Portfolio update February 2019

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

Hello fellow Financial Freedom and Wealth seekers!

We are in March and spring has officially arrived! At least according to the calendar… The rain drops on my window doesn’t remind me of spring but I do live in Denmark, so my expectations are not set too high.

Income from investments – on the other hand – rise and shine!

Let’s dig into the numbers for last month’s earning.


Monthly Income Statement: February 2019

Crowdlending Income XIRR Invested Value
Bondora -258,66€ -3,56% 16.100€ 24.671€
Crowdestate 44,26€ 7,32% 7.000€ 7.687€
Crowdestor 195,89€ 18,71% 15.000€ 15.967€
Envestio 417,38€ 22,30% 22.897€ 25.266€
FastInvest 46,58€ 15,65% 4.100€ 4.658€
Grupeer 136,77€ 14,94% 10.000€ 11.183€
Mintos 85,51€ 14,88% 8.000€ 9.676€
Robocash 53,37€ 11,31% 6.000€ 6.857€
Swaper 79,13€ 16,19% 9.000€ 10.896€
Twino 20,29€ 15,93% 1.300€ 2.767€
820,52€ 99.397€ 119.633€
Real Estate Income XIRR Invested Value
First property 672€ 60,73% 18.080€ 27.693€
Total 1.492,52 117.477€ 147.326€

Freedom barometer

“Income from investments” in February was 1.492,52€ (15,26€ more than last month.)

That means I’m 49,75% Financially Free (up 0,51% from last month). Getting close to 50%!

Portfolio performance: Historical view

“Income from Crowdlending” in February was 820,52€.
(15,26€ more than last month.)

“Crowdlending (except Bondora)” reached 1.079,18€.
(31,68€ more than last month.)

Bondora

Another negative month on Bondora.

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 net interest received
145,07€ interest received but 403,73€ principal missed.
Bondora recoveries
131,30€ was recovered from loans in default in February. Not enough to turn the numbers green.

See more info and screenshot from my Bondora account

Crowdestate

Crowdestate is slowly doing it’s thing.

I’m looking forward to receive payments from the first development projects I invested in. The income I get at the moment is from short-term (6-12 months) business loans. The first development project will be finished in July 2019 and the second one in March 2020.

On Crowdestate you need patience to see results, as most projects pay the interest when the project is completely finished. That usually take 2-3 years.

See more info and screenshot from my Crowdestate account

Crowdestor

2 new projects were released on Crowdestor in February and my interest earned keeps rising as well. I’m very pleased with the progress of this platform.

In February I invested 5.000€ in the Energy Production Plant project, which brings my total investment in Crowdestor to 15.000€.

I might add another 5.000€ to the platform in March to invest in one of these exciting projects:

New Crowdestor Buyback fund

Crowdestor just announced that they’re launching a Buyback Fund starting from March 1st. It’s created to protect investors in case of a borrower’s default.

“In case of a default of Borrower, the Platform will compensate all Investors, in a proportionate amount, according to Distribution Rules of Buyback Guarantee Fund, their contributions to the particular project.” 

While it doesn’t guarantee full recovery of the invested principal, I think it’s a great improvement that brings extra peace to mind.

Read the details of the Crowdestor Buyback Fund by clicking the picture below.

See more info and screenshot from my Crowdestor account

Envestio

Envestio launched 4 new projects from 3 different borrowers in February. Interest rates from 16-17%. All projects are funded now but more will be added in March.

OBS! With the rising popularity of Envestio, you’ll have to transfer money to your account before the project is released, if you want a slice of the pie. They usually get funded within a few hours, so keep an eye on your inbox.

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.

See more info and screenshot from my Envestio account

FastInvest

My FastInvest portfolio returned a little less than usual. I didn’t have any cash drag so I expect it’s because February was only 28 days. On March 1st I received 8,5€ interest so let’s see if March will be equally higher.

I know the team is working hard to finish the new version of the website. I’m really looking forward to seeing it in action, it should be released within the first half of 2019.

See more info and screenshot from my FastInvest account

Grupeer

Grupeer is one of my favorite platforms. Some people are not happy that they only have a few loan originators though. It’s a lot harder to diversify compared to Mintos for example. But I don’t mind. I prefer to diversify by investing in several different platforms instead. And the loan originators on Grupeer has proven to be reliable and stable, that matters more to me.

