It has been awhile since I’ve had a post outlining my returns with p2p lending and my plan is to be more consistent with these posts in the future. I want to preface this with the fact that my Lending Club notes are still not seasoned which means my returns below are not an accurate representation of what they will be. In fact, I have seen little progress in the average age of my notes as I continue to add funds to my account. [Read more...]
Some of you may have already heard about or seen a change to your Lending Club account. Last week they added an on/off switch for adjusted net annualized return. Often times, I am met with skepticism when I tell people about my investment in Lending Club and it is soon followed by a question of my return on investment. I feel that I can now give them a fairly accurate number without having to do any math. [Read more...]
Awhile back, LendingClub had a part of their site that stated something to the effect that no investor with 800+ notes had negative returns. They have since removed this and I had not seen any statistics that stated something similar until yesterday when I was browsing the site.
1 As of May 24, 2013, over 99% of investors with 100 of more Notes and with no single Note accounting for more than 2.5% of their total investment, have positive returns. To meet this criteria you would need to invest a minimum of $2,500 and none of the Notes could be greater than 2.5% of your total investment. The foregoing is not directed to the specific investment objectives, financial situation or investment needs of any particular person and should not be considered investment advice. You should consider reviewing the prospectus with a financial advisor prior to investing. Past performance is no guarantee of future results.
This is a far stretch from the diversification they use to advertise and is certainly comforting for people with smaller accounts (like us). So the message today? Stick with investing $25 per note for smaller accounts and you *should* see a positive return. Invest in higher grade notes that are recently listed and you should see higher positive returns.