Building my passive income
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➤ RELYING ON A SINGLE SOURCE OF INCOME IS NOT SAFE

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➤ INSTEAD, IT IS WISE TO GENERATE MULTIPLE CASH FLOWS, SO THAT IF ONE OF THESE STOPS, THE OTHERS ARE STILL THERE

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➤ HERE YOU WILL FIND ALL THE TOOLS I USE TO TAKE CALCULABLE RISKS WHILE OBTAINING HIGH RETURNS

Bondora, how NOT to use Portfolio Pro (and resist temptation)-video-

Choices. Bondora portfolio pro setting and advantages.

How not to use Bondora:

  • Is Bondora something new?

  • Is Bondora a scam?

  • How to exit Bondora

  • Compound interest 10% yearly?

  • 35% yearly? Resist temptation.

  • Set up the best Bondora portfolio ever

  • Bondora reviews

  • New user bonus 5€

IF YOU’RE PLANNING TO LIVE OFF PRIVATE INCOME, OR AT LEAST TO BUILD PASSIVE INCOME STREAMS ON WHICH TO COUNT IN THE FUTURE, THEN BONDORA CAN BE ONE TOOL. ITS “PORTFOLIO PRO”, IF USED WITH AWARENESS, ALLOWS TO MANAGE RISK/RETURN WHILE DELIVERING HIGH RETURN. HERE IS A QUICK GUIDE ON HOW TO DEAL WITH PORTFOLIO PRO (AND WITH SOCIAL LENDING IN GENERAL)!

Reading time: 3 min.

A great advantage when using Bondora is that you don’t really have to study anything in order to invest. With the automatic investment tool, you can transfer what you want to invest in few minutes, even just €10 (even with credit card and at no cost, I’ve tried it, it works), and within two clicks you are ready and active. Or so to speak "active", as actually you just have to transfer the money and set up the auto-investment tool, that’s all you need to do. When you’ll have enough of it (months or years, NOT days), you’ll transfer everything or a part of your money back to your bank account. The real challenge this days, is actually getting started with Bondora and P2p lending. Many people are losing this chance because they are still a little wary of this new financial tools, some others are earning money. Some bad opinions in the web do the rest. Most bad reviews on Bondora are written by people who collected many (spanish) high risk loans in the past.

Here, we’re going to learn how to set up a safer Portfolio Pro once and for all.

Tens of thousands of European citizens use Bondora to make investments with high returns – if you thought you’d discovered it first, you’re probably disappointed now. Bondora is nothing new, this social lending platform is large and well-established by now, it is based in Estonia and it allows to invest easily in non-bank loans in Euros. Let’s activate “Portfolio Pro”!

The most horrifying aspect of Bondora is the cartoon-style photo in the home page, only the tool Robo.cash (which we don’t like) can do worse than that in terms of a trashy style.

Robocash home page might be too cartoonish for a financial tool

Robocash home page might be too cartoonish for a financial tool

Apart from this, the website is easy to use, the returns are high, and by following my instructions we’ll try together to lower the risks, also with the help of “Portfolio Pro”.

Bondora is a long-term investment, please bear in mind that it takes months or years because this isn’t a lottery, a scam, or one of those “become rich now” promises that the internet is full of. Everything is legal here, with a risk proportional to the interests, so it will take you months before obtaining results that are desirable enough – a few days certainly aren’t enough.

It is also possible to exit Bondora. If for any reason you’d need to leave Bondora and transfer your money back to your bank account, this is logically possible. Considering that Bondora is a tool appropriate for long-term investments, bear in mind that it might take a few months or even much longer. In general, the loans that have no delays are easyer to sell, one more reason for following these instructions and reduce the risks now, from the first day. It will be sufficient to sell everything on the secondary market, as explained here in "the most profitable way to exit Bondora". The market is liquid enough. Your remaining balance that has not been invested is always available to be transferred back to your account.

If you’re not here to invest, or you don’t have a business capital, you’ve come to the wrong website.

I use p2p lending and therefore Bondora, too, to multiply my savings and to enjoy the magic of the “compound interest”.

