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...]
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.
I 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).
I 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...]
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.
If 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...]
I recently had the chance to talk to Dave Girouard, who is the former President of Google Enterprise and is now the founder of Upstart – a company that is taking a unique approach to peer to peer lending. Upstart is made up of 15 employees, half of which are from Google. Traditional and other peer to peer unsecured loans focus on credit score when it comes to determining the probability of loan repayment. Upstart goes beyond the credit score. [Read more...]
There has been quite the discussion brewing over on the Lend Academy Forum about a recent change from Lending Club. I think it’s important to point out this recent change as they affect some of the third party tools that I feature on the blog. In a nutshell, the change is that instead of tools being able to constantly get up-to-date data from the CSV file right at release time, it is now only updated once every minute. For those that don’t know what a CSV file is, it is simply a text file which includes organized data – in this case all of the available loans. You can read other forum member’s thoughts here. What does this mean for third party tools? In the case of P2P-Picks – a lot.
Note: This is a guest post from New Jersey Guy, who currently only invests through FOLIOfn – the secondary market for Lending Club. He implements several FOLIOfn strategies, some of which he outlined in his last posts (4 part series) on Peer & Social Lending. This is a continuation of the post from Lend Academy about his penny note strategy. Below New Jersey Guy gives a little more detail into this particular strategy. Please keep in mind that this information is not investment advice, just the opinion and perspective of one investor. Thanks to New Jersey Guy for another fantastic guest post!
I reached out to Simon Hermiz who is the co-founder and CEO of NoteX360 to learn more about their offerings. The easiest way to understand NoteX360 is that they are an aggregator and execution provider for the alternative lending market. Thus, family offices and institutional investors come to them with credit models and filter strategies. NoteX360 executes on behalf of clients using their low latency ordering management system. [Read more...]