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Yeah I put a decent chunk of the tax return into my account to let AI handle it and it doesn't automatically invest everything right away, seemed to spread it out over a few weeks. Or my filters are too strict and there wasn't enough to buy at the time. If you're putting money in for the first time I'd cherrypick the first few loans to see what kind of stuff is out there and to get a sense of the filters you may want to use for Automatic Investing, otherwise you can just set up the filters from however long ago in this thread.
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Jun 24, 2015 18:18
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mrmcd posted:I've stopped even caring about individual defaults at this point. I basically just check in every now and then to make sure the rate is under 5%. Once you get several hundred notes being reinvested through AI, the impact of any one $25 slice isn't a problem. I've got around 380+ notes. One note become a bad debt isn't a big deal. The net monthly income is around $125/month. I've checked the individual slow payers and they're mostly just a payment behind although there's one that I think is just keeping up with the interest payments. Versus about 26 notes worth of loans where they repaid early.
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Jun 24, 2015 22:05
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Is anyone using LC's auto investment or is it mostly folks using IR?
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Jun 25, 2015 03:22
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God I wish I could get in on this in TX. I've tried to understand how to do the investing thing and it just doesn't make sense to me. Am I stupid for not spending more time trying to understand it?
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Jun 25, 2015 17:14
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lord1234 posted:God I wish I could get in on this in TX. I've tried to understand how to do the investing thing and it just doesn't make sense to me. Am I stupid for not spending more time trying to understand it? Specifically P2P lending or investing in general?
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Jun 25, 2015 22:12
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Long time no see, thread! A quick update.... I currently have 1641 open notes (1009 were paid for out of pocket), with a weighted average rate of 12.41% profit according to Lending Club. I have had 116 notes default, and 450 pay off. I have 27 that haven't been issued yet, $227 in available cash, and current gross income of $1339.53, of which, about 22% is interest. My notes at a glance shows a total of 2234. I have received $31,172.54 in payments (total of principal & interest). I'm very much not a mathematician, so I'd like to make an offer to the thread. My filters are fairly OK, but as always, I'm sure there's room to improve. I developed them using the broadest, most obvious data points (for example, 60 month notes default at a much higher rate than 36 month ones). I would like help from someone with a much better understanding of statistics or whichever version of math would do this, and I know that there are some of you on here. Therefore, I'm posting a link to my extended note information. There's info in there on a couple of thousand notes: https://www.dropbox.com/s/4ivlnmhih3hklwi/lendingclubnotes_ext.csv?dl=0 As a reminder, here are the filters I've been using: https://www.interestradar.com/analy...&HideInvested=1 Thanks to everyone who takes the time to look this over!!
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Jun 29, 2015 17:12
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Also, has anyone seen this? https://www.lendingclub.com/business/ I just found it, and so far, I haven't found any information on investing in the business loans.
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Jun 30, 2015 13:38
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As someone who works in Standardized Risk, it's very hard to standardize business loans.
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Jun 30, 2015 14:25
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LorneReams posted:As someone who works in Standardized Risk, it's very hard to standardize business loans. Would you say it's risky? Risky business?
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Jun 30, 2015 15:55
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chemosh6969 posted:Would you say it's risky? Risky business? Hard to model.
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Jun 30, 2015 16:33
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LorneReams posted:Hard to model. Whooooooooosh!
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Jun 30, 2015 16:34
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Although to be fair that was dad joke quality humor.
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Jun 30, 2015 16:35
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Just got an email from LC saying they are now available for investors from Texas, along with a promotion for FREE MONEY*. Now that the door is apparently opened for me, how complicated tax-wise does personal lending actually end up being?
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Jun 30, 2015 19:01
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SpelledBackwards posted:Just got an email from LC saying they are now available for investors from Texas, along with a promotion for FREE MONEY*. Now that the door is apparently opened for me, how complicated tax-wise does personal lending actually end up being? I personally don't think it's that complicated. You will receive a 1099 for the interest portion of the payments you receive, and another form that I can't remember off the top of my head for losses. I use taxact to file my taxes, so I just log in, and enter the information exactly as it appears on the form. The paperwork from LC even tells you which documents go to which form.