The income graph speaks for itself.

See more info and screenshot from my Grupeer account

Mintos

My Mintos portfolio returned 85,51€ in February.  With 9.676€ invested I should receive about 95€ per month. I expect this small drop is due to the short month and maybe some delay on buyback.

Next month should be above 95€ again.

See more info and screenshot from my Mintos account

Robocash

Robocash is still giving a nice profit and effortless investing experience. All loans come with 12% and buyback guarantee. It’s the most “hands-off” investment I have. You can literally “set and forget” it.

16.682 loans with a combined value of 1.767.273€ are currently available on the marketplace. The days with cash drag on Robocash are definitely over!

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. A few of these 1-year loans were paid back in february, which makes the graph start to look better.

“Interest by today” grew from 287,48€ last month to 304,65€ this month. This means that interest earned on Robocash was actually 53,37 + 17,17 = 70,54€

See more info and screenshot from my Robocash account

Swaper

Swaper added a good amount of loans to the marketplace in February. For the first time in a while my account is fully invested. No idle funds! I hope this is the new norm but I’m not too optimistic. 4 months of cash drag has left its marks on me.

See more info and screenshot from my Swaper account

Twino

I lowered my Twino auto-invest to accept loans with min. 10% interest. It was set to min. 11% before. Unfortunately it didn’t change the cash drag situation much. I still have to check the market from time to time to invest idle cash.

See more info and screenshot from my Twino account

Real Estate

One of my tenants moved out in February. They’re still obliged to pay rent until May 1st though. I hope I’ll be able to find a new tenant and rent it out again as soon as possible.

But first, I’d like to upgrade the kitchen and fix a few things before a new tenant moves in. It’s a lot easier to do this while the apartment is empty.

Here’s a few pictures of the current kitchen. It’s quite dated as you can see.

I discussed different options with a carpenter last Friday. I’m looking forward to receiving an offer. If I get it updated I will keep you posted with pictures of the result.

Property management

A real estate management company started handling rent from the tenants for me. I pay 6,6€ per month per apartment for this service. It’s not really necessary when I only have 2 apartments, but I’d like to get the setup in place so I’m ready to handle more properties.

I also just got an offer from this management company to handle the water consumption accounting, which needs to be done yearly + when a tenant moves out. The fee would be 2,7€ per month for each apartment which I find pretty cheap. So I said yes to that service as well.

That means, that from next month, the rental income will drop 18,6€ in total. Totally worth it I think. Less administration for me is important, especially as I get more properties.

See more info about my First property

Searching for a second property

Speaking about more properties.. In February I put an offer on a new property. The first offer was a low ball and it was rejected (as expected). I made a new and higher offer (still 13% lower than the asking price though) and I’m waiting patiently for a reply from the seller. It would be nice to come to an agreement.

Here’s a picture of the property I hope to buy.

Savings rate

My savings rate for January was 62,37% (-7,03% compared to last month).

Average savings rate for 2019 = 66,24%.

I’m still trying to decide whether we need a bigger car that can fit all 5 family members when the 3rd child arrives in late June or start July. That would spell disaster for my savings rate in 2019.

Right now we have a Peugeot 108 and a Ford Fiesta. (2 very small cars.) While I hate the thought of spending lots of money on a new car, I need to figure out a way to bring the family around. More on that later… 🙂

See more info about my Savings rate

Blog statistics

The number of visitors hit 10.000 in February. Hooray! That’s a really nice milestone to reach.

Visitors: 10.024 (+4,17% compared to last month)
Page views: 41.380 (-3,74% compared to last month)

1.185 subscribers (648 WordPress, 537 Sumo) (+149 compared to last month)
551 Facebook likes (+49 compared to last month)

FinanciallyFree is hosted on SiteGround for the incredible low price of 3,95€ per month. Even with 10k visitors and 41.000 page views per month it’s still pretty fast don’t you think?

More statistics

I added a new graph to all the detailed portfolio sites called “Portfolio value”. Recently, I’ve thought of ways to improve the blog for the readers and I think this information is valuable for you in addition to the monthly earnings.

Unfortunately, the platforms doesn’t display this information so I had to save it myself. I started saving the monthly portfolio values in May 2019. Now that I have collected enough data, it’s time to show the graphs. Hope you like it!

