There are many third party tools out there that many seasoned investors already know about. However, Lending Club continues to add functionality to their own site like net annualized return. Today I noticed something that I had not seen before which was a link to ‘Understanding Your Returns’. [Read more...]
Recently there has been a lot of talk around the peer to peer lending community about institutional investors. Peer to peer institutional investors are companies who invest in places such as Lending Club and Prosper on behalf of their clients. We reached out to one named Looking Glass Investments (LGI) which is headquartered in Milwaukee, WI. We had the opportunity to talk with co-founders Matthew O’Malley and Dr.Chad Cotti about their experience in the industry.
At the end of October my portfolio had 79 notes in it. My average rate jumped climbed to 19.03% due to taking on even more high interest notes.
GroundFloor announced the details behind their pilot 100% crowd funded real estate investment project today. They’ve chosen to base it in the city of Atlanta so that they can take “…advantage of Georgia’s innovative securities laws and the Invest Georgia Exemption.” Their goal is still to make real estate investing available to all regardless of net worth and income. Essentially they are trying to do to real estate what Lending Club and Prosper have done with traditional loans. This is a company that we’ve been watching for some time now and it’s exciting to see them finally release their first project.
The pilot project will open on November 20th, 2013 with minimum investments at the $100 level. Their goal is to raise $300,000 to fund two loans. These loans will be used to refinance, renovate, and lease a Midtown residential development. Sadly, you must be located in Georgia to invest in this project which makes it inaccessible all but the 3% of the US who live there.
If you’re interested in more information about GroundFloor or want to invest in their pilot project (must be located in Georgia) please check out their website. If you’re interested in their most recent press release (11/11/2013) you can find that online as well.
Some of you may have already heard about or seen a change to your Lending Club account. Last week they added an on/off switch for adjusted net annualized return. Often times, I am met with skepticism when I tell people about my investment in Lending Club and it is soon followed by a question of my return on investment. I feel that I can now give them a fairly accurate number without having to do any math. [Read more...]
We’ve been busy here at Peer & Social Lending and have created a basic guide to investing with Lending Club that you can get for free! Simply subscribe to receive updates on the right side of our homepage and we will send you the free guide once you confirm your email. We have taken much of the information we learned as new investors in Lending Club in hopes to help others who are considering adding peer to peer lending to their investment portfolio. The guide will serve as a starting point for those new to investing in Lending Club and we hope you find it valuable. Feel free to contact us with any feedback.
-Brian & Ryan
We were previously known as Lending Club Statistics. There were several reasons that prompted this change, but ultimately we decided that since we were interested in more peer & social lending companies that our domain name should reflect that. An example of this is when we featured a Q & A from a new peer to peer real estate company groundfloor. We will be continuing to focus on popular companies like Lending Club and Prosper, but will not be limiting ourselves to those topics.
Awhile back, LendingClub had a part of their site that stated something to the effect that no investor with 800+ notes had negative returns. They have since removed this and I had not seen any statistics that stated something similar until yesterday when I was browsing the site.
1 As of May 24, 2013, over 99% of investors with 100 of more Notes and with no single Note accounting for more than 2.5% of their total investment, have positive returns. To meet this criteria you would need to invest a minimum of $2,500 and none of the Notes could be greater than 2.5% of your total investment. The foregoing is not directed to the specific investment objectives, financial situation or investment needs of any particular person and should not be considered investment advice. You should consider reviewing the prospectus with a financial advisor prior to investing. Past performance is no guarantee of future results.
This is a far stretch from the diversification they use to advertise and is certainly comforting for people with smaller accounts (like us). So the message today? Stick with investing $25 per note for smaller accounts and you *should* see a positive return. Invest in higher grade notes that are recently listed and you should see higher positive returns.
I found something the other day as I continued on my quest of self-picking notes that has helped immensely. LendingClub has a filter for ‘Show only recent listed loans.’ This is only valuable if you login during the note releases (6 a.m., 10 a.m., 2 p.m., 6 p.m. PST),but it definitely helps to get some high grade quality notes before they get fully funded.
The currently filter I am using is:
- Show recent listed loans
- Term: 36 months
- Interest Rate: C,D,E,F,G
During the release I then filter by % funded and add the top loans that are funded to my cart. Then, I review the loans and decide whether or not to keep them. It seems like there have been enough notes that I haven’t had any issues depleting my available cash. I’m not sure how long they have had this filter, but thought it was worth mentioning. Is anyone else using this filter, feel free to provide any insight in the comments!
Yes, it has been a long time since I’ve had a portfolio post, but rest assured my account is alive and well (growing too). I’m about 6 months in from when I first started purchasing notes and I still have yet to see a note go late (no notes currently in grace period notes either!).
Below you will see my portfolios which will better help you understand my returns. When I first started, I did not pick higher grade notes in order to maximize my returns. Eventually, I started digging more into the third party tools and used interestradar and p2p-picks almost exclusively to pick my notes. Now I am back to hand-picking high grade notes for now.
Finally, here are my returns:
I am still very happy with the returns and will continue to add to my account.