In last couple of years I have tried out different P2P platforms – Mintos, Twino, Swaper, Viainvest, EstateGuru, NEO Finance, but have always had a strange feeling about 2 of them: Kuetzal and Envestio – I saw that they had many projects from Latvia, offered much higher returns, but some of the listed projects just did not make any sense to me, so I did not even try to invest there.
Received an email from Mark, who asked for advice about investing in P2P platforms:
Basically, ~127k EUR is sitting around and not working. I do have Bondora and I was one of the early investors in 2012 when it was called Isepankur. Problem there is I don’t understand what’s going on there-it is displaying my ROI as 15% but everyone is saying that it’s not real because they don’t calculate defaults correctly and real returns are ridiculously low.
Considering all of the above, do you recommend investing in Mintos and/or Twino?How would you suggest getting enough math skills to be able to figure out what’s going on with my account at Bondora, how to calculate XIRR(not sure?) etc.
If not Mintos/Twino, what passive strategies would you recommend to put the capital I have sitting idle to work.
Couple of months ago I wrote about peer to peer lending platforms in Latvia. After that I also decided to invest some money in them and came up with following strategy:
- No manual selection of specific loans, use Auto Invest feature to make investments automatically and avoid spending my time.
- Invest only in loans that have Buy Back guarantee.
- Even if Mintos and Twino have different returns for similar type of loans, invest in both of them to diversify and in worst case scenario loose only 50% of money in case one of these P2P platforms go bankrupt.
- Invest only in loans with the shortest term – 1 month – to get the best liquidity. So if I want to get back all my investment, it should take maximum 1 month for any remaining loans to be repaid, or in case – if some of them are paid late, then maximum another 1-2 months for the Buy back guarantee to pay back the late loans.