Passive income · Uncategorized

PeerBerry Review: a steady 12.03% return


PeerBerry has been a steady rock in my portfolio for a while now. I kept the investment rather stable and have even been slowly increasing it. It is giving me a steady 12.03% income without to much hassle so it will continue to be a part of my portfolio and thats why I decided to Review Peerberry.

If you are a more advanced reader and are already familiar with PeerBerry then scroll further down to find out what auto-invest settings I am using in this PeerBerry Review.

What is PeerBerry exactly?

PeerBerry is a Fintech company where you can invest in loans. This system is called peer to peer lending. Basically PeerBerry is a mediator between Loan Originators who provide loans to individuals. As an investor you invest in those loans and get a certain return.

The Loan Originator provides you with a lower interest rate then they are providing to the individuals. In exchange they provide insurance under the name of buy back guarantee. That means if a loan defaults they will buy back the loan. Be aware that not all Loan originators offer buy back, so its important to check this before investing.

Because you can invest already from a small amount (10 EUR), that means that if you invest 500 EUR it is spread over 50 loans and different loan originators.

Its important to note one thing that gives additional confidence in PeerBerry: PeerBerry has send me their financial statements and they are making a profit!

Registration

On the site just click the “Start Investing” button to go trough the wizard for Registration. Have your passport ready before you start and you need to use a device with a camera such as a smartphone or laptop, you will need them at the ID verification screen.

PeerBerry will take you trough a very simple wizard to get you registered.

I recommend that you fill in your phone number as it will allow you to enable two factor authentication.

In the next screen you will need to fill in more details including your passport or ID number

Once you signed up you can start investing.

Overview

Once you finished the registration process take your time to get familiar with PeerBerry. PeerBerry has a nice simple overview screen where you can view your balance, profit and investments.

You can also view your investment statuses, unlike other platforms its quite rare that loans are in delayed payments. The Loan Originators must do a really good due diligence here. Buybacks are rarely needed.

You can also see your Net Annual Return, it seems to show slightly more then the return I calculated.

Depositing money

Before you can invest you will need to deposit money. I usually use bank transfer. It took just a few hours to reach my account when I deposited on a workday. You can use the time to get to know PeerBerry better and read up on its Loan Originators.

When you click “Deposit / Withdraw” you will come to the deposit screen where you will find the bank details. Remember to deposit using the right Payment Details as these will contain your investor number.

Withdrawing money

I could only withdraw money to my own bank account, which is positive of course as it makes my money more secure.

I withdrew 100 EUR when I was re-balancing investments with ease.

Investing

Loan Originators

Before you start to invest its important you do your homework and decide on what loan originators you want to invest in. I personally went for a medium – low risk range of Loan Originators.

On explore p2p (you can view the full list here ) you can see a great rating of all the loan originators on PeerBerry. I personally went for Medium – low Risk. Aventus group is a really big secure Loan Originator that can be trusted. In the bottom there is some smaller Loan Originators but they did get a group guarantee from Aventus, so I decided to trust them.

In the end you will need to decide on this yourself. I did start the first months with all loan originators enabled and so far I have not experienced any problems and very few delayed payments.

Source: explore p2p

Primary market

When you click the invest button you go to a search screen containing all investments you can put money in.

This is the manual investment method. If you want to choose exactly what loan originator to invest in then this would be the screen you use. Just make sure to select buyback yes. There is no reason why you would take in additional risk. You will notice there is quite a few of loans available you can invest in.

Auto-invest

PeerBerry has also supplied the more passive investor, like myself, with a tool to make it easier to invest.

I mentioned before how important it is to check the loan originators you invest in. You can find more be

I chose the auto invest and to be honest so far the loan originators I have invested in have performed really well. The max portfolio I have set indicates me that I have a diversified portfolio although it is really difficult to see how diversified I am.

PeerBerry is still young and I see them making changes regularly (the two factor authentication was only recently added), so I am confident more improvements will come soon!

You can see my settings here:

What is important is to select the buyback guarantee and to make sure your portfolio is not that much higher then your actual portfolio. I also set the loan amount a bit higher because there are some periods that there is less loans available on PeerBerry. For the same reason I set the time at 20 months. This is quite long but I want to avoid cash drag.

I set the minimum interest rate at 10%, but most loans I invest in have a higher interest rate. The 10% is just good to allow for more diversification, but if you don’t mind a riskier strategy you could get away with a slightly higher percentage.

Other important settings are portfolio size (set this a little higher then the amount you will invest), and minimum/maximum in one loan. I set my maximum at 20 EUR.

If you put it to low you will not get a decent piece of good loans that hit the market, if you put it to high it will be hard to diversify. A lot depends of the size of your portfolio.

The secondary market

Right now PeerBerry has no secondary market. You will be exposing yourself to a liquidity risk if you decide to invest for long loan periods. From this perspective it might be more interesting to search for shorter term loans. I have confidence in PeerBerry and see it as an investment over many years that’s why I do not mind to put in 20 months.

