Welcome back to a new monthly investment update of my P2P portfolio from March 2020. This month has been like no other I have seen. I will go through how my P2P investments made it this chaotic month. A new platform that I joined and also other important news in the P2P sector. But first I will talk a little bit about the pandemic that is on my & most people’s mind today. And last a collaboration between Estateguru and Getrichtogether that is live between 1 April to 30 April 2020.
The Corona pandemic
We have the Corona virus all over the world that has impacted every sector from schools, restaurants and families to banking, stocks and investments. Nothing has been safe from this pandemic that is spreading over the world faster than anyone had thought. I’m furius that countries and leaders of the world didn’t take this seriously earlier. I’m not a politician but it feels like they all just said “no it’s not that bad” up until one day when everything changed. We went from low risk to pandemic crisis, shut down borders & keep people home. Thousands of people are dying now and the health systems of most countries can’t cope with the huge amounts of sick people.
I hope that everyone is taking all the precautions they can and try to avoid public spaces & people as much as possible so that we hopefully can get some kind of control over the spread of this thing soon. And for the sake of all, STAY HOME IF YOU FEEL SICK or live with someone that is.
I feel for all those that have family members, friends and other acquaintances that have lost lives to this tragedy. Since I also have parents and grandparents that are old and in the risk groups I feel hopeless that they might get infected and it will end badly.
We see mass layoffs and governments shutting almost everything down to try and prevent the spread of the virus. Many people can’t go to work and businesses have to shut down. In some countries it’s only the most vital sectors still open. This will have a huge impact for many people, not only in the nearest months but maybe for years I fear. For those that have work they can do from a home office they will be the least affected by this economically for now. But that only depends on how long this pandemic will continue. If it’s going to drag out and governments still have shutdowns on most things they will be in trouble too, like myself.
Im invested in Estateguru now
I have finally joined a new platform as of March 2020, this time Estateguru. It’s a P2P crowdfunding platform towards Real estate and Business loans that has peaked my interest for a long time now. Estateguru have interests between 8-13% and most of the projects can be found at 10-12% when looking closer. The loans are usually for a period of 1-2 years which is normal for these kinds of loans. Most of the loans have Bullet or Full Bullet repayments structures as for now. I don’t mind it but it would be good if they get more annuity repayments on some projects too, even if it’s not that common in these types of loans.
One thing I like with Estateguru is that they only let companies and real estate developers lend against the value of the property as it is before the loan is made. Not on the value of the finished project like other platforms do which is a false value at the time. This gives a much better security for the lenders since the LTV is far less than the loan that is given. So in the worst case if a project doesn’t pan out like they think and defaults, the value of assets would be easily sold to get back the money for the investors and in most cases even earn you some interest.
If you want a more in depth view of Estateguru go ahead and read my review on them here.
Special collaboration with Estateguru for April 2020
I’m happy to announce a special collaboration between Estateguru & Getrichtogether 1 April – 30 April 2020. After registration, deposit and investing through the links on Getrichtogether you will be included in a special giveaway. The giveaway is for 2 Hoodies and 2 people will get €50 extra credited to their account. The 2 hoodies are for everyone registering and investing any amount in the period 1-30 April. The €50 extra for 2 lucky persons You’ll need to invest minimum €1000 in the same period. Yes you will still also get the normal referral bonus on all investments made on top of this (it’s normal 0.5% cashback but now in April it’s doubled to 1% for everyone )
The winners will be informed within one week after the end date. Estateguru will send you the Hoodie for free and – or credit the €50 to your account. Estateguru is the one picking the winners after going through all the data. (only fully funded projects count as an acceptable investment)
Estateguru Investment update March 2020
I got invested in the 2nd part of March so there is not much to report right now. I picked out 10 different loans that I invested €100 in each to spread the risk out to some degree. It’s a mix of loans that will pay monthly interest and also in the end of the loan period for some. The loans range from 10.25% to 12% in interest, which is giving my portfolio at Estateguru an average interest of 11.25% for now.
I received a tiny amount of interest (€0.24) and a part of the principal (€23.29) back from one of the projects I joined though already in the first few days. This particular loan is for 1 year and it should pay the rest when the loan is finished on 20.03.2021.
Since I joined Estateguru through a referral link like this one, I got my 0.5% extra back on my investments also so it gave me €5 for free. If I had knew they would double it to 1% in April I would have waited to now 🙂
Grupeer Investment update March 2020
Things were going like expected with the interest for my portfolio on Grupeer up until the end of March when things have been turned upside down. Now they stopped most of the activities from 31 March.
Interest received in March: €10.60
Total profit until now is at: €36.65 ?