Here’s an example from the detailed Mintos page:

These “detailed info” pages has not received many views, even though I think they bring the most value to the blog. So I’ve created a new top menu called “Investments” with direct access to more info about my accounts. Hope you’ll like it!

That’s it folks!

That’s all I had for this month’s update.

Oh wait, I almost forgot to tell you that I’m visiting another platform in early May! The flight and the hotel room is booked already. I will leave a cliff hanger and reveal the name of the platform later 🙂

It’s one of the platforms I’m really excited to learn more about. I discovered a project on their platform that wasn’t what it was supposed to be. The project was 30% funded but when I called the borrower they said they had no agreement with that particular platform! Maybe the borrower was corrupt, I’m not sure. The borrower’s attitude was rude and he told me to leave them alone.

I got a decent explanation from the CEO of the platform and the project was removed after my discussions with them. It will be good to meet them in person to make sure they are legit before I start investing there.

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53 Replies to “Portfolio update February 2019”

  1. Good luck on dealing with your second property purchase!

    Curious about this new platform 😉

    Your new top menu is a good move, it gives a lot of info in a short period of time, which is great for comparing platforms.

    Have a great March! 😉

  2. Hi Jørgen What a month. wow well done. your 2. property where is it located ? and what are your demands for a new property in terms of locacion, pris vs rent and so on. Balder

    1. Hi Balder. The second property I’m looking at is located 10 km from my home in Hedensted municipality. I’m looking for properties with low maintenance and rental income of 1% of the property price per month. I like smaller cities that has at least a school, daycare institutions, grocery stores etc.

  3. Your fantastic blog income growth is probably a good indicator on how P2P lending is gaining popularity

    1. I agree. P2P lending is really gaining traction as more and more people are becoming aware of this type of investing.

  4. Yea, tell us more about the 2nd property. Also, great w/ the property management companies. I’d love to learn more about that stuff. Where are you searching for properties? Where are you getting funded (by the bank I assume?)?

    1. I will give you plenty of details about property number 2 when I end up buying it 🙂 There are other properties which have caught my attention. I’m searching for properties within 30 minutes from my home. I prefer to be able to get to the property quickly if I need to do so. I’m using a website called ejendomstorvet.dk to search for the rental properties.

      The properties are funded by an 80% mortgage, I need to have 20% for the down payment myself.

  5. Hi Jørgen,

    Do you use excel til make your graphs? And would you care to share, it looks great.

    Pft. Michael

  6. Congrats on another record-breaking month, Jørgen!

    I hope you get Property #2 in the bag this month!
    It’s gonna look good on that balance sheet 😛

  7. Thank you for your blog, Jørgen! It really helps to navigate fast growing P2P market.

    Does anybody noticed, that on Mintos Dinero don’t pay interest when buyback guarantee takes place? For 2019 Dinero loans I’ve received only principal. For 2018 everything is OK. Wrote to Mintos support today and yesterday, but still no answer.

    1. Hi Vladimir,

      I have not invested in Dinero on Mintos. According to the loan originator details they don’t pay interest on delayed payments. I never had Dinero in my auto-invest, so I guess it’s always been like this?

      1. Yes, I’m already figured it out. Excluded Dinero and a few others originatiors from my auto-invest. So bad, that Mintos allow them to sell deleyed loans on primary market. It means that investors lend Dinero money for free.

      2. Hi Jørgen and Vladimir

        First of all thank you for a wonderful blog Jørgen and sharing.

        Guys, where do you find this information on the mintos page? I am fairly new to Mintos and didn’t know this.. When I look at the loan originator page i can’t find this. Are there any other loan suppliers i should be aware of that don’t pay interest on buyback? I would like to exclude all those.

    2. Good catch! And i’ve just invested in some 13% return rate loans from Dinero. I hope they will pay in time…otherwise I’ve just been blinded by high interest rate(for EUR) but lost in details. Removed them from my autoinvest too.

  8. Great status, looking good with 2nd property.

    Do you buy the properties via a company or personally?
    Read that when buying through a company you can only get a mortgage on 60% of the property value, because mortgage financing is done based on profitability principle.

      1. Hi Jørgen

        Do you mean you buy it to a company that you own? Does it make more sense in terms of the tax benefits?

