My opinion on Envestio
Envestio’s pros & cons
- Very interesting interest rates
- Projects in various domains
- New projects are added regularly to the platform
- Ability to sell back your investments to Envestio
- Many ‘secured loan’ type projects, where 90% of the investment is secured
- The platform is very young
Real-estate and business loans
There are currently seven active projects at Envestio, and more than fifteen exited projects. Although most projects seem to be rather short-term (less than 6 months), several are longer than one year. Returns typically range from 15% for real-estate projects to more than 20% for more speculative projects like crypto mining.
New projects are added regularly; several new projects are financed through the platform each month.All investments are made in Euro, and the minimal amount is €1.The involved amounts are rather large; currently the smallest projects needs €100 000, while the largest requires a whooping €500 000.The projects can be broken down into four categories :
- Other (usually industry-related)
The projects are usually well-detailed; what is missing is a risk assessment like the one provided by CrowdEstate for its investments.
An interesting aspect is that borrowers usually pay interests monthly; check the detailed payment schedule for each project.Overall, I really appreciate the diversity of the investment opportunities that Envestio offers; moreover, the interest rates look very interesting.
There’s no buyback guarantee on loans; the term buyback actually appears on the website, but it relates to the opportunity to sell your investments back to the company (see below).However, depending on the project’s type, the investor may get back most of his funds in case the borrower defaults. Indeed, for secured debt projects, at least 90% of the investment amount is secured; see this post on Envestio blog for further details.
Envestio apparently plans to finance only this kind of projects in the future; that would be great news as it would mean an increased safety for investors.Also, Envestio already converted several subordinated loans into secured loans; this added safety came at no cost for the investor. That’s the kind of move I truly appreciate as it shows a real commitment to investors’ safety !
There’s no actual secondary market; however, Envestio offers to buy back your investment at any time. The associated cost usually seems to be 5% but may vary from one project to another. As usual, I strongly advise you to invest only funds you’re not planning to need !
It’s easy to invest manually at Envestio. Investors are notified of new projects by e-mail; as they’re rather large, there’s enough time to invest manually. The process is straightforward; the only improvement I would suggest would be to add a confirmation of the invested amount.
Envestio currently doesn’t offer opportunity to auto-invest; however, as the loans amounts are large and new projects aren’t too frequent, it’s hardly a necessity. Moreover, unlike P2P loans, I really prefer to be able to study real-estate and business loans before I commit my money !
Website’s ease of use
Envestio‘s English version is basically perfect.
Registration process & account funding
Signing-up to Envestio is really trivial. It took me less than one minute to fill up my name, birth date, country of residence. One click one the confirmation e-mail later and I was done ! Overall, registering is very straightforward.Funding my account was also fast and easy. The only supported method is via SEPA transfer.
Website’s design and ergonomics
The website is rather complete and overall well-designed. I initially had concerns regarding the investment process itself, as it involved browsing through several screens in a very counter-intuitive way. Fortunately, this aspect has been greatly improved. All I regret now is the lack of a confirmation when investing; make sure you input the right amount before validating !
As a side note, I appreciated the useful FAQ which is rather extensive and refreshingly free of marketing gimmicks : “Should I Really Invest Solely Through Envestio? No. Investments through crowdfunding platforms remain risky ones, so you should not invest your entire savings in high-earning projects.”.
Reporting is rather basic but adequate for the small number of projects. I appreciate the handy chart showing the diversification of investments by sector. You can also see your paid interests climbing nicely, which is always a pleasant sight for investors 🙂
Also, the dashboard displays accrued interests for each project, which is a nice touch !
There’s a live chat available on Envestio‘s website, as well as an e-mail contact address and phone number available; I got in touch with them using the chat after my transferred funds didn’t appear on my Envestio account. After a quick chat and an e-mail to their accounting department, they solved the problem and credited my account. The whole process took less than five minutes and I was impressed by their efficiency.
Actual performance of my Envestio portfolio
Although my portfolio is only a few months old, I can publish a rather realistic XIRR. Indeed, all projects pay interests monthly. At the end of September 2018, the value for the XIRR was 14.8%.
It’s lower than expected, because the portfolio is recent and some projects yield interest at the start of the month. Right after most interests were paid, my XIRR actually reached 17.4%, a result much closer to the expected one ! As time goes by, however, these discrepancies will naturally disappear.
Grupper and CrowdEstate have been there for longer; their track record is very solid. However, Envestio’s very high returns make it a tempting choice for investors who are ready to take a bit more risk. The partial guarantee offered by secured-debt loans is a very strong selling point, and will probably help reluctant investors to jump on.
Crowdestor is actually very similar to Envestio, but the company seems a bit less dynamic, with less new projects.
EstateGuru also offers both real-estate and business loans, but their projects are much more conservative, yielding around 11% yearly
Finally, BulkEstate only focuses on real-estate; apart from EstateGuru, their returns are usually the lowest among these companies, making their projects less speculative.
Envestio’s facts and figures
Number of investors2 432
Loans amount financed€ 6 626 931
Who can invest
Please note that this review may contain affiliate links. It means that I will earn a commission if you decide to invest after clicking through the link – at no additional cost to you, of course -. Please understand that I have experienced all of these companies, and I recommend them because they are helpful and useful, not because of the commissions I make if you decide to invest through my links.