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I absolutely love lending club. I have been running a couple test accounts where I actually put my EE degree to use and crunch the statistics on the loan information that is freely available. I am currently running a 14.4% annual ROI with no defaults... Granted it is only $250. But from my math I am right on with my prediction. Assuming I had 500 loans I would be running 15.2% +/- .8%. That is including a default rate of 3%. The way I see it I think this is a wonderful investment vehicle I wish to use to start my retirement savings *20 years old*.
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Dec 29, 2012 03:50
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That is strange I've not had that problem at all on any loans I have funded; however, I've funded at most 10 loans at any given time and only loans that were about to be fully funded.
lemoz fucked around with this message at 06:01 on Dec 29, 2012 |
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Dec 29, 2012 05:09
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Honestly you should not even bother reading the descriptions. Everything you need to know are from the numbers associated with the loans. Fund enough loans and you can rest assured knowing that based on past performance from similar loans you can expect a certain annual percentage. Alereon posted:Yeah, I was just reading about this and there seems to be two classes of people selling note on Foliofn: People who are selling good notes before they go bad (exploiting ways to tell a status will change before it does, like selling notes during the grace period after a payment is due but before it becomes "Late" and the note value plummets), and people who are spooked by a late payment or other bad status and unload the note at a steep discount. The first group is specifically looking for people like you (in states that require purchases through Foliofn) and who may buy their notes before they tank. The second group you can make money off of, if you have a stomach for risk. you can make some good money of people who flinch at first late payment. What I use to do is actually try and find loans that have had many grace/late payments but always managed to pay. The thought process behind it was that since they have been working so hard to pay off the debt even if late then they would continue to do so. I have yet to have one of the 50~ default on me and I picked them up at 8-10% discount.
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Dec 31, 2012 05:10
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