I just would start with a lower amount of months at the beginning to see if you like the platform.

Reports on your investments

On PeerBerry its a bit harder to see how your diversification is doing. When you go to My investments you can get a report on what you are invested in, so you are able to do your own reporting.

But the information is not perfect. I was told by PeerBerry this will be one of the next features they will improve.

Security

When I joined PeerBerry in September 2019 PeerBerry did not had two factor authentication enabled. But as you can see in the beginning of my blog they now do! Its great that they have this added security in place.

Apart from that PeerBerry will only write back to your own bank account, giving again added security.

Loyalty Program

Something unique about PeerBerry is that they have a loyalty program. So if you are loyal to the platform you will get additional bonuses. They have three ranks, silver, gold and diamond. They are not so easy to reach but the bonus silver is giving is already a nice extra. So far I have not reached it yet, but as I continue to like PeerBerry I don’t exclude I will at some point.

Risks

Investing is not without Risk. Assuming you invest in your own currency then in the case of PeerBerry I see a few main risks:

  • A loan you invested in could default. If you have bought all the loans with buy back guarantee, which you should, the risk is moving to the LO’s defaulting,
  • You can invest using buy back guarantee but Loan Originators can go bankrupt. This has happened a few times with LO’s having low ratings. This is why I chose to invest only in LO’s with rating B and above. Additionally the auto invest will help you to diversify in case it does happen. Also you will still have your claim on the loan if it happens, this will not change. It will just become a lot harder to get your money back.
  • PeerBerry could go bankrupt: I consider this as a small Risk. PeerBerry has over 7 employees so is no longer a startup but not a very big company either. It also released its yearly P/L and there it was shown to be a profitable company. In the case PeerBerry does go bankrupt your claim is still there on the loans.
  • Liquidity Risk: the risk that you cannot get your money out in time when you need it. This is a very real risk since they have no secondary market. If you cannot part from your money for to long avoid long terms.

I decided that the risks are worth the return, but everyone needs to decide for themselves and act with due diligence.

Financial statements

I did not find the financial statements on the Website but PeerBerry gave them to me right away when I asked for them. To be honest being one of the younger players I was surprised that PeerBerry is already profitable!

Remember these are the 2018 figures. I will request new statements of 2019 in spring and expect them to be better!

With 17500 investors and 191M loan portfolio PeerBerry is really on the map and cannot be called a smaller player anymore.

I can supply the full statement on request but you can view the last part here:

I’m looking forward to the 2019 numbers!

Transparency and communication

PeerBerry has supplied me all the information I asked for and are usually quite fast to answer. They are open about their financial situation and their loan originators. This is how I would expect a peer to peer lending site to act. Perhaps as an improvement more information on their Loan Originators and Financial’s of PeerBerry could be shown directly on the Website.

Where to sign up

I would like to stress that I would not review PeerBerry if I didn’t use it myself, I have a lot of faith in PeerBerry. If you do decide to take the step then I would appreciate it if you use this link as you will be supporting my blog when you do so.

Conclussion

In conclusion I am very happy about PeerBerry and will continue to expand my investments there. I consider PeerBerry a great platform in terms of Risk / Return and am working to increase the amount it has in my portfolio.

FeaturePeerBerry
Sign up BonusYes
Allows company profileNo
AppNo
Auto-invest optionYes
Buyback guaranteeYes
Fees?No
General transparencyGood
Invest in individual LoansYes
Invest in other currenciesNo
Invest in projects (such as real estate)No
Loyalty BonusYes
ProfitableYes
Released P&LYes
Secondary MarketNo
Staff is knownYes
Transparrent about Loan OriginatorsYes
Two factor authenticationYes
Euromoney Rating4,2/5

Passive income · Uncategorized

Mintos Review: how you can get a 11.09% return

Mintos is my favorite platform. It is the platform I will recommend to friends if they want to start in peer to peer. The transparency and many options of the platform make it a good place to invest both for high and for low risk seekers. Those many options are important. As a new user you might want to invest your money as fast as possible and don’t pay attention to what is important. Read my review and find out how you can get a 11.09% return relatively safe.

If you are a more advanced reader and are already familair with Mintos then scroll further down to find out what 30 Loan Originators I chose in my auto-invest.

What is Mintos exactly?

Mintos is a Fintech company where you can invest in loans. This system is called peer to peer lending. Basically Mintos is a mediator between Credit companies who provide credit to individuals. As an investor you invest in those loans and get a certain return.

The credit company or (also known as Loan Originators) provides you with a lower interest rate then they are providing to the individuals. In exchange they provide insurance under the name of buy back guarantee. That means if a loan defaults they will buy back the loan. Be aware that not all Loan originators offer buy back, so its important to check this before investing.

Because you can invest already from a small amount (10 EUR on primary market), that means that if you invest 500 EUR it is spread over 50 loans and different creditors.

