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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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| # ¿ May 20, 2024 23:16 |
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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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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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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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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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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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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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April posted:60-month notes make up about 10% of my portfolio, but about 40% of my defaults. Out of curiosity, how much do your losses add up to per year?
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Apr 23, 2014 22:01
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Cool, so no where near the max you can claim as losses on your yearly tax returns. I've been thinking about adding more funds now that I see the PRIME auto invest feature seems to work ok.
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Apr 24, 2014 12:14
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PRIME has been struggling to find loans for me as well. One $25 note purchased since 4/15. 10 were purchased between 4/10 and 4/15 though (6 of which have been issued, 1 expired, and 3 in funding).
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Apr 29, 2014 14:44
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The vast majority of loans are for debt (typically credit card) consolidation. FICO scores run the whole gamut. I'm guessing people look at their CC interest and see that they can get a loan for 5-10% below that. I don't know if they haven't looked elsewhere for unsecured loans or maybe with the existing CC debt they already have, a bank won't be willing to give them such low rates?
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Apr 29, 2014 15:53
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That will depend heavily on the grade of notes you're buying. If you want to see how you're doing compared to others with similarly graded notes, go to your account summary page and click on the "understanding your returns" link under the net annualized return percentage. You'll get a graph which looks something like this: Based on notes which average around 14.86% interest rate, there is a slow, steady decline in return over the first 15 months or so then it levels out at around 8-9% for the duration of the note life.
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May 1, 2014 13:16
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April posted:I've been having a lot of trouble for the last 7-10 days or so buying notes that match my criteria. I saw that LC has lowered their interest rates a bit, but shouldn't that result in MORE notes? Either way, the lower rates aren't a good thing for investors trying to put money to work. If you want the same interest you'll have to accept a higher risk profile. The other choice is to keep the same risk profile and accept a lower reward (aka reduce your interest rate filter).
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May 5, 2014 20:38
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Well after complaining about not finding enough loans lately, LC Prime just auto-invevsted in 5 notes for me in the last 2.5 days. Weird
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May 7, 2014 19:11
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I don't think it has anything to do with the IRS. My understanding was that it's a policy put in place by LC and Prosper to reduce the number of people who lose their entire life savings and make a public stink about it.
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Jul 8, 2014 12:45
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April posted:Lending club is a jerk. I've been fantasizing about hitting the $1000.00/month mark ever since I opened the account, and between notes getting paid off and/or not issued, I've been hovering at $999.68 all week.
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Sep 17, 2014 19:26
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Has anyone else noticed a huge increase in the number of loans available lately? I used to struggle to find enough notes to reinvest my gains (2-4 notes/month) but now Automated Investing is finding notes that meet my criteria like gangbusters. Just dropped in another grand and it's already half invested in a week.
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Oct 7, 2014 13:36
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Keisari posted:I think 16% would be an absolutely ludicrous rate for any business loan. Prohibitively expensive. It's like founding a business on credit cards
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Oct 7, 2014 19:40
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Thought you guys might find this interesting. Here's a graph of my monthly interest, total portfolio value, and cumulative contributions. The interest is calculated as end of month portfolio value minus beginning of month value minus contributions.  It's kind of been all over the map depending on how many defaults there have been and how much principle was remaining on those defaults. I just tossed in another $1,000 so hopefully that'll nudge the monthly interest up a bit. LC says I have a 10.81% net annualized return (9.62% adjusted for notes currently late). If I don't have any notes default in a month I think I would bring in about $70 in interest but you can see the average is more like $30-40/mo. Overall it's been a decent investment, definitely more time consuming than a similarly yielding junk bond fund but I personally enjoy it. It's not a huge percentage of my net worth and I don't intend to go above a 5% or so but I like the returns and like that it's another way to diversify.
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Nov 5, 2014 15:44
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Shadowgate posted:Clicking the IPO link they sent via email just goes to the settings page with no confirmation provided. Is that what's happening for everyone else?
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Nov 21, 2014 04:11
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Dukket posted:I have my first note go into grace period, son of a bitch. I think this is the first payment too.
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Dec 4, 2014 17:36
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Well the preliminary prospectus is out for the LC IPO. It looks like they lost $23.8 million in the first 9 months of September mainly due to a huge increase in "other" expenses this year. They made $7.3 million in net income in 2013. Anyone still planning on getting in on the IPO?
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Dec 4, 2014 20:20
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railroad terror posted:Should I start with the $2500 minimum to do Automated Investing? That seems like it would be the way to go, as I'm not particularly interested in slowly cherry-picking investments.
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Jun 24, 2015 17:27
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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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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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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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April posted:Some quick napkin math shows that over the past 3 years, I am earning an average of about 2% of my total notes in bonus notes every month - meaning, since I have about 1800 notes right now, if I leave it alone, I will have about 1836 notes in a month. I think it's more informative to look at the monthly account value, subtract last months value, subtract any deposits you made, then divide by last month's value. I get roughly 0.8% higher total account value per month which is about 9.5% annual return. This jives with what LC says my adjusted return is. Still a nice return and projected out to retirement age it's great if the returns hold up over time. But I feel like it's a higher risk asset class and also there are tax implications to consider (should have done it all in an IRA from the get-go).
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Sep 22, 2015 18:55
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He/she could start increasing the note amount from $25 to $50 or more. By that point diversification wouldn't be much of an issue.
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Sep 24, 2015 17:20
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I feel like it's a good thing for lenders. More people for the collections people to not leave voice messages with when the loans are late?
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Oct 7, 2015 15:16
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I'm at 35 defaults out of 638 total notes. Seems about right
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Oct 9, 2015 18:14
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I've seen the loans which get funded/issued have a small increase in interest rate. Can't say whether their tightening of underwriting has made any difference. Probably won't really be able to make any judgements for at least a year as my revolving basket of notes slowly get replaced by new notes. I only have a small percentage of my NW in p2p, roughly 2-3% so incremental changes don't move the needle much for me personally.
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May 10, 2016 15:21
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Knightmare posted:That's the main concern, yes. I wasn't involved in p2p lending in 2008 but the recession tore through the main p2p site at the time (I forget the name, maybe it was Prosper?)
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Jul 12, 2016 06:08
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| # ¿ May 20, 2024 23:16 |
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My LC returns have taken a dive over the last few months and the next few months aren't looking good either. I'm thinking I'm going to turn off auto reinvestment and let the remaining notes slowly run their course over the next 3 years. They're a pain at tax time and I don't have the desire to closely monitor the platform anymore.
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Apr 7, 2017 20:50
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