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Jun 30, 2015 19:07
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I'm not sure if I'm doing it right, but I go in and enter the details of each defaulted loan as a capital loss. Kind of a pain but only takes me 30-40 minutes.
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Jun 30, 2015 19:16
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Saint Fu posted:I'm not sure if I'm doing it right, but I go in and enter the details of each defaulted loan as a capital loss. Kind of a pain but only takes me 30-40 minutes. That's how I did it too. Tedious, but not complicated.
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Jun 30, 2015 19:17
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For losses, I actually dug up a PDF lending club made for tax forms. There's like a sub-form you can enter where you just put a summary of losses then attach LC's generated summary with losses itemized, rather than enter each one by hand.
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Jun 30, 2015 20:21
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Has anyone else seen a huge jump in invested notes through the LC automated investing? After rarely logging in for months, just checking my account balance every few weeks, I opened up the automated investing page and looked at my allocations trying to decide if I needed to change them because my cash had been building up with very few new notes purchased. Maybe 1-2 per week. I decided not to do anything and wait it out longer. Now, 1-2 weeks later I have 19 notes pending fulfillment. I remember this happening last year sometime too. My cash was building up, I said WTH and looked into it but didn't change anything, a few weeks later all my cash was quickly invested by the automated investment mechanism. Weird.
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Jul 15, 2015 22:24
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Saint Fu posted:Has anyone else seen a huge jump in invested notes through the LC automated investing? After rarely logging in for months, just checking my account balance every few weeks, I opened up the automated investing page and looked at my allocations trying to decide if I needed to change them because my cash had been building up with very few new notes purchased. Maybe 1-2 per week. I decided not to do anything and wait it out longer. I switched from IR to Bluevestment (IR will be shutting down in the next few months), and I noticed the same thing, but chalked it up to a different system. Interesting.
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Jul 15, 2015 22:45
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April posted:I switched from IR to Bluevestment (IR will be shutting down in the next few months), and I noticed the same thing, but chalked it up to a different system. Interesting. Bluevestment looks to be significantly cheaper for my account.. whoops wish I hadn't just signed up for a year of IR a couple weeks ago
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Jul 17, 2015 23:14
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Is Bluevestment legit? I tried to sign up and after linking my LC account info, entering a credit card, I check the "yes" on the TOS and click register only to have a pop up tell me "Unable to Register - OK." I emailed about it to the site's contact email and the (apparent) owner tells me that in order to debug it he needs to enter my info, including credit card. Presumably to run the registration as me to see what's going on. Still, asking for my CC info triggers all sorts of warning bells in my head.
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Jul 20, 2015 17:25
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I'm thinking about starting to invest on Prosper (since I'm in Oregon) and I'm curious what your guys' long term goals are with this. Is there a point where you stop reinvesting 100% of your revenue back into notes and start cashing out to reinvest elsewhere? I don't imagine I'll be doing more than a few hundred dollars per month, but I'm curious where you guys think there might be a point of diminishing returns in regard to risk/reward. I mean, April, if you get to the point where you're being paid out $25k per month will you still reinvest 100% of that back into notes? Also, when you guys talk about how much money you've invested in notes are you talking strictly about how much you've transferred from your bank account? Or does that include money you've reinvested from the amount LC pays you each month? Is it even useful to make this distinction?
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Jul 28, 2015 23:50
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I will likely stop putting in more money if my country goes into a downturn (which is looking likely at the moment) as this is all unsecured personal debt. If a lot of people lose jobs then defaults will be driven up, as has happened with other P2P lending sites. The other limit is if it is not possible to reinvest money due to their being insufficient loans that meet my lending policy. When I refer to money invested I mean total principal so that would include reinvested interest. My total principal is $10,480 after 9 months and I've ramped up slowly over that time putting $10k in. That is after fees, tax and bad debts. I started out pretty slowly as well but I won't have a good picture of performance until I've been in as long as April. The risk reward balance you have to figure out for yourself and what you can tollerate. Some people don't think it's worthwhile, some do.
