Grupeer Review – My Results After 5 Months

by Aug 20, 2019Reviews

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This is my unbiased Grupeer review after 5 months of investing on the platform. Let’s see what returns I got and if the platform right for you!

My results with Grupeer after 5 months - find out if Grupeer is the right P2P platform for you!

Sign up to Grupeer here.

 

What Is Grupeer?

 

Grupeer is one of the fastest growing peer to peer lending platforms in Europe. It originates from Latvia, and offers secured business, real estate and development loans with an average return of 13.41%. The minimum amount that you can invest on the platform is €10.

As of 2019, the company has funded more than 55 million euros worth of loans and it has also steadily grown to more than 14998 investors on the platform. This number is constantly growing.

 

Grupeer Returns – What Can I Expect? 

 

The average returns on Grupeer are 13.41%, which matches what I’ve personally seen on my account as well (more on this below!). Grupeer also offers some loans that are between 10-12% for more conservative real estate loans.

The loans on the platform range from short term loans (6-12 months) to longer loans that are between 2-3 years.

 

Is There A Buyback Guarantee?

 

All loans on Grupeer have a full buyback guarantee. This means that if the borrower is more than 60 days late to their payments, the credit company that issued the loan is obliged to immediately buy back your share of the loan and the shares of the rest of the investors in the amount of the outstanding and accrued principal. 

Real estate loans on Grupeer come with additional security: all real estate loans are secured against a collateral (the property), which can be sold if the loan defaults.

 

Loans On Grupeer

 

Grupeer offers three types of loans: business, real estate and development loans. You can find the loans under Invest -> Loan Deals and Invest -> Development Projects. 

Generally, there are hundreds of loans available to invest into at all times and I’ve never experienced issues with cash drag.

Here are a few screenshots that give you an idea of how the platform works and how much information is given about each project:

 

Grupeer Review: Screenshots Of Current Loans and Development Projects on Grupeer

 

As you can see from the screenshots, you can see some information about each project before investing in them, but there isn’t complete transparency. For example, in the case of the business loan above, they could have provided additional information about how the money will be spent, what the borrower’s previous experience with restaurants is, etc.

In the case of the development loan, they could have provided more documents to prove the valuation of the property, the exact location of the property and some information about the current real estate market in Norway.

With that being said, none of the loans that I’ve invested in have ever defaulted and in fact, all loans have been paid on time.

And like I mentioned before, all loans on Grupeer come with a buyback guarantee.

 

Auto Investing On Grupeer

 

Grupeer offers an auto-investing option for those investors who are looking for an automated investment platform. You can select the type of loan that you want to invest in, the period of the loan term, the country where the loan was issued in, the loan originator, your desired rate of return, the loan repayment type and the amount that you want to invest in one loan.

Below is a screenshot of my auto-investment settings:

 

auto investment on Grupeer

Grupeer review: My auto investment settings

 

Like you can see, I’ve chosen to only invest €10 per each loan on Grupeer. This is because currently, my portfolio on Grupeer is €1,550 and I like to invest between 0,5-1% of my portfolio to one loan to keep it diversified.

 

Is There A Secondary Market?

 

Unfortunately there isn’t currently a secondary market. However, there seems to be one in the making, as they have made a webpage dedicated to it (see it here). 

If you invest in loans on Grupeer now, you will have to stick with them until they mature or until Grupeer introduces a functioning secondary market.

 

Grupeer Review: My Results After 5 Months

 

My results on Grupeer have been very positive in the first 5 months. From my experience, the loans on Grupeer are always paid on time, which is quite rare amongP2P lending platforms. I also haven’t experienced any significant cash drag and my money is usually re-invested into loans in a matter of days.

 

My Deposits

  • 9th April: €500
  • 12th April: €500
  • 6th August: €500

 

Grupeer review: My current account balance

Grupeer review: My current account balance

 

Grupeer Monthly Income 

 

Grupeer review: My monthly income from Grupeer

Grupeer review: My monthly income from Grupeer

 

In total, I’ve added €1,500 to the platform and my current balance after 5 months is €1,550.72. Like you can see from my deposits, the first €1,000 were added in April, and the last €500 deposit was made in August, which is why the monthly income graph doesn’t yet reflect the effect that the last deposit has had. 

On average, my rate of return has been 13%.

Now, in addition to getting great returns on the platform, there’s a few more things that I like about the loans that Grupeer offers.

First and foremost, the loans on Grupeer are business loans and real estate loans. Many other P2P platforms that I use focus on primarily consumer loans and personal loans, such as Mintos and RoboCash. Business and real estate loans are considered safer, especially since real estate loans are secured against a collateral.

Secondly, like I mentioned, from my experience, the loans on Grupeer have always been paid on time. This gives me more peace of mind knowing that everything is working as it should. 

Finally, I haven’t experienced significant cash drag on the platform. Earlier on in 2018, some investors complained that there weren’t any available loans on the platform, but Grupeer seems to have listened and solved the issue.

However, with all of these positives, I also have a negative that I don’t like about the platform.

Personally, I prefer very short term loans in the range of 1-3 months and Grupeer doesn’t generally offer these. The shortest loans that I’ve seen on the platform are 6 months. Usually, this wouldn’t be an issue, but because there isn’t a secondary market, this means that I can’t liquidate my loans early even if I wanted to. 

Hopefully, Grupeer will introduce a secondary market sometime in 2019.

 

Conclusion: Should You Invest With Grupeer?

 

Grupeer is a great option for those investors who are looking to invest in business, real estate and development loans that range from 6 months to 2 years and offer returns of 13%.

You can be rest assured knowing that all of the loans on Grupeer have a buyback guarantee and that real estate loans are additionally secured by the property that the loan concerns. 

Grupeer is also a great option for busy investors who want to automate their investing: the auto-invest tool on Grupeer lets you invest in loans from as little as €10.

 

Alternatives To Grupeer

 

While I do recommend using Grupeer, there are other options out there that you may want to consider.

If you are looking for a platform with a similar interface but with complete automation, you can try Mintos or RoboCash that focus on consumer loans.

If you are looking for business and real estate loans with higher yield, you can try Envestio, CrowdEstor or CrowdEstate that offer loans with an interest rate of 14-20%. The advantage that Grupeer has over these three platforms is that there is no cash drag – typically, Envestio, CrowdEstor and CrowdEstate release only a few projects per month and they are funded pretty quickly.

 

You can also head over to my portfolio and see what other platforms I’ve been using and what returns I get from them, or head over to my Mintos review to read my full review about the platform.

 

Thank you for reading this Grupeer review. I hope you found it useful and that I gave you some new ideas to use in your strategy. Please feel free to let me know more about your strategy in the comments below.

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