Spring Time for marketplaces: Bonus and information

Currently there are lots of special deals for new investors from various marketplaces. Others have no incentive, but offer lucrative projects to invest in and have announced a full pipeline

Kuetzal offers sign up bonus plus cashback to new investors

Some weeks ago I published my first post about Kuetzal . In the meantime I have received my interest payments on time. Of course it is too early to tell if Kuetzal is worth the risk, but at the moment it seems to be a promising platform. New investors get 10 Euro sign up Bonus plus 0.5% cashback on your invested capital during the first six months. You need to sign up with this link and press register. In the field promo code, enter SPRING2019 . After you have invested at least 100 Euro, 10 Euro will be automatically deposited to your account, plus 0.5% on your investment.

Lenndy offers starting bonus

I really liked Lenndy in the past, but the further development lagged, so I did not spend much time on it. Recently they picked up and got rid of paysera and have their own bank account integrated. For sure a plus is the constant deal flow. Remember: Only loans with the shield icon are buyback protected. If you want to start with Lendy now, you can get 10 Euro as sign up bonus (if you use this link to register). By the way, they offer an autoinvest feature, but the autoinvest only grabs newly published loans after you set it up and activated. It does not invest in loans already available. I will update my review about Lenndy during the next weeks.

Bulkestate announced lots of new projects

Bulkestate recently announced by email that they will have a lot of investment projects in the coming months. Three of my projects have matured and were paid back on time . There is no cashback currently, but the yields of the projects are great. I am satisfied with the platform, but I really hope the deal flow increases as expected. Follow me to Bulkestate.

Crowdestor lowers minimum ticket

No cashback, but good news. The minimal investment amount has been lowered to 50 Euro per loan. This means you can diversify more with the same amount of money. There are plenty of offers at the moment. Follow me to the marketplace.

Start with Neofinance and get 25 Euro

Lithunian marketplace Neofinance, which operates very profesional in my opinion, offers 25 Euro Bonus to new EU investors. Register through this link.

Bondster: Update, no more fees, up to 13.5% interest and autoinvest

As you might know I joined Bondster during Q4 2018, actually a bit early for an update. The recent changes made me do one. There are lots of good news for investors which I want to share. Furthermore some Investors seem to have problems configuring the autoinvest. I had that trouble as well when I began using the marketplace. Let us start with the good news for investors:

No more fees on Euro Investments

Until Wednesday investments in Euro have been charged by an annual fee of one percent, so lowered the interest received. This fee began charging once the first three months were over. Since Thursday this fee is gone (but new investors still get 1% cashback, details at the end of this post), which already impacts our yields in a positive way. The fee is still applied on the Czech Krona investments. The second nice point for us is:

Loans with up to 13.5% interest rate and buyback

Bondster has proven themselves by adding new loan originators, matching their risk criteria. This must be a very tough due dilligence review, as Bondster promises to step in, should a loan originator default. This week Lime from Poland was added and already offers a huge number of loans. Furthermore Bulgarias Stikcredit offered 13.5% on a smaller lot of loans. If you like the ore conservative approach, there are more loans from originators which haven been in business for years now. Oh, by the way, Stik and Lime offer short term loans of up to one month.

Late and Penalty fees

A recently changed fact is, that if a loan is past due date, investors still get compensated for the overdue period. There is just a little difference with how much. If in the loan details there is written “no penalty fee” it means, that the loan interest just runs at the same rate. If a loan is yielding at 13.5 percent, this rate is appied until buyback kicks in. If in the details there is written “penalty fees yes”, the interest accrues until the due date as it is written and then afterwards the penalty fee applies. I guess it is at least the same as the interest or more, otherwise this distinction would not make any sense. I hope this explanation was clear.

Autoinvest feature – sometimes less is better

Yes, the autoinvestor played games with me as well, lol. I had several people reaching out to me about it. Therefor I decided to share some info about it. First, I really think Bondster wanted to create a sophisticated autoinvest tool for us, hence we got a lot of parameters to set. And there seems to be the problem, some settings might not work together or we simply do not understand how to set it right. In experience it is enough to select the originator (or leave it empty to select all), the minimal interest rate, maximal duration and include buyback (currently obsolete, but I want it future proof). Below you can see my settings:

My Bondster Autoinvest settings

Once you clicked save, you see the overview of your autoinvestor, and there is a really helpful detail: Found loans shows you how many loans match your criteria. My settings result in 292 loans. With this number, you can see if your settings are ok or not.

