In this article, you’ll hear directly from Lars Wrobbel, who is a Peer-to-Peer lending investor from Germany, and who is writing about Peer-to-Peer lending on his website at Passives Einkommen mit P2P-Privatkrediten (in German). I reached out to him recently and he agreed to answer some of my questions about Peer-to-Peer lending. Thanks again Lars, and I will stop right here so you can go straight to the interview. Enjoy!
Hello Lars! Can you tell us a bit more about yourself, and what’s your story (especially regarding investing your money)?
Sure I can. My name is Lars Wrobbel, I am 31 years old and I am a so called “Sidepreneur” which means, that I have a regular job (in my case i am an IT-Expert in a big German Company) and on the other hand I am an Internet entrepreneur. I published 4 books on Amazon, started an online fashion store for kids (www.smart-tiddler.de), wrote a popular German P2P-Blog and of course,I invest a lot of my money in things like P2P and shares.
What initially got you to invest in Peer-to-Peer lending?
I saw an Auxmoney web banner with a high yield number and click on it 🙂 The topic captivated me from the first second and that was the beginning of my P2P-Journey. P2P lending is a very fascinating and exciting form of investment.
Why do you think Peer-to-Peer lending is better than other ways to invest your money?
I don’t think, that its “better” than other investments. I think its a opportunity to make you own portfolio more valuable. For example if you have an ETF-portfolio, P2P lending is an excellent addition.
The usual argument against Peer-to-Peer lending is that there are no ways to be sure you will get your money back, as you are lending your money to people you don’t know. What do you answer to that?
This cannot be an argument against P2P. If you are buying other investments you also don’t know if you get you money back 🙂 But nevertheless people buy it, because some friends did this too 🙂 So, I think this argument is an excuse that people don’t need to bother with it.
How do you choose the loans you are investing in on Peer-to-Peer lending platforms?
I don’t choose the loans by myself. My portfolio-manager do this 🙂 I only pay attention to a healthy mixture from time to time. So, for example, I don’t invest only in HR (High Risk) loans. I adjust the portfolio manager to my own risk sensibility.
If you could share with us the number one strategy that’s working for you at the moment in Peer-to-Peer lending, what would it be?
There is no number one strategy in P2P Lending. You have to find and choose the strategy on your own and this decision should be mainly based on your risk sensibility. So, for me for example it is absolutely ok to see a drawdown of 50% of my portfolio, but other people will have a heart attack, if they see that 🙂
What is your favorite Peer-to-Peer lending platform at the moment?
I like Mintos very much, because there are so much opportunities and kinds of loans you can invest in and you can automate it completely.
Let’s say I am brand new to Peer-to-Peer lending. What is the advice you would give to a complete beginner?
Start with a low amount of money, invest manually and choose a platform that is very easy to use. With this strategy you learn more about P2P-investment, the loan default processes and the handling of investment. Look what is working for you and after a few month you can begin to automate your investment. In short: learn, invest, evaluate, repeat.
What are the best ways to get in touch with you? (website, twitter, etc)
If you have any question you can get in touch with me over my blog www.passives-einkommen-mit-p2p.de or over my FB-Page https://www.facebook.com/passiveseinkommenmitp2p/ and account https://www.facebook.com/lars.wrobbel. Recently I started the first German P2P community too, where you can discuss P2P topics with other investors. You find me there too: https://www.facebook.com/groups/p2pcommunity/.