In 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...]
There 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...]
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:
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:
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...]