Its important to note two things that give additional confidence in Mintos: Mintos is profitable, and Mintos is the biggest peer to peer site outthere.

Registration

On the site just click the “Create an account” button to go trough the wizard for Registration. Have your passport ready before you start and you need to use a device with a camera such as a smartphone or laptop, you will need them at the ID verification screen.

Mintos will take you trough a very simple wizard to get you registered.

Once registered the very first thing you should do is verify your account. This is general advise for all platforms you plan to use. Click the Verify button in order to do so.

Then Mintos can start taking photos of you and your ID card to make sure your identity is verified.

Overview

Once you finished the registration process take your time to get familiar with Mintos. I personally think the Mintos overview screen is one of the best.

The account balance shows how much funds are in your account right now. How much is available (to invest), how much you currently have invested, and lastly pending payments, these are payments that borrowers did to the Loan Originators and are going to be transferred to your account within the next 5 days.

The Net Annual Return part shows your annual return. I have quite a conservative investment strategy on Mintos and I am happy to see that the return Mintos has calculated is a good match with the return I calculated myself (11.09%).

The last screen shows my investments. As you can see about 2/3 of the payments are late somehow. This is normal on Mintos and is nothing to be concerned about. When the loan is overdue for over 60 days then the Loan Originator will buy back the loan, plus interests (if you selected the right Loan Originator in the auto-invest module).

If you click on current it gives you a great overview of all the loans in your portfolio. It then automatically filters on current, I just unselect current by clicking the X to see all my investments:

This gives a beautiful overview of all the investments you have,their term and their status. As you can see I do not have optimal diversification as I’m very exposed to Capital Service. This was because when I first started investing I went more for high returns rather then diversification. However this is something that will get solved in time.

At the left screen you also have a lot of filters you can select should you wish to know about anything in particular.

Depositing money

Before you can invest you will need to deposit money. I usually use bank transfer. In this case it will take about two days to reach your account. That’s fine, you can use this time to get used to Mintos and set up your auto-invests. If you can’t wait you can use Direct transfer, this will go much faster.

Withdrawing money

I could only withdraw money to my own bank account, which is positive of course as it makes my money more secure.

Investing

Invest & Access

If you are interested in a lot of diversification and no hassle then you can use the invest & access option. I personally prefer to choose my investments myself but I know that this option has a large appeal to a lot of people

Auto-invest

Mintos has a great auto-invest tool, the only thing I am missing is a way to combine the primary and secondary market, forcing me to create two auto-invest rules. Other then that it allows all the options I can think of I would need.

Before setting up the auto-invest I want to mention the Loan Originators. Its crucial that you check up on these before you start investing. Here you can find a list that Mintos makes available.

When you click on one of the loan originators you will see for example its rating. This is a rating that Mintos themselves give to these Originators.

Also something to pay attention to is bellow in the details tab

There is two things important: penalty income and income on delayed payments. If not one of these is set to Yes, that means that if a loan is 60 days late you will just get the principal back and no interest. So not a very good investment. I personally would avoid investing in LO’s that do not provide either one of these.

For my auto-invest I have two rules, one of the primary and one for the secondary market.

I selected only Loan Originators of rating B and higher, that give interests or penalty’s on late payments. After selecting A, A-, B+ and B that meant I had to unselect Acema and EBV Finance.

I also unselected Finko as this is a group now but without a full group guarantee. ID Finance I kept but unselected B-. Last LO I did not select was Getbucks as I need to know more about their current financials before I decide to invest there. I do have some loans from most of these that I unselected and I just plan to keep them for now. Lutecredit I kept selected as I have faith in Lutecredit despite of the bad exposure with the Kosovo loans.

As rate I set a minimum of 10% to make sure I get both a decent interest rate, and a decent diversification. If you set it to high its very difficult to diversify.

Other important settings are portfolio size (set this a little higher then the amount you will invest), and minimum/maxumum in one loan. I set my maximum at 10 EUR to get as much loans as possible.

The secondary market

The differences with the secondary market is that you can already invest from a 1 EUR limit and that you can buy loans with a discount

Its really important to set the premium to 0% otherwise you will pay more then the loan is worth. You might think that you can recover that if its a high interest loan, but if the loan goes into default and you get a rebuy, you lose that premium you paid. You could consider placing it bellow 0% either, taking advantage of people who want to leave the market.

The secondary market is actually a huge advantage from Mintos as it allows you to sell your loans in case you need to leave. This is making your money more liquid although you can assume it will take 3-4 months to get all of your money out if you need to. But this is better then a lot of platforms that do not have a secondary markets or charge penalty’s for withdrawing money. Do not underestimate how powerful this feature is!

Security

Apart from that Mintos will only write back to your own bank account, Mintos has two factor authentication in place. Something I highly recommend you use. When you hover over your name you can click on “My Account” and there in security you can see how to set it up

Currency Exchange

Mintos has the option to invest using other currencies. Usually these loans give a higher interest rate, which is expected as you are exposing yourself to a currency risk.

