0risk
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Post by 0risk on Jan 9, 2017 13:01:02 GMT
what strategy do you recommend? I didn't think too much about it yet. I set auto-invest to buy current loans with buyback, rate above 13.4%, €10 ea, long for 3-36 months, all originators except Capitalia. Is this the way you work out? What originators do you think you should have more on?
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fric
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Post by fric on Jan 9, 2017 14:04:22 GMT
I concentrate on loans with Buyback (I used to love Mogo Buyback loans when they had 13.5%, sadly they are gone) or with decent collateral - e.g. Hipocredit (I carefully look through manually to not take some questionable appartments in small rural regions). Mogo loans without buyback seems risky, since most of them have LTV close to 100% which in case of default will mean loses. Personal loans with buyback are probably ok.
Business loans are a definite NO for me - no buyback, no collateral, high risk with the same interest rates as secured mortgages.
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Post by loontik on Jan 9, 2017 16:36:17 GMT
what strategy do you recommend? I didn't think too much about it yet. I set auto-invest to buy current loans with buyback, rate above 13.4%, €10 ea, long for 3-36 months, all originators except Capitalia. Is this the way you work out? What originators do you think you should have more on? Hahaha, I know what you mean by Capitalia. One of the worst track records out there. I think invoice financing is also kind of risky
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0risk
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Post by 0risk on Jan 9, 2017 18:01:01 GMT
I concentrate on loans with Buyback (I used to love Mogo Buyback loans when they had 13.5%, sadly they are gone) or with decent collateral - e.g. Hipocredit (I carefully look through manually to not take some questionable appartments in small rural regions). Mogo loans without buyback seems risky, since most of them have LTV close to 100% which in case of default will mean loses. Personal loans with buyback are probably ok. Business loans are a definite NO for me - no buyback, no collateral, high risk with the same interest rates as secured mortgages. Thank you! I'm all onto buyback loans these days. There are many by Lendo (13.5%). I'm thinking about balancing out my portfolio a bit, in terms of loan originators.
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Post by extremis on Jan 9, 2017 20:03:28 GMT
what strategy do you recommend? I didn't think too much about it yet. I set auto-invest to buy current loans with buyback, rate above 13.4%, €10 ea, long for 3-36 months, all originators except Capitalia. Is this the way you work out? What originators do you think you should have more on? Hahaha, I know what you mean by Capitalia. One of the worst track records out there. I think invoice financing is also kind of risky I second that. I have a significant portion (~30%) of my portfolio in Capitalia's loans and a dozen of them are already 60+ days late or defaulted. I knew from the beginning that these were the riskier loans on the platform, but since i like the idea of lending a business i took the risk. The worst thing is that their recovery procedure doesn't seem to work or is working at a very slow pace. Now, i have stopped buying Capitalia's loans until their default/recovery rates improve (if they ever). Invoice financing is certainly lower risk per loan, but if we take into account that they are very short term it might turn out they are of similar risk (or even more) on the long run - as always we need statistical analysis to be certain of the risk we take when buying all these different kind of loans.
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fric
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Post by fric on Jan 10, 2017 7:02:36 GMT
Hahaha, I know what you mean by Capitalia. One of the worst track records out there. I think invoice financing is also kind of risky I second that. I have a significant portion (~30%) of my portfolio in Capitalia's loans and a dozen of them are already 60+ days late or defaulted. I knew from the beginning that these were the riskier loans on the platform, but since i like the idea of lending a business i took the risk. The worst thing is that their recovery procedure doesn't seem to work or is working at a very slow pace. Now, i have stopped buying Capitalia's loans until their default/recovery rates improve (if they ever). Invoice financing is certainly lower risk per loan, but if we take into account that they are very short term it might turn out they are of similar risk (or even more) on the long run - as always we need statistical analysis to be certain of the risk we take when buying all these different kind of loans. Well, financing small business will always be very high risk. Small business usually dont have any assets (or very small amounts), so when it bankrupts - creditors get barely anything. The owner however can register a new business.
