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I have never used prosper nor tried to sell notes, but you might as well try to sell them now if you're intent on dumping them. There are people in states who can't buy directly from Prosper/LC and rely on the secondary market. They might take them off your hands for face value. The other option is to just hold onto them and see how they do. How many notes are we talking here?
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Mar 7, 2014 21:42
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| # ? May 17, 2024 14:27 |
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Ever since Nickelsteamroller stopped sending automated emails when notes hit the platform that match my filters, I've been lazy and let my cash pile up. I just discovered that LC now offers Prime autoinvesting for free if your account is over $5,000 so I'm going to give that a whirl. Has anyone else used Prime?
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Mar 12, 2014 14:07
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Saint Fu posted:Ever since Nickelsteamroller stopped sending automated emails when notes hit the platform that match my filters, I've been lazy and let my cash pile up. I just discovered that LC now offers Prime autoinvesting for free if your account is over $5,000 so I'm going to give that a whirl. Has anyone else used Prime? I haven't used Prime, but from what I've seen (at, admittedly, a brief glance), it looks like they have improved the features quite a lot, and are giving you more control over how your money is invested. If I remember correctly, you used to just be able to basically choose a note grade, and it would allocate everything based on that. It looks like you can use more filters now, and also limit the amount put into each note. I would want to see EXACTLY how much filtering you can do, and if you can keep to the $25 minimum per note before deciding. ETA: Just saw this at the bottom of the Prime screen: "If you place orders for Notes more frequently than once per week or use multiple filters, the PRIME service may not be right for you." So personally, I wouldn't use it.
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Mar 12, 2014 15:19
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You can choose $25 min notes and apply filters saved in the usual LC browse notes section. It looks like most of the important categories are there, unfortunately you can't fine-tune the filters as much as you could on other sites. I'll give it a try for a month or so and let you all know my impressions.
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Mar 12, 2014 15:28
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I'm on the other side of the glass with Lending Club. I just submitted an application to consolidate my grad school debt (a sizable amount, but not the max) and it's 100% filled by one investor, even through the application is still under review. Is that unusual?
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Mar 21, 2014 19:00
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What's your interest rate? The demand from lenders seems to be growing much faster than the supply, it isn't uncommon for a "desirable" note to be snapped up by a single or handful of investors. Most likely an institutional investor.
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Mar 21, 2014 19:03
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It's a 5-year at 13.65%, which is about half of what my current APR is on the amount. I expect to have it paid back within 16 months.
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Mar 21, 2014 19:05
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Congrats on getting funded. I actually don't think many notes make it through review before being fully funded. Honestly, I'm surprised the interest rates haven't fallen more than they have since it seems like anything no matter what the application looks like is getting funded these days. Not to sound like an old timer but a few years ago, notes would sit on the platform for weeks and take forever to get funded. Now they're funded in a day. Makes it nice when you do fund a note, starts going to work for you sooner as opposed to sitting there waiting to be fully funded before the interest starts rolling in.
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Mar 21, 2014 19:16
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What are your feelings on the direction LC has taken? Once my debt is gone, I will probably jump back into day trading again, but if LC can give me a 3-4% return with a kind of "set it and forget it" deal, I might pursue that on the side. Is it a bad sign that things are being funded at a much faster rate?
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Mar 21, 2014 19:18
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 I've been pretty happy with it. Currently trying out the new Prime auto-invest option. We'll see how it goes over the next 6 months or so. It reached a point where I didn't want any more of my total portfolio in LC so I stopped contributing. I may reevaluate again in 6 months or so. E: being funded faster isn't necessarily bad, just harder to get in on the notes you deem a "desirable". The Prime feature automatically invests for you (using your own criteria/filters) so in theory it's sort of a set and forget option. It's only free for portfolios over $5k though, FYI. The other side effect is that the notes' interest rate in general have been trending lower while presumably maintaining the same risk profile. spf3million fucked around with this message at 19:28 on Mar 21, 2014 |
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Mar 21, 2014 19:24
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baquerd posted:When a loan is fully in the "Charged Off" status, the consensus is that you can discharge it as bad debt. LC does not actually report your losses in any way on tax forms, at least not so far historically. Many tax professionals have no clue what to do with LC notes, and there's been many page long discussions involving various tax people and people relaying the advice they have received from tax people. Sort of a necro-reply, but this is why I stopped putting money in lending club. The US income tax system doesn't seem to handle this very well, and the extra stress and frustration when filing taxes is not worth it to me.
