LendingRobot Now Free for up to $10,000 of Managed Investment

LendingRobotWell well well…it is hard to believe that just a year ago that the third party automated investment tool LendingRobot was in private beta.  Back in December of 2013, they opened to the public and in April of 2014, they were registered with the SEC as a Registered Investment Advisor.  Today I’m excited to share that it is now free for users with up to $10,000 managed investment.  New users will be able to start using the service without entering their credit card information.  If you’re an existing user, you’ll see your bill reduced accordingly. Have more than that to manage? Don’t worry, you’ll still see a benefit.

I reached out to the great folks at LendingRobot to get the details:

We’ll subtract $10K of accounts’ value before calculating the fees. So for someone with $9K managed, it remains free forever. For someone with $50K managed, they’ll only pay our 0.45% fees on $50K – $10K = $40K.

For the people in ‘trial’ mode, the trial will end once we invested at least $10K for them. To continue using LendingRobot, they’ll have to enter their credit card.

As longtime readers know, I’m a big proponent of keeping all (not just p2p lending) investing fees low, so this is a welcome change. LendingRobot is the only third party company I’m aware of offering automation for both Lending Club and Prosper that is open to the public. If you haven’t created an account with LendingRobot, I highly recommend you sign up and take a look around.

Have questions? What do you think? Let me know in the comments!

Investing with BTCJam – Peer to Peer Bitcoin Lending

BTCJamIn my last post, I gave an overview of BTCJam which is the world’s first and largest Bitcoin lending network.  I have had an account with them for several months was given $50 worth of Bitcoin to test out the platform.  Keep in mind that this only a trial and my investing returns may not be typical of other investors as I will point out below.  BTCJam is still relatively new and certainly if you’re expecting a platform with all of the functionality and data that Prosper and Lending Club provide, you may be disappointed.  With that being said, there have still been some major improvements (even in the past few weeks).  One is the social dashboard as pictured below.  [Read more...]

BTCJam Review – World’s first and largest Bitcoin Lending Network

BTCJamThere is a lot of innovation right now in the p2p lending space. We’ve seen niches for Mining, Student loans, recent graduates and even airplanes. However, one p2p lending company is able to provide loans all of the world. This is probably the most fascinating thing about BTCJam – the world’s first and largest Bitcoin lending network.   In order to understand the need for BTCJam, It is important to realize that not every country allows people to access to credit like the United States. [Read more...]

Lending Club Filed to go Public – My Thoughts on Their IPO

By now you’ve probably heard that Lending Club has filed to go public.  Lending Club will now be in a “quiet period” until after the IPO actually occurs.  If you’re interested in digging in yourself, you can view the SEC related documents here:

http://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001409970&owner=include&count=40

There has been some talk regarding whether the IPO will be available for retail investors.  For an industry that started with mostly retail investors, I hope Lending Club does their best to make this possible. After all, we are talking about something that once represented true “Peer to Peer Lending”  I’m hopeful and signed up to be notified of new IPOs through Loyal3.  If you haven’t heard of Loyal3, it is an easy way for retail investors to purchase stocks of well known U.S. companies. Most recently, they have allowed retail investors access to the GoPro IPO.

This is solely just speculation on my part, but if you want to get notified of upcoming IPOs offered through Loyal3 – you can do so through my below (affiliate) link:

Loyal 3 – Get notified of new IPOs

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Betting Big on P2P Lending – Another Reader’s Returns

By now you’ve probably seen my returns in peer to peer lending as well as some of the other bloggers in this space (Peter, Simon).  Today, I’m happy to feature Carl who I got to meet at LendIt this year. He has over 300k invested in Lending Club and his returns have been hovering above 11% using XIRR for 2014.  (If you’re interested in calculating your returns this way – check out this video)  Carl also began to sell his notes on FOLIOfn and it will be interesting to do a follow up early next year to see how his returns were affected.  It’s always nice to get a different perspective on things and certainly Carl isn’t the average p2p lending investor. In fact, he doesn’t employ any automation to pick his notes. Every note is hand picked.  Take it away Carl! [Read more...]

Learn how to calculate your p2p lending returns with XIRR (for free)

In this video I outline how to calculate your returns using XIRR, which is one of the more popular ways of calculating p2p lending returns.  I also outline some of the downsides to Lending Club’s adjusted net annualized return.  This all can be done for free with Google sheets, but it also works with Microsoft Excel.  Additionally, Simon from Lending Memo recently released a handy XIRR calculator here (note: no data is collected or saved in his tool). If you have any thoughts on calculating returns or if I have overlooked something, please let me know in the comments!

You can also subscribe to the Peer & Social Lending YouTube Channel.  I will be continuing to post more useful tutorials for p2p lending investors.

Prosper Marketplace Investing Review – 2 months in

prosper-logoI am about two months into diversifying my p2p lending investment by investing in Prosper. My total account value is now just shy of $4000 as I continue to invest all available cash into Prosper.  The process has been extremely painless and I was pleasantly surprised to see Prosper’s instant transfer feature.  Unlike Lending Club, once Prosper has verified your bank account, you no longer have to wait the painful 4-5 business days for your money to clear.  Suddenly, you are able to deploy cash instantly on the Prosper platform.  This has been my one complaint regarding Lending Club.  This isn’t a huge problem for lump sum investors, but as someone who adds only funds when I get paid, the wait is frustrating.  See this article from Orchard regarding cash drag. It focuses on cash drag while loans are funding or in the review process, but the idea is the same. Instant transfer makes for a much more efficient investing process.  Couple this with Prosper’s consistent increase in loans available on the platform, it makes an investment with Prosper very attractive (in my opinion).

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My P2P Lending Returns (13.02%) – Lending Club June 2014

ryankayakI apologize for the delay in my second quarter 2014 returns as the summer has changed some of my priorities.  When you live in Wisconsin, it is important to take advantage of the nice weather while it lasts.  My returns have slipped .85% from the last time I checked in April 2014.  Since I have used FOLIOfn to buy notes for the penny note strategy, I rely on XIRR in order to calculate my returns.  My strategy has remained about the same except for the small hiccup which affected P2P-Picks.  Instead of letting my cash sit idle, I simply created a higher volume filter in Nickel Steamroller.  I still keep an eye out for notes on FOLIOfn, but it is time consuming and I already have about $2500 worth of notes purchased. [Read more...]

Must See LendIt Videos for Retail Peer Lending Investors

Earlier this week, Peter over at Lend Academy posted that the videos from LendIt 2014 are now available. There were a few of the sessions that I missed and I wanted to highlight videos that retail Lending Club/Prosper investors may be interested in. Enjoy!

Note: BlueVestment did give a presentation, but I am unable to find it in the YouTube channel.  If you happen to see it – please send the link my way.

LendingRobot

Nickel Steamroller

PeerTrader

P2P-Picks

PeerCube

SoFi Loans – FAQs for Refinancing a Student Loan

SoFiIf you haven’t heard of SoFi (short for Social Finance), it is a peer to peer lending company tailored to refinancing student loans.  For this blog post, I am focusing on the borrower side of SoFi since I believe in destroying your student debt. SoFi loans are a great way to accomplish this much faster.  I reached out to the folks at SoFi to get some questions answered that potential borrowers might have.  In addition, if you are approved and your loan gets funded, you will get $100 by using my referral code. This site will also receive a small payment at no additional cost to you.  Read below to get your questions answered and learn more about SoFi loans.  [Read more...]