P2P Lending / NFT Lending Forum

Starting a new welcome thread that reflects my new brand, Lend Academy.

This forum is a place where people can learn and share their knowledge of p2p lending. Whether you are a brand new investor or one who has been here from the beginning you are welcome on this forum. Please introduce yourself and let us know why you joined.

Thanks, Peter

Hello Peter and Lend Academy forum mates,
Just signed up after reading many thoughtful and informative posts.
I am very interested in peer to peer lending and this forum and site are a wealth of knowledge.

Just a bit of background, but I hope not enough to put you all to sleep!
I have been investing in mutual funds for 25+ years, primarily the 401k/403b route.
However, that is an incredibly boring and very anonymous way to invest.
I feel zero connection to the underlying investments, corporate managements, nor bond holders.

That's why I'm so enamored with peer to peer lending.
I will likely take the plunge over the holidays, and share my experiences as I move forward.

Thanks to all for your thoughtful insights.
Jim

Jim just some advice before you get an account. Make sure you take advantage of the referral links/promotions that both LC and prosper have. I really regret not doing so. 

Welcome Jim, glad to have you on board. Everyone invests for there own reasons and the primary one that I see mentioned is the superior returns. But there are also many people who like the fact that p2p lending is not an impersonal investment. You can really help people while at the same time making a great return on your money.

I have to admit, what I love about LC & Prosper is that they bypass banks.

I'm frustrated with traditional big banks in the US:

• There is too snuggly of a relationship between the investment and the retail side of the banks
• That we (as taxpayers) had to massively bail out these institutions while they continued to blythyl continue on with risky busisness practices
• That they are giving us low interest rates on savings while collecting huge amounts of interest on their creditcards
• That they are refusing to loan money to qualified borrowers because they want to continue to make money off the credit cards instead

I love that LC and prosper have taken these bastards out of the equation, democratizing the lending system, and spreading wealth.  I avoid using the big banks for most purposes, and I am tickled pink that we have a way to by pass them in such a profitable way

Sorry about the rant there, but this is one of the main reasons I'm so excited about lendingclub.

Peter, et al
Thanks for your advice, great posts, and wealth of information.  Nickel Steamroller was particularly helpful.

Unforuntately, I live in a state whereby I can only invest in the secondary market, with Lending Club.  At face value, the secondary market flys in the face of what I'm trying to achieve with P2P lending; having a direct impact on the lending environment. 

As to the secondary market, there appears to be a very high level of competition for a relatively small population of notes that are priced attractively.  The secondary market is very interesting, but...a lot of people are fishing, in a very small pond, with the same bait.

I've even considered an alternative strategy, a very high risk approach, investing in notes that are in grace period or less than 30 days late, given there are good statistics on recovery, ~15% and ~25%, respectively, which can be baked into the price.  However, this strategy addresses an even a smaller population of notes, and the asking prices tend not to reflect the associated risks.

As a result of the above, I'm not prepared to jump into this market.  But, I am intrigued and will continue to watch the secondary market.

If it makes sense to start a discussion on the main forum into high risk strategies on the secondary market, let me know and I will start it.  I just don't want to waste anyone's time with esoteric strategies.

Thanks again to this group of engaged and focused investors, especially for taking the risks on the right thing to do and making a market.
Jim

After Lending Club IPO's, you will be able to invest on main LC platform. In the mean time, have you considered collaborating with a friend/family member who lives in a state that allows purchasing notes on main platform? They can buy notes on main platform and then list notes on secondary market for you to pickup. Just an idea to get around state restrictions, of course at little extra cost and hassle.

from: JimPHL on December 26, 2012, 02:12:43 PM

Anil
Yes, I have considered that as an option.

I have a friend in a state that is nearby, in the primary market, and has a LC account. Once everyone is back from the holidays, I will bring him up to speed with what I've learned and gauge his interest, perhaps in an investment partnership of sorts.

It will be a great opportunity to pick his brain on strategies as well.

