p2pfan
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Full-Time Investor
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Post by p2pfan on Sept 9, 2020 16:07:08 GMT
I've been doing mainly manual P2P lending, but it is time-consuming and monotonous doing it day-in day-out, with everything that is required, such as studying the due diligence documentation, transferring money around to have it ready for each loan, being ready to invest when it goes live etc.
Therefore I intend to lend a lot more through auto-lend accounts. I was wondering which ones you'd had the best experiences with please?
My basic criteria would be along the following lines:
- the platform only adds loans to the auto-lend portfolio after extreme and reliable due-diligence. Obviously the odd loan will fall through the cracks and end up being problematic, but that should not be the case with a significant ratio of the loan book like with Lendy etc. who lent to large ratios of mediocre borrowers
- the assets/collateral backing the loans should ideally be exclusively or mainly UK property valued by a RICS chartered surveyor. No hocus-pocus lending to companies or individuals based on the crudely-calculated value of assets like airplanes, boats, cars, watches, niche machinery, "intellectual property", or to businesses without tangible, mainstream, valuable collateral
- all lending should be done to loans that are backed-up with readily-sellable collateral that can typically be sold within, say, a year
- a substantial degree of diversification (not just lend to 20 or 25 borrowers)
- ideally have a meaningful Provision Fund
- ideally earn more than 6% p.a. for long-term investing (non-instant access)
I'm investing for the long-haul, so not looking to have prompt access to my money and don't mind even if it takes five or six months to access it so that I can get a higher return (but, at the same time, obviously don't wish to have most of my funds trapped for years).
Any advice on auto-invest accounts you've had a good experience with would be most appreciated!
Thank you.
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dave4
Member of DD Central
Cynical is a hobby not a lifestyle
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Post by dave4 on Sept 9, 2020 19:19:03 GMT
If you find this platform please let me know.
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Post by Ace on Sept 9, 2020 19:53:12 GMT
I'd say that CrowdProperty are probably the best fit to your requirements from the many platforms I've tried so far. They don't have a provision fund, but with roughly 2.5 loans initiating per week you can get quickly diversified.
Loanpad are a close(ish) fit, but 60 day notice account is dropping to 4% in Dec, and they are only just over your 20 - 25 borrower spread (Currently 29).
Proplend's auto account might also be worth a look, but has a target rate of 5% +.
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Post by df on Sept 9, 2020 20:45:47 GMT
Unbolted fits most of your criteria, but they don't do property. They've considered introducing it some time ago, asked investors, the answer was NO and the platform remained pure pawn... Apart from that:
DD is reliable, LTV's are real, collaterals are typically sellable within a couple of months after default, far more than 25 borrowers, the return is above 6% and it's auto-invest. They used to have PF, it was scrapped in Dec last year - I think the PF "era" is fading out across the industry anyway.
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badersleg
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Post by badersleg on Sept 9, 2020 20:59:56 GMT
Unbolted fits most of your criteria, but they don't do property. They've considered introducing it some time ago, asked investors, the answer was NO and the platform remained pure pawn... Apart from that: DD is reliable, LTV's are real, collaterals are typically sellable within a couple of months after default, far more than 25 borrowers, the return is above 6% and it's auto-invest. They used to have PF, it was scrapped in Dec last year - I think the PF "era" is fading out across the industry anyway. You can set a 'per borrower limit', e.g no more than £50 to the same borrower.
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greatmarko
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Post by greatmarko on Sept 17, 2020 21:24:24 GMT
Unbolted fits most of your criteria, but they don't do property. They've considered introducing it some time ago, asked investors, the answer was NO and the platform remained pure pawn... Apart from that: DD is reliable, LTV's are real, collaterals are typically sellable within a couple of months after default, far more than 25 borrowers, the return is above 6% and it's auto-invest. They used to have PF, it was scrapped in Dec last year... ...and then there's the never ending court case(!)
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p2pfan
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Post by p2pfan on Sept 21, 2020 22:28:46 GMT
Thank you for the suggestions. Much obliged.
I'm already using Crowdproperty and will certainly look into Unbolted now even though they don't do property. It depends on how robust their valuations are and how sellable the collateral is.
Proplend are good, but have an excruciatingly low volume of new loans - averaging only one every several weeks of late.
Any others that it would be worth me looking at please?
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Post by Ace on Sept 21, 2020 23:05:49 GMT
If you like CP then Kuflink might be worth a look. I prefer CP, but do invest in K for diversification, though I mainly use their self select offerings. I do have a small investment in their auto account, but no matter how many times I read their bumf I'm never really sure exactly how it works. I thought it would become clearer if I tried a small investment, but I'm really none the wiser.
I'd also give a +1 for Unbolted. I've been with them for a couple of years now and they've been a consistent performer. I've also liquidated an account from a deceased relative and have managed to extract all funds except for one defaulted loan that still has £5 outstanding. There were many more defaults, but the security was always good enough to recover the funds. One word or caution though; they've become quite popular, so it can take a while to get your funds deployed.
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michaelc
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Post by michaelc on Sept 22, 2020 13:42:05 GMT
So we have FundingSecure, Lendy, Collateral that have collapsed. MoneyThing on its way out. Quite a few others showing signs of stress (not going to name them in case I get sued but read around the forum).
None of them are obliged to provide data in a meaningful way and thus only do so selectively to promote themselves.
Definitely don't trust any p2p platform's wind down plan. If things get so bad it has to be implemented you're most likely to lose some, all or even more than you originally invested ! (Look at the various court actions that are taking place involving a borrower's first step of getting a court to release the names and addresses of the platform's investors with a view to sueing them/us.)
FCA regulation of them means very little. Almost anyone can run such a company.
In short, wait at least if and until the sector becomes properly regulated with _some_ external protection in place.
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mrk
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Post by mrk on Sept 22, 2020 19:49:56 GMT
Any advice on auto-invest accounts you've had a good experience with would be most appreciated! Surprisingly, the best one for me so far has been EasyMoney. They processed my recent withdrawal requests within 24h showing no liquidity issues despite the pandemic. Current rate is 6% over £20k, and investments are "backed by legal charges on UK property" as per your checklist. However, there is no protection fund, diversification is somewhat limited, and in general you don't get much details about the individual loans. It truly is intended to be fully automatic. I must also say that I'm greatly reducing my P2P exposure overall.
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Post by valueinvestor1234 on Sept 23, 2020 18:05:00 GMT
Although I prefer investing manually, in my opinion Viventor has excellent auto-invest feature. You can set the feature to both invest and reinvest both your balance, and your earned interest. Set the limit and forget. Never had any issues using the feature. And I like them because of their quite high returns (13%), plus all loans have a buyback guarantee. You can check how their auto-invest feature works: here |
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michaelc
Member of DD Central
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Post by michaelc on Sept 23, 2020 19:11:00 GMT
Although I prefer investing manually, in my opinion Viventor has excellent auto-invest feature. You can set the feature to both invest and reinvest both your balance, and your earned interest. Set the limit and forget. Never had any issues using the feature. And I like them because of their quite high returns (13%), plus all loans have a buyback guarantee. You can check how their auto-invest feature works: hereAre you invested in any other p2p sites?
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Post by valueinvestor1234 on Sept 25, 2020 17:18:59 GMT
Are you invested in any other p2p sites? On Debitum Network too.
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