Financial freedom - Build your way to a more prosperous life, step by step, by building smart passive income streams. Learn how to manage your investments so that you can maximize your passive income potential.

It is clear that your financial life is the product of your financial habits. The rules for financial stability and prosperity are: try to multiply your income sources; spend smart; spend less than you gain; every month make sure your balance (revenue - costs) is positive; constant saving; invest the savings. These actions, repeated every month, creates habits. Habits, repeated every month, accumulate and provide a stable financial status and, in time, produce prosperity.

LendSecured real estate crowdlending platform overview

LendSecured is a real estate crowdlending platform, based in Riga, providing only real estate backed business investment opportunities.

LendSecured was founded by two entrepreneurs, who have built a successful secured lending business in Latvia, specializing in real estate backed lending to businesses. The return they have brought to stakeholders of their business was on average 10% annually. The emergence of technological solutions has inspired the founders to build an investment platform and offer the same lucrative investment opportunities for a wider public.

LendSecured platform was created in 2017, as a private tool for investors, enabling them to monitor their loan portfolios. During these years, the platform has been developing its core business (mortgage lending), gathering experience and building loan portfolios.

Since 2017 the platform was accessible exclusively for high net worth investors, but now they are opening it for the public.

The core pillar and philosophy for LendSecured is to minimize the risks. LendSecured feels responsible for their clients and believes that if investors have trusted them with their funds, then it is their duty to offer the safest possible investment opportunities. In order to minize the risks, LendSecured publish investment projects with low LTV (Loan to Value ratio). The lower the ratio, the lower the risk.

LendSecured benefits from debt collection license (Loan MGMT Ltd.). Besides that, LendSecured is the member of European Crowdfunding Network since 2020.

In order to ensure the security of the clients funds LendSecured has partnered with the prominent payment solution provider Lemonway, which is a Fintech founded in 2007 and regulated by Banque de France. Lemonway is obliged by the regulator to hold all money received on behalf of its clients on a separate account, which is held with BNP Paribas (the largest bank of France by value of assets), thus investors of LendSecured can have a peace of mind, as their funds are held safely on a segregated bank account monitored by French Central Bank. This fact totally excludes the chance of fraud, which recently has occured on other platforms in P2P sector.

Moreover, Lemonway is doing all compliance checks, KYC & AML procedures of all funds credited to LendSecured’s account. This helps LendSecured to speed up the investment process and be assured that they comply with all the latest regulations set up by the EU.

If you invest for the first time at LendSecured don’t forget that you can get  a 0.5% cashback bonus for the investment amount.

Who can invest at LendSecured?

Anyone who is above 18 years old can become a client. To register, you need to submit a copy of your passport or ID document and wait until our team completes your identification process. Once all KYC and AML procedures are done, you can invest!

Every investor must have an opened bank account in the Single Euro Payments Area (SEPA).

Investment deals on LendSecured platform

Lendsecured accepts projects with Loan-to-Value (LTV) of 50% on average, maximum reaching 70%. The lower the LTV, the smaller the risk to an investor. The LTV of 50% means that the value of a real estate is as twice as high as the loan amount. This means that in a situation, where the loan ought to be recovered from the sale of the real estate, the value of the real estate will be more than enough to cover the amount lent.

All mortgages can be monitored online on the Land Register of Republic of Latvia: www.zemesgramata.lv.

There are three repayment types that are featured on LendSecured:

  • annuity– where interest is paid monthly together with the loan principal amount spread over the life of the loan.
  • bullet repayment type, the most common type, where borrower makes interest payments monthly, but principal repayment is made in one full payment before the end of the loan maturity.
  • full bullet where there is no interest, nor principal payments during the life of the loan. The sum consisted of entire interest and principal is repaid at the end of the maturity date.

The minimum investment amount on the LendSecured platform is 50 EUR and the average loan term is 12-18 months.

 

The “secret” to reaching the first 1000, 10000 and 100000 EUR / USD

Compound-interest

Most people get stuck until they reach the first 1, followed by a few zeros of  earned /saved/invested money, and they stay in the “start” area for the rest of their lives, taking it over and over again from the beginning.

This is why most people do not become financially independent and do not truly achieve financial prosperity.