By the way, I think an IPO will bring many interesting changes. I cannot help but surmise that many of the strange things observed recently, as posted in these forums, is related to people and organizations 'kicking tires' in advance of the offering.

Thanks for your thoughtful and timely reply.
Jim

Well I suppose I should introduce myself. I've been a long time lurker on this forum but haven't really interacted with it much. I hope that changes in the coming year. Anyways, I a huge lover of p2p lending, have been an active lender for about 15 months, and recently launched a peer to peer lending site www.lendingmemo.com

I'm a big fan of Peter's work, and a proponent of this industry. I am eager to help Prosper and Lending Club in whatever way they make space, and am really excited about new players entering the arena.

from: Simon on January 28, 2013, 07:44:32 PM

from: Simon on January 28, 2013, 07:44:32 PM

Hello all, my name is Cliff.  I actually stumbled upon the whole notion of peer-to-peer lending last December.  I was starting to pull my tax information together and was appalled at how little interest my savings accounts were making (a whopping 0.25%).  In the search for better returns without the risk and volatility of stocks I came across an article on peer-to-peer lending.  Long story short, I opened an account with LC right after the first of the year and have spent the last month buying notes.

Another Google search about two weeks ago led me to this site.  Wish I would have found it before I ever started.  My approach has been evolving since day one and after reading the wealth of information on this site my approach today resembles nothing like I started with.  Anyways, I'm still on a pretty steep learning curve and have enjoyed all the insight folks share here.  I have also enjoyed taking a more active role in investing and look forward to steering my account toward a double digit ROI.

Cliff

from: Cliff_S on February 09, 2013, 10:03:39 PM

Thanks for the suggestion.  I may have to do just that.  I envisioned a very conservative strategy initially and subsequently have almost half of my account in A-grade notes.

Cliff 

Hi everyone.  My names Greg.  First let me thank you for the wealth of knowledge I've already obsorbed from the shadows.  I started like Cliff here, right after the new year becuase similarly, Capital One is giving me a wopping .05% on my savings!  Wooooo (opened up the new high yield checking acct with them for a market leading 1% which still.. stinks).

Hoping to learn a lot, and then share a lot back once the student has become the master :-P

Welcome Greg, I am glad you decided to join us. We have quite a good group here and they are always happy to answer questions. Feel free to join the conversation or post a question.

"They can buy notes on main platform and then list notes on secondary market for you to pickup. Just an idea to get around state restrictions, of course at little extra cost and hassle."

Jim, this is a good point.  I'm in a Folio only state (NJ).
I've been using Interest Radar to filter out fresh, newly-issued loans.  Rev's filter strategies will usually produce some high-quality, virgin loans.  Those "Little extra costs" will usually run you $.20 to $.55 above par on a $25 note (if you can pick-up them up at the 1% or less markup.)

I'm not as savvy as most of the folks on this site so I rely on Rev's insights as a strong foundation.  So far, I've had no disappointments.

Hi all, I'm ee1x. I'm 24 years old and I've been involved with p2p since early 2012 after a frustration with low returns sent me scrambling to find something new to experiment with.  I've played the role of both borrower and investor on both major p2p sites and I've developed an automated quantitative strategy that is currently returning ~16%. My main goal at this time is to launch and operate a fund based on my strategy as it has long been one of my dreams to become a fund manager.

I've been trading equities since 2007, and had a one-year stint at a hedge fund on their forex/futures execution desk. I've also been trading equity options for just over a year. Currently, my full-time job is in trading technology consulting.

To Peter - Thanks so much for being the true voice of p2p on the Internet and setting all of this up. I've been reading your site constantly since I started and I definitely owe you a great deal of gratitude for making the voyage into this new asset class an easy one.

I am looking forward to participating in discussions on these boards and getting to know you all. I plan on attending the Lendit Conference in June and I hope to be able to meet some of you in person. Thanks for having me!

