Q3 of 2014 continued the trend of returns over 10% in both Prosper and Lending Club. I now have nearly $22,000 invested between Lending Club and Prosper. I recently stopped adding to my Lending Club account, which means I’m continuing to increase my average age a lot faster. (It’s currently at 7.8 months even though I’ve been investing for more than a year.) Besides small deposits to my Prosper account, I’m not making anymore substantial additions to my allocation to this asset class. This is simply due to the fact that I want to keep my allocations reasonable across all of my investments. Now to the fun part… [Read more…]
The Lending Club collection log is full of standardized updates to let you know the status of the note you purchased. Below you will find a list of all the entries that I have seen. If I am missing any, please feel free to leave them in the comments and I will add them to my list. Additionally, you can read about how Lending Club deals with delinquent borrowers and the regulatory guidelines for dealing with borrowers. [Read more…]
I’ve decided to bend the rules a little bit and focus on a non-p2p lending company called LightStream that piqued my interest with the goal of helping out the borrowers who visit this site. Just how p2p lending allows borrowers lower rates from credit cards, LightStream may offer better rates to high quality borrowers. The company offers rates that start at just 1.99%.
In mid September, Lending Club added a returns section titled ‘Traded Notes’ for investors. This feature gave all but the most serious traders an accurate number of what their returns are with FOLIOfn (Returns aren’t calculated over 100%). This is a welcome change as up until this point, you were on your own calculating returns – which is no small task. Since both traded notes and notes bought at issue are combined in your account value, tracking every note was necessary to calculate returns. Back in June, I featured a guest post from New Jersey Guy and his Penny Note Strategy. (You can see all of the content he has contributed to PSL here) I have purchased over 200 notes using this strategy and although all notes aren’t completed, I have a more accurate idea of my returns and whether I should continue buying notes using this strategy.
I pictured my ideal site design for Peer & Social Lending frequently over the last few months. It was obvious to me that the simple blog style didn’t fit for the content I was providing. With the previous site, I imagined new readers coming to my site, glancing at the most recent article and being completely overwhelmed and confused – frustrated, the reader left, never to return again. There had to be a better way. Working with my limited budget, I put my plans in action and what you see today is the result. [Read more…]
Well 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!
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…]