’ve cooperated with us for a long time and proved their credibility there will be more favorable terms and lower interest rates (somewhat around 14-18%). The same can be for new projects (e.g. relatively less risky and highly collateralized). For new borrowers and industries traditionally considered as riskier, companies that needs extra financing rather quickly there will be higher interest rates up to 22%.

    Kind regards,
    Envestio Support

    Regards

    Michael.

  19. Hello!
    I was really inspired by your blog and am one off your referral link users to newly sign up to Envestio. I find it cool except that I am always missing out on investing in new projects!! They are literally funded in a few hours it seems. I hope they brin out an autoinvest option. I can’t check their website frequently enough to catch new opportunities. How do you deal with this aspect?
    Cheers
    Steph

    1. Hi Steph!

      I check my mail and the Envestio website regularly, to make sure I’m not missing out on an investment. I’m pretty sure they will introduce an auto-invest feature at some point.

      1. Thanks for the insight. I wrote to them too and they said theuy are working on an autoinvest. Great idea I think. It’s insane that the new projects are funded in 2-4 hrs though!! I am really impressed by their customer service despite the frustration of missing out. But, I’m not put off at all.. Just realized I have to make a daily habit of checking for projects on my daily commute 😉.
        Thanks again for replying to my comment!
        Cheers
        Steph

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