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Jul 29, 2015 00:39
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Inspector 34 posted:I'm thinking about starting to invest on Prosper (since I'm in Oregon) and I'm curious what your guys' long term goals are with this. Is there a point where you stop reinvesting 100% of your revenue back into notes and start cashing out to reinvest elsewhere? I don't imagine I'll be doing more than a few hundred dollars per month, but I'm curious where you guys think there might be a point of diminishing returns in regard to risk/reward. I mean, April, if you get to the point where you're being paid out $25k per month will you still reinvest 100% of that back into notes? I've slowed down a bit on new deposits, as I've had some new circumstances come up (oldest kid going to college, had to replace a vehicle). That said, for now, I'm 100% reinvesting. My plan is to get enough notes to give $X in interest income every month, then reinvest only enough to maintain that number of notes. As Devian said, however, if it looks like the economy is making GBS threads the bed, I will probably do something like reinvest a percentage, and pull out a percentage, every month. I consider the money invested what's come out of my bank account, but I actually don't look at that number as much as monthly interest, number of notes, etc. Also, CaptainCrunch (sorry I didn't answer you earlier), I've been in BlueVestment for a few weeks now, and it seems to be legit. I don't think they filter as deeply as IR, but I think that IR is still in the process of integrating with them, so there may be more options in the future.
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Jul 29, 2015 13:04
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My plan is pretty much the same as April's but I'm not currently adding fresh money from my bank account. Just reinvesting 100% (assuming there are notes available that match my auto-invest criteria). Overall I plan on keeping the total account value at a certain percentage of my total portfolio so if/when it starts to fall below that percentage, I may add more capital. My end goal is to have this be another income producing stream for whenever I decide to retire. At that point, I'll either start withdrawing interest received while maintaining a static account balance or maybe just keep reinvesting 100% and withdraw from other income producing accounts. That's at least a decade away at this point though so by then I'll have a better feel for how reliable the income might be and make decisions accordingly.
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Jul 29, 2015 14:12
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How likely do you think it is that Lending Club is even around in two decades or so?
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Jul 30, 2015 01:49
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ohgodwhat posted:How likely do you think it is that Lending Club is even around in two decades or so? Pretty difficult to say. I think there's a reasonable chance that some p2p sites will cease to exist. Some might survive and some might become the next big thing. Although this is where don't invest your entire life savings in p2p lending is important. e: However the flip side of p2p lending may be how many of the traditional banks will continue to exist in their current form with the rise of p2p lending. http://www.lendingmemo.com/wells-fargo-peer-to-peer-lending/ Devian666 fucked around with this message at 03:19 on Jul 31, 2015 |
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Jul 30, 2015 02:13
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So fun fact, I just decided to finally give this a shot as I have a really good salary these days, but I'm maybe moving to Kentucky soon. I did some reading about requirements and apparently to join Lending Club in Kentucky you must be an accredited investor. What this means, according to the commonwealth of Kentucky and the United States of America, is that I must have a net worth of over a million dollars (not including the value of my home). OR, I can just have a salary of > 200,000$ and have collected this salary for the past 2 years. So, yeah. That was fun.
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Aug 7, 2015 23:54
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pathetic little tramp posted:So fun fact, I just decided to finally give this a shot as I have a really good salary these days, but I'm maybe moving to Kentucky soon. I did some reading about requirements and apparently to join Lending Club in Kentucky you must be an accredited investor. What this means, according to the commonwealth of Kentucky and the United States of America, is that I must have a net worth of over a million dollars (not including the value of my home). OR, I can just have a salary of > 200,000$ and have collected this salary for the past 2 years. You pathetic little tramp, don't you know that the SEC doesn't check up on that? (Also, that since LC went public, my understanding is that AA status is no longer required).
