An XIRR of almost 14% for my crowdlending portfolio! An accepted buy offer for a rental investment! A personal challenge at 11°C! In short, a very productive month. Indeed, April has been a busy month. My crowdlending portfolio is starting to make little ones.
As a reminder, I started investing in crowdlending platforms, also known as peer to peer lending platforms, in January 2019. I first opened an account with Envestio, then with Fastinvest and finally with Grupeer . Three crowdlending platforms that I prioritized among my selection of crowdlending platforms .
In April I focused on monitoring my P2P portfolio. For that I improved my monitoring tools. I explain how a little after.
I had planned to open accounts at Viainvest (average interest rate of 12%) and Bulkestate (average interest rate of 14%). But time goes by at a crazy speed between my full-time job and my family life. So no account opening in these P2P platforms this month.
What do you think of the March review? I cut it into three main sections: financial independence, activity review and investment portfolio review. Does this format please you? Feel free to say what you think in the comments at the bottom of the article or on my Facebook page .
Come on, let’s get down to business.
Nothing to report. My goal of financial independence does not change. I am aiming for € 413,000.00 of invested capital . This amount corresponds to a pension of € 1,377.00 per month according to the 4% rule.
This will allow me to reach the first stage of financial independence, namely financial security .
First I need to explain how I determined my goal of financial independence and what financial security is. The article on how to calculate financial independence is coming. New task that I add immediately in my bullet bullet (see the review of March 2019 for more details on the bullet bullet).
Tip of the month
The tip of the month section purpose is to propose a tip or a subject that I found interesting.
This month, I recommend the incredible conference of Idriss Aberkane: How do we go from hell to heaven in education?
As a father of two young children, I find it essential to integrate neuroscience discoveries into our educational systems. To be a good investor, you have to train. To be a good parent, you also need to train.
In this section, I review the tasks completed last month.
P2P Portfolio (peer to peer lending)
- I updated my investment portfolio tracking tool in crowdlending.
At first, I netted the earnings for each account. That is, I withdrew all bonuses and other winnings to keep only interest earned. Indeed some crowdlending platforms offer bonuses when opening your account. For exemple, Envestio offers 5 € bonus at the opening + 0.5% activity bonus. These bonuses distort the internal rate of return of the account.
In a second step, I calculated the internal rate of return (XIRR) of the account. The internal rate of return is also called XIRR in English (not to be confused with IRR). It is a well-known indicator of investors, it allows to arbitrate between two possible investments, for example an investment on the stock exchange and a rental property investment.
I calculated the internal rate of return of my investments from each of the crowdlending platforms accounts. Then I combined all the investments since the beginning of the adventure to be able to calculate the internal rate of return of the whole crowdlending investment portfolio. You can find the investment history at the bottom of my wallet page here .
Here are the current XIRR
- New article “My opinion on Grupeer”.
As for Envestio and Fastinvest, I wrote a first review on Grupeer. In this opinion I share information about the Grupeer platform and about their services. As a reminder, my first investments at Grupeer date from March 21st, 2019. Investments made using the self-investment tool proposed by Grupeer (read more in my Grupeer review).
Here is my Grupeer review and what I thing about the Grupeer crowdlending platform. To get straight to the point, I am an investor at Grupeer and I hold a portfolio of several loans at home. Investing in crowdlending is part of my online investment strategy. You can access my Grupeer portfolio here . Grupeer is the third crowdlending platform in … Read moreMy Grupeer review
- With my second child I do not have much time to trade.
I am trying to develop a trading strategy on longer units (weekly). I test in demo account until I see if I’m profitable.
With my wife we aim to find a rental investment. The goal is to generate a positive cash flow, ie a passive income (after taxes) thanks to the rents collected. For this we aim for a gross profitability of at least 10%.
We are positioning ourselves on a house close to home. We have made an offer well below the sales price and … OUR OFFER HAS BEEN ACCEPTED!
But, because there is a big BUT, we do not know if we will follow up. Indeed the project is to create a coliving of 5 rooms. For this we must renovate a veranda to make a living room. Two companies must pass to confirm the feasibility and establish quotes.
The problem is that with this purchase we borrow at our maximum debt for a cashflow of € 300 to € 400 (after taxes … actually no taxes for 10 years). It is therefore a bet on the future, because on the one hand we create heritage but on the other we do not diversify. So should we invest in many small properties rather than investing everything in this house? Your opinions are welcome 😉
- The blog has been revamped with a more sober and modern design.
I redesigned the blog in March. I have no feedback from you. A suggestion ?