I have not used it myself but its nice that they have this option.

Risks

Investing is not without Risk. Assuming you invest in your own currency then in the case of Mintos I see a few main risks:

  • A loan you invested in could default. If you have bought all the loans with buy back guarantee, which you should, the risk is moving to the LO’s defaulting,
  • You can invest using buy back guarantee but Loan Originators can go bankrupt. This has happened a few times with LO’s having low ratings. This is why I chose to invest only in LO’s with rating B and above. Additionally the auto invest will help you to diversify in case it does happen. Also you will still have your claim on the loan if it happens, this will not change. It will just become a lot harder to get your money back.
  • Mintos could go bankrupt: I consider this as a small Risk. Mintos has over 100 employees so is a full grown company. It also released its yearly P/L and there it was shown to be a profitable company. In the case Mintos does go bankrupt your claim is still there on the loans.
  • Liquidity Risk: the risk that you cannot get your money out in time when you need it. The secondary market mitigates this risk and I believe it should be possible to get your money out within 4 months.

I decided that the risks are worth the return, but everyone needs to decide for themselves and act with due diligence.

Transparency

Mintos releases a yearly report about its financials in April every year. You can view it here. The main thing is that Mintos had a 4.6M revenue in 2018, 59 Employees and 98k investors funded 1400M loans.

If you look on the Mintos homepage you can now see that there is 236k investors, more and 4300M loans funded. That shows to me the platform was not only healthy in 2018 but continues to be in 2019. All important factors for me to choose Mintos as one of my top investment platforms.

You can also see the full team of Mintos on their website and click trough a lot of Linkin profiles. Something I did with a few, and most are older profiles who have 500+ connections. Some are even a 3rd connection of me.

Also when there is bad news Mintos is open with communication. This was the case when a few of the LO’s lost their license to operate in Kosovo. Within a week we got news that both the Monegro and Lutecredit loans (the two LO’s that were affected) would be paid in full. Granted with a 5% exposure it was a long week, but even during that week Mintos was sharing news as it was coming in, making me feel like they were on the case.

Transparency is in general always a plus, and Mintos has shown to me it’s one of the most transparent platforms, not only about positive news but also about negative news. I can’t wait to see the financial statements of 2019!

Special referral deal: 90 days 1% bonus + 0.5% cashback!

Mintos has a referral program that gives a 1% bonus the first 30 days. However if you use my link then until end of March 2020 you will get he 1% bonus for 90 days and a 0.5% cashback! This is a one time unique offer that Mintos made for my readers.

I would like to stress that I would not affiliate myself with anything I do not support 100%, I have a lot of faith in Mintos and recommend you give it a spot in your portfolio. But if you do decide to take the step then I would appreciate it if you use my link as a way to support my blog.

Conclussion

In conclusion I am very happy about Mintos and will continue to expand my investments there. I would recommend this platform for anyone who wants to invest in peer to peer. I consider Mintos has the best platform Risk/Return ratio out-there.

FeatureMintos
AppApp is currently in Beta atm
Auto-invest optionYes
Buyback guaranteeYes
Fees?No
General transparencyVery good
Invest in individual LoansYes
Invest in other currenciesYes
Invest in projects (such as real estate)No
ProfitableYes
Released P&LYes
Risk compared to other p2p platformsLow
Secondary MarketYes
Staff is knownYes
Transparrent about Loan OriginatorsYes
Two factor authenticationYes
Passive income · Uncategorized

Mintos Review: how you can get a 11.38% return

Last updated 02-02-2020

Mintos is my favorite peer to peer investing platform. It is the platform I will recommend to friends if they want to start in peer to peer. The transparency and many options of the platform make it a good place to invest both for high and for low risk seekers. Those many options are important. As a new user you might want to invest your money as fast as possible and don’t pay attention to what is important. Read my review and find out how you can get a 11.38% return relatively safe.

If you are a more advanced reader and are already familair with Mintos then scroll further down to find out what 30 Loan Originators I chose in my auto-invest.

What is Mintos exactly?

Mintos is a Fintech company where you can invest in loans. This system is called peer to peer lending. Basically Mintos is a mediator between Credit companies who provide credit to individuals. As an investor you invest in those loans and get a certain return.

The credit company or (also known as Loan Originators) provides you with a lower interest rate then they are providing to the individuals. In exchange they provide insurance under the name of buy back guarantee. That means if a loan defaults they will buy back the loan. Be aware that not all Loan originators offer buy back, so its important to check this before investing.

Because you can invest already from a small amount (10 EUR on primary market), that means that if you invest 500 EUR it is spread over 50 loans and different creditors.

Its important to note two things that give additional confidence in Mintos: Mintos is profitable, and Mintos is the biggest peer to peer site outthere.

