May 6, 2020Liked by Kristaps Mors

Kristaps, generally your posts are very biased and structured in a way to prove your overall thesis that all P2P is crap, but this one beats them all. Whole setup and timing is severely biased. I will explain why.

1. Too short term. P2P is not cash account in bank - so making experiment for only 2 months with loans with 60 days buyback and cashing out 100% before loans being repaid or bought back is just something you do to prove some thesis you are aiming at.

2. You are setting example with getting a loan with 51% annual interest?!? - of course it will go wrong. Who gets leverage at 50%?!?

3. Cashing out at the worst possible moment.

Don't get me wrong me - I totally support the idea that getting a loan to invest in loans is majorly stupid and many things can go wrong especially for average Joe that thinks P2P is safe investment.

But for such an experiment to be concise and have any valid conclusions I think that it needs to be setup in a totally different way:

1. At least 1 year

2. Get widely available consumer loan at 3-5%

3. Cash out only as much as needed to cover the loan repayments.

4. See what is left at the end of the year.

As you would like to put this guide with the banner - Prove me wrong

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May 6, 2020Liked by Kristaps Mors

I have a draft post in my blog about borrowing to invest.

I intended to take a 1 year loan, invest it until the end of the loan, and use some of my own money to pay back the loan. I intended to make a profit a year later, at the end of the loan.

I reach conclusion number 2 : too much hassle for too little profit.

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May 5, 2020Liked by Kristaps Mors

On the other hand if you would have taken out 3k right after the panic sales, you could have made a nice profit. But, this is gambling, so one should use the money that can afford to lose...

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Funny timing - I also took a loan on 26.02. and invested a big part of it to Mintos - but with 180° different results. I was able to profit from some hefty discounts on the secondary market and have a plus of about 4% after two months (scaled to your example 139€). Admittedly only "play money" on my Mintos account, not in my bank account. So I am planning to pay my loan over 6 years with my own income, and reinvest the earnings from Mintos. So far it is looking great. But I agree with everyone else that you normally should not do it and if - then only with money you definitely do not need to access fast in any way!

Unfortunately, my small Grupeer investment was not so great. In about two months I should compensate for that with Mintos / other P2P earnings.

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What is a "Mintos test account"?

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