- I created an account at Sendinblue to be able to ensure the diffusion of the newsletter
First newsletter sent in March for the last review. I am satisfied with the service. This new article will be sent to all followers. If you are not registered, now is the time 😉
- New: from next week I begin a coaching orientation with a coach in NLP and Ericksonian hypnosis. A priori I go on 10 to 12 weekly sessions. At 60€ the session I hope that this coaching will bear fruit. The goal is to define my professional project.
- Go to bed early. It’s a real challenge for me and a habit that I want to change. I had a hard time these last 15 days: many visits to the house.
- The Wim Hof method . Final Challenge = take an ice bath within a few weeks. I already take showers at 12°C everymorning! With the passage of the family I had to pause the ice bath project. Meanwhile I bathed in water at 11°C in northern Brittany, without swimming.
The rest of my goals have not changed:
- Continue to use therapeutic EFT .
- Listen to audio books for personal development. I prepare a small selection of my own in a future article.
- Insure in my full-time contract.
- Make my wife happy. Not always simple with all my ambitions.
- To be the best dad possible and to train in the neuroscience of education.
P2P Portfolio (peer to peer lending, crowdlending)
Reminder of my strategy
I manage my crowdlending asset allocation as an investment portfolio. Rule number one is security. To secure my invested capital I diversify my asset allocation. In the stock market I would invest in a basket of stocks or ETF through several brokers. In crowdlending I invested in a multitude of projects across manypeer to peer platforms.
I am satisfied with my strategy, since just four months after my first investment, the internal rate of return of my crowdlending investment portfolio is 13.29%. It is an excellent XIRR!
You can find my full portfolio here .
NB: in March I was talking about ROI, the return on investment. The XIRR, the internal rate of return of an investment, is a much reliable indicator for knowing and comparing the “quality” of an investment. I will be using XIRR for all my investments now.
Envestio is the first peer-to-peer lending platform in which I have invested. The average interest rate is 18%. Which makes Envestio very attractive. The projects are financed in a few hours, sometimes in a few minutes for the most attractive ones. My maximum investment per project is 200€ so I was able to finance projects without too much difficulty. For larger investments, you have to be ultra responsive because Envestio does not offer an automatic investment like Fastinvest or Grupeer.
- XIRR: 14.31%
- Investment: 1763.47€
- Monthly passive income: 24,05€
- Click here to see the details of my Envestio investments .
At Fastinvest , as at Grupeer, I use a self-investing tool to invest continuously. The auto-invest automatically invests the specified capital in accordance with fixed rate and duration ranges. In my case, 10€ to 25€ per project (ie an allocation of 20 to 8 projects), an interest rate of at least 12% and a maximum duration of 12 months.
- XIRR: 7.41%. First investment in March so a little early to draw conclusions.
- Investment: 221,36€
- Monthly passive income: 2.18€. This is just the beginning.
- Click here to see the details of my Fastinvest investments.
Grupeer is also a crowdlending platform in which I wanted to invest since the beginning. This P2P platfome provide all loans with BuyBack Guarantee . This means that if the borrower goes bankrupt, the partner, the originator of the loan, is required to buy back the loan in default and ensure the repayment of principal and interest in full.
As for Fastinvest I use the auto-invest tool, with several automatic portfolio hierarchies. I created two automatic strategies with respective minimum interest rates of 13% and 14%.
- XIRR: 7.42 %. First investment in March so a little early to draw conclusions.
- Investment: 305.79 €
- Monthly passive income: 1.86 €. This is just the beginning.
- Click here to see the details of my Grupeer investments .
The internal rate of return (XIRR) of my P2P portfolio is excellent. My diversification strategy is beginning to take shape and I remain confident in the long term. My long-term investment portfolios are based on simple but profitable strategies.
Which strategy to apply to our real estate investment? We must take the decision quickly. Real estate also requires time and energy, which are my two most valuable resources in my life.
In May, I will explore new platforms of crowdlending to continue my logic of diversification of the P2P portfolio. I will probably open accounts on the platforms Viainvest (average interest rate of 12%) and Bulkestate (average interest rate of 14%). Two crowdlending platforms in French.
Trading side, I will take the time to resume my training videos. I have less and less time for day trading and I want to maintain swing trading as explained above.
And to achieve all this I must pursue my personal development to be the best version of myself, for my success but especially for my family. I can not wait to start coaching!
And that’s it for our monthly review. Feel free to comment and give me advice. Good month of mail to all and see you next month for an update.
I am Erwann. In my thirty, dad of two beautiful children, happy husband and engineer with a full time job. All this leaves me little free time. I optimize every minute of this free time to train for investment.
My discovery of the FIRE movement opened me to the world of investment. Good financial management is the first step towards financial independence. I invite you to follow me in this adventure.