Moneything – 12 Month Results

12 Month Results

The first year results of investing through the Moneything platform are as follows –

Expected ROI (Annualised) 12.00%
Actual ROI (Annualised) 10.38%

The ‘Expected ROI’ figure is taken from an approximate average across all my loan holdings stated return on the Moneything platform. The ‘Actual ROI’ figure is sufficiently close to expectation in my opinion. In fact Moneything was one of my standout performers in 2018. 18.00% of the loans I’m holding have fallen in to the category ‘Non performing’ in this period, this means they are currently not paying interest and could eventually fall into full default if they continue to not perform. 18.00% is higher than an industry expectation of 10.00% but I have relatively few loans in comparison to the entire loan book.

There has only really been one substantial issue with my experience with the Moneything platform in this period, and that’s deal flow. A single substantial loan was launched on the platform using a innovative offer, it failed to fill, was pulled and relaunched using a different offer. It did eventually fill but both attempts took up several months and Moneything tend to focus on one deal at a time. There were a couple of other loans of a different asset security type but these were relatively small and filled very quickly (hours not days).

Company Information

By the end of this period company stats were £91 million in originated loans. £22.6 million live loan book and 5197 active lenders. There has been a lot talk around Moneything in recent months about the potential introduction of discounted/premium secondary market. It’s an interesting idea that some platforms have already delivered very well while some platforms have attempted it with less successful results. It’s an innovation that generally increases liquidity but depending on how it’s presented it can catch out less experienced lenders who pick up dumped loans that turn out to be much higher risk than they understand. There has been no confirmation to date on this innovation or indeed a proposed introduction date.

Conclusion

I’m happy enough with Moneything to keep in my portfolio for the next period. As stated deal flow has not been great, in fact I actually withdrew idle funds from the platform as I had nowhere to put them without going beyond my comfortable loan limit, they were effectively dead funds/causing cash drag. It’s frustrating because this portfolio is in stage one growth, meaning I want to be depositing not withdrawing. I will look to re-deposit on the announcement of new offerings.

Landbay – 18 Month Results

18 Month Results

The results for lending through Landbay over the last 18 months are in and they are as follows –

Expected ROI (Annualised) 3.56%
Actual ROI (Annualised) 3.56%

The ‘Expected ROI’ is ratioed at just over half of the balance on an earlier 3.69% fixed rate and the later 3.49% fixed rate offering. As you can see Landbay delivers bang on expectation for the 2nd time in 3 reviews they’re nothing if not consistent. Other than that there’s not really a lot to say. Not the most exciting platform by any stretch and the rates are the rates, marginally better than a one year saver although at least you can build monthly compound with Landbay.

There’s a recalculation of LIBOR due in January (Landbay recalculate LIBOR on a 3 month average) so I would expect the tracker rate to increase slightly, it’s usually around LIBOR plus 2.50%. I can’t imagine it would go higher than the fixed rate right now though.

Company News

At the time of this review Landbay were approaching £250’000’000 in total mortgage lending since they started life in 2010. This is made up of approaching 900 mortgages, c50.00% of which are in London. Landbay has still maintained it’s nil default record to date, an accolade that is increasing rare in the wider P2P sector. There are some whispers of a further crowdfunding round in the offing although it has not yet been confirmed, if it goes ahead it will be Landbays 11th funding round.

Conclusion

Landbay is one of them fire and forget platforms that gets on with the job without fuss and just like a (non UK) train arrives on time every time. The price you pay for consistency and convenience is reflected in the lower end rate on offer compared to the wider P2P sector. So Landbay will remain in my portfolio as a relatively sound foundation to the riskier but higher potential reward platforms I lend through.

Referral link for Landbay

This link provides a referral bonus of £100 when a new customer signs up and invests £5000 using the link (T&C’s apply). The bonus is split £50 to the new customer and £50 to Proptechfish.com, any bonuses received by this blog go towards the cost of maintaining an advert free blog and will be warmly appreciated. 

Brickowner – An Introduction

Introduction

Brickowner was launched in early 2017 offering retail investors the chance to invest in a slice of an institutional property investment opportunity. These kind of investments are traditionally beyond the reach reach of the smaller retail investors with a typical minimum buy in at £25’000 upwards. With Brickowner you can invest from as little as £100.

Brickowner is structured to working with experienced and established property developers and asset managers. These more experienced partners bring with them the access to these larger institutional investment opportunities. Brickowner operates as an appointed representative of Gallium Fund Solutions Ltd, who is fully authorised and regulated by the FCA in the UK.

Brickowner typically charges an upfront fee of 3.00% when investing in an opportunity although fee structure can vary per property (please check the specific property term sheet before investing in an opportunity). If a 3.00% charge is applicable, it’s inclusive, meaning if you invest a minimum of £100 you will actually invest £97 paying a £3 fee.