The first 1000 EUR invoiced from the new business;
The first 10,000 EUR invested on the stock exchange;
The first EUR 100,000 in the personal portfolio;
The first studio for rent;
First salary / bonus etc. of EUR 3000 (the example is relevant, even if it does not start with 1)

The effort to reach the first 1, followed by a few zeros, is enormous and many give up along the way. What they don’t know is that after you hit a 1 followed by a few zeros (2,3,4 etc.), the rest of the zeros are much easier to reach.

After 10 years of struggling to reach a portfolio of 100,000 EUR, most likely up to 200,000 EUR could take you much less, up to 300,000 EUR less and so on.

The same applies to investments. You can constantly invest 200 EUR per month, without seeing a big difference in the portfolio, until, at a certain moment, the compound interest intervenes and your portfolio grows rapidly.

 

The graphic result is more than clear:

Calculator_initial

200 EUR invested monthly for 20 years at 10% interest

The result is:

Calculation result

Result after 20 years

The graph “speaks” for itself:

Balance after 20 years

Balance after 20 years

So don’t get lost on the road, but continue at maximum acceleration, until you reach that goal of 1 followed by a few zeros.

After that point, things will become easier, automated, routine.

So the “secret” is that there is no secret: all that is needed is discipline, patience and time.

New investment project announced by Bulkestate – Amālijas Street – 2nd stage

Bulkestate - Amālijas Street

Bulkestate announced today that it is preparing to launch a new investment project: Amālijas Street – 2nd stage.

Launch time: Friday / August 7, 2020 / 17:00 (EEST)

Investment opportunity

Interest rate: 14% (+1%)*
Investment target: 150 000 EUR
Loan period: 12 months
FLTV: 15%
Security: mortgage

*Bulkestate incentive payment

For this project Bulkestate offers the following special incentive pay (cash-back) for investors by sharing part of its fee received from the client:

  • Investors making EUR 10,000 or larger investments will receive a 1% incentive payment from the invested amount.
If you invest for the first time at Bulkestate don’t forget that you can get 5 EUR cashback bonus after the first investment. You can register here for the new offer.

 

For other bonuses visit our Cash-back & Bonuses page.

New skin in the game project in Riga from EVOEstate – Krišjāņa Valdemāra str. 145

EvoEstate logo

Evoestate announced today that a new investment project with “skin in the game” from Evoestate founders is available on the platform for all users: Krišjāņa Valdemāra str. 145 k-1 – 55, Riga, Latvia in Riga, Latvia.

Skin in the game: Founders of EVOEstate invest personal capital in these deals

Krišjāņa Valdemāra str. 145 k-1 – 55, Riga, Latvia in Riga, Latvia

Krišjāņa Valdemāra str. 145 k-1 – 55, Riga, Latvia
The project is raising € 100 000.00.
12% annual returns.
Loan term 24 months.
LTV (loan-to-value) ratio is 25% !!!!!
Originator: NORDSTREET

If you invest for the first time at EVOEstate don’t forget that you can get 0.5% cashback for 6 months after the first investment. You can register here for the new offer.

 

For other bonuses visit our Cash-back & Bonuses page.

Nibble investment platform overview

Nibble is a financial platform that connects investors and lenders throughout Europe. The investment guarantee is much safer because the loans are issued by the companies which are part of the IT Smart Finance Group which are

joymoney
RURussia
ESSpain
MXMexico 2020

The Joymoney brand has been working in the field of alternative loans since 2014. The company is based in Russia and operate in Russia and Spain. Mexico’s operation is scheduled for 2020. Joymoney’s mission is to provide their customers with the opportunity to solve their financial difficulties quickly and safely. The company use their own innovative developments, including patented software solutions, big data analysis, scoring model system and risk management solutions.

Nibble offers two type of loans:

  • Short-term loans (PDL):
    • Loan amount – up to € 500;
    • Loan term – up to 30 days;
  • Installment loans: (Installment):
    • Loan amount – up to € 1000;
    • Loan term – up to 90 days;

Nibble is based on the «Peer 2 portfolio» model. Nibble offer investors the opportunity to invest in alternative loans simply and safely. Nibble offers investors a Buyback guarantee even if the loan is past overdue more than 60 days.

Nibble allow investors to create an investment portfolio in a fully automated way. The investor can establish the portfolio parameters and preferences like the minimum and maximum investment amounts, countries to invest, etc.

One of the main Nibble’s features is that it offers investors a return on investment of up to 12%, exceeding the average profitability of the market.

