My experience with P2P lending

[MJ DeMarco]

My experience with P2P lending spawned this thread...

*UNSCRIPTED* - What's your focus? Making pennies? Or Millions?

I'm not interested in wasting hundreds of hours on something just so I can eek out an extra $92 a month.

Thank you for sharing. Perhaps Mintos and the EU counterpart of the American version is a different story.

My experience with P2P is a bunch of Sidewalkers looking to do one final scam before they file BK.

 

[Ikke]

Reading some of the negative comments on here about P2P investing, I thought I would share my positive experience to show it is not all doom. If you wish to give P2P lending a try on the platform that I use (www.mintos.com). There is currently a 1% affiliate bonus on the platform for the person signing up and the person who refers. You will need the code "FR9LIO".

Don't be over enthusiastic, these platforms will always be a risk and your result may not be the same as mine. I don't trust this with my life savings, but it is a great way to make hustle profits work for me.

I started in september 2015 with €50 on Mintos.com. I choose for Mintos because this is a platform that brings investors and non-bank lending companies together. These companies all have to filter out the customers to who they lend the money. And they have a incentive to do good because all the lending companies have to keep a part of the loans on their books.

Over time I added some profits from small hustles and some small excess business profits that had no purpose. In total I have deposited €4000 and withdrawn €200, leaving at this moment €3800 in outstanding principal.



Over time I received €830 in interest. Which currently makes a 12.90% NAR (Net Annual Return). I have lost on some of these loans, but have learned to filter more wisely.

I currently buy my loans with an automatic investment portfolio. I have set the following filters:

• Loans need to come with a buy back guarantee. This is a guarantee that the lending company will buy back the loan with interest if it is 60 or more days delinquent. This is my first line of safety.
• Loans need to have a collateral. The loan may not be more than 71% of the collateral. The collateral is often a car and they can depreciate fast. You don't want to expose yourself to this risk. This is my second line of safety.
• Interest of 12.5% or higher. Investing on these platforms is still a risk. A reward is needed.
• The loans may not be longer than 72 months. This to make sure collateral depreciation is in line with loan payments.
• Loans have to be fully amortized. Lenders can often afford the monthly payment, but a big end of line bullet payment may be to big for the consumer to pay. A bullet payment also increases the chance that the collateral will depreciate faster than the loan is paid off. Again a risk you don't want to expose yourself to.

I hope my post has shown how P2P lending works for me. And I hope more people will understand P2P lending as a concept. But also understand the risk P2P carries.

IKke

 

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[Ikke]

I fully agree with you about not spending all your time to get a few extra bucks.

I myself only check my account about once a month and let auto invest do the rest. I have invested time initially to set the parameters but it has been working on itself for quite some time now.

And as for the scamming sidewalkers. I think that it being a platform for lending companies help a lot in this regard.

Sent from my EVA-L09 using Tapatalk

 

[Duck]

Hello Ikke

I’m currently looking to get started with p2p lending (in Europe).

In this thread, it seems like you are fond of Mintos. However, I have some doubts as to whether your point of view is still relevant at this point in time as there seem to be shooting up new platforms from left and right.

I read this Mintos review: https://p2plendingsites.com/mintos-review/ - and everything about their platform seems quite reasonable.

However, I would like to hear you what your experience is; Has your view about their platform changed since posting this? Are there any platforms you prefer over Mintos?

Duck

 

[Ikke]

Hi there,

I still think Mintos is one of the better p2p platforms. I am still exited because with the current covid crisis I still believe there is an increased risk which is postponed with all the government handouts etc.

I do not have any better passive options other than ETF's at this moment.

 

[Ikke]

Hi Duck,

Sorry for the extreme late reply, never noticed the thread received a further reply.
My views have not so much changed regarding the platform. Because mintos is only a platform, and you should think more about what you invest in via the platform.

My personal preference was always loans with a collateral and a maximum of 70% LTV and no bullet payments. This way even with depreciation the collateral would more or less stay in line with the debt thus giving a reasonable security that the outstanding amount is always covered. In reality this meant only Mogo car loans were in scope and they also seemed to be the best overall perfoming business that uses the mintos platform.

At the moment I have sold of all my loans on the marketplace after the covid crisis started which seemed to me to give a lot of people income troubles. During my sell of Mintos re-introduced their selling fee on the secondary market which has cost me about 1% over half my total invested amount. I personally found it a bit typical that they reintroduced it during one of the biggest sell offs on the platform.
Currently I have nothing invested via the Mintos platform because I'm looking to investments that move along with inflation more. However according to mintos I have earned a return of 11% over 5.5 years which I'm very glad with.

I hope my insights might benefit you in any way and offcourse I'm interested in your experiences and insights.

If you care to join the mintos platform you can use my affiliate link: Leading marketplace for investing in loans. We make it easy to invest and monitor results. Automated investing available. Start with as little as 10 €.
Or ff you don't want to use my affiliate you can just go to www.mintos.com

 

[AKP2P]

Currently I have nothing invested via the Mintos platform because I'm looking to investments that move along with inflation more. However according to mintos I have earned a return of 11% over 5.5 years which I'm very glad with.

Hi Ikke!
I'm new to p2p (and investing as such) and I'm considering starting to invest with Mintos as that looks to be an interesting passive investing option, yet want to get more in experience based feedback and coming up with the most appropriate strategy for myself based on learnings and more experienced investors suggestions and you seem to know what you are talking about. And thanks for sharing your strategy and suggestions!

11% returns sounds pretty ok for such a relatively new and slightly risky asset class, no? Was there any other dealbreaker for you to exit regardless of that? Would you consider returning to investing with Mintos or perhaps you would suggest other p2p platform as safer and better?

'investments that move along with inflation more' - if you don't mind me asking, have you found any better passive investment opportunity that you would recommend over investing in loans?


@Duck did you ever start investing on Mintos? If so, what has been your strategy and experience so far?

 

[AKP2P]

With the vaccines now developed, I would expect things settling to the new norm this year.

Doesn't covid pose a higher risk to also more classic investment options? If the stock market crashes, loans at least would have a collateral, no? With the stock market pumped with loads of wannabe investors that perhaps don't fully understand what they are doing and just dump money in the popular options, wouldn't a crash there be more risky?