keith
Member of DD Central
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Post by keith on Nov 25, 2017 18:27:18 GMT
Mine varies by platform. For example, I used to invest more but now have a maximum of 500 on SS and Lendy. I drop 500 a go in to BM but BC forces to a minimum of 5k. I put 1k a throw into Kuflink. Generally, I try to maximise the diversification offered innately by a platform but with those that don’t do that I rely on a larger number of loans which should allow for DD oversights.
As mentioned above, quite hard work and if I had a proper job then I would never have the time.
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Post by df on Nov 25, 2017 21:17:47 GMT
I didn't tick any box. The size of my investment in each loan depends on the platform and the loan itself. For example, I have more in one single Ly loan than in my entire loan book with Rebs. With some platforms, like Unbolted for example, you can't even make that choice.
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Post by dutchman on Nov 25, 2017 22:15:39 GMT
Agreed, this is a fairly pointless poll ... p2p forum members range from those who routinely make bids per loan of £20/£25 through those making bids of a few thousand pounds to those making £100,000 and the odd ones who prefer blocks of £400,000 plus per loan. You really need to consider a "normal bid" in terms of a percentage of all p2p investments. Unless you do a lot of due dilligence (DD) on each loan to weed out those that appear to be higher risk, it is wise to diversify across lots of loans so invest no more than 0.25% or 0.5% of your p2p investments in a single loan. With some DD, 1% of p2p investments per loan is fine (and is my limit, more normally I'm at 0.75%), above 1% IMO really needs a greater level of disclosure of risk factors than p2p platforms (and their borrowers) are willing to provide. I'm always amazed by the number of loans people have. I spend perhaps 10 hours a week on P2P, and struggle to stay abreast of a portfolio of 50 loans. 500 hours a year for a portfolio in the lower six figures is already a pretty crazy amount of time, but I figure some people spend more time than this on suduko or candy crush. From a perspective of smoothing annual returns 50 loans is sufficient to keep within +-2% of the mean, and I see little reason to diversify further. I don't really follow the connection between risk disclosure by platforms and diversification. I can see how risk disclosure effects the amount one might want to put in to P2P, but not how much you put into each loan. I might even argue that the limited information supplied by platforms allows greater scope for active investors to beat the market, and as such would favour a lower level of diversification with more time spent on each loan. Hi Charlata, May I ask what you do regarding portfolio maintenance? I don’t know what p2p sites you use but eg on a platform like mintos you could look at (historic) payments but that only changes once a month (for existing loans) when the lender paid (if you use monthly returns at all) Is most of your time spend on selecting new loans or check existing ones? And I guess you can sell a loan but not all platforms have a 2th hand market… and would it be worth it if you have buyback guarantee? what else can you do? or do you sell one if you find a better one? And last question, you mention you have about 50 loans and a portfolio in lower 6 numbers, don’t you consider 2% high risk? and won't the amount limit loan availability? Just wondering… and hope to learn something  (hmmm... perhaps better to start a new thread about how people select/maintain loans...) regards,
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SteveT
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Post by SteveT on Nov 26, 2017 7:57:11 GMT
I don’t know what p2p sites you use but eg on a platform like mintos ... And that is the fundamental problem with your poll question. The choices of someone lending in low-value unsecured consumer / SME loans are likely completely different from someone lending in high-value secured bridging and/or development loans (let alone consideration of the size of their total investment pot).
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Post by GSV3MIaC on Nov 26, 2017 9:07:47 GMT
I agree the poll as it stands is not useful. I have maximum £absolute, % of my investment total (the total varies over time), % of loan (no hogging small ones), max by platform, by borrower, by asset type, etc. Put that through the ringer and the answer for an individual loan comes out between £50 and £xk, depending.
Often the limit is reduced by what the platform allows, at least for an initial bid.
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m2btj
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Post by m2btj on Nov 26, 2017 9:30:34 GMT
I evaluate LTV & security before deciding on investment amount. I will invest £1000 max in a 'good' loan. However, I like to be well diversified across loans & platforms. When investing on FC I had over 650 small loans of between £20 & £50. I suppose you'd call that spread betting.
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Post by charlata on Nov 26, 2017 11:00:15 GMT
Hi Charlata, May I ask what you do regarding portfolio maintenance? I don’t know what p2p sites you use but eg on a platform like mintos you could look at (historic) payments but that only changes once a month (for existing loans) when the lender paid (if you use monthly returns at all) Is most of your time spend on selecting new loans or check existing ones? And I guess you can sell a loan but not all platforms have a 2th hand market… and would it be worth it if you have buyback guarantee? what else can you do? or do you sell one if you find a better one? And last question, you mention you have about 50 loans and a portfolio in lower 6 numbers, don’t you consider 2% high risk? and won't the amount limit loan availability? Just wondering… and hope to learn something (hmmm... perhaps better to start a new thread about how people select/maintain loans...) regards, I do actually have a mintos portfolio, which I wasn't including in the 50. The day they followed Twino down the road of buying back performing loans and relisting them at cheaper rates I started withdrawing. It's like playing in a casino where the house is allowed to retrospectively change the odds on your winning bets. Obviously, I don't think 2% is too risky, as that's what I use. Sometimes I'll go to 10%. I'd never consider holding a trading portfolio of more than 30 shares. 50 loans is too many IMO. All that matters for me in a loan is that I have a credible exit. This might be via the sm or asset sale/refinance, or exceptionally via receivers. Main research is on google, taking in companies house, estate agents, local planners, local media. Depending on how I plan to exit, I'll focus variously on gremlins that might cause the sm to seize, or the character and MO of the borrower. Few of the loans on 12% platforms will recover interest and capital if they default so I spend limited time on valuing the asset in a default scenario. I hope rarely to be there. Picking loans that will perform less badly in a default seems to me like choosing a car because it has a higher scrap value if you have an accident. There are of course exceptions. I prefer to select loans on the basis that they won't default, or at least not with me holding them. I spend perhaps 1 hour per loan when they are listed, and try to keep tabs on them ad hoc as they progress, but principally as they approach a point where the sm sales slow or stop. HTH. It won't suit everyone, but so far it's worked for me.