How does Nibble work?

Nibble is a financial platform and a part of IT Smart Finance holding group. The platform allows individuals and legal entities to invest in given loans, issued by companies of the holding, which have a long experience on a loan market.

Nibble structure

Every client who receives a loan passes a multi-level verification system and receives a scoring assessment on the solvency related to their credit history. From the total amount of applications, the level of acceptance for primary clients is 10%, which allows the company to control risks and ensure repayment.

If the loan is on delay, the company that issued the loan guarantees to buy it back on the 61st day (Brands Joymoney RU, Joymoney MX, Joymoney ES).

Nibble is responsible for the security of transactions, safety of money in investor`s personal account, and provides protection of personal data.

During its active time, the loan will accure the percentage of yield as agreed. By the end of the term, the client has the option to choose from any of our reinvestment alternatives and increase their income. By doing so, the money will be reinvested automatically in new loans. Every individual and legal entity in Europe, including the countries of EU (Switzerland and Britain) can become an investor.

How to start investing on Nibble?

To become an investor in Nibble P2P platform is fast and simple.

If you reached the age of majority and have a bank account in any country in Europe you can be an Investor on Nibble, you just need to register and verify your identity. Nibble works in most European countries, such as Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden.

You need to register to start investing and earning income on Nibble. After the registration, you can deposit money to your account starting from 10 euros. Then, you can create an investment portfolio by choosing the necessary options and become an Investor!

Currently, the maximum deposit limit on Nibble is 10,000 € per month.

If you invest for the first time at Nibble don’t forget that you can get 1% cashback bonus for the investments made in the first 90 days.

 

 

What to do: pay off the credit or invest for passive income?

Pay off the credit or invest for passive income?

I saved a certain amount of money and I manage to keep saving month by month, what do I do? Do I pay off my credit or invest to generate higher income in the future?

Probably many of you have at least one mortgage loan and/or one or more consumer loans (if you read this article) and at the same time you have started to accumulate some financial reserves and may have thought or even started to put the money to work. In this context, you may also think about the fact that interest rates may rise, a crisis may occur at any time and at the same time you can see the good profits that have been made and are made from real estate investments, stock exchange, cryptocurrencies and business.

In all this context, it is normal for the answer to the question to pay the credit or invest the money to be complex, with many variables and uncertainties, but also so important. Basically the answer can guide your financial strategy for several years.

Let’s begin!

Before I should ask myself if I pay the credit or invest, there are some things we have to check:

  • If there are debts from credit cards and overdrafts with interest rates above 15% -20%, those should be paid before we think about investments;
  • Consumer debt, car etc. – we should focus on them and pay them in advance before investing;
  • We fail to save constantly – focus first on building this habit;
  • Reserve fund to cover living costs for a period of 6-12 months.

Before you have all the above checked, you should not even think about starting investing.

Any consumer credit used for the acquisition of liabilities should be paid as a priority. Real estate and investment loans (those used to purchase assets) are the ones we can doubt whether we will pay them in advance or not.

We will talk specifically about real estate loans, to simplify and make the analysis relevant, but we can have the same analysis process in the case of a non-real estate investment loan.Well, now the question that remains is: Do I pay the real estate loan or do I use my future reserves and savings for investments?

Economically speaking

From an economic point of view, we will compare the actual effective interest rate of the loan with the expected net return on investments.

For example, we have an interest of 5% on the mortgage loan and

a  return estimated by us of 10% of the investment in shares (historical average yield)

or

we find an apartment at a very good price and with a rent yield of 8%

or

bonds with 9% interest

and so on….

So we have on one hand a 5% safe interest vs. a yield estimate of 10% or 8% or 9%.The decision may seem obvious – at such a yield differential, in 20-25 years you pay the property 2 times.

But the decision is simple just at first sight and it becomes more complex when we go deep. Why? Because the interest rate on credit is safe (if it is 5%, it is 5% no matter what I do) while the return on investments is always an estimate.

Estimate because:

  • The stock market may no longer perform in the next 10 years as in the past or you catch a very weak interval;
  • The yield on the rental property may decrease, or it may not be at all, unless you have a tenant or you find a structural problem of the construction;
  • The issuer of the bond can go bankrupt and you lose all the money.