        1. Yes, I started a company that will own the properties I buy. It’s good for many things. 1. Lower taxes (as long as I don’t take money out of the company). 2. If I ever want to sell my properties, it’s easier to sell the company with it’s properties than selling the properties one by one.

          1. Can you depreciate the building or is it only the lower income tax and the fact that you can show the loan payments as expenses?

          2. I hope the building will increase it’s value over time. The primary reason for buying it as a company is that I can build value within the company as rent comes in. It allows me to buy more properties quicker than if I had to pay full tax of every euro earned.

  9. Great results this month Jørgen! Congrats! Especially the income from the blog! I’ve registered from your link on envestio!

    Hope you will get your second property soon!

    1. Thank you Alex!

      I hope so too, I’m negotiating price with the seller at the moment. Unfortunately, he’s not willing to see as cheap as I hoped for. Let’s hope we come to an agreement 🙂

  10. wow, those are incredible results – especially the blog income! You deserve it 🙂
    I just noticed your Grupeer account includes around 375€ in referral income, is it possible that that’s included in your relatively high XIRR for the platform?

    1. Thanks Angelo 🙂
      XIRR is calculated without referral income for all platforms. I only invested in 15% and 14% loans with Grupeer and I reinvest principal and interest immediately, that’s the reason for the high XIRR. Interest rates has dropped a few points since I started with Grupeer. I expect XIRR to decline a little as my old loans mature and the money will be reinvested into 13% loans.

  11. Hey Jørgen! I love your updates

    But…

    The IRR calculation for Bondora – I don’t think it can be correct.

    You’ve deposited 26 100 and withdrew 10 000. You have 34 268 € principal outstanding, out of which 9 596 € is overdue (in the recovery process, right?).

    Now, for your IRR to be negative, you should expect less than 14 100 € in interest and principal combined in the future – more than 10 000 € _less_ than your outstanding, non-overdue principal.
    Of this outstanding principal, also interest should be expected, right?
    And Bondora is getting real good in their recovery process. Some overdue principal should be recovered, along with interest.

    So, perhaps there’s something you aren’t considering with the Bondora IRR? How the future will play out? Maybe I’m wrong, but I feel like it’s nowhere near as dire as a negative IRR! (I hope I’m not wrong).

    Bondora’s stats aren’t real nice to play with, so I ended up creating my own Google Drive sheet for specifically calculating the Bondora IRR (https://www.thewealthyfinn.com/2019/02/how-would-you-diversify-my-peer-lending.html#bondora)

    What’s important is having a guess of how much will of the late payments will be recovered through the recovery process. As you have such a long history with Bondora, I’d love to have a look at the monthly statistics and see what I think the IRR is, all things considering. (I also have 30k invested in Bondora, so… 😉 )

    Also the other project I contacted you about is getting along nicely. Nothing big to update just yet.

    1. Hi Eelis.

      I think the XIRR calculation for Bondora is rather precise.

      It’s hard for me to explain my point of view in a comment. It’d be much easier in person, where I could show you all my account data, amortization schedules, Bondora’s total portfolio statistics, recovery data etc. combined with the experience I’ve gained since 2015. But I’ll try in a few lines:

      The problem with Bondora is that they only count overdue monthly payments as overdue. And the reverse amortization schedule hides the problem until half way through the loan period. The Bondora dashboard says 9.596€ is overdue, but in reality I have about more than 20.000€ worth of principal where not a single cent has been paid back for more than 180 days. Only 4.350€ of my 34.268€ is current! According to Bondora’s own recovery statistics, about 40% will be recovered. And then you can subtract the debt collection fees from that. I haven’t noticed that Bondora have gotten really good in their recovery process, there’s almost no progress in Spain, even though they expected big improvements a year ago.

      Even with the huge increase in new loans, where millions of euro’s add to the profitability in the early years, Bondora’s portfolio XIRR is dropping. That’s a very bad sign. https://www.bondora.com/en/public-statistics

      1. Yikes!

        Ok thanks. Good answer.
        Wellness that’s scary.

