P2P Lending / NFT Lending Forum

Lending Club Discussion => Investors - LC => Topic started by: flojoflojo on January 08, 2013, 11:00:00 PM

Title: Feedback on Lending Club Business
Post by: flojoflojo on January 08, 2013, 11:00:00 PM
Hi There,

Looking for some feedback on starting a business around Lending Club...

My Background: I worked in the credit card industry for 7 years and know credit policy inside and out. Since I started investing in Lending Club in 2010, I've made 267 loans, have never had a charge-off or default, and am getting >15% returns.

Feedback requested: I'd like to find a way to make a side business off my credit policy knowledge. I want to help others invest, and make sure people that are good credit risks get their loans funded. I'm looking for feedback from this group on a couple ideas on if you think they would work or are interested in them:

Thanks!
Title: Feedback on Lending Club Business
Post by: John on December 31, 1969, 06:00:00 PM
I have been cautiously funding loans for only a few months now with great success so far....   I am still getting my feet wet and am only risking a few hundred dollars a month until I build more confidence in the system.  So for me I would have to be investing a lot more per month to justify the $10 monthly fee and by the time I build up enough confidence in the system I probably won't feel the need for this kind of service.  Have you considered offering a rating system for a few cents per loan?  This would be justifiable for someone investing on any scale and it would open up a lot more prospects for you.  A possible way to market it would be to post previous ratings vs success rates for those loans.

 
Title: Feedback on Lending Club Business
Post by: TravelingPennies on December 31, 1969, 06:00:00 PM
That's helpful. Thanks John
Title: Feedback on Lending Club Business
Post by: Zach on December 31, 1969, 06:00:00 PM
from: flojoflojo on January 09, 2013, 01:12:13 PM
Title: Feedback on Lending Club Business
Post by: rawraw on December 31, 1969, 06:00:00 PM
You portfolio doesn't seem too old -- what is the average age?  Not knocking your skills, just saying defaults are part of the game and they'll happen.
Title: Feedback on Lending Club Business
Post by: AnilG on December 31, 1969, 06:00:00 PM
This forum is DIY types so you are not likely to get a positive response. You will be better off targeting institutions, investment advisors, and hands-off high net worth individuals.

I think you have potential opportunity with both 1 and 2. The #2 will require you to be RIA with the state. The #1 will likely work if the newsletter is daily as loans fill up quickly and targets investment advisors. You can also consider offering your services as consultant. The P2P industry is still very new, as the industry grows I am sure more 'services' opportunities will come up.

I run PeerCube http://www.peercube.com, a Lending Club loan selection platform and quantitatively analyze Lending Club loan data on my blog Random Thoughts http://andirog.blogspot.com. Last year, I was approached by both institutions and high net worth people to consult.

Send me a PM through PeerCube or my blog if you want to discuss more.


from: flojoflojo on January 09, 2013, 01:12:13 PM
Title: Feedback on Lending Club Business
Post by: TravelingPennies on December 31, 1969, 06:00:00 PM
Thanks Anil - your thoughts are greatly appreciated. I PM-ed you via your blog.
Title: Feedback on Lending Club Business
Post by: brycemason on December 31, 1969, 06:00:00 PM
15% without one default is amazing. I'd love to know how you think about picking, as well as how old your average note is. Welcome to the forum!
Title: Feedback on Lending Club Business
Post by: DanB on December 31, 1969, 06:00:00 PM
No offense, but 15% without a default from only 267 notes is good..................but hardly amazing. How old is the average note? What is the mix of 36 to 60 month notes?? 15% NAR or ROI?

If the answer to those 3 questions are appropriate then I'd be willing to use the word "amazing".................in another year, assuming at least another 200 notes that are at least that old in the portfolio.
Title: Feedback on Lending Club Business
Post by: SeanMcD on December 31, 1969, 06:00:00 PM
from: DanB on January 11, 2013, 02:31:10 AM
Title: Feedback on Lending Club Business
Post by: Keltset on December 31, 1969, 06:00:00 PM
from: SeanMcD on January 11, 2013, 06:04:40 PM
Title: Feedback on Lending Club Business
Post by: writing2reality on December 31, 1969, 06:00:00 PM
from: Keltset on January 11, 2013, 07:52:43 PM