There are risks that you must take into account to adjust the returns on investments with the percentage of risk. Professionals always calculate their adjusted return on an investment. The calculation is very complex and has many variables. But for the sake of simplification we can estimate a differential for the degree of risk. For example: -1.5% for a very good real estate, -2.5% for small and medium-sized companies bonds and -3% for blue chips shares.Thus, we now have a comparison between + 5% credit payment and (10% – 3% = 7%) for shares; (8% -1.5% = 6.5%) for real estate and (9% -2.5% = 6.5%) for bonds.

Now it’s a little clearer. We know that up to a loan interest rate of 6.5% or 7% we can invest without problems, but if the interest exceeds these levels it becomes more profitable to pay the credit.

Of course, the calculation is relevant depending on how well we made our estimate of future profits.

Many investors and business owners maintain their long-term loans, knowing that they can generate higher long-term returns with the same amount of money. This is the case of many smaller or larger entrepreneurs, it is the case of those who invest professionally or even those who invest passively in the long term.

Obviously, a solution would be to make more risky and / or more active investments that can bring higher returns, but in this case you really should know what you are doing.

Important is to make your calculations as well as you can, because, after all, nobody knows the future.

Psychologically

The need for survival/safety is lower (and stronger) on Maslow’s pyramid than aspirational needs. From here comes a degree of stress that will make you quite conservative in investments when you have unpaid loans.

Emotions are not good in investments.

To make a decision:

  • Do your calculations – see economic analysis above;
  • Calculate your risk profile;
  • What decision would make you unable to sleep at night?;
  • How would you feel about paying off your debts? But what if you didn’t pay them?
  • How would you feel if you invested in passive income? But what if you didn’t invest?
  • How would you feel if you paid your credit with 5% interest and the stock would have a 50% yield that year, which you would not benefit from? But if you did not pay your credit and invest in the stock market, and the stock market would fall by 50% that year? Which of these 2 options would most disturb you?

When choosing whether to pay your credit or invest/accumulate reserves you must take into account both the economical and psychological aspects. Both are important, but more important are the psychological ones, because they have the power to sabotage you.

Finally, if you are still not cleared how to proceed, you can choose the middle way and use the amounts saved according to the formula: Invest = (10 – Credit interest rate) and with the rest pay the credit. That is, if the credit interest is 4% and you save 1000 EUR per month, you pay in advance (or you set aside to pay in advance) 400 EUR and you invest 600 EUR.

Simple, right?

New1% cashback bonus from Iban Wallet

Iban Wallet informed that a new cashback opportunity is available at the platform to all new registered participants.

Every new investor who register through this link at Iban Wallet, use the code – LOVE1 – will get a 1% bonus on their Iban Account for the first 90 days for the first investment!

The promotion is not applicable to Iban One or Iban Market.

Campaign is valid until 29.02.2020.

For other bonuses visit our Cash-back & Bonuses page.

Get 1% cashback bonus from Lendermarket

Lendermarket logo

 

Lendermarket informed that a new cashback opportunity is available at the platform to all new registered participants.

Every new investor who register through this link at Lendermarket receives a bonus of 1% of the Net Deposited Funds during the first 60 days after the registration is successfully validated (Net Amount Deposited: amount of money deposited minus the amount of money withdrawn).

About Lendermaket

Lanched in june 2019 in Ireland, Lendermarket is a sister company of Creditstar Group AS, which is the parent company of Creditstar’s operational subsidiaries. The loans listed on the platform are issued in: Poland, Spain and Czech Republic.

Ragistration and investing

Both individuals and companies can register and invest. Individual investors are required to be at least 18 years old, be residents in the European Economic Area (or Switzerland) and have a bank account in such area.
Companies must have a bank account in a bank located in the EEA (or Switzerland).

Sign-up process: 2 steps: Registration and identity verification.

The minimum investment is 10 euros at 12% interest rate.

All loans at Lendermarket come with a Buyback Guarantee. Creditstar will buy back the loans that are more than 60 days overdue from their original due date at the nominal value of outstanding principal, plus accrued interest income and late payment fees.

The repayment depends on the term of the loan. If the term is 30 days or less, there will be 1 single payment at the end of the term. If there are two installments (60 days) or 3 installments (90 days), then the investor will receive 2 or 3 payments respectively. This is beneficial for investors that value more liquidity.

For other bonuses visit our Cash-back & Bonuses page.

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