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Aug 8, 2015 03:48
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pathetic little tramp posted:So fun fact, I just decided to finally give this a shot as I have a really good salary these days, but I'm maybe moving to Kentucky soon. I did some reading about requirements and apparently to join Lending Club in Kentucky you must be an accredited investor. What this means, according to the commonwealth of Kentucky and the United States of America, is that I must have a net worth of over a million dollars (not including the value of my home). OR, I can just have a salary of > 200,000$ and have collected this salary for the past 2 years. It's as if the US hates capitalism.
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Aug 8, 2015 03:51
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pathetic little tramp posted:So fun fact, I just decided to finally give this a shot as I have a really good salary these days, but I'm maybe moving to Kentucky soon. I did some reading about requirements and apparently to join Lending Club in Kentucky you must be an accredited investor. What this means, according to the commonwealth of Kentucky and the United States of America, is that I must have a net worth of over a million dollars (not including the value of my home). OR, I can just have a salary of > 200,000$ and have collected this salary for the past 2 years. The accredited investor thing makes sense if you're entering the world of venture capital, which is why it was written. P2P lending is a pretty new concept and accredited investor is irrelevant to it, but laws move really slowly.
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Aug 8, 2015 13:58
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April posted:Also, CaptainCrunch (sorry I didn't answer you earlier), I've been in BlueVestment for a few weeks now, and it seems to be legit. I don't think they filter as deeply as IR, but I think that IR is still in the process of integrating with them, so there may be more options in the future. So if we were to sign up for one, it makes more sense to sign up with BlueVestment rather than InterestRadar? Seems weird that the link to the full press release on IR's site just links to a main landing page on BlueVestment's site, but I guess that's just lazy link curation.
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Aug 10, 2015 05:41
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baquerd posted:You pathetic little tramp, don't you know that the SEC doesn't check up on that? (Also, that since LC went public, my understanding is that AA status is no longer required). People also said a "blue sky exemption" would allow lending in every state. Well guess what?
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Aug 10, 2015 05:45
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Has anyone messed with Lending Robot? It's free if you're managing less than $5k with it. The automated rules make it seem like you can set some pretty strict standards (though there's nothing for "borrow uses complete sentences, punctuation and proper grammar").
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Aug 11, 2015 18:39
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Why not just continue to hand-pick the notes but put more per note? How much does diversifying into an extra note after 100 really reduce your risk? Would probably save you time on bookkeeping too! Now if we presume that p2p loan market isn't efficient, hand-picking reduces your default-rate-to-interest ratio and ergo you could probably earn more return on your capital. On the other hand if you really hate hand-picking I guess then it makes sense to automate it. I just got into this thing and I love going through loan applications. Maybe I'm just a weirdo but it's a fun hobby. 
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Aug 13, 2015 06:58
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Keisari posted:Why not just continue to hand-pick the notes but put more per note? How much does diversifying into an extra note after 100 really reduce your risk? Would probably save you time on bookkeeping too! Now if we presume that p2p loan market isn't efficient, hand-picking reduces your default-rate-to-interest ratio and ergo you could probably earn more return on your capital. How much time does it take to do by hand? I'm taking a timid start at this with $2,000.
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Aug 13, 2015 15:40
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Wizzle posted:How much time does it take to do by hand? I'm taking a timid start at this with $2,000. Depends how strict you are, it took me a couple weeks with $1500 when I first joined. I forget the days they add notes but they probably get run through everyone's automated investing filters before showing up in the pool, so feel free to cherry pick and not invest it all in the first day.
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Aug 13, 2015 17:21
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Charge offs... Charge offs everywhere... Still raking 8.5% but I imagine when I'm done that number will be closer to 5%.
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Aug 13, 2015 18:44
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I've got my first "In Grace Period" note on LendingClub. Now I can look at how many times they call the borrower.  He missed his first payment, back in January, too!Is this when some people would try to sell the note?
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Aug 27, 2015 05:33
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CPColin posted:I've got my first "In Grace Period" note on LendingClub. Now I can look at how many times they call the borrower. I got my first one too this past week. It made me start to wonder about the secondary market. Does anyone have any experience delving into that side of LC?
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Aug 27, 2015 06:57
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