Peer to peer lending is a unique for many reasons, but one that is often overlooked in my opinion is the cash flow both LendingClub and Prosper accounts provide. As I touched in a recent post about the complaints of peer to peer lending, liquidity is one of the biggest complaints. I offered a counterpoint that the short duration of peer to peer lending investments make them relatively liquid. If you’re wanting to be able to cash out your entire account instantly, peer to peer lending probably isn’t for you – at least for now. I imagine we will see some improvements in liquidity in 2015, but for now – it is slow in, slow out.
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!
As social lending continues to mature, it comes to no surprise that the third party automation tools continue to mature with it. I’m excited to share that LendingRobot is now registered with the US Securities and Exchange Commission as an Investment Advisor. If you are a Lending Robot user you already received an email earlier this week. Besides this being a step in the right direction for third party tools, this change also comes with a new fee structure which I’ll outline below. I’m hoping this change will also prompt retail investors who were previously reluctant about using a third party tool to reconsider. [Read more…]
I have been reading recently about other blogger’s strategies when it comes to Lending Club filters. I wanted to write about another technique that I utilize, which is creating filters that are restrictive based on how much you need to keep invested. Having a smaller account means that I don’t need to open up my criteria as much as others do. In the long run, (provided loan availability stays consistent) I should be getting even better returns. [Read more…]
There are many strategies in investing in P2P Lending, several of which were outlined in our last series of posts by New Jersey Guy and his experience with FOLIOfn. You should note that those 3 strategies were just a taste of the secondary market and there are some very dedicated people out there who are trying out all sorts of strategies. Just hop on over to the Lend Academy Forum and I’m sure others could teach you a thing or two. I’ve heard New Jersey Guy mention diversification within peer to peer lending investments several times and it is something I now realize I knew nothing about. [Read more…]
Over the last couple of months, we have featured 3 tools for automating your investments in Lending Club. Before the question and answer sessions we posted, my process for my investing was completely manual. Brian was investing manually as well and he actually setup a third party mobile app to send him notifications just before Lending Club releases notes. Even with my relatively small account, I was missing feeding times and had available cash just sitting in my account pretty often. Automation tools are starting to mature and I decided that it was finally time for me to try them out and hopefully help others who were considering automation. [Read more…]
Automated Investing with LendingRobot
This is our first video featuring LendingRobot, which is an automated tool for investing in Lending Club. They just opened registration to the public a few weeks ago and my investing in Lending Club has become a lot easier. I’m starting to realize just how nice it is to not have to login to Lending Club during the feeding times.
If you missed any of our coverage of LendingRobot, you can view all of our content (including our Q & A session) here: http://www.peersociallending.com/lendingrobot
If the feedback is positive, we will try and feature short videos of many automated investment tools for Lending Club/Prosper. As always, please feel free to share your thoughts in the comments.
Just last week we featured a Q & A with LendingRobot. At the time, they were still in beta, but that all changed as of this morning. They have officially launched and are open to the public. If anyone has experience in the beta or has signed up now, we would definitely be interested to hear your thoughts in the comments. Our goal is to provide a review in the future.
This isn’t the first time that we have talked about third party tools for automated investing on Peer & Social Lending. Today marks the first of a series of posts we plan to do on all of the popular third party tools that exist for Lending Club and Prosper. We are starting off this series with a Q & A of LendingRobot created by Gilad Golan and Emmanuel Marot. As you read through this post be thinking of other questions you may have as Emmanuel has agreed to field any additional questions in the comments section. [Read more…]