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Strategy
Jan 17, 2017 16:22:35 GMT
via mobile
Post by tiberius on Jan 17, 2017 16:22:35 GMT
Wow I was considering opening a Mintos account but after reading this thread I'm almost glad I didn't put my money in this company..
Are you guys saying even the buyback loans are super risky?
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p2pmaster
investment is life.
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Post by p2pmaster on Jan 17, 2017 17:10:24 GMT
Buyback works fine for me, haven't even contacted support for this, always on time.
I did some research on the companies that provides buyback and for most companies it looks like solid financials with long track record.
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kulerucket
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Post by kulerucket on Jan 17, 2017 20:09:22 GMT
I haven't seem any Capitalia loans with buyback so I'm not sure they exist or whether they have any problems. I'm still <60 days in, so I've yet to see any buy backs. I did buy an already late loan for 5€ that looked like it wasn't going to be repaid just to test it out, but even that is yet to reach 60 days.
So far I'm quite happy with Mintos. I like being able to diversify so much within one platform although the recent drop from 13.*% to 12.*% on all originators makes me wish that I had not limited myself to 1 month loans to start.
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Post by red_panda on Jan 17, 2017 20:55:32 GMT
I like being able to diversify so much within one platform although the recent drop from 13.*% to 12.*% on all originators makes me wish that I had not limited myself to 1 month loans to start. I have had one mortgage loan (12848-01) for couple months now with a rate of 18%. The loan was taken with a length of 121months. It really makes me wonder who on earth would even willingly get into such terms.
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0risk
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Post by 0risk on Jan 17, 2017 21:26:44 GMT
Wow I was considering opening a Mintos account but after reading this thread I'm almost glad I didn't put my money in this company.. Are you guys saying even the buyback loans are super risky? No, I don't think any of us in this thread said that. I believe all buyback promises are working fine and swiftly.
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fric
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Post by fric on Jan 18, 2017 7:13:48 GMT
I like being able to diversify so much within one platform although the recent drop from 13.*% to 12.*% on all originators makes me wish that I had not limited myself to 1 month loans to start. I have had one mortgage loan (12848-01) for couple months now with a rate of 18%. The loan was taken with a length of 121months. It really makes me wonder who on earth would even willingly get into such terms. There are people who max out their credit cards on a regular basis and pay thousands of dollars/euros in interest each year. There are people who take a credit for practically anything. There are people who take payday loans for a party. Are you surprised?
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p2pmaster
investment is life.
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Post by p2pmaster on Jan 18, 2017 12:45:55 GMT
I haven't seem any Capitalia loans with buyback so I'm not sure they exist or whether they have any problems. I'm still <60 days in, so I've yet to see any buy backs. I did buy an already late loan for 5€ that looked like it wasn't going to be repaid just to test it out, but even that is yet to reach 60 days. So far I'm quite happy with Mintos. I like being able to diversify so much within one platform although the recent drop from 13.*% to 12.*% on all originators makes me wish that I had not limited myself to 1 month loans to start. I have invested in most of capitalia's loans, but I am not happy with results - more than 6% of loans are in 60 days overdue/default range. I will still give them more time to see how recovery works. If they will be able to recover the collateral, I am ok with the delay.
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0risk
Member of DD Central
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Post by 0risk on Jan 18, 2017 22:07:24 GMT
I have had one mortgage loan (12848-01) for couple months now with a rate of 18%. The loan was taken with a length of 121months. It really makes me wonder who on earth would even willingly get into such terms. There are people who max out their credit cards on a regular basis and pay thousands of dollars/euros in interest each year. There are people who take a credit for practically anything. There are people who take payday loans for a party. Are you surprised? Good point. BTW, average annual rates for credit cards in Brazil is 450%. That would give, ...., let me calculate, ..., 2532951521 % in 10 years.
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Post by southseacompany on Jan 19, 2017 6:03:31 GMT
I did some research on the companies that provides buyback and for most companies it looks like solid financials with long track record. Did your research include Lendo and Banknote? I think those are the two that people have the most exposure to, but my impression of their status doesn't seem to fit your description.
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