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Author Topic: Why not use an auto-invest service?

Z
  • Posts: 119
Why not use an auto-invest service?
OP: August 20, 2013, 11:00:00 PM
I know many members of the forum have had extreme difficulty in getting the loans/notes that you want. Throughout this whole constricted supply period, I've been able to aggressively get my capital to work using Interest Radar's auto-invest.

I'm curious to know why any investors who don't use an automated solution don't do so?
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t
  • Posts: 28
Why not use an auto-invest service?
#1: August 20, 2013, 11:00:00 PM
As I just posted in Bryce's thread, I haven't had much problem manually buying loans, so I haven't looked into the IR auto invest (I am an IR member though and use other features of the web site). I buy 100 dollar notes, so i don't need as many loans to get my money in. But i have over 100k so there's constantly paid-off/new payments coming in, so i re-invest a few times a week.

I have my filters set and i buy whatever matches my filter. I do a quick review in the cart since there still is no filter i know of native to LC.com that will check current debt vs requested loan amount.

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S
  • Posts: 31
Why not use an auto-invest service?
#2: August 20, 2013, 11:00:00 PM
I use IR's auto-invest, but I've still had trouble keeping up.  The last few days have seen very few successful purchases - lots of "Loan fully funded" emails. 
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T
  • Posts: 6588
Why not use an auto-invest service?
#4: August 20, 2013, 11:00:00 PM
Similar, but I don't have Unknown on auto-invest.  I still check those manually, since there's no information to indicate which attributes are out of the norm or how far they wander.
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D
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r
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Why not use an auto-invest service?
#8: August 21, 2013, 11:00:00 PM
I'm amazed that DanB is the voice of reason during this period of forum chatter, given he doesn't really bite his tongue ha ha 

But I have to agree with him -- although he probably benefits from a large amount of legacy notes.  DanB, what average interest rate are you getting upon reinvestment?
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p
  • Posts: 8
Why not use an auto-invest service?
#10: August 21, 2013, 11:00:00 PM
I refuse for securities sake to give my user name and password to an unknown individual who obviously has the technical capability to wipe out my account overnight through fictitious sales on Folio Fn and can probably withdraw most if not all of the money before he or she can be stopped. At that point my Lending Club Net Annualized return goes to a -100% instantly while Lending Clubs attorneys point to all 87 paragraphs in their operating agreements and terms of service that they are in no way responsible for my giving out my accounts access information to a "Stranger" I never met , over the internet. However if I am interested they represent a guy willing to sell me a bridge.
Besides I have a significant amount of money invested and as in all things in life, if the return is too good, it wont last. So I have stopped adding new money to my account and am attempting to keep the existing funds reinvested. Even LC Advisors is not accepting additional funds for at least another 3 months.
In the meantime there are now numerous opportunities available elsewhere as a result of rising rates. i.e. NY State tax exempts are now yielding over 5%. Its not 12% but it is tax free and I don't think NY State is defaulting soon
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Why not use an auto-invest service?
#13: August 21, 2013, 11:00:00 PM
I think one benefit of picking up the "popular" notes is at least they get funded relatively fast, but I guess that doesn't necessarily mean they get issued any faster.  For now, getting highly sought after notes could allow people to flip notes on Folio.  (Currently trying out this strategy) I'll hold off until LC has some sort of auto-invest.  I also don't have nearly enough balance in my account to justify it.  Being in IT, I also don't trust anyone direct access to a financial account. Scary  :o
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T
  • Posts: 6588
Why not use an auto-invest service?
#14: August 21, 2013, 11:00:00 PM
Thanks everyone for your input.

For those who are concerned about security, what's really the worst thing that could happen?

Someone schedules an ACH withdrawal out of your account? LC automatically sends an e-mail when a withdrawal request is received, and they can usually cancel these requests for about 1 day.

Someone tries to sell all of your notes on Folio? That may be more tricky to deal with (in terms of getting LC to cancel the sale), but lets be real here...your login credentials could be compromised at any time

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