Conclusion

Beforementionned changes really make Bondster more attractive in my opinion. Short term loans with 13.5 percent yield, plus overdue covered, this is really competitive. Further I like the regional diversification with a platform outside the Baltics.

New investors get 1% Cashback on their investments, if you register (follow link) and put this number, 4985, in the promo code field. This is valid for the first three months after registry. Cashback is directly credited on your investment account on the 5th of every month, for the investments of the past month.

Crowdestor: Plenty of new projects and introduction of a buyback fund

A little more then one year ago Crowdestor has started its services and begins to thrive right now. The first ever financed project was paid back some days ago (others already repaid before) and there are three investible loans on the platform right now. Afourth will be online for funding on Wednesday morning, more on that at the end. First i was a bit sceptical about the marketplace or to put it better, the first project. With some time past now, I am more confident about them then a year ago. For sure the projects are of higher risk, but you get compensated by very attractive interest payments (like Kuetzal or Envestio . Interest starts to accrue from day one, which of course an advantage. I am convinced that at some point at least one loan gets delayed or worse. To counter that a bit, I guess the buyback guarantee fund was founded.

Buyback Guarantee Fund

On March 1st Crowdestor announced that they had launched their buyback guarantee fund and initially funded it with 50k Euro. Further there will go one to two percent of each projects fee into the fund. Such a mechanism we already know from Lendy, formerly Saving Stream. They believe the fund will be worth about 100k by years end. Achievable if the funding of loans reaches 2.5 to 5 Millions of Euro. Seems to be quiet a bit, but given the rate at which new projects are going live and funded, I believe it is doable. I just question how much 100k will help when compared to a 500k project. It might be enough, as mostly loans default down the road not at the beginning and if there are securities in place. Let us hope we won’t have to find out ;). Last but not least the funds rules are not clear to me. I hope the marketplace will soon define them clearly. n

New Project on Wednesday at 19 percent

Wednesday morning a new project will go live for 520k Euro at 19 percent yield and very short duration of 9 months only.. My gut tells me this one will be funded quickly. I do not have more information on this project currently. It looks like a real estate project in Riga. Follow me to Crowdestor.

Newest Crowdestor Project in Riga

Kuetzal – new marketplace with high yields (22%), cashback and sign up bonus

Kuetzal, what a weird name I first thought. So I asked them why they branded them like this. See the answer from Alberts, CEO and Cofounder:

Initially we wanted to name the platform Quetzal. It is a rare bird which Aztec and Maya tribes considered as sacred. The bird is associated with trust, magnificence, brilliance and we decided to use this name. Another reason is we wanted to differ from competitors which have a lot of invest, lend, crowd in their names. The market is overloaded with such names so we decided to bring freshness. We just made a change from Quetzal to Kuetzal as we believe it will be more Europe-oriented name.

Well, I guess the differentiation was successful 😉 The platform’s headquarters is in Talinn, Estonia and was founded by three young entrepreneurs. Interest rates vary from project to project and top at 22 percent. Kuetzal offers some special features, which I would like to discuss a bit further.

Kuetzal Care and the Buyback

Most new platforms have a hard time getting their first loans funded, which is in turn a pain for new investors, as their money is on the platform not earning interest. This is different with Kuetzal, as interest accrues from the moment the investment is made into a project (minimal investment 100 Euro per loan, monthly interest payments). This is part one of Kuetzal Care. Second part makes sure that every project will be funded completely. Creditline with banks and money from Angel Investors makes this possible. The buyback feature is not included in every project, it is mentionned in the summary table of each project. If buyback is available on a loan, you can instantly sell your loan part to the platform directly, but they only refund 90 percent. So you basically lose 10 percent of your initial investment as a penalty. This means that you can sell a 20 percent yielding project after 6 months and make no loss (as the monthly interest payments covered it), should you need money before maturity. We know this functionality already from Envestio.

