tag:blogger.com,1999:blog-8112482643541229498.post6986848621063621835..comments2022-02-06T08:05:40.498-06:00Comments on Lending Club Experience: Eight Months on Lending ClubMarchttp://www.blogger.com/profile/09771303240662270613noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-8112482643541229498.post-37937591133403136332012-03-20T09:23:04.457-05:002012-03-20T09:23:04.457-05:00@veggivet, congratulations on getting your taxes d...@veggivet, congratulations on getting your taxes done. Actually many times I'll sell Notes before the first payment. About 40% of my portfolio (Buttercup) is less than two payments. So almost 2/3 of my portfolio I've held for a while (Wesley) and would like to continue holding.<br /><br />I never intended to day trade. I do believe in a (to use a Zillow term) Make Me Move price. I want to make at least 16% annualized per Note. If someone wants to pay me the annualized value before I receive my first payment, then I'm fine with that. I don't offer my Notes with the intention of selling them, I offer them so anyone who wants to pay that much can.<br /><br />I always have all my Notes up for sale. I have one Note at 1.4% markup and one at 10.5%. I have a dozen or so in the 2%'s, about a half dozen 8%'s and 9%'s. The median markup is 4.9%. I'm not offering these Notes at a discount, they are all offered at a markup, and people are buying them.<br /><br />I'm still investing with my play money. Your belief that I will not do better than 10% in the long term is fully justified. However, that is the great thing about the market. I'm putting my money where my mouth is (and so are you). I'm betting my portfolio that I can get a minimum of 16% annually (and that it can scale to a lot more Notes). If I can't get back up to 16% or higher than I probably will pull out. <br /><br />To me this is just a game. No one knows the rules and they keep changing. That is what makes it so fun. The market is large enough to be able to sell Notes unexpectedly (at least currently) and small enough that there is a lot of volatility. I like that I can completely sweep all the sub-3% markup 16%+ Y2M Notes in an afternoon (at least the pristine ones).<br /><br />When this gets as big as the stock market, I believe it will be difficult to get above 10% returns. The FolioFN market is just the right size to be fun.Marchttps://www.blogger.com/profile/09771303240662270613noreply@blogger.comtag:blogger.com,1999:blog-8112482643541229498.post-3363823329894676292012-03-19T21:58:14.827-05:002012-03-19T21:58:14.827-05:00Thank, Marc. I just handed everything over to my C...Thank, Marc. I just handed everything over to my CPA last week. I had fewer than a dozen sold notes, so things were pretty straightforward. It seems to me that you sell notes very quickly, sometimes after just one or two payments, and then have to find another note to purchase to maintain your yield. I don't see this system working out in the long run for you. The highest yielding notes on the folio platform are priced that way because something is amiss with the borrower; credit downgrade, missed payment, grace period, late, etc. The notes that you are selling don't have much of a payment history, so it is difficult to ask/receive much of a premium for those, I would think. Add in the 1% that folio takes for each sold note, and I think your return will continue to regress to the mean, which is about where mine is, (10% or so), without all the 'day trading', so to speak. Regarding time investment, I spend about 5 minutes every weekday on both of my accounts, just to make sure expected payments have settled as scheduled. I'm looking forward to your future updates.veggivethttps://www.blogger.com/profile/08454562155836634367noreply@blogger.comtag:blogger.com,1999:blog-8112482643541229498.post-30514571777715670462012-03-17T17:36:35.054-05:002012-03-17T17:36:35.054-05:00@veggivet, It was a bit daunting. I summarized my ...@veggivet, It was a bit daunting. I summarized my sales (put down "various" for buy and sell date and then putting down X00 Lending Club Notes with the totals. I think I saw that on SocialLending.net. It's probably wrong, but I've been through audits before and would have no problem accepting their analysis and paying the penalty and interest if they believe I did it wrong. The tax should come out pretty much the same.<br /><br />I am not a professional tax preparer. I recommend you have a professional tax preparer either prepare or review your return. I am willing to take risks that most people should not.Marchttps://www.blogger.com/profile/09771303240662270613noreply@blogger.comtag:blogger.com,1999:blog-8112482643541229498.post-82907164213725886122012-03-17T17:12:39.119-05:002012-03-17T17:12:39.119-05:00Thanks for the update on your strategies, Marc. Ho...Thanks for the update on your strategies, Marc. How have you found preparing your taxes, given the multitude of notes that you've sold?veggivethttps://www.blogger.com/profile/08454562155836634367noreply@blogger.comtag:blogger.com,1999:blog-8112482643541229498.post-89673476442173851202012-03-17T12:55:06.393-05:002012-03-17T12:55:06.393-05:00@Ben Gannon, If you leave me a comment with your e...@Ben Gannon, If you leave me a comment with your email address and ask me not to post your comment, I'll see it and no one else can. <br /><br />Or, if you are on Google+, you can add me to your circles and I'll add you back (via my profile link next to my mug shot to the right).Marchttps://www.blogger.com/profile/09771303240662270613noreply@blogger.comtag:blogger.com,1999:blog-8112482643541229498.post-25143706758487223572012-03-17T12:41:35.058-05:002012-03-17T12:41:35.058-05:00Hey Marc,
This is Ben Gannon. I have been using le...Hey Marc,<br />This is Ben Gannon. I have been using lending club for 3 years now. I am mainly a buy and hold investor that sell occasionally. Your blog got me thinking about an idea. Do you have a contact email address or a way to send a private post? I wanted to send it to you and see what you thought? <br />Cheers,<br />Bendubblyhttps://www.blogger.com/profile/02821893112986426054noreply@blogger.com