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Mar 21, 2014 19:45
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It was pretty painless for me this year. LC sent me the 1099-OID and 1099-B forms, just plug and chug in TurboTax. It also added a summaries page of charged off notes so it makes it easy to add a note in the 1099-B appendix saying loans A, B, and C were deemded unrecoverable with outstanding values of X, Y, and Z. Much better than in the previous years when you had to figure it all out on your own.
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Mar 21, 2014 19:51
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Saint Fu posted:It was pretty painless for me this year. LC sent me the 1099-OID and 1099-B forms, just plug and chug in TurboTax. It also added a summaries page of charged off notes so it makes it easy to add a note in the 1099-B appendix saying loans A, B, and C were deemded unrecoverable with outstanding values of X, Y, and Z. Much better than in the previous years when you had to figure it all out on your own. how do i get that performance chart that people link? I can't find it on the lending club website.
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Mar 21, 2014 20:08
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Go to your account then click on the "understanding your returns" link beneath your Net Annualized Returns percentage.
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Mar 21, 2014 20:18
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If I'm reading this chart right, I should feel pretty good about my overall performance?
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Mar 21, 2014 20:47
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tijag posted:If I'm reading this chart right, I should feel pretty good about my overall performance? I think this was discussed before, is the drop related to charged off notes, or people not reinvesting for delicious compounding?
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Mar 21, 2014 21:25
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Knightmare posted:I think this was discussed before, is the drop related to charged off notes, or people not reinvesting for delicious compounding? I have not been reinvesting for the last year or so. But I'm sure that the drop off happens primarily due to charge offs and what not. After 5 months you'll start to see charge offs. Also since it's like any fully amortized loan, each month that goes by the % of your payout that is principal increases and as a result reduces your return. I think you'd find that most people 'seed' the account with a lump sum, so they start off with many notes all at once, and then add a few every month from the returns, meaning that you'll see a soft landing towards the 'true' return after a while when the average age of the notes is longer.
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Mar 21, 2014 21:44
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I've been looking into using a bit of play money to see how it can perform in lending club, but I'm in Texas so I have to turn to the secondary market for notes. I am currently being confused by the "yield to maturity" figure on foliofn. Can anyone provide a digestible explanation of what it means? There is a very long financial formula they share, but I can't get much info from it. I see some notes with interest rates of 13% show a yield to maturity of only 8% despite having over 12 payments left. I assumed it would be something like (interest earned in a year / principal paid in a year) but that doesn't seem to be the case.
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Mar 24, 2014 20:14
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I've never bought on foliofn but I think it takes into consideration any markup on the note and the amount of interest left you can expect to collect. Many notes in good standing and particularly high interest notes are apparently marked up when sold on foliofn, presumably due to the fact that there are people such as yourself who do not have direct access to LC notes and also because there is a particularly high demand for high interest rate notes in general. Sorry that probably isn't very helpful but the markup might be what's throwing off your (interest earned in a year / principal paid in a year) calculation. I do know that the YTM they list assumes any currently delinquent notes will begin paying on schedule immediately (a dubious assumption IMO). I guess you'd want to filter for the highest YTM available with notes in good standing.
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Mar 25, 2014 20:50
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Thanks for the suggestion on ytm filtering. I've been looking for notes with a near 0% markup so I know that's not what influences the annualized return figure. 
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Mar 25, 2014 22:02
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Considering how eager lenders are to throw money at notes, is there a sub-prime version of all this yet for those of us with credit too poor to borrow on LC or Prosper?
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Mar 25, 2014 23:18
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Seeing the interest rates for people with the lowest credit on lending tree (near 25% for low 600s) I shudder to think what rates would have to be to entice people to lend with the amount of implied risk for someone with even lower scores.
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Mar 26, 2014 00:04
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Sub Rosa posted:Considering how eager lenders are to throw money at notes, is there a sub-prime version of all this yet for those of us with credit too poor to borrow on LC or Prosper? Just become a payday loan place franchisee.
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Mar 26, 2014 16:51
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edit: wrong thread
FreelanceSocialist fucked around with this message at 19:55 on Mar 26, 2014 |
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Mar 26, 2014 18:45
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I live in Ohio. Who would the best person for me to write/call to get this legalized here? The governor?
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Apr 3, 2014 09:42
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Your state rep, and the state AG's office probably.
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Apr 3, 2014 15:03
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I've been pondering the idea of "flipping" notes recently. If I could purchase decent B & C rated notes, then sell them immediately for a 3-4% markup (before any payments are made), and keep repeating, the compounding would be insane. The question is if people would buy them. I haven't messed with foliofn much, what do you guys think?
