It’s time again to provide an update on my experiences with Estateguru. Since my last post, in which I reported that nearly 38% of my investment amount had defaulted, the situation has worsened. Currently, 39.69%, almost 40%, of my portfolio has defaulted. It should be noted that I am not currently investing in new projects, so the number of invested projects is decreasing due to completed projects, while the number of defaults has increased. In March, there were 63 defaulted loans, and now there are 84. Despite the fact that some projects have been successfully recovered, the number of defaulted loans remains high as additional projects have defaulted.
Estateguru recently announced that they have recovered a German project. This is a positive development, as it shows that Estateguru is actively working on recovering defaulted loans. However, it remains to be seen how this will impact my portfolio. And if they send an email about a recovered project, it also shows that this is still unusual, right?
In the past, I have already expressed my concerns regarding the long waiting times for loan recoveries. My oldest case is now 600 days old, and it seems there has still been no concrete progress. This is, of course, frustrating and contributes to the uncertainty. While it’s clear that it is currently difficult to recover a claim, my trust in the Collections department has significantly decreased. I am not currently investing new money in Estateguru and am instead withdrawing funds as loans are repaid. So far, I have reallocated almost a quarter of the money I invested there, but only the amount that has been repaid so far.
It’s important to emphasize that P2P investments always carry a certain level of risk. Although Estateguru is taking steps to minimize this risk, such as conducting due diligence and using real estate as collateral, there is no guarantee that loans will not default. My current strategy is to see whether they can recover the defaulted loans in Germany faster. If they succeed, I would consider reinvesting the repaid money there.