Brickowner currently does not operate a functionable secondary market place so an early exit is generally not possible. Deposits can be made via debit card (instant) or bank transfer (typically 3 working days).

The Property Page

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A sample of the Brickowner property page

Brickowner can offer two types of return on an investment opportunity. An income payment typically received per annum throughout the duration of the project and/or a completion payment once the project is finished. For Example the ‘All Saints’ project offers a 5.00% income payment over 4 years (20.00%) plus a completion payment of 20.00%, totaling 40.00% over 4 years (or 10.00% per annum).

Referral Link For Brickowner

This link provides a referral bonus of £100 when a new customer signs up and invests £1000 using the link (T&C’s apply). The bonus is split £50 to the new customer and £50 to Proptechfish.com Any bonuses received by this blog go towards the cost of maintaining an advert free blog and will be warmly appreciated.        

Assetz Capital – 6 Month Results

6 Month Results (MLA Account With Cash Sweep to QAA Only)

The first 6 months results of investing through the Assetz Capital platform are as follows –

Expected ROI (Annualised) 8.75%
Actual ROI (Annualised) 5.66%

The ‘Expected ROI’ figure is taken from the dashboard readout as the average rate across all loans invested in. The ‘Actual ROI’ at 5.66% is a little underwhelming to say the least. In this 6 month period I would say Assetz have displayed one of the most impressive loan generation rates I have come across. Unfortunately though with volume of loans comes volume of late payments and problematic loans. I would say Assetz have displayed a considerable level of vigilance in dealing with problematic loans, despite carrying so many loans they have been very quick to suspend trading of loans when problems arise and for the most part late payments are rectified within a few weeks.

Cash drag has been a bit of an issue when assigning funds to loan offerings too. It can take anywhere from 12-36 hours for allocated funds to be accepted to an existing loan. A new loan can take longer as it needs to be filled before being activated. That said Assetz do operate a sweep function which ‘sweeps’ idle and awaiting allocation funds into the Quick Access Account (QAA) where in earns 4.10% pa. So it doesn’t really explain the deficit, even when considering the relative infancy (account rollup) of the account I still would have expected to see a rate closer to 7.00%.

The Assetz Capital platform also like to run ‘Cashback’ promotions and in this period they ran a promotion called the ‘Summer Holiday Cashback’. Essentially they offer an additional 1.00% cashback on newly lent funds either within a set deadline or to a set total pot of funds. As a big retailer might say ‘every little helps!’

A new Assetz Platform

Assetz Capital have announced the launch of a new platform, Assetz Exchange. The platform will focus on equity offerings in Buy to Let and Homes of Multiple Occupancy. Investors will buy shares in a property with a hope for future appreciation in the property/share price alongside receiving a rental dividend. The platform is due to launch in early 2019. I will publish more on this in due course.

Conclusion

I’m relatively happy with my experience of Assetz Capital so far, the company seems to be a professional, competent and well run outfit. The loan offerings are of a relatively higher quality then some other platforms. I’m a little mystified by the wide deficit in the ‘Expected’ and ‘Actual’ rates but it’s too early to draw any definite conclusion as to the cause. So Assetz will remain in my portfolio for now and I will look to increase my holding with them in the short term.

Funding Secure – 6 Month Results

6 Month Results

The first 6 month results for lending through the Funding Secure platform are as follows –

Expected ROI 12.08%
Actual ROI 0.00%

Results look poor right ? Well not so fast. As explained in the introduction piece Funding Secure offer exclusively ‘return on term loans’, this a 6 month review, add a couple of weeks for offers to be activated means none of my investments have actually reached term yet. That said Funding Secure do display the accrued interest for each loan part calculated daily. Hence how the 12.08% ‘Expected ROI’ has been arrived at.

Theres not too much more I can say at this point other than in lieu of any concrete results Funding Secure remains one of the smallest exposures with-in my portfolio. I would still consider Funding Secure to be one of the higher risk platforms on the market, as general noise in the community is littered with bad experiences. Funding Secure also do not perform any credit checks on borrowers as all loans are asset backed so they claim they do not need to. So I remain nervous and apprehensive about what my experience in reality with Funding Secure will actually be. I will hold my investment as is, until I have further results to go on. Finally I would not recommend Funding Secure as a beginner platform for the reasons stated above, plus for a beginner waiting so for a return may find it disheartening and frustrating. Watch this space for a more comprehensive review in the near future.

Funding Secure – An Introduction

Introduction

Funding Secure started life in 2012 as a pawnbroking P2P platform. To date it has issued £175 million worth of loans and advertises an investor base 3,500. Although it started life as a pawnbroking platform, for the last 3 years it has taken on property backed loans also. Funding Secure loans are usually for 6 month terms and unlike some platforms who pay a monthly return, loans accrue interest daily but is not paid until the end of the term and only if the loan is settled.