Kuetzal Projekte
Some current projects at Kuetzal

Brand new: Cashback and Sign up Bonus

At the moment you can get 0.5% Cashback on your investments during the first six months after registration. Use any Kuetzal link (like this one) and click on register on the site (right top corner). This offer has no expiration currently. Plus, there is a sign up Bonus of 10 Euro (valid until May 31st 2019). To get it, insert SPRING2019 in the promo code field during sign up. All Bonuses will be directly credited to your investment account.

Conclusion

You see, this marketplace has its own and very different approach. This should not be seen as bad news. What I don’t like is their lack of focus. They focus on ideas and not sectors or segments. Comforting on the other hand is, that they got funding approved from banks and angel investors. Something which you don’t secure without a deep due dilligence by them. These institutions do not throw their money at a project easily. As per today no project has matured, so no assessment can really be done at the moment. Take for granted that these are risky investments (like Envestio or Crowdestor). As expected I got all my due interest payments on time and I am hopeing this will continue. Follow me to Kuetzal.

News, Cashback and a fresh marketplace

Reinvest 24 offers Cashback

There was not a lot going on in recent weeks at Reinvest 24. But this week will be big. A new project is going live, secondary market will be introduced and a cashback campaign is running until March 11. Cashback is applicable to existing and new investors. 0.5% Cashback is paid for total investments from Euro 500 and 1 percent for total investments of 1k. You can spread your investment over all available projects for diversification. Only the total invested amount counts . Follow me to Reinvest24.

Swaper announces ambitious goals

During 2018 Swaper originated loans worth 34 millions Euros, according to them. Despite this impressive number, lots of investors had to deal with cash drag. Swaper now announced that they will originate 54 millions of loans in 2019. The increase of loan supply will be seen this week. Fingers crossed 😉

Crowdestor thrives and offers high yields

As announced by Crowdestor some weeks ago, the pipeline of new projects is full. Lots of projects were financed within hours or few days. Mostly the high yielding ones were sold out quickly. On Thursday evening the new project Saapio will go live to get funding for their european expansion.. My gut tells me, that with 18 percent interest rate (which you get from start), this project will be funded within hours. So if you want to participate, send the money early.Follow me to Crowdestor.

Neues Crowdestor Projekt ab Donnerstag Abend 28. Februar 2019

Kuetzal: a new (mostly) high yielding platform

Some weeks ago I discovered this marketplace with this awkward name and I invested for testing purposes. Later this week I will post a review of the platform and let you know why they chose this name. Some facts in advance: Minimal investment 100 Euro, interest accrues from day one. The projects will be financed for sure as the marketplace has credit lines with banks and angel investors. There is a buyback with 10 percent penalty, We know this feature from Envestio for example. Take a look at their projects over here .

This was it for now, stay tuned, more to come this week.

Bondster – Czech P2P with Buyback (and Cashback)

Some weeks ago I already announced Bondster and now it is time to take a closer look. Czech private equity company CEP Invest owns Bondster. Further there is a strategic partnership with the loan originator ACEMA, which I know from Mintos. ACEMA is a heavywheight in the Czech nonbanking loan market with only a little short of 20 years of experience in this market. I guess these are solid preconditions. 

Sign up, Cashback and Fees

On Bondster retail and company lenders can invest money, if they have got a banking account withing the European Union (plus Norway and Switzerland). You can sign up  with this link. If you add these four digits 4985 to the Promocode field on the bottom of the form you get 1 percent cashback for the first three months  (same for me). The cashback is calculated on your average investment during the first three months. The funds will be credited on your investor account after 30,60, and 90 days. Further there are no fees for the first three months. Afterwards the marketplace charges 1 percent annualy on your invested funds. The fees are directly subtracted from your received interests. So basically you can test the platform for three months free of charge and get an extra cashback.