Registration

On the site just click the “Create an account” button to go trough the wizard for Registration. Have your passport ready before you start and you need to use a device with a camera such as a smartphone or laptop, you will need them at the ID verification screen.

Mintos will take you trough a very simple wizard to get you registered.

Once registered the very first thing you should do is verify your account. This is general advise for all platforms you plan to use. Click the Verify button in order to do so.

Then Mintos can start taking photos of you and your ID card to make sure your identity is verified.

Overview

Once you finished the registration process take your time to get familiar with Mintos. I personally think the Mintos overview screen is one of the best.

The account balance shows how much funds are in your account right now. How much is available (to invest), how much you currently have invested, and lastly pending payments, these are payments that borrowers did to the Loan Originators and are going to be transferred to your account within the next 5 days.

The Net Annual Return part shows your annual return. I have quite a conservative investment strategy on Mintos and I am happy to see that the return Mintos has calculated is a good match with the return I calculated myself (11.38%).

The last screen shows my investments. As you can see about 2/3 of the payments are late somehow. This is normal on Mintos and is nothing to be concerned about. When the loan is overdue for over 60 days then the Loan Originator will buy back the loan, plus interests (if you selected the right Loan Originator in the auto-invest module).

If you click on current it gives you a great overview of all the loans in your portfolio. It then automatically filters on current, I just unselect current by clicking the X to see all my investments:

This gives a beautiful overview of all the investments you have,their term and their status. As you can see I do not have optimal diversification as I’m very exposed to Capital Service. This was because when I first started investing I went more for high returns rather then diversification. However this is something that will get solved in time.

At the left screen you also have a lot of filters you can select should you wish to know about anything in particular.

Depositing money

Before you can invest you will need to deposit money. I usually use bank transfer. In this case it will take about two days to reach your account. That’s fine, you can use this time to get used to Mintos and set up your auto-invests. If you can’t wait you can use Direct transfer, this will go much faster.

Withdrawing money

I could only withdraw money to my own bank account, which is positive of course as it makes my money more secure.

Investing

Invest & Access

If you are interested in a lot of diversification and no hassle then you can use the invest & access option. I personally prefer to choose my investments myself but I know that this option has a large appeal to a lot of people

Auto-invest

Mintos has a great auto-invest tool, the only thing I am missing is a way to combine the primary and secondary market, forcing me to create two auto-invest rules. Other then that it allows all the options I can think of I would need.

Before setting up the auto-invest I want to mention the Loan Originators. Its crucial that you check up on these before you start investing. Here you can find a list that Mintos makes available.

When you click on one of the loan originators you will see for example its rating. This is a rating that Mintos themselves give to these Originators.

Also something to pay attention to is bellow in the details tab

There is two things important: penalty income and income on delayed payments. If not one of these is set to Yes, that means that if a loan is 60 days late you will just get the principal back and no interest. So not a very good investment. I personally would avoid investing in LO’s that do not provide either one of these.

For my auto-invest I have two rules, one of the primary and one for the secondary market.

I selected only Loan Originators of rating B and higher, that give interests or penalty’s on late payments. After selecting A, A-, B+ and B that meant I had to unselect Acema and EBV Finance.

I also unselected Finko as this is a group now but without a full group guarantee. ID Finance I kept but unselected B-. Last LO I did not select was Getbucks as I need to know more about their current financials before I decide to invest there. I do have some loans from most of these that I unselected and I just plan to keep them for now. Lutecredit I kept selected as I have faith in Lutecredit despite of the bad exposure with the Kosovo loans.

As rate I set a minimum of 10% to make sure I get both a decent interest rate, and a decent diversification. If you set it to high its very difficult to diversify.

Other important settings are portfolio size (set this a little higher then the amount you will invest), and minimum/maxumum in one loan. I set my maximum at 10 EUR to get as much loans as possible.

The secondary market

The differences with the secondary market is that you can already invest from a 1 EUR limit and that you can buy loans with a discount

Its really important to set the premium to 0% otherwise you will pay more then the loan is worth. You might think that you can recover that if its a high interest loan, but if the loan goes into default and you get a rebuy, you lose that premium you paid. You could consider placing it bellow 0% either, taking advantage of people who want to leave the market.

The secondary market is actually a huge advantage from Mintos as it allows you to sell your loans in case you need to leave. This is making your money more liquid although you can assume it will take 3-4 months to get all of your money out if you need to. But this is better then a lot of platforms that do not have a secondary markets or charge penalty’s for withdrawing money. Do not underestimate how powerful this feature is!

What have I been earning?

So far I must say that the earnings on Mintos have been very positive, reaching an interest rate of 11.38% and this fully diversified. It is only because I feel so safe on this platform and I have such a great return that I decided to write a Mintos Review. So far with 10.000 EUR Invested of my own money, and increasing monthly, I can say it has been a very good investment so far!

