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April posted:I've had a few that are repeatedly late, some that are late once and never again, and so far, 2 charge-offs and one default that is likely to end up as a charge off. Here's my current note situation: What is the average age of loans on your account? That seems like a pretty young account based on those numbers.
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Apr 3, 2013 05:50
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quote:What is the average age of loans on your account? That seems like a pretty young account based on those numbers. I bought my first notes in November of 2011, so a few of them are about 1.5 years old. I started buying several every month in June of last year, so the majority of them are less than a year, and probably the greatest chunk are less than 6 months.
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Apr 3, 2013 12:56
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Anyone who received a 1099-OID from LendingClub for tax year 2012.. how annoying was it to account for tax wise? For example, does H&R Block/Tax Cut/whomever have a simple input for that just like a 1099-Int or is it more complex?
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Apr 11, 2013 03:26
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Ha, wait'll you need to write off your losses 
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Apr 11, 2013 03:34
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slap me silly posted:Ha, wait'll you need to write off your losses Based on the prospectus its a capital loss?
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Apr 11, 2013 04:20
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Did mine on TurboTax and the OID part was easy. I fortunately only had one loan go bad but I entered that in as a bad personal or business loan, something like that. This itself was a pain for the $19 capital loss but the biggest concern is if you are a big investor you can only realize $3,000 in capital losses per year. If you have a lot invested and have a high percentage of loans go bad (but still have a good return due to investing in a lot of D-E-F loans) you could be in the position of owing your marginal tax rate on your gains (good loans) and then not being able to deduct all of your losses resulting in a net loss from the operation. I'm not a tax expert but that seems to be the biggest draw back from investing too much in the platform. The IRS is yet to provide any guidance for P2P specifically but it seems like the general consensus is what I wrote above. Some people with big investments are pissed when they realize they can't just pay taxes on the sum of (gains-losses). e: You can carry your losses into future years but if you're a big investor you'll likely rack up losses over $3k every year going forward.
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Apr 11, 2013 09:34
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Saint Fu posted:Did mine on TurboTax and the OID part was easy. I fortunately only had one loan go bad but I entered that in as a bad personal or business loan, something like that. You have a misunderstanding of how that works. You can only realize $3,000 in capital losses in *excess* of your capital gains. Any capital losses offset any capital gains into infinity- its once your losses have passed your gain, you can only write off $3k against your normal income. The rest must be carried forward
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Apr 12, 2013 00:27
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Again I'm no expert but that would mean you need to realize $3k in capital gains first right? I don't think the OID gains from the P2P notes can be considered capital gains.
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Apr 12, 2013 00:40
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You're correct- the OID is recognized as ordinary income. However, greasyhands brings up two good points that 1) you may have capital gains to deduct against from other sources (selling shares of stocks, house sale, etc) and 2) those capital losses in excess of the $3k deduction cap are indeed carried forward. So basically, those capital losses still aren't the most beneficial way to be recognizing losses but its not all bad
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Apr 12, 2013 05:44
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OK I'm with you. This seems like a good reason not to get too heavily invested in this type of investment. For small timers like us, it likely doesn't matter but if you're up in the 5 or 6 figures and investing in low grade loans (which is a popular strategy since low grade notes with high borrower income seem to have consistently been the best performing loans), you are almost certainly going to have a lot of defaults. Sure you can carry the excess losses forward but you'd need equally large capital gains to avoid carrying over additional losses every year. As a long term investor, I do not expect to realize capital gains every year and so I have the incentive to keep defaults below the $3k threshold. I don't want to start carrying over more and more capital losses which I may never get to apply to realized capital gains, I guess until I retire or something. I suppose it's not worth worrying about when my total account is only $4k, just something I hadn't considered originally.
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Apr 12, 2013 06:16
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I've been following this thread for a few months and with a decent bonus and tax return this spring I decided to throw some money at it. I kind of wish there was more income verification on most of these. And how some of them get funded just boggles my mind. There was one where the description was like "I'm using this loan to cover my other lending club loan and also new credit cards" at like 80% funded, even with a few delinquencies. Anyhoo it seems less risky than stocks or online poker and I like vetting loans so I'm pretty happy with it so far.
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Apr 29, 2013 19:18
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I think a lot of the institutional investors just run filters without reading the comments. It seems like monthly income is the most important stat for them despite not being verified. It's pretty common to find $35,000 loans funded to 80% with less than 10 lenders when the income is over $10k/mo.
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Apr 30, 2013 11:34
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Saint Fu posted:I think a lot of the institutional investors just run filters without reading the comments. It seems like monthly income is the most important stat for them despite not being verified. It's pretty common to find $35,000 loans funded to 80% with less than 10 lenders when the income is over $10k/mo. I didn't look at the descriptions much beyond my filters because people can say anything they want. If you filter out the people with public records, delinquincies, super high DTI etc, I don't care why they want the money.