        I know that in Finland at least, the recovery can easily take a few years and you cannot go personally bankrupt. Once the payment is delayed, you can re-negotiate the debt, which means you’ll pay a lower rate after 180 days. But his needs to go through a court order and you’ll lose your credit rating.
        I’m not sure how it works in other countries, or if personal bankruptcy is possible anywhere where Bondora operates. Seems it works fairly well in Estonia. I would imagine it will work well also in Finland. Not sure wheer your loans are from though…

        Anyhow, based on this, I think I’m going to stop re-investing on Bondora. Too scary. Cheers!

  12. There are very few 15% loans on Fastinvest lately. Most Spanish loans moved to 13%. Not that i mind, it’s still a great return, but i think FastInvest is quickly moving to Robocash levels.

    1. Yes, I noticed that too. I had to lower my auto-invest settings to 13% to avoid cash drag. 15% was great, 13% is acceptable.

      1. Not only that, they also show very few loans available in general at the moment. I only see 4-7 loans at a time now. A big change from 10 days ago when plenty of euro loans where available. Not sure what is happening. Lots of money inflow? that what support told me via email.

  13. Hi Jorgen, congratulations on another fantastic month. I’ve been following your blog for the past few months and have signed up to some of these platforms from your links.

    I’m really curious about two things and was hoping you could tell us more about them:

    1. The affiliate income portion is really fantastic. Is it from the platforms directly (or from other things like web hosting) and is it spread amongst all platforms or are some of them bringing in the majority of the money? I’ve heard for example that Mintos converts really well, and somebody also mentioned Grupeer in the comments above. I guess it’s interesting to see what people decide to invest their money in after reading your blog.

    2. Compared to other blogs I keep tabs on, you have managed to build quite a community in a relatively short time. Are you part of some forum that I might have missed? I mean do you post your articles in other places and get people from there to comment on the blog? Most blogs I visit nowadays barely have any comments, but somehow you’re managing to keep things alive here 🙂

    Thanks again for sharing Jorgen and keep it up!

    1. Thanks Panagiptis.

      1. People like high yielding platforms. The most popular platforms are Mintos, Envestio, Crowdestor, Grupeer, FastInvest and Robocash. Not much comes from hosting.

      2. I participate in different forums and facebook groups from time to time, but not much. Most other bloggers don’t visit the platforms and they don’t invest as much money. I think those two things combined creates credibility.

  14. Wow Jorgen! Congrats!

    Over 10k visits to your site, absolutely wonderful!

    Us small time bloggers can only dream. You should write a book on “how to build a successful website business”. I know I would read it 🙂

    Investments doing great too!

    Congrats again my friend, really unbelievable month!

    Mark

  15. That’s a nice looking property, and 13% seems like a reasonable price. We finalized on our home at around that much below the asking price; 11% as I recall.

    What made you go for that particular property? What about it makes you think that you can keep a good supply of renters?

    1. The seller is stubborn and doesn’t want to sell at the price I’m offering. He’s offering a 3% discount, which is not enough in my opinon. I like the property because it’s only 2 apartments for a good rental income, which minimizes the administration. Also, the surroundings of the property is very easy to manage. It’s located in the center of a small town with groceries, school and daycare center within walking distance, which should make it easy to rent out.

  16. Well done. Blogging will definitely help to achieve your financial Independence faster. Also I am pretty sure I helped with some of those Mintos affiliate returns last month 🙂

  17. Why did you remove the blog revenue? It’s important for us to see the growth there too.

    1. Hi George,

      I fully understand your point of view, and I want you to know that it was a hard decision for me. In short, I removed the blog income because it stole the show. I got an endless amount of comments and emails about the blog income and it shifted everyone’s focus away from investments – a direction I didn’t like for the blog. I hope you understand.

  18. Very inspirational blog. I’m curious. Are the P2P investments also made through a company or by you personally? Keep up the good work!

    1. The P2P investmests are made by me personally. I’m working with my accountant to see if it’s possible to move them into a company as well.

  19. Hy Jorgen, I’m from Germany and just start investing.
    Do you have all your money in addition to the property in Crowdlending or do you have stocks and other income?
    I also want to build cashflow, but I do not know how safe crowdlending will be in the future.
    Greetings Felix

    1. Hi Felix,

      Yes, all my investments are in P2P and Real Estate. I’ve invested in stocks over longer periods of time with no success so I stopped doing that. I prefer the stability and predictable returns from Crowdlending and rental properties.

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