Image from " the calculator site "

Image from "the calculator site"

In this way, an invested and reinvested Euro, together with the interests that it has generated, leads to an exponential result. Do you want to turn 10,000€ into 40,000€, and thus to quadruplicate a capital? They won’t teach you at school, but you just need to keep them invested for 10 years with a 15% yearly interest while you reinvest all the interests received year by year. Of course you can do even better and duplicate a capital in way less than 5 years, if you find a rate of 20% or higher, but here the problems start. In this historical period, nobody will offer you that much in Europe under normal conditions, and if they do, just don’t trust them. By cautiously investing through a bank you’ll probably have the opposite problem and maybe an entire life won’t be enough to double up your money, after deducting the fees that they normally apply. A good independent consultant might help you, but they must be really independent!

So let’s go back with our feet on the ground and let’s see if Bondora can give us more than 10%, which we need to justify the effort to understand how to use it!

crescita-portafoglio-bondora.png

Apart from the automatic portfolio, Bondora also offers us another more powerful tool, called “Portfolio Pro”.

This allows us to choose with more precise parameters the loans we wish to absorb, and we like it because it increases our control on the product, and thus it lets us manage the risk better while always keeping an eye on the returns. The returns must always justify the potential risks connected to them. Of course, not even with Bondora it’s easy to calculate exactly the risks, so we’ll be even more cautious than in a normal situation. With social lending, it’s inevitable that some loans wont’ be repaid to us regularly and they will end up in the automatic system of debt collection but, taking into account the high returns, the balance will be more likely positive. Moreover, the system splits our investment into several loans, reducing even more the impact of possible debtors in default.

If however we let ourselves be tempted beyond a certain limit, then we’re looking for trouble. You’ll need this article precisely not to fall where many ignorant people fall, who are eager to invest and earn money immediately. To earn immediately you need to go to work, investing is not enough.

Bondora ensures to give credit only to those who will be able to pay the rates and it assigns a rating from AA to HR (going through A-B-C-D-E-F), where AA is the maximum of credit reliability, while HR means high risk.

The temptation is to select only high-risk loans and to try and obtain the promised 35% yearly return in interests. Since we’re doing this thing, let’s just do it…

Sadly, that’s not how it works at all.

Do NOT set up Bondora like this! HR means high risk, and high risk means possible default ad late payments. Follow my instructions to avoid risk.

Do NOT set up Bondora like this! HR means high risk, and high risk means possible default ad late payments. Follow my instructions to avoid risk.

Bondora assigns that rating and it applies that rate precisely because the likelihood that the subject won’t pay is high (HR). So let’s forget about all the loans that go beyond a D rating; normally I select only AA, A, B, C (D is borderline), because by adding E and F, the estimated returns don’t go up enough to justify the potential risk. I don’t think the HR to be an investment, avoid it.

As an added protective measure, let’s also reduce the length of the loans, as time is, too, a variable that increase the risks, and let’s only select the loans that will be repaid within 2/3 years. As a precaution, I don’t go beyond 36 months. Increasing the length of the loans to purchase often doesn’t proportionally increase the returns. Let’s also take into account that the estimates that Bondora does during this process are, precisely, estimates, and often not very reliable ones; in this case, however, they’re unreliable in a good way, as they are pessimistic. For example, in my case, for at least 50% of the portfolios I created, the “real” returns (after deducing the momentary losses) ended up higher than those estimated.

bondora portfolio example

Remember that you can create all the portfolios you want, what you shouldn’t do is to have them too different from each other, as it is discouraged to do that.

What happens instead by restricting too much the length of the loans during the selection, is that the speed with which we’ll obtain the loans in our portfolio decreases, too. This happens because the demand for good quality loans is extremely high and recently Bondora has changed the assignation policy in order to make everyone happy and not just the big investors. So if you’re in a rush to invest immediately, you should lengthen the loan duration to 36 months.

As a precaution, I bring the max investment per borrower up to around 20/40€, and not beyond that.

Avoid spanish loans, they can be problematic. Do what I say, just don't buy it.