Minimum deposit for Funding Secure is £100 made by bank transfer, with a £25 minimum loan part purchase. Rates of return on offer range from 12.00% to 16.00% per annum. There are no charges for lenders and Funding Secure offers a secondary market for early sell out dependant on a buyer being available.

The Secondary Market

Funding Secure’s secondary market place is a little more complicated than some of it’s competitors. When it comes to tax liabilities the individual left holding the investment at term is liable for the entire term. For example if you snap up a 3 month old loan hold it for the remaining 3 months you are liable for the tax on profit for the full 6 months. This is because the interest for the whole term is paid to whoever holding the loan part at maturity. To reflect this you can pick up secondary loans for as much as 1% discount (or a 1% premium if demand for a particular loan is high, or is closer to maturity) .

On the flip side of this if you are selling primary loans, and effectively passing on the tax liability, or selling for a premium (up to 1%) you can make a tidy profit (with a significant volume) when it comes to tax liabilities at the end of the financial year. I would seriously suggest holding off from getting involved in the secondary market if you are either new to P2P or the Funding Secure platform for at least the first year because if you are not too savvy you may end picking up problematic loans with tax liabilities you ratter wouldn’t have. Some loans get dumped for a reason.

The Funding Secure dash board

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The Funding Secure dashboard

Available funds – is the in-active balance on your account. This can either be invested (£25 minimum) or withdrawn.

My current investments – shows the total principle you currently have invested in loan parts. These funds can only be released on term and repayment of the loan, or a successful sale on the secondary market place.

Allocated funds – shows any funds you have put to a loan part that have not yet been accepted (interest will still accrue before the borrower accepts your offer of funds). It can take a little a while for offers to be accepted ( I’ve experienced as long as 4 weeks ).

Available investments – lists the investments currently available on the platform for investment. Information includes –

  • Reference – the loan ID.
  • Title – a brief description.
  • Amount – total size of the loan.
  • Rate – Anual ROI.
  • LTV – is the Loan to value of the security (capped at 70%).
  • Progress – shows how much of the loan has been funded so far.
  • Updated (scroll right) – shows any recent material changes to the loan.
  • Invest (scroll right) – shows the button to invest.

Bricklane – 6 Month Results

6 Month Results

The results for the first 6 months of investing through Bricklane are in, and they are as follows –

Expected ROI 5.00%
Actual ROI 0.54%

Now there needs to be some background to these figures for them to make a little more sense. The Expected ROI is taken from a few published figures from 3rd parties and I levelled 5.00 % as a sensible average target. The fact is Bricklane don’t make a big deal of an expected return, partly because regulations require at least 2 years of track record to advertise a return as a figure (which Bricklane are not quite there), but the main reason being Bricklane is very different to a traditional P2P investment platform ( in-fact it actually classifies as an ISA) . It’s easy to calculate an expected return based on the given percentage for each loan part, but with Bricklane you are investing in a share of an overall property portfolio, plus a share of the rental dividend pro rata.

So although a near 90% disparity between ‘Expected ROI’ and ‘Actual ROI’ looks worrying, it’s not as bad as a seems. Bricklane charge a 2% deposit fee (ouch) on balances under £25’000 (1% for over £25’000), plus a 0.85% annual servicing fee. This meant it took a couple of weeks short of 6 months to realise a profit. If that trend continues for the next 6 months (without anymore deposits) that would result in an annual return of just north of 2%, based on portfolio growth. That is only one revenue stream though, the second being a share of rental income paid every 6 months.

At the time of writing this blog I have now received my first share of rental income dividend, however because it fell just behind the 6 months cut off for compiling these figures (it will be included in the figures for month 7) I didn’t want to distort the results for 6 months. I’ve give you a clue though, 5.00% annual ROI is looking fair right now.

To conclude, I must admit I’ve been lukewarm about Bricklane for months, thinking a 2.00% annual ROI (- 1.00% when factoring in inflation) is hardly call for cracking out the party poppers. Now with the rental income dividend paid, it starting to look a little more rosy. What i have always liked about Bricklane though is firstly it’s heavy weight backing ( backed by Zoopla ), secondly you are invested in owned bricks and mortar, not a debt transaction that can default like most P2P property platforms, finally there are no withdrawal transactions or secondary market queuing. So once you have paid the deposit you money is theoretically accessible at any time.

I am considering increasing my investment in Bricklane but it means writing off most of this years gains (at the cost of a 2% deposit charge) for higher gains later on down the line, which of course are never guaranteed.

Referral Link for Bricklane

This link provides a referral bonus of £225 when a new customer signs up and invests £5000 using the link (T&C’s apply). The bonus is split £125 to the new customer and £100 to Proptechfish.com Any bonuses received by this blog go towards the cost of maintaining an advert free blog and will be warmly appreciated.