If you are familiar with peer-to-peer (P2P) investing through sites such as Lending Club and Prosper, then you may be interested in learning about NSR Invest. The company provides a software service that works with major P2P lenders in helping investors on those platforms to better manage their portfolios.
NSR Invest will be particularly beneficial for people who want to invest in P2P loans, that don't fit the do-it-yourself investor mold, and prefer to have a generous amount of help and support in the process.
In addition to helping individual investors, NSR Invest also enables financial advisors to offer plug-and-play Marketplace Lending investment opportunities to their clients.
About NSR Invest
Based in Denver, Colorado, NSR Invest began operations early in 2015, through the merger of Lend Academy Investments and Nickel Steamroller. The company is a registered investment advisor, bringing innovative financial products centered around a private fund and individually managed accounts. NSR Invest now assists thousands of clients managing more than $100 million in P2P loan investments.
The company specializes in the investing side of P2P lending sites. P2P lending is sweeping the lending world, by bringing borrowers and investors together on the same platforms to create loans without using the services of traditional banks. That direct relationship is resulting in what are often lower interest rates for borrowers, yet higher returns for investors. The elimination of the “middle man” – a.k.a., the bank – makes that possible, because it eliminates the lending costs that are part of mainstream banking.
NSR Invest works to streamline the investment process for P2P investors. Investors on P2P platforms must sift through hundreds of loans in order to find those that meet their own personal lending criteria. They must also build a portfolio of loans – or slivers of loans referred to as “notes” – that will minimize their downside risk.
That's where NSR Invest comes into the picture. They provide the following resources to P2P investors:
- Proprietary credit algorithms that target a higher rate of return, while reducing default risk
- Auto-investing execution speeds allow faster access to the best quality loans
- The ability to make P2P lending a totally hands-off effort for the investor
- They provide a team committed to providing you with an “awesome experience” at every point in the investing process
In short, NSR Invest takes the mystery out of P2P investing, empowering you to improve your returns, while expending less effort in the process. They act as an investment management service for P2P investing, which frees up your time for better things.
Due to regulatory issues, NSR Invest is not yet available in the following nine states: Alabama, Maryland, New Jersey, New Mexico, North Carolina, North Dakota, Ohio, Pennsylvania, and Tennessee.
How NSR Invest Works
NSR Invest works with Lending Club, Prosper, and Funding Circle, and you can add those platforms to your NSR Invest platform right from the NSR Invest site. The site has full API integration with all three P2P platforms.
Fully-managed accounts. As the name implies, these accounts are directly managed by NSR Invest. They provide higher target returns, with lower target risk and volatility, all with a hands-off investment strategy, that requires little effort from the investor.
Fully managed accounts provide three account strategies:
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- Conservative – this strategy targets a 5% net return (after fees and expenses)
- Balanced – this strategy targets a 7% net return
- Assertive – this strategy targets a 10% net return
As of October 31, 2015, NSR Invest has achieved net performance of 5.48% on the Conservative strategy, 10.44% on the Balanced strategy, and 11.42% on the Assertive strategy. If these are better than the returns that you are now getting through your investments with Prosper or Lending Club , you need to check out NSR Invest.
Self-directed accounts. With these accounts you can choose to either use pre-built NSR Picks credit models, or fully customize your own investment strategy. You can also use a combination of methods.
Minimum account balance. Fully managed accounts require a minimum of $10,000. Self-directed accounts require a minimum of $5,000.
Accounts with NSR Invest can be canceled at any time, but require 14 days notice.
NSR Invest Features and Benefits
NSR Invest offers several advantages to the person who wants to invest in P2P loans, but either doesn't fully understand that process, or doesn't want to put in the time and effort that are necessary to build a large, well diversified portfolio of loans and notes, especially across several P2P platforms.
Back-test filter. This tool allows you to create and test your own filtering strategies. And once tested, you can use these strategies to create an auto investing capability.
Pricing and fees. NSR Invest charges fees only on the amount of idle cash and any investments made by NSR Invest, and only then when the aggregate balance of your account exceeds $20,000. For example, let's say you have $100,000 in cash, and $50,000 in notes invested through Lending Club before signing up with NSR Invest. The fee would be charged only on the $100,000 in uninvested cash, and not on the existing $50,000 in notes that you already hold.
There are no setup fees of any kind when you begin the program. The annual fee on self-directed accounts is calculated on an account-by-account basis, and uses a mathematical equation to determine specifically what that will be. No estimated ranges are provided.
On Fully Managed Accounts, the annual fee is 0.60% of the account balance.
IRA and Trust accounts. You can set up an IRA through NSR Invest, and even roll over an existing 401(k) account into the IRA. You may also be able to set up a trust account, depending on the P2P platform that you are working with.
P2P Fund. This is something of a mutual fund for P2P investment platforms that is available through NSR Invest. The fund invests in loans originated by Lending Club, Prosper, Upstart, and Funding Circle. The fund targets a 10% net return after fees and expenses.
The minimum to invest in the fund is $250,000 – you must be an accredited investor in order to invest in the fund. The fund charges an annual fee equal to 1.5% of the investor's account balance, charged on a monthly basis (0.125%).
Will NSR Invest Work For You?
If you have been attracted by the interest rate returns on P2P loan investments – and who wouldn't be – you may want to consider doing it through NSR Invest. The service can handle investment selection for you, as well as the execution of purchases and the maintenance of your portfolio.
P2P investing can be highly rewarding, but it does require a considerable amount of time and attention. NSR Invest can remove that burden from you, and help you to best accomplish a low risk, high return portfolio balance.
If you have been toying with the idea of investing in P2P loans, or you are already doing it now but finding it tedious and time-consuming, give NSR Invest a try. Whether you are ready to invest 20,000 dollars or need to know what would be the best way to invest 500000 dollars, Good Financial Cents is here to help you!