Security

Apart from that Mintos will only write back to your own bank account, Mintos has two factor authentication in place. Something I highly recommend you use. When you hover over your name you can click on “My Account” and there in security you can see how to set it up

Currency Exchange

Mintos has the option to invest using other currencies. Usually these loans give a higher interest rate, which is expected as you are exposing yourself to a currency risk.

I have not used it myself but its nice that they have this option.

Risks

Investing is not without Risk. Assuming you invest in your own currency then in the case of Mintos I see a few main risks:

  • A loan you invested in could default. If you have bought all the loans with buy back guarantee, which you should, the risk is moving to the LO’s defaulting,
  • You can invest using buy back guarantee but Loan Originators can go bankrupt. This has happened a few times with LO’s having low ratings. This is why I chose to invest only in LO’s with rating B and above. Additionally the auto invest will help you to diversify in case it does happen. Also you will still have your claim on the loan if it happens, this will not change. It will just become a lot harder to get your money back.
  • Mintos could go bankrupt: I consider this as a small Risk. Mintos has over 100 employees so is a full grown company. It also released its yearly P/L and there it was shown to be a profitable company. In the case Mintos does go bankrupt your claim is still there on the loans.
  • Liquidity Risk: the risk that you cannot get your money out in time when you need it. The secondary market mitigates this risk and I believe it should be possible to get your money out within 4 months.

I decided that the risks are worth the return, but everyone needs to decide for themselves and act with due diligence.

Transparency

Mintos releases a yearly report about its financials in April every year. You can view it here. The main thing is that Mintos had a 4.6M revenue in 2018, 59 Employees and 98k investors funded 1400M loans.

If you look on the Mintos homepage you can now see that there is 236k investors, more and 4300M loans funded. That shows to me the platform was not only healthy in 2018 but continues to be in 2019. All important factors for me to choose Mintos as one of my top investment platforms.

You can also see the full team of Mintos on their website and click trough a lot of Linkin profiles. Something I did with a few, and most are older profiles who have 500+ connections. Some are even a 3rd connection of me.

Also when there is bad news Mintos is open with communication. This was the case when a few of the LO’s lost their license to operate in Kosovo. Within a week we got news that both the Monegro and Lutecredit loans (the two LO’s that were affected) would be paid in full. Granted with a 5% exposure it was a long week, but even during that week Mintos was sharing news as it was coming in, making me feel like they were on the case.

Transparency is in general always a plus, and Mintos has shown to me it’s one of the most transparent platforms, not only about positive news but also about negative news. I can’t wait to see the financial statements of 2019!

Special referral deal: 90 days 1% bonus + 0.5% cashback!

Mintos has a referral program that gives a 1% bonus the first 30 days. However if you use my link then until end of March 2020 you will get he 1% bonus for 90 days and a 0.5% cashback! This is a one time unique offer that Mintos made for my readers.

I would like to stress that I would not affiliate myself with anything I do not support 100%, I have a lot of faith in Mintos and recommend you give it a spot in your portfolio. But if you do decide to take the step then I would appreciate it if you use my link as a way to support my blog.

Conclussion

In conclusion I am very happy about Mintos and will continue to expand my investments there. I would recommend this platform for anyone who wants to invest in peer to peer. I consider Mintos has the best platform Risk/Return ratio out-there.

FeatureMintos
AppApp is currently in Beta atm
Auto-invest optionYes
Buyback guaranteeYes
Fees?No
General transparencyVery good
Invest in individual LoansYes
Invest in other currenciesYes
Invest in projects (such as real estate)No
ProfitableYes
Released P&LYes
Risk compared to other p2p platformsLow
Secondary MarketYes
Staff is knownYes
Transparrent about Loan OriginatorsYes
Two factor authenticationYes
Financial Independence · Passive income

Top 25 methods to get a passive income!

An important factor in reaching Financial Independence is managing to generate a passive income. So what does that mean a passive income? A passive income means you generate a certain amount of money per month, without needing to do much for it. This does not mean that setting up your source of income does not require any work. Often it can actually mean that it requires much more work. At the same time keep in mind that investing can block your money for a certain amount of time, or might even cost money to invest in the first place.

Let the money come in while you sleep!

In order to generate money you will need to invest. Invest either your (initial setup) time or money that can then generate money. Keep in mind that storing cash does not count as an investment. As there is a yearly inflation, it is certain that the value of your cash will drop every year. At the most it can increase its value against other currencies, but not during investments in your country.


1. Do Affiliate marketing

Affiliate marketing is a simple partnership where company’s reward vloggers or bloggers for advertising on your website, blog or vlog. You then basically get a part in the revenue that sites earn when people click your links. For example a good in dept one hour tutorial about making youtube video’s and then a link to the used software can bring in a nice steady income

2. Rent out a property

Renting out a spare property is method that speaks to the imagination. It something you can own, see and touch. While there is a significant investment to be done, a rental property can give a steady flow of income. There is of course risks involved. You could end up with someone not paying rent, or you could face a natural disaster damaging your property. However I classify these risks as low and proper insurance can protect you against these risks. 