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Post by dutchman on Nov 26, 2017 12:22:21 GMT
Hi Charlata, May I ask what you do regarding portfolio maintenance? I don’t know what p2p sites you use but eg on a platform like mintos you could look at (historic) payments but that only changes once a month (for existing loans) when the lender paid (if you use monthly returns at all) Is most of your time spend on selecting new loans or check existing ones? And I guess you can sell a loan but not all platforms have a 2th hand market… and would it be worth it if you have buyback guarantee? what else can you do? or do you sell one if you find a better one? And last question, you mention you have about 50 loans and a portfolio in lower 6 numbers, don’t you consider 2% high risk? and won't the amount limit loan availability? Just wondering… and hope to learn something (hmmm... perhaps better to start a new thread about how people select/maintain loans...) regards, I do actually have a mintos portfolio, which I wasn't including in the 50. The day they followed Twino down the road of buying back performing loans and relisting them at cheaper rates I started withdrawing. It's like playing in a casino where the house is allowed to retrospectively change the odds on your winning bets. Obviously, I don't think 2% is too risky, as that's what I use. Sometimes I'll go to 10%. I'd never consider holding a trading portfolio of more than 30 shares. 50 loans is too many IMO. All that matters for me in a loan is that I have a credible exit. This might be via the sm or asset sale/refinance, or exceptionally via receivers. Main research is on google, taking in companies house, estate agents, local planners, local media. Depending on how I plan to exit, I'll focus variously on gremlins that might cause the sm to seize, or the character and MO of the borrower. Few of the loans on 12% platforms will recover interest and capital if they default so I spend limited time on valuing the asset in a default scenario. I hope rarely to be there. Picking loans that will perform less badly in a default seems to me like choosing a car because it has a higher scrap value if you have an accident. There are of course exceptions. I prefer to select loans on the basis that they won't default, or at least not with me holding them. I spend perhaps 1 hour per loan when they are listed, and try to keep tabs on them ad hoc as they progress, but principally as they approach a point where the sm sales slow or stop. HTH. It won't suit everyone, but so far it's worked for me. thanks Charlata for your reply. May i ask which platforms you use for investment? (apart from moving out of mintos) regards...
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IFISAcava
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Post by IFISAcava on Nov 26, 2017 21:41:25 GMT
10 Euros for Mintos, £5000 for HNW, and everything in between for other sites.
Aim is no more than 1% in any one loan and 10% in any one platform (but I am not there yet on both of these)
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Post by dutchman on Nov 27, 2017 7:05:49 GMT
10 Euros for Mintos, £5000 for HNW, and everything in between for other sites. Aim is no more than 1% in any one loan and 10% in any one platform (but I am not there yet on both of these) HNW? where does that stand for? ps: is there a list of common used abbreviations on this forum, for new guys like me?
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Post by GSV3MIaC on Nov 27, 2017 8:19:32 GMT
Google is your friend, but i assume they meant .. www.hnwlending.co.uk/There is a list of common acronyms here somewhere .. try search facility. |
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Post by dan1 on Nov 27, 2017 9:10:55 GMT
10 Euros for Mintos, £5000 for HNW, and everything in between for other sites. Aim is no more than 1% in any one loan and 10% in any one platform (but I am not there yet on both of these) HNW? where does that stand for? ps: is there a list of common used abbreviations on this forum, for new guys like me? You could try the Glossary thread
HNW - High Net Worth
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Liz
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Post by Liz on Nov 27, 2017 13:01:37 GMT
I don't often choose my bid limit, the platform puts a bid restriction on it.
This poll is totally pointless.
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IFISAcava
Member of DD Central
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Post by IFISAcava on Nov 27, 2017 14:30:08 GMT
Google is your friend, but i assume they meant .. www.hnwlending.co.uk/There is a list of common acronyms here somewhere .. try search facility. That is indeed what I meant!
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Post by dutchman on Nov 27, 2017 15:54:04 GMT
Google is your friend, but i assume they meant .. www.hnwlending.co.uk/There is a list of common acronyms here somewhere .. try search facility. That is indeed what I meant! thanks.
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(hmmm... perhaps better to start a new thread about how people select/maintain loans...)
