On August 2019 I realized that I’m investing for 12 months on Grupeer. Being one of my Top 10 P2P CrowdInvesting platforms, I felt this to be the right moment to share my experience and explain why investing in Grupeer offers a consistent source of fixed returns to my portfolio.
Grupeer is one of the most stable players in the P2P lending business ecosystem. You can invest in real estate projects and business loans and earn around 13% per year in interest. The minimum investment required is €10 and all loans in Grupeer have a buyback guarantee in case of borrower’s payments is delayed for more than 60 days (if the lender can’t pay, the loan originator company repurchases the debt).
Available to the public since February 2017, Grupeer works on a business model similar to Mintos: they are a marketplace where loan originators offer their pre-funded loans to investors like me. By doing this, they have more money available to fund new loans so they can leverage their businesses. Making a checkbox on my investment principles, Grupeer only fails one: early exit. I know they are working to have a secondary market available, but until then it is important you know that you cannot cancel or sell your investments once you commit to them.
Nothing wrong with that if you as an investor follow a strategy that does not require quick liquidity on your investment assets. In my particular case, Grupeer is the only platform present on my Top choices that do not provide early exit and even so is among my favorites. It is a great way to invest your money in medium-term loans in a totally automated manner. It could be an ideal starting point for a new P2P lending investor, but it’s all about what works for you!
A key aspect when considering investing in Grupeer is the recurrent cashback campaigns offered from time to time. They can have a significant impact on your portfolio returns if used wisely.
Creating a Grupeer investor account is very straight forward and it’s very easy to invest. The website is very simple and easy to navigate, invest and manage your portfolio. The auto-invest tool makes investing at Grupeer truly passive.
During the first year, Grupeer provided me with €598.83 in interest for a total investment of €4.043,72. A return of ~13% in 12 months.
Over the past week, I received a significant number of messages with questions on how to start investing in P2P lending. During the preparation of my replies, I realized that the best way to share my experience and opinion was imagining that I was starting all over again today…
Rules for the Exercise: Amount, Maturity & Moment in History
Let’s define for the purpose of this exercise a budget of 10.000€ for P2P lending investments. Let’s consider a timeline for deploying my investments of 12 months and take into consideration my current knowledge within the European P2P lending industry in August 2019.
Key Questions to Answer
Now, I just need to answer the following questions:
Which steps would I follow to invest 10.000€ in P2P lending?
Which P2P crowdlending platforms would I choose for my investments today?
How would I spread my 10.000€ among my selected P2P platforms?
What strategy within a 12 months timeframe would I follow to maximize earnings with the least time effort from my part?
With a small delay, here is our Savings4Freedom monthly update!
I’m really happy with the way my P2P investments are evolving this year. By choosing to invest in P2P lending, every single day I’m confronted with the need to learn new aspects of the industry and improve my processes for efficiency and security.
As I described in my previous update, I’m continuing to shift funds between P2P platforms to diversify and increase my average portfolio interest rate results. In July, I opened accounts in Monethera (very good experience so far) and iban Wallet (a nice complement to my P2P portfolio for money liquidity reasons). You can check my first impressions on both platforms later on this publication.
I also want to share that from now on, I’m sharing with the community my Financial Literacy Video Library to FIRE (financial independence and retiring early). I love to learn and I want to share some of the best videos I found with you.
Loan Originator Issues: Aforti
P2P platforms such as Viventor and Mintos shared this week that one of their Loan Originators (Aforti). One of the risks of investing in P2P lending is the loan originator. You can check the Risks section on this dedicated page to learn more about other aspects to consider before investing.
But, without any further due, let’s see the numbers!
On Friday the 7th of June, over 240 people among P2P platform representatives, P2P investors, and bloggers came together in Riga for the 1st edition of the European P2P Conference. This P2P Conference was certainly a memorable one! Taking place at the wonderfully unique RISEBA Architecture and Media Center H2O 6, this event brought together people from 24 nations representing the entire community to display just what makes P2P crowdlending so unique – its diversity, its cross-sectoral nature, and its collaborative spirit.
The event, hosting interesting keynote speakers, an array of informative presentations, and topped off with a fun evening and second-day entirely dedicated to networking opportunities.
February was a specially painful month for me. The loss of a very important family member is always a defining moment in everyones life… apologies for not publishing last months report. I updated all information on the blog over time, but not a post… thank you for understanding.
Live goes on and here is the April 2019 S4F report.
Some quick notes before you start investing in crowdlending platforms…
When you research a new crowdlending platform, it is not only important to look after the expected return and platform usability… There’s quite a few other, more relevant details to evaluate before investing:
How old is the platform?
Who is the management team?
How do their financial reports look?
Is it a single- or multi-loan originator platform? How many loan originators do they have?
Do they offer buyback guarantee on your loans?
What is the minimum investment in loans?
Which loan types do they offer?
Do they have autoinvest functionality?
Do they accept investors from your country?
For each of the platforms I present on S4F you will find a review in their info pages, based on my experience. It is a mix description based on credibility, size, functionality and support as criteria for the review. I also try to read what is the word on the street from other investors in the personal finance ecosystem.
Please feel free to contact me over email [email protected] and share your opinion, comments or suggestions on the topic above.
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I’m Carlos, a 33 years old PhD, and startup founder. I live in Portugal with my wife. I always had the mental drive to save money, but never with financial independence in mind. Only at the beginning of 2018, I decided to structure my efforts towards freedom. This blog tells you all about my path, decisions, and mistakes.
I face strong limitations regarding my financial freedom, however, I don’t have any doubt that I will be able to achieve this personal goal of becoming financially free. Anyone can reach financial independence. It’s all about the way you wish to live and the costs necessary to sustain such a living standard.
I learn to save money with my Father. He was a hardworking and honorable man, entirely committed to supporting his family. I saw his effort to support my studies and his energy to provide me the opportunity to fly high without financial concerns. My Father is my hero.
There are many different ways to achieve financial independence, but you always will need to follow these: