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Post by kenigmatic on Aug 26, 2016 13:37:02 GMT
Hi,
Here's a newbie question -
If I invest 500 Euro in - 1 month (date of issue to end date), mortgage backed, interest rate of 10% (Avg.), loan term 1 (1), 10 Euro per loan. How much can I expect to earn in interest after 1 Month? My calculation is, (obviously), 50 Euro in earnings, minus, say, 15% defaults etc = 42.50? I know there are variables but a rough guesstimate please.
If the loan were short term consumer, would earnings be the same?
Thank you.
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Post by extremis on Aug 26, 2016 15:34:54 GMT
Welcome to the forum kenigmatic ! I have not invested in Viventor (yet) but that shouldn't make any difference. Interest rates are annualized, meaning you would earn e.g. 10% per year, not per month. If anyone ever promises you 10% per month, turn around and run away immediately; those ridiculously high rates are not investing, that's gambling in the best case scenario, or worse... Even 10% per year is considered high risk, you should always keep in mind that. Now, in your case, you could estimate your gain after 1 month like this: 500 * 0.1 * (1/12) = 4.17. Default rate should be deducted from money invested, not interest gain. So, if you had invested 500E in 1 month loans and 15% defaulted (with 0% recovery rate), then after 1 month you expect to loose 75E, and from the remaining 425E you gain 3.54E. Overall, in such case, you would loose 71.46E. But don't worry, this is a VERY unlikely scenario. Generally, secured loans have much lower default rates and higher recovery rates of the defaulted loans. If buyback guarantee is also offered, then the chances of loosing any money is even lower. To get an idea of the actual gains look at the statistics page, or better yet ask someone that invests in Viventor.
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Post by kenigmatic on Aug 26, 2016 21:25:38 GMT
Thank you Extremis, your answer makes much sense.
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Post by buttchopf23 on Aug 26, 2016 22:20:27 GMT
Viventor offers buyback guarantee, so its either total default if the plattform cannot meet its obligations, or 0 defaults.
For your question about the consumer loans. The gains would be approximately Eur 5 per Month.
Regards
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Post by toms viventor on Aug 27, 2016 18:13:01 GMT
Viventor offers buyback guarantee, so its either total default if the plattform cannot meet its obligations, or 0 defaults. For your question about the consumer loans. The gains would be approximately Eur 5 per Month. Regards buttchopf23, I would like to add on to your point. It is not the platform itself that delivers Buyback Guarantee, but the loan originators instead. Therefore, it is all tied to loan originators' promise and capability of holding it. Now, Twinero has repaid every last cent since its integration in February, and is showing a strong growth and development, as per the latest presentation sent to investors. Moreover, neither of the mortgage lenders have had a single case of a loan going until Buyback due to extremely low LTV levels (and thus the minimised levels of risk). If there are questions regarding loan originators' ability to meet the Buyback promise they have made, I am at your service to provide answers. Regards, Tom
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Post by kenigmatic on Aug 28, 2016 13:18:04 GMT
, I would like to add on to your point. It is not the platform itself that delivers Buyback Guarantee, but the loan originators instead. Therefore, it is all tied to loan originators' promise and capability of holding it. Now, Twinero has repaid every last cent since its integration in February, and is showing a strong growth and development, as per the latest presentation sent to investors. Moreover, neither of the mortgage lenders have had a single case of a loan going until Buyback due to extremely low LTV levels (and thus the minimised levels of risk). If there are questions regarding loan originators' ability to meet the Buyback promise they have made, I am at your service to provide answers. Regards, Tom Hi Tom,
Please can you list all of the loan originators & their credit worthiness?
Thank you
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Maestro
Member of DD Central
Posts: 87
Likes: 24
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Post by Maestro on Aug 28, 2016 15:17:27 GMT
Now, Twinero has repaid every last cent since its integration in February, and is showing a strong growth and development, as per the latest presentation sent to investors. Moreover, neither of the mortgage lenders have had a single case of a loan going until Buyback due to extremely low LTV levels (and thus the minimised levels of risk). If there are questions regarding loan originators' ability to meet the Buyback promise they have made, I am at your service to provide answers. Regards, Tom I am sorry Tom, but just because someone has paid their bills for the last three months, is not an indication of his credit worthiness or reliability of his guarantee. Strong growth or development also does not help us answer this question. We need to see their audited financial statement - income statement, balance sheet, cash flow. This has been promised for way too long now, and I for one is not willing to increase my token investment on your platform any further until I see this.
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Post by toms viventor on Aug 30, 2016 14:24:30 GMT
kenigmatic, currently, there are two mortgage lenders from Spain, Primor and Seymoure, as well as a Spanish consumer lender, Twinero. Loans from a Swedish consumer lender are to start appearing this week, with complete rollout happening early next week. Can you please define, what exactly you mean by loan originators' creditworthiness? Maestro, indeed, we have not been able to deliver the requested document as of yet, and we are doing our best to sort this out with the existing lenders. Also, we have learned from our mistakes in the past - all future lenders are asked to provide their financials prior to joining the platform. As for your comment regarding past track record and development - obviously, the two things do not guarantee something 100%, and yet those are two strong factors when it comes to assessing loan originator's reliability. Apologies for the late response!
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Post by buttchopf23 on Aug 30, 2016 19:08:52 GMT
what will be the interest rate and durations for the swedish credits? Nice that you added another originator. Would be great to have the financial statements.
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Post by toms viventor on Aug 31, 2016 6:51:53 GMT
buttchopf23, official release with all info coming in a few days, when tests are finalised. Financials have been already received, and will be posted.
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ivom
Posts: 13
Likes: 1
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Post by ivom on Sept 1, 2016 12:30:36 GMT
Noticed some Swedish loans from ViaConto today. 12% return with Buyback - not bad at all.
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Post by buttchopf23 on Sept 1, 2016 12:56:53 GMT
so these will be the test batch I guess. I think this is the only platform where I could invest in swedish loans
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