Of course you do put your money away for a certain amount of time. I would consider this at least a 5 year investment. Furthermore you need to do some effort to keep your rental property in a good shape. But I believe compared to a 9-5 job that this is a rather low effort.

Housing prices in the Euro zone go up about 4-5% every year according to Eurostats

https://ec.europa.eu/eurostat

3. Rent out a spare room

Do you have a spare room in your house? There is plenty of platforms allowing you to rent out a spare room to tourists for example, I have used Airbnb myself to rent out to tourists:

The platform allows you to choose the days that you can rent out to people. You can put a minimum and a maximum of days they can stay.  But also more long term you could rent out a room in your house you no longer use.

When I was renting out my apartment here to tourists, I made about 3 times what I would make if I rented out to regular renters.

4. Rent out spare storage

Another way to get some extra money is to rent out spare storage. Of course the easiest way is to just rent out a garage, a parking spot, but why not even consider a big locker you have standing around? Or a part of your garage. Do you need all the storage space you have, or can you part with some of it. 

5. Rent out your car

When you think about it, how much of the time is your car just standing still. On the street, not doing anything. Did you consider already you can actually rent it out the 95% of the time you don’t use it?

One platform called Drivy, allows anyone to rent out their car. The site lets you do a calculation on how much you could earn should you join the platform.

When I did the projection on Drivy it showed you can make 700 euros a month renting out a modest middle class car

6. Invest in the stock market

This is something that requires a smaller investment. It requires almost no start up funds at all. If you are unsure what you are doing then consider to invest a fixed amount in funds every month. This is one investment I have been doing for a while now and even in a difficult year like 2018 I do not worry because I just invest a fixed amount every month. Both in good times and in bad.

A special type of fund you can invest in is an Index Fund. It just tracks the index of a certain country. As the Western economy has always slowly gone up the last 100 years or so, at least on average its a rather safe fund to invest in.

If you like to see a return in the form of cash every year consider to invest in stocks that give a dividend. Stocks that give a yearly dividend actually give you a share of the profit every year. Coca cola for example is around 3-4% of the value of the stock. On https://www.nasdaq.com/dividend-stocks/ you can for example see what US stocks give a high dividend. Again do your research because it is not because they give a good dividend this year, they will also do it next year. 

Investing in the stock market is favored by the Financial Independence movement. Apart from needing almost no starting capital, your money is still quite accessible 

7. Start a website or blog

Another way to generate a passive income is to start a Website or a blog. Even if it only generates you 10 euro a month then it’s still 10 euros a month. If you re-invest that money and add more smaller websites over time this amount could actually grow out to a rather decent income. It does takes a little bit of investing, but the investment is rather small. Although you do invest time and a good blog can really take a full day of your time to write!

The top blogs make millions of euros every month

Source: https://blogging.com/top-bloggers/

8. Make Youtube videos

Not sure much the writing type? Perhaps Youtube is more for you. Per million views you can make about 1000 – 2000 euro. Of course it does take a long amount of effort and time before you get there. You can pretty much expect not to have any income the first year, so make sure you actually enjoy what you do.

The highest earning youtubers make over 10 Million Euro’s every year

9. Become an influencer

If you have a popular blog, videoblog, website or Instagram account you can consider to become an influencer. Then basically company’s will pay you for marketing their items, or perhaps writing a review. You will need to build up a following somehow first, and this might not be so easy. The most common platforms are Youtube, Instagram, Facebook, Twitter and Snapchat.

Once you do have your following then you can start to at the very least save money. Do not be shy to reach out to products, brands, or even hotels to ask them if you can try out their product or hotel. Especially if you are well known and they are just starting they might consider the advertising you can bring them.

Top influencers can command $300,000 per YouTube video.

10. Sell things you no longer use

Most likely you have items lying around that you have not used for several years. I myself have a rule, if I have not used it for 5 years I sell it. The exception is some smaller items having emotional value. There is other advantages in selling your old items. You free up storage space (perhaps you were even paying for some rented storage?), plus you can re-invest the money you free up.

11. Sell your photo’s 

There is a few Apps that actually allow you to sell your photo’s. Such as SmugMug and Foap. The advantage is you can reach a large target audience. But do not think that by taking a picture of the Tower Bridge by nightfall will make you big money. Or any money at all. You will need to be either very good or very original to make a good amount of money here.

12. Sell online e-content

Writing an ebook, pdf, manual, tutorial,… This can all take up a huge amount of time and effort. However once your e-content is created it can make you a revenue stream for years to come.  Just remember to sell quality, something you believe in and stand by or else it can cost you your reputation, people do not like to pay for something worthless and the word will get out.

13. Invest in startups

First I want to stress that this type of investment is high risk. But it can also bring a good yield. It is something I have done myself as well. So far I have invested a modest amount of money in 5-10 start ups. 