Currencies and types of loans

CZK (Czech Krona) and Euro are available for investments at the moment. With CZK there is sort of an instant access savings account (like Bondora Go und Grow), which yields 3.9 percent annualy. I doubt this is very interesting for Euro investors, but I wanted to mention it anyway.. Additionally there are loans which are secured with property, but only seldom they are on the marketplace. The biggest part of the loans are Guaranteed Liquidity (GL) and Buyback (BB). Both of these types come with a buyback guarantee on principal and accrued interest, after 60 days. The GL loans provide a possibility to exit before maturity, but this comes with a cost of 1 percent of the principal amount. As most loans are annuities with monthly installements, the effect of the fee reduces with increasing duration of the loan. The buyback loans do not provide this early termination option, but yield much better ( currently 12%) and come with a duration of a few months. I can forgo the liquidity feature because of the buyback and the relatively short duration. Minimal investment per loan is 10 Euro.

Autoinvest

Bondster offers an autoinvest feature, which seems to be a little complicated on first sight. This has to do with the many options you can set. Therefor I made my first investments manually, which took some time as I had to confirm every investment . In my next Bondster post I will explain the mechanism in detail.

Conclusion

I find Bondster interesting as it presents a regional alternative to the Baltics.  Another positive point is that ACEMAis on board, which I already know from MIntos. As always with these types of loans the quality of the loan originater is key. There are some unknown originators on the marketplace. I will try to gather more information on them and share my thoughts in the coming weeks. By the way, the website is also available in English.

Questions? Post them here.

 

 

Reinvest 24 – invest in rental properties in the Baltics

Reinvest24 is a relatively new marketplace from Estonia which I will introduce to you now in some depth. I found the platform during their softlaunch last summer. At that time there was not too much going on there what should change now. The platform is open to investors from all around the world.

Basic information

Reinvest24 was founded in 2018 through experts in the field of real estate, It and finance and is located in Talinn. According to them they have more then 10 years of experience with property development. Firstly the team developed and managed the projects as a kind of private fund. As the number of realisable projects increased they decided to offer access to this asset class to private investors (minimal investment 100 Euro per project). Not only the monthly paid yields are exciting, the type of investments is as well. You can be shareholder of a property and benefit from monthly rent payments plus participate in the value increase of the property. The properties will be revalued periodically or after a milestone in the development is reached. In future there will be a secondary market in place where you can sell your shares over or under actual value. However the main focus of Reinvest24 is to hold the properties longterm and generate passive income from renting.

Current and past projects

Momentarily there are two projects open for funding (details you can see in the project description), one with a fixed interest rate (14% annualy with a duration of 9 months). This project was published on the platform to give new investors more options to invest at the beginning. The second project is a partially renewable rental property which already generates rental income (I am in this project as well). Projects like this are preferred by the marketplace. If the team sees good opportunities, they will add different types of projects in the future (like the 14% fix rate project).

If you take a look at the properties page, you will see there are already two projects labeled with “exited”. This means the properties were already sold. These projects were never open to public, the team just processed these two for testing purposes through the platform. Hereafter there will only be limited exits on good offers, and only if the shareholders are ok with that.

Fees for investors

Per 100 Euro invested you get a number of shares of a property. Two percent of your investment is deducted as fees (applies as well for secondary market purchases, selling is free though). This means of every 100 Euro invested, you get 98 Euro worth of shares. Sounds expensive at first sight, but in comparison to other platforms this can be seen as moderat. Furthermore, the yields should compensate for the fees really quickly. The marketplace as well needs to make some money to operate. As already said the platform takes the 2 percent on investments and charges one tentht of the rental income for manageing the properties. In my opinion this is okay.

Investment structure

The whole development project is processed through a SPV (Special Purpose Vehicle), which represents the interests of the investors. This SPV is just a legal person, so basically a company (I am no lawyer, so please excuse the generalisation). By investing you do not get a share of the SPV, but directly from the property, which will be managed by the company. Basically this is the same structure used byProperty Partner, one of the bigger property marketplaces in the United Kingdom. The other possibility would have been to found a new SPV for each new project and give shares of the SPV to the investors. This is costly and not profitable to do for every 100 Euro invested, so not really an option. As it seems we will just have to trust the marketplace that this structure will be used in our best interest. I do not want to overdramatize this issue. Remember that with most p2p investments we do not get more then a contract in pdf and a promise to get paid. An advantage of this structur is that every project is independent, so if some problems occur with one project, it has zero impact on the others.