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Apr 3, 2014 16:28
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I think you should day-trade securities, instead.
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Apr 3, 2014 16:56
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That idea occurred to me as well, especially considering IR's auto-sell functionality. There's a 1% transaction fee, so you'd have to build that in. Considering demand from people that live in states that can't buy the notes directly, there could be a market. Are there any stats on how liquid folioFN is? I haven't messed with it much either.
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Apr 3, 2014 19:45
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FreelanceSocialist posted:Your state rep, and the state AG's office probably. Thanks for that! Just dropped off the letters in the mail. Realistically, I know nothing will probably happen, but it makes me feel better.
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Apr 3, 2014 20:45
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You might be able to ask LendingClub if they have advice on who best to contact. Surely they have had discussions with that individual or group at some point in the company's history.
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Apr 3, 2014 20:51
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Saint Fu posted:You might be able to ask LendingClub if they have advice on who best to contact. Surely they have had discussions with that individual or group at some point in the company's history. That also seems like it would be a very good idea. At the very least, they'd be able to let me know if I should have mailed someone else or if I'm good with what I did so far. I'll go down that route and let everyone know what I find out!
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Apr 3, 2014 23:13
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April posted:I've been pondering the idea of "flipping" notes recently. If I could purchase decent B & C rated notes, then sell them immediately for a 3-4% markup (before any payments are made), and keep repeating, the compounding would be insane. The question is if people would buy them. I haven't messed with foliofn much, what do you guys think?
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Apr 4, 2014 12:45
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Uranium 235 posted:You should do it if you can find buyers, but it wouldn't be a good deal for them. They're taking on the same risk for substantially less reward. But like I said, you should definitely do it if you can find people to buy. You're dumping 100% of the risk on them and still earning 3-4%. That's a good deal for you. Well, they would still be "good" notes, in the sense that I'd filter them as carefully as I always do. And if they don't sell, I would just collect the payments. It's just something I've been kicking around, I mean, if I can make 2% every couple of weeks, it's a pretty good investment. But I also like seeing all the payments come in. I'll probably wait & see if foliofn gets more developed.
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Apr 4, 2014 12:49
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April posted:Well, they would still be "good" notes, in the sense that I'd filter them as carefully as I always do. And if they don't sell, I would just collect the payments. As a resident of a lovely state locking me in to foliofn, I have seen no shortage of notes that are sold at face value, or sometimes 1-2% higher than face + interest in current pay period. Asking for several percent on top of par value for the entire loan would be pretty nuts and a lovely deal that (hopefully) investors would have the common sense to avoid. But hey, caveat emptor and all that. If you can swing it, give it a shot. I'm looking right now and there are some asshats selling notes for up to 15% more than principal + monthly interest. There are notes with equal scores and interest rates selling at 0% markup. So the market is pretty ill defined and wildly varying.
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Apr 4, 2014 17:04
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April posted:Well, they would still be "good" notes, in the sense that I'd filter them as carefully as I always do. And if they don't sell, I would just collect the payments. The only way to know if this is a viable plan is to try it. If you can sell a high enough volume at a high enough interest rate with a short enough investment of time on your behalf, it could be worthwhile.
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Apr 4, 2014 17:48
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Since I started, LC prime has decreased from 10k to 2.5k. Wonder what's going on to prompt this drastic change.
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Apr 7, 2014 01:58
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It seems like a way to keep people reinvesting in notes at little cost to LC. This is mostly anecdotal but I had my interest piling up because I couldn't be bothered to log on 4 times a day at specific times to get in on the "feeding frenzy" when new notes were posted. I've been using Prime for a month and it seems to be working well. It invests in notes that meet my specified criteria automatically and my cash is down to around $25. Sure you could pay a little to get better filtering at Nickelsteamroller or other sites but I imagine LC will continue to improve their filtering and make the other sites obsolete. Maybe LC wants people to get hooked on Prime then start charging for it again at a later date.
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Apr 7, 2014 13:31
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Waiting for my account to be verified and playing with the search features, B or A rated loans tha have verified income don't seem too hard to find. Maybe I'm missing something?
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Apr 12, 2014 16:14
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| # ? May 17, 2024 14:27 |
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Grem posted:Waiting for my account to be verified and playing with the search features, B or A rated loans tha have verified income don't seem too hard to find. Maybe I'm missing something? B and A rated loans have a pretty poor ROI. Default rates aren't drastically lower than C loans, but the interest rates are. Check out nickel steamroller
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Apr 12, 2014 18:42
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