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Gilgamesh18
Herbivore Man

Registered: 03/01/12
Posts: 11,671
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Lending Club
#18754722 - 08/25/13 10:37 AM (10 years, 5 months ago) |
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About a year ago Geokills introduced me to lending club a peer to peer lendding platform that has been providing me with some fantastic returns. I have averaged ten percent interest each month my money has been invested in these loans and with the exponential growth of the platform and a stock offering on the horoizon I believe that lending club is the next big thing!
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geokills
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Registered: 05/08/01
Posts: 23,419
Loc: city of angels
Last seen: 24 minutes, 22 seconds
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Happy to hear that LendingClub has been working for you. I have also been averaging 10%+ returns for the several years I have been involved, although my return for the first two years of my involvement was over 12%.
One thing I have noticed, is that I am no longer able to use all of the filtering functions I used to when investing into new loans. One of the problems with the exponential growth at LendingClub is that they simply cannot process/review applications fast enough. In other words, where I used to be able to filter potential borrowers to only those who have verified their employment history and been approved by LendingClub, now a days there are so many investors competing for each loan that they are all 100% funded before LendingClub has even finished reviewing and verifying the borrower's application.
The consequence here is that many of the loans you choose to fund never go active, because the borrower ultimately fails LendingClub's approval review. On the one hand, this is good because it means that LendingClub is still upholding a high standard for their borrowers, which in turn reduces the default risk for the lenders. However on the other hand, this means that it is difficult to keep your account fully invested, because even when you have cash available to lend and you choose to fund new loans, there is a lag time between when you place the order to fund a loan and when (or increasingly IF) it is ultimately approved and goes active. This is discussed here, for anyone interested.
Still, I think this is one of the safer places to park money for a decent return these days, and I have done nothing but continue to grow my account, concentrating on loans from A, B, and C grade borrowers, whom have been employed for longer periods of time and have no delinquencies on record.
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Gilgamesh18
Herbivore Man

Registered: 03/01/12
Posts: 11,671
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Re: Lending Club [Re: geokills]
#18756056 - 08/25/13 05:15 PM (10 years, 5 months ago) |
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Yea I tend to focus on the notes with no delinquencies and generally only go for the a and b notes. My only complaint is that there is no automated investment feature would be great to just plug in my requirements and as soon as I have the money invest no logging on every week to find notes.
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Edited by Gilgamesh18 (08/26/13 07:40 AM)
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geokills
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Registered: 05/08/01
Posts: 23,419
Loc: city of angels
Last seen: 24 minutes, 22 seconds
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There is, it's called a LendingClub Prime account. It requires a minimum $25,000 investment and they will automatically fund loans with your money based on your chosen risk levels. They do charge a higher service fee for this service, and they have at least once offered a promotion whereby you could open a Prime account with half of the standard minimum required deposit.
http://www.lendacademy.com/lending-club-prime-review/
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Gilgamesh18
Herbivore Man

Registered: 03/01/12
Posts: 11,671
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Re: Lending Club [Re: geokills]
#18759420 - 08/26/13 12:25 PM (10 years, 5 months ago) |
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Quote:
geokills said: There is, it's called a LendingClub Prime account. It requires a minimum $25,000 investment and they will automatically fund loans with your money based on your chosen risk levels. They do charge a higher service fee for this service, and they have at least once offered a promotion whereby you could open a Prime account with half of the standard minimum required deposit.
http://www.lendacademy.com/lending-club-prime-review/
Ah interesting might have to look into that...
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badchad
Mad Scientist

Registered: 03/02/05
Posts: 13,372
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Re: Lending Club [Re: geokills]
#18761044 - 08/26/13 07:15 PM (10 years, 5 months ago) |
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Quote:
geokills said: Happy to hear that LendingClub has been working for you. I have also been averaging 10%+ returns for the several years I have been involved, although my return for the first two years of my involvement was over 12%.
10-12% annually? or monthly?
10% a month is retarded awesome.
-------------------- ...the whole experience is (and is as) a profound piece of knowledge. It is an indellible experience; it is forever known. I have known myself in a way I doubt I would have ever occurred except as it did. Smith, P. Bull. Menninger Clinic (1959) 23:20-27; p. 27. ...most subjects find the experience valuable, some find it frightening, and many say that is it uniquely lovely. Osmond, H. Annals, NY Acad Science (1957) 66:418-434; p.436
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Gilgamesh18
Herbivore Man

Registered: 03/01/12
Posts: 11,671
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Re: Lending Club *DELETED* [Re: badchad]
#18761625 - 08/26/13 09:51 PM (10 years, 5 months ago) |
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Post deleted by Gilgamesh18Reason for deletion: Mistake
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geokills
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Registered: 05/08/01
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You're not reading your statement correctly. There is no way you are being returned 10% monthly, that's the annual rate reported monthly. Even at the highest loan rate for the worst quality borrowers on LendingClub, the most you could see returned is in the mid 20%'s, though you won't, because the default rate on those lower grade loans is considerably higher (hence why lenders demand the correspondingly high interest rate).
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Gilgamesh18
Herbivore Man

Registered: 03/01/12
Posts: 11,671
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Re: Lending Club [Re: geokills]
#18764659 - 08/27/13 04:02 PM (10 years, 5 months ago) |
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Quote:
geokills said: You're not reading your statement correctly. There is no way you are being returned 10% monthly, that's the annual rate reported monthly. Even at the highest loan rate for the worst quality borrowers on LendingClub, the most you could see returned is in the mid 20%'s, though you won't, because the default rate on those lower grade loans is considerably higher (hence why lenders demand the correspondingly high interest rate).
Oh whoops your right my mistake
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Terillius
Renaissance Man


Registered: 07/21/06
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Just a quick chime-in here about LendingClub being awesome. I remember being on the fence for a long time, but I took the plunge and it's 10%+ for sure. Never invest more than $25 in a single loan!
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Groovy Grant

Registered: 07/31/00
Posts: 6,635
Loc: TX
Last seen: 16 days, 1 hour
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Another interesting thing that is happening with lending club type investments is the SEC is looking into allowing Kickstarter and other similar company the ability to offer shares in start ups rather than products in kind. I think that will be an interesting play on small time investors getting a chance to get in on the ground floor.
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