I have noticed that by raising this limit we accelerate the process of portfolio building, basically we take a limit away for the system, making it freer to invest for us. Of course, fractioning is an added guarantee in these cases and raising too much this value increases our exposure in certain positions.

This is a perfect example on how to set a Bondora portfolio to lower risks and boost long term performance.

This is a perfect example on how to set a Bondora portfolio to lower risks and boost long term performance.

At the bottom, we find a “+” button that makes us add selection criteria to our portfolio.

  • The first one is “Bid Size”.

It is easy to understand that it makes you fraction the investment for each single loan in smaller pieces. You don’t need to select it under normal circumstances. Click on the red X to deactivate it.

  • The second one is “Portfolio Limit”.

If you’re building more portfolios, you can put a limit to how much will be invested in each of them. In this case, too, you shouldn’t select anything unless you have specific requirements.

  • The third one is “Share Cash Balance”.

This function allows you to leave a certain portion of money in the portfolio. If you select this function, you’re going to limit what is investible and re-investible in the future.

  • The last one is “Interests”.

The cursor can be moved between 1% and 275%. I recommend you not to move it because the range selection of the rating will do that for us according to the rating we have indicated above. It is useless to try and purchase loans with A/B or C rating and demand for a minimum of 30% in interests, so we don’t need that cursor.

Finally, by clicking on “Start investing” we instruct Bondora to purchase loans for us, precisely according to the conditions we have just set up!

You will notice most of the loans are 36 months. Not going beyond this duration is safer.

You will notice most of the loans are 36 months. Not going beyond this duration is safer.

We are now active!

We are investing in high-performance loans!

The money liquidated from the interests will be re-invested each time and will produce that exponential profit curve that is typical of compound interest.

Before continuing, I invite you to repay the effort and the research I have put in writing this article: just share this post! It costs you nothing, and it feels great for me! Thank you!

As you might have noticed, it is a really banal process and easy to set up, it however has the advantage of increasing considerably the control of what is bought. It isn’t guaranteed that all the loans with AA/A/B and C rating are infallible, but they surely have been considered safer than others and they make us start with the right foot and with amazing returns still. Amongst others, my portfolio has Estonian loans with B ratings with 18% returns, and others with A rating that pay 12%. My statistics are up to now are really, really good.

The global reviews on Bondora are good on trustpilot.com, so far. Bad reviews are mostly from adventurous users or people in rush to get out from a long term investment like this.

The global reviews on Bondora are good on trustpilot.com, so far. Bad reviews are mostly from adventurous users or people in rush to get out from a long term investment like this.

These data confirm that I made the right choices (for now), by not exposing myself to lower ratings and thus to higher returns, as I need as little as 10/15% on average, in order to balance risks and returns. Those (beginner users) who in the pasts have gone beyond that, tell that they had to wait a really long time before bringing home results that were proportional to the hoped-for returns. Some of those investors are still waiting to recuperate the credit on some old loans, and generally they write bad reviews on Bondora. You won't do the same, so be careful, resist temptation, and follow these instructions safely. In alternative to Bonder portfolio pro, advanced users with big volumes may rely on the interesting Jarmo Pertman app.

This is a short video showing how did I set up My Portfolio Pro in 1 minute. The aim is a very prudent setting with an expected yield above 10%

I’m writing this simple guide because it’s the one that I would have liked to find on the internet, when I came in contact with Bondora and social lending.

Those who will want to sign up from this link will receive 5€ from Bondora to start today and try it out. Those counting on invest more than 10/20k€ can contact me privately or just copy the safer portfolio shown above.

✋🏻Any questions? What is your experience so far?

This blog is purely for informational and educational uses, all investments, including real estate crowdfunding and p2p involves substantial risk of loss, it is very important to do your own analysis before making any investment based on your own personal circumstances. This website wants to build trust and it may contain affiliate link, please note that I have not been given any free products, services or anything else by these companies in exchange for mentioning them on the site. The only consideration is in the form of affiliate commissions  (disclaimer).

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NOTE: The indications contained in this analysis are to be considered mere information tools and do not intend to constitute in any way financial advice, solicitation to the public savings, suggest or promote any form of investment.