Warning: more then 50% of start-up fails within the first 4 years

– https://igostartup.com

What made me decide to invest in start-ups is that the Belgian government is giving a 45% tax incentive to invest in start-ups.  So if you calculate that in with above statistics then if you invest in a divers portfolio you will make a profit. But keep in mind it might take 10 years before you see any of your money back. Or you might lose it all.

So have a look and check with your country’s government if any incentives are granted.

The site I use to invest is https://www.spreds.com/en You can invest in a startup from even 100 euro’s. This is a Belgian site but for example https://www.seedrs.com/ is very popular in the UK.

14. Create and sell your merchandise online

If you managed to start up a successful blog, vlog or instagram account, why not consider to sell some marketing materials such as T-shirts. The key here is to know your target audience and to only sell things that both they and you love. Do not sell low quality goods as it could bring you more damage then good.

15. Get paid to play games

An alternative to videoblogging, there is a platform called Twitch ( https://www.twitch.tv/ ) that allows you to just game at your PC, stream it live and get paid for it. How does it work? People who watch your channel can donate money, depending of how good or entertaining you are you will receive more donations.

The highest earning streamer on twitch is called Ninja and earns about 500.000 dollars every month. He does game for about 80 hours(!) a week.

16. Peer to peer lending

Consider to try out a crowdlendingplatform. The advantage is you can invest it right now, you can invest small amounts of money, and you will get a real passive income. You will not need to do anything. Of course there is risks involved. There is a reason people turn to crowdfunding, this is because the banks refused to lend them the money.

So expect that you will get defaults on the money you loan out. For this reason you need to make sure to spread your money over different loans. 

What makes this interesting is that interests rates tend to be quite high in such platforms. So even including the defaults you can make a nice profit.

One example is the Dutch platform “Geldvoorelkaar“. When you look at he statistics there we see that the average interest rates (after defaults) is about 4-5%. That’s actually a pretty nice return for not having to do anything at all.

But there is 100s of platforms outthere for all kinds of markets. One I like in particular is peer to peer lending for property investments as you actually invest in something real, so the risk is a little lower.

17. Long term savings account

While a normal savings account gives a limited, or none, interest rate, a long term savings account gives a better revenue usually then a normal savings account. A 2% interest rate is not unusual but you need to be able to part with your money for 5-10 years. Not a great interest rate for such a long period, although it might beat the inflation.

18. Get out of Debt!

Another way that is perhaps less obvious is to get out of debt. If you are in debt you actually have a negative passive income. Unless there is a specific reason why it would be good to be in debt (such as a tax incentive), then do whatever it takes to get out of debt. Its a fast and risk free method to increase your income.

19. Rent out your items

Perhaps you have some items lying around that you just use once a year? But someone else might also just need it once a year and does not want to buy it. A garden tent, an extension ladder, construction material,..  These items can get expensive to purchase while you just need them once. So perhaps some people are looking to rent them?

20. Rent out your garden

Do you have a garden that you barely use at all? Or it’s just to big for you and is a lot of work to maintain it. Why not rent it out, for example for BBQ feasts, or let a neighbor start a vegetable garden. You can earn a little bit of extra cash and you save some on a gardener.

Better of course would be that you use it to grow some of your own food, for that read my other blog where I mention how useful it is to have a vegetable garden.

21. Do tax optimilisation

Take a look at the taxes you pay and find out if do not pay more taxes then you should. Is there any tax incentives around that you can use, such as investing in clean energy, start-ups, retirement saving, loans for a house..?

Makes sure you are aware of what is out there, as you could be missing out on a lot of cash if you do not have your taxes optimized.

22. Dropshipping

Dropshipping is basically selling items online without actually having inventory of these items. You make a deal with the suppliers and let them send the items directly to your customer. For example you can sell items on Ebay and get a deal with a seller in China who will sell items directly to the customer. Although there will be a long wait time for your customer, it does allow you to start up rather risk free.

23. Credit card points and cash back

There is plenty credit cards out there where you can collect points or even get cash back. I myself use a credit card from Miles & More that gives me regular miles. Especially if you have a lot of professional expenses it is worth it to look into these type of cards. Just make sure you do not end up spending more then you usually would!

24. Write a guest article on a blog

If you write a guest article on a blog you can get paid a little bit of extra money for it. What’s more important, if the website or blog is bigger then yours then it’s actually free advertising for your own blog. Perhaps people are interested 

25. Open a savings account

When I started to write this blog I put this on the first place. It’s actually a horrible way to make a passive income, so it’s a bad idea to put it on the first place, but since we are here now and most people have it, so I did include it in the end. A small tip: some banks dare to give just 0,01% as interest. Maybe the better banks give 0,5%-1%. So compare banks regularly and move banks if the rates are higher elsewhere

Sources

https://www.forbes.com 
https://captiv8.io
https://ec.europa.eu/eurostat
https://www.geldvoorelkaar.nl/
https://www.cnbc.com/
https://blogging.com/top-bloggers
https://igostartup.com