Any Lending Club experiences?

[treinjapan]

Another update for you guys. Been doing LendingClub for about a year now and I'm average more than 11% ROI. I have a few defaulted loans (never took the time to get rid of em on FolioFN.) but that doesn't effect the bottom line that drastically when you have hundreds of loans out there. It's fun and easy.

 

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[Breaking Free]

I was poking around at this today, and apparently since I live in Arizona I can't directly purchase notes, but only secondhand from FolioFN. Worthwhile, or do I need to get myself an address in another state?

 

[Apemania]

Today I spent time with my mom, visiting Ikea and stuff together with her and my two cousins. At the playground after Ikea, I had the opportunity to talk a little more freely to her. Mentioned about Lending club and about how you can get a nice return on investments, ended with my mom wanting me to help her out getting started.

We agreed that I will be holding the account, doing the work for her. Each month she will invest 500 swedish kroners, I will take those money and find nice loans to invest them in. Any money she makes from the loans, I will re-invest into other loans to grow the number of assets she has. Hopefully I can help my mom grow those investment money to the point that she will make more money from that than her current job as an English teacher. She offered to give me a little money for helping her, I declined and told her I would do it for free. Really want to see her have lots of money so she can do fun stuff.

She has always tried to help me, feels good that now I can return the favor and help her in return.

Edit: seeing as I can't use lending club, I will look at some alternatives that are in Europe for my mom to use. Hopefully I can find a really nice one for her to start investing in.

 

[apax999]

Just wanted to pipe in. I deposited $2500 over a year ago, pretty much forgot about it until a few weeks ago.

11% return. Not too shabby.

Does anyone know why there are so few loans available? Are they really being filled that quickly?

I remember a year ago there were hundreds.

 

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[Ikke]

Edit: seeing as I can't use lending club, I will look at some alternatives that are in Europe for my mom to use. Hopefully I can find a really nice one for her to start investing in.

Please let us know if you find anything. I'm really interested in a decent alternative for us non US citizens.

 

[cmartell1200020]

11% is pretty good for a set and forget strategy. Better than the stock market or even private mortgage investing. You must have picked some good borrowers - Great job!

The reason why there are so few loans available is because the relatively new peer-to-peer industry is growing. Lending Club by itself has surpassed the $2 billion mark in loans processed, and its only main competitor Prosper is probably in that range, too. The industry is doing so well that a few months ago Google made a substantial investment in Lending Club with press releases and the whole deal. Portfolio managers have followed it with their clients' funds and are getting first crack at new loans that pop up with automated investment methods. Then smaller private investors get their crack. So with many more investors now than a year or two ago, the loan marketplace has changed. A loan for a good borrower with a good credit rating, good monthly income, and zero or few delinquencies is going to be filled up in minutes, even with amounts up to $35K.

So the short answer to your question of why there don't seem to be many more loans anymore: the big time investors have come to the game and are competing to get a big slice of the pie. The name of the game is "you snooze, you lose."

The best strategy for us small private investors is to log on at 6am, 10am, 2pm, or 6pm when new loans are loaded into the system, and invest in as many loans as you can before they're filled up in a few minutes. I look for income above $5,500/month, credit score above 700, and zero or 1 delinquency in the last few years.

To keep your delinquency rate low, use FolioFN to sell off any loans that don't pay on time, even if they are in a grace period. The longer you wait to list them for sale, the less desirable they will be. Sell them at a slightly higher value than they currently are so you come out with a profit that can be reinvested into new loans. See my other posts on this thread for details.

 

[scine]

Low end Lending Club user here: 31 notes, $800 total into it, making 10.87%. I put only a little bit of money into it in case it was too good to be true and it tanked. All of my notes are current, no defaults or lates. LOVE Lending Club!

 

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[jtmoniii]

I took out a loan from lending club last year as a down payment for a rental. No complaints so far and I pay about $230 a month for three years.

Mind me asking what was the loan amount?

 

[scine]

Mind me asking what was the loan amount?

Not sure what his loan amount was, but Lending Club limits you to $35k for loans.

 

[recon187]

Been with LC for 7 months. 15.31% return. Just wish I had more capital to invest. I would like to do the same things with Mortgage notes also. That way I have some collateral on some of my investments.

 

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[Novadolla]

Been with LC for 7 months. 15.31% return. Just wish I had more capital to invest. I would like to do the same things with Mortgage notes also. That way I have some collateral on some of my investments.

If you would like to do the same thing with Mortgage notes, then check out LendingHome. Similar to LC and prosper, however they require you to be an accredited investor.