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I did Lending Club for a while before they got right with the SEC. A bunch of my loans tanked during the crash, and I had overall relatively lovely performance, but I still got a 3% annualized return. I would still be doing it if they would get legal in my state loving already. I'm avoiding the secondary market because (1) hassle oh god such a pain in the rear end and (2) extra expense - I'm pretty sure one of the functions served by the secondary market is to get notes in the hands of people in the non-served states, at a small premium of course! By the way, don't take Lending Club's word for what your return is - calculate it yourself. They don't account for dead time and some other things so they are over-estimating it. Edit: Regarding taxes, I think I have filed it differently ever year. Would be interested to hear what other people are doing... I think one year I wrote off defaulted notes as capital losses, but I had to list them out individually, good god, to save about eight dollars. slap me silly fucked around with this message at 05:26 on Nov 22, 2012 |
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Nov 22, 2012 05:17
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| # ¿ Apr 30, 2024 03:37 |
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Yeah, it is definitely a high-risk thing to do with your money and you have effectively no control over the loan management. I consider the latter a benefit, actually, but whatever works for you. Back in the day, Lending Club was a lot better because some actual expertise went into setting the interest rates. Prosper's rates were set in a free-for-all bidding war between the impulsive and the clueless. It looks like Prosper is using Lending Club's model now, though... heh.
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Nov 25, 2012 17:03
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Excel has this handy XIRR function which will measure your annualized return, if you're not familiar with it already. It is flawed but mostly works (just like everything else in Excel). I'm grieved that lending still isn't available in my state, and at this point seems like it probably never will be. It was the perfect fun thing for me to do with some speculation money. I suppose some bank lobbyist in the state house hosed me over
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Nov 30, 2012 16:39
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The loans are unsecured. As far as I know the only info they update is credit score, which they track over time.
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Dec 3, 2012 22:12
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Jalumibnkrayal posted:What fundamental aspect of interest rates am I not understanding (totally serious)? The fact that you can be reinvesting that $3200/mo in something else. To get that 5%, you effectively averaged the 9.5% return of the lending investment with the 0% return from letting your $3200/mo sit and moulder.
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Dec 4, 2012 23:00
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Well, it's not that so much as that they estimate based on the time your money is actually in the instrument. If you make the mistake of assuming you don't need to reinvest to get the calculated return, that's on you. Not meaning to sound all hoity toity because I went through exactly this same bit of head-scratching before I started buying notes a few years back... slap me silly fucked around with this message at 03:46 on Dec 5, 2012 |
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Dec 5, 2012 03:44
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I have exactly one note outstanding on Lending Club now. It started in 2009. The borrower missed a couple of payments 8 months later and started on a payment plan where he has been paying 40% of his original payment every month since. There are 2 years left on it at this rate. I looked at the original listing: "I have never defaulted on a loan and I don't plan to start now. My job is secure. There really is no risk here." Hahaha, at least he is still making the partial payments! And the interest I've gotten out of him up to now is juuuust enough to break me even if he stops paying tomorrow.
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Feb 22, 2013 02:36
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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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baquerd posted:If you haven't seen it lately, the Folio interface got a major overhaul About loving time. I can't buy notes in my state and I dropped the whole game because of how lousy the trading interface was. What did they improve? I really haven't felt like writing a web scraper for that poo poo but maybe I'll take another look now.
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Dec 13, 2013 05:07
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| # ¿ Apr 30, 2024 03:37 |
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Hah! Searchable, I'll be damned.
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Dec 13, 2013 06:35
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