I have planned to give a short overview of the portals I used in 2018. On some portals, my experience is rather limited in time, on some others, such as Bondora I have used the portal for about 2,5 years.
It can be difficult to decide where to start, but perhaps the two mostly real estate portals could be the ones to go for first.
EstateGuru
So the stats first. I started in this portal in January 2017, so I have used it for 2 full years.
Based on the portal, the account value at the moment is 3986,83 € (as I just withdraw 200 it was a bit bigger at the beginning of the year), and I have earned 331,60 in interest and 4,51 in bonuses and whopping 6 cents in cashback. Portal states that my net annual return is 12,85%, but looking at the amount of money in the portal and also received interest it looks more around 6%? I mean my calculations of the loans I have invested in, the weighted average the average interest is 11% and the average length is 13,8 months. So as many of the loans are bullet type I guess I still can expect to receive more. Also, let's be honest, many of the loans are in trouble. Out of 57 loans in my portfolio only 45 are marked current by the portal, so more than 20% of the loans seem to have some sort of difficulties, well 3 of them are just late between 3-15 days so maybe there is some kind of communication error, but the others... At the moment I have deactivated the auto invest and I am not sure I will be actively investing there. Probably also depends on how they will manage to resolve the defaulted loans if things do not improve I will be withdrawing more of the money.
So the stats first. I started in this portal in January 2017, so I have used it for 2 full years.
Based on the portal, the account value at the moment is 3986,83 € (as I just withdraw 200 it was a bit bigger at the beginning of the year), and I have earned 331,60 in interest and 4,51 in bonuses and whopping 6 cents in cashback. Portal states that my net annual return is 12,85%, but looking at the amount of money in the portal and also received interest it looks more around 6%? I mean my calculations of the loans I have invested in, the weighted average the average interest is 11% and the average length is 13,8 months. So as many of the loans are bullet type I guess I still can expect to receive more. Also, let's be honest, many of the loans are in trouble. Out of 57 loans in my portfolio only 45 are marked current by the portal, so more than 20% of the loans seem to have some sort of difficulties, well 3 of them are just late between 3-15 days so maybe there is some kind of communication error, but the others... At the moment I have deactivated the auto invest and I am not sure I will be actively investing there. Probably also depends on how they will manage to resolve the defaulted loans if things do not improve I will be withdrawing more of the money.
CrowdEstate
I started investing in the CrowdEstate in December 2016, so a month earlier compared to the EstateGuru.
The account value is 5269,89 €, and I have received 382,19 in income. It is important to note that the average project length here is also longer, averaging in my portfolio at 20 months, with the longest loans running even 4 years.
Average expected return is shown in the portal as 17,47% for my loans, my own calculations with the weighted average show 17,3%, not sure how the portal calculates this. As you can see the interest rate is much higher than in EstateGuru. I am no expert in this but it actually feels that the risk (compared to the possible gain) is lower here. There seem to be fewer projects uploaded and also fewer issues with the projects so far, I do feel (although I have no evidence for this) that the due diligence done by the portal is better here. So, although I have some difficult projects here as well, I trust this portal much more.
I started investing in the CrowdEstate in December 2016, so a month earlier compared to the EstateGuru.
The account value is 5269,89 €, and I have received 382,19 in income. It is important to note that the average project length here is also longer, averaging in my portfolio at 20 months, with the longest loans running even 4 years.
Average expected return is shown in the portal as 17,47% for my loans, my own calculations with the weighted average show 17,3%, not sure how the portal calculates this. As you can see the interest rate is much higher than in EstateGuru. I am no expert in this but it actually feels that the risk (compared to the possible gain) is lower here. There seem to be fewer projects uploaded and also fewer issues with the projects so far, I do feel (although I have no evidence for this) that the due diligence done by the portal is better here. So, although I have some difficult projects here as well, I trust this portal much more.
I have previously mentioned a project which is doing badly for me here, the MMMSprattus OÜ project is not paying as it should be. Also, 3 more projects were supposed to pay interest or final payment on 31.01.2019 and have not done so. On 2 of the projects, I did receive some of the interest and the portal states that the payment will be made on Tuesday, on the MMMSprattus the portal states that they have asked the firm to solve issues by February the 6th. Also expecting money or news on this front. On the last one, the ROLEGUR OÜ, there has been no communication from the portal which I do find to be in poor taste. Altogether there seem to be issues with 4 out of 40 loans, and 3 of these are very recent issues hopefully to be solved within this week.
But these issues with loans unable to pay back or even claims of fraud have been in the press. If you read Estonian there was a recent article in Äripäev about some bad loans in CrowdEstate and EstateGuru. It is an interesting read. I remember the CT Kapital OÜ offer in the portal and being happy that I was either out of money or had deactivated the auto invest. I have a background in biology and although I know that medical research and manufacturing is a lucrative business I know it is also incredibly volatile being dependant on both market and research grants which are harder and harder to get. So if you have an agreement with a science team to produce for them, and they end up not getting the grant, you will get no work. And if there was really some bad business practice and moving the money out of the company, then, even happier I missed this one.
All in all, I am still investing in CrowdEstate and my portfolio here is about 25% of my whole investment protfolio. I guess this means I really believe in this platform!
All in all, I am still investing in CrowdEstate and my portfolio here is about 25% of my whole investment protfolio. I guess this means I really believe in this platform!
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