Hi to all; glad to be aboard. The first I heard of P2P was about a week ago, so I'm the newbie's newbie. "Got a lot of catchin (sic) up to do." I'm a small business owner and electrical engineer nearing retirement. I learned here that P2P works best within an IRA so that works very well for me. It's said to be another asset class so that will help me diversify. I'm in the process of rolling some funds into a new LC IRA account. I love to learn new stuff and P2P lending is a new challenge. Lots of smart folks on this forum to learn from. Thanks to Peter and all the other contributors. I've read the "Best of" blog posts and the e-book, and maybe I just missed it, but is there a FAQ forum thread? I'd hate to ask the same question(s) covered many times before, but the forum has a lot of posts. I'll use the search feature to try to avoid it, but reading the FAQ's would be interesting.

I agree with you. It would be great to have a collection of the wisdom of the many great posts on this forum to help guide new P2P investors with a better understanding of the factors involved in this class of assets as well as specific investment strategies.

Quote"> from: edward on May 05, 2013, 11:39:29 AM

Recent professional school grad without much of a retirement and high SL debt, began looking for ways to make $.  I've made many personal finance changes to how and where I spend my money, as well as reducing debt and saving.  I realized quickly this is not going to allow me to accumulate wealth.

My dad turned me on to P2P around Christmas and I started investing after the beginning of the year. I live in TN and apparently there are laws that won't allow me to buy notes directly, so I have to use the trading platform on LC.  (I wasn't able to invest with Prosper at all.) I haven't really had a strategy. I've been playing around trying to figure it out. I haven't really learned any more than I knew starting out, so this week I began looking for resources.

Coincidentally, this morning on NPR there was a reference to this blog and an announcement about Google buying into LC.  What does this purchase mean for LC? I've read that they are looking to go public. Is this a move in that direction?  Looking forward to getting educated and making some money!

Welcome Newbie2!

"Google buying into LC.  What does this purchase mean for LC?"

We opened a thread up on that subject several days ago:
http://www.lendacademy.com/forum/index.php?topic=1052.0

"I haven't really had a strategy. I've been playing around trying to figure it out. I haven't really learned any more than I knew starting out, so this week I began looking for resources"

Don't waste anymore time!  You need to check out the"P2P Statistics/Analysis Sites " section located on the main page of the Forum.  All of the sites are great but like you, I'm in a Foliofn state (New Jersey) too.  Personally, I'm signed up with Interest Radar.  IR offers up a huge plate of options for us Folio Folks to make our shopping easier and more profitable. 

One good thing about any of these sites.  The developers are contributors to this board and always available to help.

@New Jersey Guy

Thank you!  My browser is overloaded with hyperlinks of all the things I've found to read!

Quote

Hi all,

I'm Val, and have been investing with lending club since 2011. I'm trying to get more sophisticated and have been adding to my investments regularly for ~5 weeks now. I'm interested in strategies and the prospects of P2P lending going forward both short and very long term (thinking about a roth IRA account)

I've got quite a bit of learning to do, so any recomendations are welcome

Welcome qval. Good to have you here. I think opening an IRA account is a an excellent idea - taxes really eat into returns and if you can avoid that you should. I think I can speak for most people here who believe that the prospects for p2p lending are very strong both short and long term.

Hi all!  We are relatively new to the p2p Lending industry, but have been reading and learning a lot in the last few months (thanks in part to this blog).   Brian and I have an immense amount of experience in data visualization and plan to incorporate LendingClub data to create some fantastic statistics on our new site. We hope to contribute to the forum here as well as provide some benefit to readers at our own blog www.LendingClubStatistics.com

Hi Ryan-

Welcome to the forum! The p2p space is growing exponentially (as you probably already know), and so are the number of 3rd-party statistics/portfolio management services. It is always exciting to see new services (such as your own) coming to fruition.

If you have questions or want to gather input from our members, feel free to post new questions, or browse through the plethora of existing posts.

I'm excited for your new service as well as seeing some posts from you here!