Archives for July 2013

LendingClub - The easy way to get invested

July 16, 2013 by Ryan Lichtenwald Leave a Comment

When starting investing in LendingClub many individuals choose one of of these options for getting fully invested.

#1 Used the LendingClub predetermined portfolio which gives you an estimated return
or
#2 Combing through notes based on filters and hand picking notes out.

There is certainly nothing wrong with either of these options, but what if there was an easier way? I learned about both InterestRadar and P2P-Picks and decided to sign-up. Currently, InterestRadar offers a 30 day free trial, a $9.99 monthly subscription or $59.99 for a one year subscription. Alternatively, if you have less than $10,000 in your account (like me), you can email them at [email protected] to receive a limited-time discount. P2P-Picks is still in beta so for the time being you can sign-up and enjoy free access.

P2P-Picks is very straight forward with two options to invest:

Loss Minimizer (Loans with the lowest modeled risk, regardless of interest rate.)
Profit Maximizer (Loans expected to have the biggest reward for the risk.)

Simply select the option you want to go with, choose the note size and press go. You will want to make sure you are logged into LendingClub so the notes can appropriately to your oder.

InterestRadar has several different features, but for simplicity sake we will focus on the Strategy Shop for now. There are different strategies listed to choose from, some of which are shown below:

Simply click on the strategy you are interested in (provided there are available loans) and you will be taken to a screen where the notes are listed. From here you can view some of the details and invest in the notes if you are interested. One of my favorite columns is the LC Hype/IR Hype which allows you to get an idea of the popularity of a note. If you don’t see notes in the desired strategy, try looking just after 6 AM, 10 AM, 2 PM and 6PM Pacific Time. There is much more available with InterestRadar, but this should at least get started.

I currently use both of these tools to find loans, but then I review them individually before actually invested. I have 2 separate portfolios setup for each product so I will be sure to keep the results up to date.

What is your favorite tool or favorite feature of a particular tool? Interested in us featuring your third party tool? Contact us!

Brian’s Portfolio (7/2013)

July 10, 2013 by Brian Lohr Leave a Comment

As of the first of July my portfolio has picked up a little bit of speed. I now have 36 notes purchased (all at $25) and am looking at an average rate of return of 15.62%
[Read more…]

How much to invest in LendingClub

July 10, 2013 by Ryan Lichtenwald Leave a Comment

With the p2p lending industry being relatively new, I was curious about how much people are investing. However the limit that you can invest was pretty easy to find:

Regardless of your state of residence, you may not purchase notes in an amount in excess of 10% of your net worth (exclusive of the value of your home, home furnishings and automobile).

Source: http://www.lendingclub.com/kb/index.php?View=entry&EntryID=113

It is pretty surprising that this limit exists when there are many more risky (in my opinion) investments that exist. People investing shouldn’t need to be protected from themselves. As an investor, one must accept the risks that exist. One of the first things I sense when I tell people who haven’t heard about p2p lending is apprehension. This is no surprise as it is important to ask questions, but you shouldn’t write it off p2p as far as investments go. In my opinion, the returns are too good to ignore. The fact is that no one who has invested in 800+ notes has received a negative return (source). Certainly, we can’t assume future returns based on previous ones, but it is somewhat reassuring. This paired with a large investment from Google and the possibility of LendingClub going public makes me sleep a little better at night. Being relatively young, I am comfortable at this point investing 10% of my net worth, not including an investment property. What do you invest into LendingClub? Any insights into different strategies like withdrawing principal from your account each month? Let us know in the comments!