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Apr 30, 2013 16:07
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I agree and basically do the same. I used to read the comments and if they were well written and seemed somewhat intelligent then I'd favor them over AOL speak. I guess I still do if I take the time to actually read the comments but more often than not I trust the filters. On the other hand, I just had my second default and looking back on the comments they were completely retarded and I definitely shouldn't have invested.
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May 1, 2013 04:17
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Saint Fu posted:I agree and basically do the same. I used to read the comments and if they were well written and seemed somewhat intelligent then I'd favor them over AOL speak. I guess I still do if I take the time to actually read the comments but more often than not I trust the filters. The title is like the last filter for me. Once I've applied my normal filter and have a smaller subset, I will definitely avoid people who can't put together even the title and yet want 35k.
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May 1, 2013 15:56
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Saint Fu posted:I think a lot of the institutional investors just run filters without reading the comments. It seems like monthly income is the most important stat for them despite not being verified. It's pretty common to find $35,000 loans funded to 80% with less than 10 lenders when the income is over $10k/mo. Instituional investors get involved in peer lending?
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May 4, 2013 07:18
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Yeah it's a big complaint among small investors because the institutionals come in and suck up all the "good" loans before small investors can get to them. They run algorithms to continuously check for new loans and invest in them automatically. It was a big enough issue that LendingClub made a rule that no single investor could invest more than something like 80% of a single loan. You still have $35k loans being completely funded by less than 10 investors though. Of course this assumes that they actually know what the "good" loans are. Still there is a general consensus on a few key filtering criteria which are most important. To be honest, I don't know why the rates are still as high as they are because it seems like lately there is more demand for loans to be funded than people applying for loans.
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May 4, 2013 11:05
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Just signed up but since I currently reside in Arkansas I can only participate in Foliofn. Kind of a bummer. 
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May 5, 2013 15:29
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With stocks looking expensive, this seemed like an attractive place to invest so I opened up a LendingClub account last night. So far, I've only invested ~1/5th of the money I've put in, just because there weren't enough available loans to meet my standards. How often do more come in? I noticed some new ones this morning, so it can't be that infrequently, but are they processed daily in batch? Real-time? Anyone know?
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May 8, 2013 18:17
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Dr. Eldarion posted:With stocks looking expensive, this seemed like an attractive place to invest so I opened up a LendingClub account last night. I ran into the same thing, I usually check it every few days or so and there's usually a new batch of loans to pick through. Checking it every day and doing a "days left" sort would probably work as well and only take five minutes.
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May 8, 2013 18:23
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Dr. Eldarion posted:With stocks looking expensive, this seemed like an attractive place to invest so I opened up a LendingClub account last night. It's like 4 times a day, I believe their website lists the times. The largest batch I guess is at 6 AM PST.
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May 8, 2013 21:27
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Dazzleberries posted:It's like 4 times a day, I believe their website lists the times. The largest batch I guess is at 6 AM PST. I'm having trouble finding this on their website. If someone could find these times, it would save me (and I'm sure others) lots of effort of checking their website throughout the day.
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May 8, 2013 23:10
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Nifty posted:I'm having trouble finding this on their website. If someone could find these times, it would save me (and I'm sure others) lots of effort of checking their website throughout the day. Not from LC's website, but... http://www.lendacademy.com/lending-club-loans-being-snapped-up-quickly/ quote:As many investors know Lending Club adds loans to their platform in batches at 6am, 10am, 2pm and 6pm (Pacific time) every day. You can see these spikes in both graphs. The 6am addition is usually the largest as you can see but it also generates the most investment activity.
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May 8, 2013 23:55
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Thanks. Also includes the comment "Note that Times given are PST and that there are also two small additions of loans at 2 AM and 10 PM."
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May 9, 2013 00:13
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I only invest in about 1-3 notes per week with the filters I have set up. Don't be discouraged, it takes a while to get a lump sum deposit invested completely. Better to be patient since you'll be owning these notes for 3-5 years. No need to rush, that's when you start buying bad notes.
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May 9, 2013 01:20
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Thanks, all. I'll keep checking back at the refresh times. I'm not in any hurry to throw my money away, but it's hard to get a feel for what the best notes look like if all the good ones are snatched up before you ever see them.
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May 9, 2013 05:15
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At this point I'm checking several times a day and I'm not seeing any loans at all with verified incomes. I think the institutional money that uses the API are drinking our milkshake. :/
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May 14, 2013 20:29
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I thought I read somewhere that loans can get denied once it gets funded and it turns out the income listed is wrong. Who's to say if that gets checked for every loan though.
