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 which I invest after Envestio and Fastinvest.
What is crowdlending? What is the difference between crowdlending and crowdfunding?
Just a quick reminder: Be careful not to confuse crowdlending and crowdfunding.
There are three forms of “crowdfunding” that cohabit and raise, every year, more and more funds. The original version offers Internet users (“crowdfunders”) to make donations (with or without compensation) online to support projects of a cultural, artistic or associative nature. More recently, the second form concerns loans with interest to companies, in order to finance their development or to carry out particular operations. This is the crowdlending.Laurence Boccara, lesechos.fr, October 23, 2016
Laurence Boccara, lesechos.fr, October 23, 2016
We could also talk about peer to peer lending. In short I must write another article on crowdfunding in all its forms.
Loans offered on the Grupeer platform
Grupeer is a crowdlending platform that has the particularity of offering several types of loans to individual investors. In fact, the Grupeer platform makes it possible to invest online in three types of loans: loans issued by personal credit institutions and loans granted to businesses. To these two types of loans is added real estate loans, or more specifically loans issued by companies specializing in real estate development projects.
Grupeer makes it easy to invest in those different types of loans. It is a particularity of the platform that is significant unlike other crowlending platforms that offer specialized offers. Moreover investments in real estate are often reassuring for an investor.
Grupeer and the secondary market
In the meantime, Grupeer does not carry any sale on the secondary market. This option is probably under development because a tab is already available but iniquitous the above message.
What performance does Grupeer offer?
As you can see, the average project interest rate is 13;50%. That’s a great rate. Personally i’m looking to maintain a 13% to 14% XIRR for my P2P lending portfolio. So Grupeer is validated for me.
Another interesting fact is that Grupeer operates across 78 different countries.
What is the risk of investing through Grupeer?
Investing always involves a risk of losing all your money. It’s no different when you invest in P2P lending platforms like Grupeer.
Personally, I consider investing in crowdlending risky and that is why I recommend diversifying your global portfolio as much as possible through other investment strategies such as the stock market or real estate. In terms of managing the corwdlending portfolio, I apply a diversification strategy by investing in multiple loans across multiple platforms . You can find details of my investments in crowdlending in my portfolio. I never invest more than 5% to 10% of my net worth in high risk investments such as this one.
However a better return comes with a higher risk. Crowdlending is so far a fairly stable field that gives regular high returns.
Being aware of the risks is important. To know the risks related to crowdlending, I invite you to read my dedicated article.
The risks of peer to peer lending are multiple. To invest well, you have to know all risks of peer to peer lending and diversify your asset allocation. A difficulty in diversification is the lack of knowledge of the risks specific to the types of assets in which we invest. Here is a list of … Read moreWhat are the risks of peer to peer lending?
It is important to know the top 3 risks associated with crowdlending loans:
- The borrower is in default of payment of the loan.
- The initiator of the loan goes bankrupt.
- The platform (Grupeer) goes bankrupt.
Grupeer greatly reduces the default risk of the borrower through its buyback guarantee, BuyBack guarantee represented by a green badge on the platform. The peer to peer lending platforms in which I invest almost all offer strong guarantees for this risk. This point partly justifies my positive review of Grupeer
For the other two risks, it is up to each investor to do their own risk analysis. See my diversification strategy.
3 repayment type
With bullet repayment type you receive the monthly interest payment (calculated as APR from amount invested, divided by 12 months) and on the maturity date, you receive the whole chunk of the principal back. This repayment type ensures that you have a stable passive income stream, with principal coming at the end of the term.
Balloon (since august 2019)
This repayment type is comparable to bank term deposits. Here you lock away the investment for the fixed period of time. The interest for the entire period will be paid out on the maturity date together with the loan principle.
With bullet and balloon repayments the principal is returned back to the investor when the maturity date comes, and interest is calculated based on the total loan amount. The key difference of amortizing loans is that principal repayment will take place over the loan period and interest is calculated from residual loan amount (total loan amount less principal repayments according to schedule).
Open an account at Grupeer
As with all European corwdlending platforms, see my selection here, it is very easy to open an online account. Usual identity information is requested via an online form. The information provided is verified by the team Grupeer and you receive the same day or within 48 hours an email activation of your personal space.
You can then make your first deposit via bank transfer. The use of bank transfer is an obligation AML (anti money laundering). Funds are transferred to the account within the standard time frame, usually the business day after receipt by Grupeer.
Grupeer has recently introduced a second payment solution, TransferWise. TransferWise allows you to manage multiple accounts in multiple currencies.
Invest with Grupeer
As soon as your deposit is transferred to your account, you can start investing in loans. Grupeer made the investment procedure very easy. Simply go to the “Invest” tab and choose “Loan deals” to access the three types of loans described above, or to go directly to loans for real estate development projects. As we have seen, the secondary market is not yet active.
As for “Auto-invest”, I talk about it below.
The loan offers interface is convenient because it is possible to filter offers easily. Click + Filters to refine your search.
Loans with the green crest are covered by the BuyBack guarantee, the buyback guarantee.
Just click on the ID of a loan that interests you to get the details: information about the loan, the borrower (business or individual), current investments and the repayment schedule of the loan.
Personally I use Auto-invest tool to manage my Grupeer portfolio (details here).
Invest with auto-invest tool
Auto-invest is similar to the one proposed by Fastinvest. This tool allows you to define your investment criteria
- Minimum yield
- term of the loan
- Loan type
- Maximum amount invested in total and per project
The tool is convenient and saves a lot of time, especially to apply a diversification strategy like mine. I particularly appreciate the following two features
- Prioritization of strategies: You can define which strategy to apply first. If no loan meets your criteria, then the second strategy will be applied.
- Unlimited self-investment: interest earned and loan repayments are automatically reinvested according to the defined strategy.
Currently, I have two automatic investment strategies.
Here is the detail of my strategy #2.
For now the tool works very well and allows me to save a lot of time and therefore money.
Coming soon: the Grupeer stability fund
Grupeer is preparing a very interesting novelty for long-term investors, a Grupeer stability fund. It should be launched soon and I look forward to more information.
The Grupeer Stability Fund is a long-term investment in real estate. This is also called in France a “stone-paper” investment. Indeed the Grupeer stability fund literally allow to buy a square meter in a real estate property, with a simple click of the button. Thus, an investor will own a fraction of the office building or any other development project that is already generating revenue. After investing in this product, the client will receive a stable rental income of 4% to 8% per year.
This option seems appropriate for people who want to benefit from the stability offered by real estate investments, but who do not have the amount of money usually required in this case. This investment product can become a source of long-term passive income.
Conclusion of my Grupeer review
Grupper is a crowdlending platform that I particularly enjoy. The BuyBack Buyback Guarantee is a security that I believe is necessary to invest in loans. The loan offers are regular and varied. The self-investment tool, as for the Fastinvest platform , is very useful and allows rigorous implementation of my diversification strategy . The interface of the platform is simple but pleasant to use.
I am waiting for more information on the stability fund. If Grupeer continues to grow, this Stability Fund could be an interesting opportunity in the long run.
Until now my Grupeer review is positive. So I will continue to use Grupeer’s investment services. At the time of writing this article, I have already invested in Envestio, Fastinvest and Grupeer. I’m thinking of continuing my diversification with Viainvest platforms , Bondora for crowdlending and can test Prepayway for crypto-currencies.
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.