Average interest for my portfolio: 13%
Grupeer announced on 31 March that due to the pandemic they have been forced to stop most of their activities. Withdrawals are now suspended from the platform until the time of this pandemic is under control and things can go back to normal again. Things look bad from my point of view. There is rumors circulating that they have bigger problems with some of the LO’s and transparency around this. So we will have to follow closely in the coming weeks & months how/when/if they resolve this.
Crowdestor Investment update March 2020
Same as for Crowdestor, the projects have been paying like scheduled for me in March like normal. I reinvested €94 in March that I received back in interest and principal into the Warhunt movie project. I already invested €102 in february in the same project since it has high interest & bonus if things go well.
Interest received in March: €13.93
Total profit until now: €64.37
Average interest for my portfolio: 21.75%
The next couple of months will be uncertain since they have made changes to help out the borrowers. Probably there will be no repayments next 3 months as of now. In these troubled times Crowdestor will extend payments for 3 months and pause repayments. You can read more in the next section of P2P news in March.
Other P2P News in March 2020
Here is some major things that have been happening with some of the P2P platforms in March.
- Mintos hit a new milestone for the platform in March, over €5 Billion invested funds through the platform. They also got a few new Loan originators, these are: Swiss capital KZ, Mwananchi, Revo Technologies.
And Mogo, one of the biggest LO’s on Mintos is now also providing car loans in Kazakhstan.
- Mintos launched a new lending opportunity in March, Forward Flow. This is a bundle of small & short term loans that you can invest in as one loan instead of many smaller once. These loans will pay interest each week based on performance. More info about this in their blog post here.
- Many P2P platforms have made announcements about the Corona virus and the impact it may or may not have. Platforms such as Mintos, Estateguru, Peerberry and many more work closely with borrowers and loan originators to be able to deal with this for a minimum impact towards the lenders. They all say things will keep going like normal for now. *In my opinion, it’s too early to tell if this will become a problem or not. This depending on how long the virus crisis and shutdown of countries will be going on. I hope this situation will calm down within 2-3 months. As for now it’s looking like they have a hard time getting a grip around it all over the world.
- P2P Platforms such as October, NeoFinance, LinkedFinance and Crowdestor have announced that they will help the borrowers in different ways in this crisis. They will implement a 3 months freeze on borrowers Interest and/or principal repayments and extend the loans so that they have time to get back on their feet instead of collecting as usual and maybe forcing projects to default as a result. Crowdestor & LinkedFinance have paused interest and principal repayments of all loans for this period. While October only paused repayments of principal but will still collect interest under these months. NeoFinance will give a Credit leave to those in need for 3 months, and in some cases up to 6 months. If this is a good approach or not is hard to say at this point. Some investors think this is good and some are upset about this. Many countries are doing the same for businesses right now to try and give them a chance to survive so I would say it’s a smart move. I rather wait 3 more months then have a project default just because the investors/platforms were greedy in a time of world wide economic crisis.
- Agrikaab the platform where you could invest in Camels, yes I said Camels had to shut down its operations. This was a long time coming if you ask me. I mean, promesing 32% interest/dividend on camel milk for owning the camels? In somalia? yeah sounded like a real good investment opportunity, NOT. A country with almost no regulations so this had red flags all over it from the start.
- Grupeer have announced that they are forced to pause most of their activities and payments from the platform 31 March. This for an indefinite time because of the pandemic and problems with debt recovery and the legal aspect around it. They have no timeline as of now to when things will be able to return back to normal. Grupeer is telling investors to wait and that they will come with updates. I have a bad feeling about this. I hope for all sakes this is not a way for them to exit and leave us hanging like Envestio and Kuetzal did. If this is another scam going up in smoke I will rethink my whole P2P situation and future. Maybe only invest in realestate backed P2P platforms where there atleast is better collateral. If this is a scam, I’ve been fooled and lost money. If this is the case I apologise for even mentioning and promoting them to others.
- Monethera, one of the P2P platforms I have been avoiding for different reasons now have closed its doors ”temporarily”. On 27 March they announced to their investors and public on Facebook that they would close all operations. They stop everything, even their support and social media appearance until the pandemic situation is resolved. (why the …. do you close the support and updating on social media if you want your business to survive?) Monethera already had problems with withdrawals for some weeks before this. They stated that they needed a new bank agreement which was hard to find? And now this. I smell another escape of a scam platform that is using the pandemic as a way to exit. Most platforms are open with updates around this crisis and do their best to calm down investors with updates. But Monethera seems to have little to no transparency and is just throwing in the towel. To all the investors that have invested there, I hope I’m wrong but I think you just lost all your money.
This was it for this time. Hope you all stay safe now in this critical period we have in front of us.
Since I’m living in Cyprus we are now in our second week of a rather strict lockdown of the Island. I’ll be spending most of my time inhouse until they reevaluate the lockdown that is set in place to 13 April.
Feel free to join Getrichtogether on Facebook & Twitter. And like always leave a comment or send me an email if there is anything you want to discuss.