Finally..

I like the concept of Reinvest24, as I exactly missed the possiblity to generate rental income in the Baltics. It is something different and the team seems to be very motivated. I was in contact with the CEO Tanel Orro over the last weeks and he answered all my questions in detail. You can contact him through the emailadress on the platform. Maybe this is necessary as there is not that much information available on the website as I’d liked, but they are working on it. Follow me to Reinvest24.

A quick look on 3 new platforms

Today I decided to shortly introduce three new platforms to you. Of course, you should have in mind that one blogpost is way too little to describe all three platforms in a detailed way (particularly because I only registered on two of those three during the last days). This is the reason why you will only get a short introduction. A more detailed report will follow during the next days and weeks. So, let’s start:

Reinvest24 – Real Estate among the Baltic States with rental income

I always asked myself why there are no marketplaces in the Baltic States which allow investors to buy real estates and rent them. In Great Britain this kind of model is very common. That is why Reinvest24 is in its basic structures very similar to Property Partner. It is a very young platform and therefore open to investors only for a couple of months. I am already part of a project and received my first rental income previously. Concerning the second project I already placed a bid, but it will take a moment until it is financed completely. I will write a more detailed info blog for this platform during the following days. Before that you should take the chance and look a bit around. Via this link you can directly get to Reinvest24.

Bondster – P2P from Czech Republic with Buyback and Cashback

Like I mentioned before: this is a platform from the Czech Republic where you can invest Czech Crowns and Euros (here is a report concerning the development of both currencies). There are different kinds of loans you can find. The platform provides buyback in an exclusive category, as well. Self-explanatory, the buyback grasps after 60 days. But there is also an option to get out of the loan (like Envestio). Of course, you will have to pay a fee in this case. I am not sure yet who is the owner of this platform, but I saw that there is one partner of it which has a famous branding Name: ACEMA! This is a loan originator which already financed loans via Mintos. As well, this platform is under supervision by the Czech National Bank. The interest rates are with 10 per cent moderate (edit: they just added 12% loans). After three months new investors must pay an annual extra fee of 1 per cent which will be directly deducted from the interests. Like mentioned, in the first three months this extra fee will not be charged. Also, you will receive a 1% Cashback on your average investment during the first three months which you will be paid monthly – if you use for your registration the promo code 4985! This code you have to place in the field “referral code” on the bottom of the registration form. Furthermore, there is no retention. Here you can reach the platform of Bondster.

Debitum Network – P2P and Crypto made in Lithuania

This is the third platform I for today – even though I still do not have the complete view how it works. You can pay in Euros and Pounds but also crypto currencies. The crypto part will only be available after an identity proof. But you can also work in a normal way with Euro or Pound. Right now, I only see loans from Debifo (also this one we know from Mintos,
Invoice Financeing). Like mentioned, I do not have the clue yet concerning this platform, but I try to work with it by investing a small amount. Via this link you can directly get to the Debitum Network.

This is it for today! Like always please write me if you have any questions. Like mentioned, as well, there will be more detailed experience reports in the following days and weeks.

Update on Envestio – All good?

Since my last post about envestio some weeks have passed und last week the first repayment of a project was up. As with all interest repayments everything went as planned and I got my principal back on time. End of this week, the next capital repayment is on schedule. Let’s see if this will be on time as well. Frankly speaking I thought there would be some delays. with at least one project. To me it seems weird that there is not the slightest delay anywhere (pretty bizar that I would like to see delays..). Envestio replied my question why there is no single day delay with the argument that the borrowers pay slightly before the schedule we see in our dashboards… I was less then impressed with this answer as in my opinion it does not adress the source of my question. I draw the following conclusions: 1) The marketplace makes an outstanding job and has everything under control (although we should differentiate here as most problems will occur normaly between 6 and 18 months, and the loans are not live that long so far), or 2) I did not fully grasp the risks involved in these types of loans or I do not understand the business, or 3) The multiple tiers are used to generate liquidity. I will describe this point further below.

