[Front Page] Article: lending club update - five months later...

fly

Osharts 11
Oct 1, 2004
72,281
23,876
1,073
Steam
mattressfish
This is an update to the article posted here regarding my experiment with P2P lending. I meant to post this a while ago, but didn't.

At this point, I've been investing with Lending Club for a total of five months. I was hesitant with the whole idea of this type of lending. It's setup so that there is a well known default rate, which seems sorta weird to me. But as an investor, I (hopefully) make enough in interest to cover the defaults and make a nice profit. My initial investment was five thousand dollars. As of today, my balance is $5,407.07. The Lending Club site calculates what they call my Net Annualized Return at 17.57%. Not too shabby.

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However, I've been slacking. Due to increased popularity from the investor side, the loans have been being snapped up relatively quickly. As of a week ago, I probably had $5-600 that needed to be reinvested. When I first started, I could pick up 25 - 50 loans with the filter I created at a time. Now a days, I'm lucky to get five. So it's really just a persistence thing and I haven't been very persistent. For the record, other sites like Prosper.com have automatic reinvestment tools. I have yet to try their system though, so I can't really comment.

Either way, a 17% return is pretty good. That rate is almost certain to drop as time goes on and defaults slowly increase. The site Nickel Steamroller has a neat little portfolio analyzer right here. According to it, my long term rate is likely to drop a couple more points down to 15.18%, but that's still more than acceptable to me. In the next few months, I'll probably be adding some more funds.

Since my last article, has anyone else attempted using this site?
 

fly

Osharts 11
Oct 1, 2004
72,281
23,876
1,073
Steam
mattressfish
$80/month.

This is a cool idea though. Seems very risky.

It's actually not. They have 5+ years of loan data to base the default rates on. And the company itself is pretty well insured and stuff as well. Obviously its not risk free, but overall...
 

JAXvillain

Curly_Sue
Oct 13, 2004
68,542
1,879
923
Not to poke the wounds but given your bitcoin loss and the gains from this you're still down like 25% as a very rough guesstimate.
 

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Morning Boehner
Oct 16, 2006
20,031
4,165
323
kansas city
Not to poke the wounds but given your bitcoin loss and the gains from this you're still down like 25% as a very rough guesstimate.

At least after bitcoins his new mantra has been to diversify and it seems to be working on this site.