Lending club experience going on for two years
Lending Club experience (good or bad) – 2 years (2013 to 2015) so far…
Ok I decided to post my Lendingclub.com experience so far it’s been about two years May 1, 2013 to today May 28, 2015.
I started small and added addition funds over the period as I got more comfortable using the platform. I also dabble with the secondary market, folio. Currently (May 28, 2015) I have about $10k with plans to add about $13K more in a few days in the account. See picture below (www.investwithjackson.com)
-
- results from lending club
LendingClub deposits over the years
My deposits were as follows: $2000 in 2013, then $250 in September of 2013, then $1000 beginning of 2014 then another $6,000 towards end of 2014. By the end of this month (May 2015) I should have added an additional $13K.
From the above you can see that I have had 3 charged offs so far and a few late payments that I hope will not default.
Selecting the Right Notes for lending club
Selecting the right notes can be tricky. There are plenty of notes on the platform to choose from but only a few “meets the high standards” I require of borrowers. I look for borrowers with high FICO scores usually above 795, no delinquencies or bad public records, at least 5 years of employment, and make over $5000 a month. Unfortunately, these types of loans tend to get snatched up in seconds as soon as they are listed on the site.
High frequency trading on lending club
So how do I still get these high quality loans? Well I have pretty much gone all automated. There are multiple sites out there that if you have some programming experience you can create your out API algorithms that filters and automatically invest in new loans for you as they are posted to the site. If you don’t have any programing experience you can check out site like peer lending server that pretty much has a pre-built virtual server that you can configure to invest into new loans for you base on filters you create.
Lending Club as a high yield junk bond?
In essence, I am thinking of lending club or lendingclub as a high yield junk bond (right or wrong doesn’t matter). Don’t get me wrong this isn’t bad… for me the experience has been pretty good so far; where other than the stock market can I get such high interest rates?
I will continue my dive into peer to peer lending or p2p lending and see where it takes me. The next step is to look into airbnb (renting out home or room to strangers). this will be my next project as soon as I can save for a down payment on a home or I might be able to do it with place I am renting??? will have to see what the rules are for where I am now.
As I said I will update my progress as I invest more into this service.
Please go here to see going Lending Club Monthly updates for 2015 and beyond
(1)Dislikes
(0)
First thank you for your post. I don't put too much stock into the percentage returns shown by lending club. if you look at the bottom of my monthly post updates at http://www.investwithjackson.com/lending-club-update-april-2015 you will see a spreadsheet i use to track my performance. My main objective is to receive a decent amount of interest monthly. as for the late loans i try to sell them on the secondary market. This doesn't always work; thus, there will be times late loans become charged off. Currently i have 6 loans that were "fully charged off" totaling $100.
Also, note that i sell notes on the secondary market that brings in a small profit or so (helps off setting a few charged off loans so far. My calculation for total profit is $current account value - $ deposited..... Note i don't worry about counting late loan as charged off or not sine i might be able to sell it at a discount or the person might pay. The fact is that if and when it does become a charge off it will reflect in my total account balance. I am also selling a few notes per month to date i have sold 334 notes for profit on secondary market.
Your assessment of the market is correct it is getting harder and harder to get funded for good notes (i.e 790+ FICO scores). I am now using third party and my own servers to automate my investment. But even that is still not enough to get fully invested quickly. I am contemplating reducing my standards for lending so i can have all my money working for me and accept the lower rates. I also have a mix of 3 and 5 year loans. Let's see what lending club does as the "regular Joes" start crying foul due to the fact that the "big boy" are getting first dibs at the good notes.