To be clear: I do not accuse the platform to be a fraud or something, for this I have no evidence (if you have, bring them to me) and it is too early to tell.. For me, it is just weird that everything seems to go very smoothly. For this reason I am thinking through some scenarios. I still believe in the old formula: Very high interest = very high risks.

Multiple tiers

It is obvious that the same companies frequently take more loans. These loans are marked with the different tier. Tier 6 means that the same borrower has 6 loans open. At the moment there is one borrower (container) with 9 live loans in the amount of EUR 650’000 hat. Possible that every loan is secured by some sort of security coming with the loan, but I find this a bit special. One could suspect here that the new loans are just extensions for older tiers. As long as the loan volume stays the same, there is no big issue. If the volume raises over time, then I have questions. Seldom there are new borrowers, mostly I see new tiers from existing borrowers.

Possible strategies

To reduce my exposere I try to invest only in one tier by each borrower and I try to catch an early one. If I am confident, I take a second tier. Further I only invest in secured debt which gives me the instant selling option with 5 percent discount. There might be other loans (subordinated) which do not offer this feature in the future, but as of now I only saw secured debt loans. Moreover I only buy loan parts with a duration higher then 3 months. This for the reason that I can sell without a loss after 3 months (assuming 20%, makes roughly 5% after 3 months). At loan expiration I can only count on 90 percent minimal payback (if the platform can pay that). If I really redeem early is a different story, but I like to have options available. Another question is if the platform has enough liquidity to provide the 95% of capital needed for early sellers, if lots of investors choose to sell. Basically this is the same as if savers call their funds from the banks. Let’s hope that we do not come to this point. As said before, it is possible that my assessment is just wrong.

Something else…

Withdrawals from the marketplace are free of charge, as long as they are higher then 5 Euro. For amounts below there is a handling charge of 2 Euro. Envestio needs to do that as lots of investors required small amounts daily and their bank is charging them for that.

For the end

Maybe I am too hard on Envestio, but I remain sceptical. I believe the marketplace earned a chance, I stay with the platform and hope for new loans. Interest rates of up to 22 percent support me with that 😉 If you decide to give it a try, use this link for registration and you will get 0.5% cashback (plus 5 Euro one time bonus) on your investments for the first 9 months.

Crowdestor now has a growing pipeline

During February I reported about Crowdestor and its Tesla project (seems I was lazy back then as I did not translate it from German ;)) the first time. Then I had my doubts about the marketplace and the Teslas as well. In the meantime someone enlightened me and told me the story behind Teslas in the Baltics. As it seems the Baltics really like Teslas and their uber counterpart, taxify, especially has a button in their app to order a Tesla as taxi 😉 I really like to learn new things (even unessentials), but more important is that the loans obey their loan schedule and pay. This is the case with the Tesla project. According to the marketplace all other projects are on schedule or already repaid.

Until now Crowdestor stood to their word and delivered the projects which they announced. Sadly there have only been a handful projects on the platform so far during the last months. Good news for us, these days seem to be over. There are two open loans at the moment. One is a start up in the fashion business, the second which was launched today is a property financeing in Riga. Currently the loans need weeks to fill, but this is not a problem for investors as interest accrues as soon as your bid is placed. Even if the project will not be withdrawn, you will be compensated by the marketplace. Really nice, but to honest, it is what a platform in this early stage needs to do to get projects funded. Good for us investors, even better that the interest rates are really good;)

A Start up, a property and a Berlin Restaurant (and more)

Crowdestor now has a good pipeline for new projects. Currently there are two loans live, the start up which yields at least 17 percent annually (and might go up to 22%, subject for that to happen are the turnover figures achieved by the start up in 2019). The second is a newly added property loan, paying 12% on an annual basis and runs for 9 months. In a week there will be a project live on the platform for a restaurant in Berlin, Germany. Somewhat special to see a German project here. I do not know if I like that really, as most German p2p marketplaces have difficulties with arrears and defaults.

Crowdestor Restaurant Projekt
Restaurant Projekt in Berlin

It looks like that the marketplace gained momentum as there should be two more projects coming in the next weeks. So there will be plenty to invest in. Sadly I haven’t got more information on these coming loans. Follow me to Crowdestor.