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May 14, 2013 21:28
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I'm a borrower as well as a lender and I had to verify my income by sending in my W-2 and 2 of my last pay stubs. This was after I was fully funded. I think I'm a B loan based on the interest rate. It is pretty awesome. I just needed a short term loan and the best I could get outside of lending club was 30%. My 16% beats that hard.
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May 14, 2013 22:13
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cheese eats mouse posted:I'm a borrower as well as a lender and I had to verify my income by sending in my W-2 and 2 of my last pay stubs. This was after I was fully funded. I think I'm a B loan based on the interest rate. Ha, cool that you can do both. I wonder if they frown upon taking a 20k loan with a low interest rate, and using it to fund higher interest loans? I know nothing about finance so it's probably dumb and risky.
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May 14, 2013 22:28
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Provided you have the means to make the payments on your 20k loan if all of your notes go tits-up I wouldn't think they'd have a problem; they're getting you coming and going.
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May 14, 2013 22:52
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Yea if you can afford the payments go for it, but it seems like a bad idea since the economy just isn't that great plus you can't pull your investment out early if you need it.
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May 14, 2013 22:55
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Oh yeah, it's a terrible idea. I just don't think the company would bar it.
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May 14, 2013 22:57
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Some people call it blending (borrowing + lending) and it's basically just another form of leverage. The toughest part would be investing that big lump sum immediately without compromising on your lending standards/filters. I mentioned before but it takes me a while to invest relatively small amounts, I'd be stuck paying the monthlies on the borrowed loan while I wait for the interest on my lended notes to start trickling in.
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May 14, 2013 23:42
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I just realized I haven't updated in forever, so here I am! Quick overview of my portfolio: quote:My Notes at-a-Glance (629) The one that is in default status has made payments the last 2 months that are larger than their minimum ($0.69 & $0.70, original payment is $0.58), so I think they made some kind of payment arrangement to pay extra for a few months & get it current. Of the 2 that are over 30 days late, one is filing Chapter 13 bankruptcy. I don't know much about bankruptcy AT ALL. Does that mean that they will pay back some or all of the loan, on some kind of modified plan? Or will it be written off? On the rest of them, I am still getting regular payments, and my payment history looks like this: quote:Payments to Date $2,759.61 Overall, I'm still very happy with LC. I found a couple more note-picking sites as well. nickelsteamroller.com is free to use, but I'm not crazy about their interface. p2p-picks.com has a fee structure based on how much you invest in the notes - 0.5% of whatever you spend (so about $0.13 on a $25 note). It's still in beta testing for a few more weeks, so it's free for now. What's interesting about this one is that the creator is claiming that he is using hedge fund strategies to pick notes. There are good reviews on sites like lendingacademy, so I'm playing with it now. Still buying a few notes every month out of pocket and reinvesting all earnings.
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Jun 5, 2013 21:00
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April posted:I don't know much about bankruptcy AT ALL. Does that mean that they will pay back some or all of the loan, on some kind of modified plan? Or will it be written off? Have you used nickelsteamroller's portfolio analysis? It's kind of a better way to gauge how you're doing. You upload your "all notes" file from LendingClub and it spits out the following: code:code:
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Jun 5, 2013 23:57
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Signed up with $200 just to see what happens. This is probably beating a dead horse but drat is Lending Club slow to let me throw money at them. Three days to verify my account and now close to a week to transfer funds into the account. Since I can't invest until the money gets transferred, I've been playing with the filters and I've come across a few loans that look like businesses asking for money - I could be wrong, but is that normal? I assumed it would be people trying to get their credit cards in order or someone trying to build that dream deck they've always wanted. Hopefully early next week my money will appear so I can play 
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Jun 9, 2013 04:49
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Yeah it really takes forever for things to happen with LC. The worst part is waiting for the loans to issue. They'll be fully funded and sometimes sit there a week before they are issued. It's worst right when you start since you only have a few loans anyway. I set up weekly $25 contributions so I always have some loans waiting to be issued, I never really look at the "in funding" notes anymore.
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Jun 9, 2013 14:14
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So what do you guys think of borrowing money from the likes of LC?
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Jun 9, 2013 19:59
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For Australians interested in p2p, keep an eye on societyone.com.au. Currently only open to industry and sophisticated (1mil+ assets, 250k income) investors, but apparently later this year they plan to open up to retail investors. They've got some pretty revolutionary phone-app stuff going on (on the borrowing side, haven't seen much about the lending interface), I guess time will tell whether that will make a difference in their popularity, but I'd be willing to bet it'll give them more of a shot than the other ones that seemed to have failed over the past few years (anyone know what exactly happened with iGrin?).
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Jun 16, 2013 02:43
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