I was wondering if its possible to sell whole portfolio to another person using options outside the Omaraha website. Simple buy/sell contract? It has to possible to transfer the account from one person to another! What if I die? My heir has to be able to control my account so it has to be possible to transfer the account. Is it possbile?

Developing a secondary market is an excellent idea. I am sure many clients look forward to it.

vlk494, you mentioned opening a secondary market is in your plans, but not yet in development. Could you give us some kind of an estimation when might it be sent into development and when might you finish developing it.

This information is vital in terms of how much money are investors willing to invest here. An ability to quickly liquidate investments should make investors invest more.

player1
vlk494, you mentioned opening a secondary market is in your plans, but not yet in development. Could you give us some kind of an estimation when might it be sent into development and when might you finish developing it.

I cant say the exact time, but it's not going to happen this year.

I can buy up to 100K EUR of loans if Omaraha agrees to transfer them manually to my account!

player1
Developing a secondary market is an excellent idea.

Maybe I'm the only one who thinks it's actually a bad idea to open up a secondary market. But let me explain, why I hope secondary market doesn't get realized here.

Look at what happened at isepankur/bondora. Certain people started buying every loan on the primary market for ridiculous low interest rates. Not to keep the loans and earn the interest, but instead just to resell these loans with a bonus on the secondary market. The traditional investors then can't get invested on the primary market with sound interest rates. They only have the choice between buying loans with low interest rates on the secondary market and pay an additional bonus doing so or not getting invested at all.

In the short run this may seem appealing to omaraha, due to the additional transaction fees earned. In the not so long run the real investors will turn their back on omaraha and when they are gone those resellers will abandon ship too, since there's no one to sell to anymore. Plus, since omaraha gets 20% of interest, they will get hurt by the falling interest rates when the resellers start underbidding on the primary market.

If you don't believe me just watch whats happening on bondora these days. I don't think it will take too long, till bondora starts going down with their current business-model.

If transfer of loans is needed in special cases like bancruptcy of an investing company or someone needs to get rid of an entire portfolio and wants to transfer it to another person in one whole chunk, then this should be handled manually. If you establish an automatic secondary market platform that allows regular trading of single loans, then I bet you will get the same problems bondora is facing these days…

DanielJ, a secondary market is the MUST for every modern P2P platform offering long-term loans. Just take a short tour around the leading P2P platforms and count the number of platforms without secondary market.

Why do we need it? Liquidity.

I want to quit and liquidate my investments. But I cannot. I will have to wait for 2 and a half year at minimum.

Analitikas
DanielJ, a secondary market is the MUST for every modern P2P platform offering long-term loans. Just take a short tour around the leading P2P platforms and count the number of platforms without secondary market.Why do we need it? Liquidity. I want to quit and liquidate my investments. But I cannot. I will have to wait for 2 and a half year at minimum.

As I wrote: I don't see a problem if Omaraha creates an option to transfer whole portfolios from one investor to another. That would solve the cases, where an investor needs to get out of his omaraha-investment.

But if omaraha creates a platform to let you break down your loan-portfolio and resell small sized chunks of it, then investment will turn into speculation here.

Me for my part (and I believe actually most of the other current investors here) have no interest in speculation. We are in here for a sound investment, that offers a good rate of return in the long run. We don't invest money into loans, just to resell them a few months further down the road. So “we” don't need Liquidity.

One of the basic rules of investment: Don't put money into risky or long-term-investments, if you can't afford to lose it or may need it on short notice. So don't blame omaraha for not realizing an option to liquidate your portfolio, just because you suddenly realize you need the money you shouldn't have put in here in the first place.

PS: There are still quite a few P2P platforms without a secondary market. And as I stated above: I don't see a secondary market as a must, if you target investors instead of speculators.

I believe my investment portfolio is well-diversified (alternative and mutual funds, individual stocks, ETFs, personal loans, P2P loans) and portion in P2P platforms are less than 20%.
Nevertheless, I have decided to move Omaraha's portion to other P2P platforms as the performance of loans are not as great as I have imagined given their previous track record.

I have read and accepted the risk of liquidity, but I have also read Omaraha's representatives posts about their willigness to create a secondary market.

I do agree with you that Bondora's system is not perfect and there are many speculators, but their willigness to minimize liquidity risk is a great plus for them.

Well, let me sum it up in two sentences: If liquidity comes at no costs, then it's a plus. But if it costs ( and I expect it will cost a lot, as it will soon ruin the return rates) then that plus is by far outweighed by the negative impact.

I can understand your point of view. Since you want to move away from omaraha anyway, you will not be affected by the drop in future returns here. But for anyone who wants to keep investing here, establishing a second market is a bad idea.

Analitikas
Nevertheless, I have decided to move Omaraha's portion to other P2P platforms as the performance of loans are not as great as I have imagined given their previous track record.

I am surprised… for me Omaraha is currently performing much better than any other P2P platform in Estonia, although I have taken exact same approach in all 3 available.
Bondora does not have enough quality loans available in Estonia and other countries have way too high default rate.
MoneyZen has just started and its difficult to draw any long term conclusions but their interest rates are much lower than here.
Omaraha on the other hand, for me… creme de la creme at the moment and last 6 months, I hope I am not jinxing myself now - touch the wood.