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Mintos and other p2p lenders
#1
For years I've been intrigued by these p2p lending platforms. However I've always been way too skeptical, mainly because they have always been full of payday loans and similar, and we all know the financial status of most people using those. People with horrible finances loaning money at ridiculous interest rates in order to fund their spending habits... sounds way too dangerous. And I'm pretty much against the whole idea of ripping people off with atrocious interest rates.

But I just opened an account with Mintos. This one feels different. Why?
First of all, people don't put their own loans up here. It's companies that have already handed out loans that sell you a portion (they are obliged to keep a portion for themselves) of the loan.  The majority of these loans come with a buyback guarantee, which means the company in question will buy back the full loan from you if there are no payments within 60 days. And the majority of the loans are backed with a decent collateral.

Currently I'm invested in a few auto loans from the baltic countries. Loans that have been paid in full without delay for the moment, with under 12 months remaining until maturity, all with the vehicle as collateral (with the value far exceeding the amount of debt outstanding). I'm picky about the ones I choose. Average interest rate for me: 9%

I'm steering away from the "personal loans" and sticking to auto because of the collateral. There are even some real estate deals (mainly home renovation loans with the real estate as collateral) but those come with a significantly lower interest rate.

Of course these are high risk investments. I would never put significant money into these, this is more of a thing I'm doing out of boredom. I'm interested in seeing where this goes. So far, so good.

Anyone have any experience with these?
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#2
Not familiar with what you are doing but willing to learn..
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#3
Every now and again I look into these things, and usually I conclude that they are interesting, but that I'd never be comfortable putting enough of my assets in to make it worthwhile.
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#4
(11-27-2018, 03:09 PM)Kerim Wrote: Every now and again I look into these things, and usually I conclude that they are interesting, but that I'd never be comfortable putting enough of my assets in to make it worthwhile.

Actually it's the last part that I've also been wondering about. I'm definitely not putting meaningful amounts money into this. I've concluded that 1000e is the maximum I'm comfortable putting there right now and at 9% interest rate that means 90e per year, minus taxes. 

That amount is hardly going to change anything for me. Even if I keep reinvesting it'll be years and years and years before I get to an amount that will actually matter. Then again, 90 is definitely better than nothing. Hell, I can get a "free" good bottle of whiskey every year! WOHOO!

I guess this is more of a hobby than an actual way to make money. Though I don't mind if I do manage to make a profit, no matter how small.
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#5
Yeah, in some ways, DG investing is like watching paint dry. When I get bored, I'll put a tiny -- TINY -- amount of money into call options. Yes, it is compete gambling, but it gets the blood racing briefly!
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#6
(11-28-2018, 09:05 AM)Kerim Wrote: Yeah, in some ways, DG investing is like watching paint dry. When I get bored, I'll put a tiny -- TINY -- amount of money into call options. Yes, it is compete gambling, but it gets the blood racing briefly!

I enjoy that a lot too but I lose too often.  So now I regularly sell options and tell myself I am either an insurance salesman, or teaching gamblers a lesson.  I'm not sure exactly what role I am playing when I win.  Smile

And DGI investing is definitely a lot like watching paint dry.
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