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Post by: Nathan on April 07, 2013, 11:00:00 PM
Post by: Nathan on April 07, 2013, 11:00:00 PM
It seems that gone are the days of 1000+ loan availability. In the last couple weeks, we're seeing very low averages. At the moment, it looks like we're at about 300 loans but over the weekend it was below 200. Why is this? Social lending has two general exposure points which affect business performance: Borrowers and Lenders. Are there less borrowers or are there too many lenders? I'd wager that Lending Club business isn't growing symmetrically. More borrowers are needed to keep up with the amount of money that investors are willing to lend. With investors chasing serious returns, and the fact that every single loan since inception on Lending Club has been 100% funded, I'd argue that they could stop advertising to investors entirely and instead, focus on the borrowers. I imagine that's where the real money for Lending Club comes from. If a loan is 100% funded and Lending Club takes a 1% service fee on payment processing, it doesn't matter if five or 500 people have invested in the loan, the outcome is the same for Lending Club. It seems that Lending Club is a victim of their own success. But that's just my thoughts...
With such low availability, how do you ensure you get the best notes? Personally, I use bluevestment.com's auto investment and selling service. It sure as hell beats sitting around refreshing the browser all day and trying to quickly pounce on notes. I'm finding $35,000 loans with six total investors (luckily, I'm one of them, even if it's only for a $25 portion). With competition so strong, how do you ensure you get the best notes? I'd love to hear people's comments on loan availability.
With such low availability, how do you ensure you get the best notes? Personally, I use bluevestment.com's auto investment and selling service. It sure as hell beats sitting around refreshing the browser all day and trying to quickly pounce on notes. I'm finding $35,000 loans with six total investors (luckily, I'm one of them, even if it's only for a $25 portion). With competition so strong, how do you ensure you get the best notes? I'd love to hear people's comments on loan availability.
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Post by: New Jersey Guy on December 31, 1969, 06:00:00 PM
Post by: New Jersey Guy on December 31, 1969, 06:00:00 PM
"With competition so strong, how do you ensure you get the best notes? I'd love to hear people's comments on loan availability."
Nathan, I can't comment for people who shop off the LC platform as I live in NJ and have to shop off the Folio Platform. That means I can shop for freshly issued loans but.....ONE AT A TIME!
I'm sure you're going to find out that people here have different buying strategies. Those will vary from people who auto invest (like you) to those picking loans, one at a time.
How do you get the best notes? There is no guaranteed process. However, many here will agree that the eye-ball test is the final (and best) method for qualifying a note for purchase. You'd be surprised at how many red-flags you could pick up by being the final judge.
Personally, I like the hunt.
Nathan, I can't comment for people who shop off the LC platform as I live in NJ and have to shop off the Folio Platform. That means I can shop for freshly issued loans but.....ONE AT A TIME!
I'm sure you're going to find out that people here have different buying strategies. Those will vary from people who auto invest (like you) to those picking loans, one at a time.
How do you get the best notes? There is no guaranteed process. However, many here will agree that the eye-ball test is the final (and best) method for qualifying a note for purchase. You'd be surprised at how many red-flags you could pick up by being the final judge.
Personally, I like the hunt.
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Post by: brycemason on December 31, 1969, 06:00:00 PM
Post by: brycemason on December 31, 1969, 06:00:00 PM
The number of loans is lower on the platform because they get invested fully so quickly--especially in the first week of a month. Looking at the loans on the platform is like looking at a picture of a river. You get absolutely no sense of how fast the water is moving.
I use my website to pounce on loans the moment they become available. Unlike Blue's work, which requires the customer to pick a filter, we take the approach that there are many people out there who want to be provided the strategy, too. Automated investment with said strategy is in the works (realistically a few months away), but for now subscribers have to pop on within a few minutes after the magic hours at LC to get the best selection. Www.p2p-picks.com
I use my website to pounce on loans the moment they become available. Unlike Blue's work, which requires the customer to pick a filter, we take the approach that there are many people out there who want to be provided the strategy, too. Automated investment with said strategy is in the works (realistically a few months away), but for now subscribers have to pop on within a few minutes after the magic hours at LC to get the best selection. Www.p2p-picks.com
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Post by: Cliff_S on December 31, 1969, 06:00:00 PM
Post by: Cliff_S on December 31, 1969, 06:00:00 PM
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Post by: TravelingPennies on December 31, 1969, 06:00:00 PM
Post by: TravelingPennies on December 31, 1969, 06:00:00 PM
"I'm sure you have heard it before and will hear it again, but the "best notes" criteria is very subjective. It's like picking the best horse on race day: a lot of people will bet on different horses based on different criteria, but at the end of the day you don't know who was right until after the race. With P2P lending coming in second or third probably isn't so bad either."
+1
(Great analogy!)
+1
(Great analogy!)
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Post by: jsmathur on December 31, 1969, 06:00:00 PM
Post by: jsmathur on December 31, 1969, 06:00:00 PM
Nathan, I can't help but juxtapose LC's own statistics in terms of dollar value of loans issued each month, compared with the typical number of loans we see on that platform at any given time.
I agree with you that it clearly seems that there are a lot less loans sitting on the platform waiting to be funded. Seeing 200-300 has been commonplace lately, but it wasn't long ago that you would see well over 1000.
So if the LC stats say that monthly loan issuance is still very strong, but less loans seem available on the platform, there's probably a few explanations which all are probably contributing:
1. Loans are getting funded faster in general, so they don't stay listed on the online platform for very long
2. I suspect many loans are getting funded before they ever make it to the online platform, because they are being snatched up by institutional investors.
I don't think the lower number of listed loans on the web site reflects less demand for loans from borrowers, because the monthly dollar value of loans issued (see the "statistics" section on the LC website, look at the Total Loans Funded graph) continues to be strong. In March LC issued almost $130 million in loans, so there's no weakness in loan demand.
I agree with you that it clearly seems that there are a lot less loans sitting on the platform waiting to be funded. Seeing 200-300 has been commonplace lately, but it wasn't long ago that you would see well over 1000.
So if the LC stats say that monthly loan issuance is still very strong, but less loans seem available on the platform, there's probably a few explanations which all are probably contributing:
1. Loans are getting funded faster in general, so they don't stay listed on the online platform for very long
2. I suspect many loans are getting funded before they ever make it to the online platform, because they are being snatched up by institutional investors.
I don't think the lower number of listed loans on the web site reflects less demand for loans from borrowers, because the monthly dollar value of loans issued (see the "statistics" section on the LC website, look at the Total Loans Funded graph) continues to be strong. In March LC issued almost $130 million in loans, so there's no weakness in loan demand.
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Post by: TravelingPennies on December 31, 1969, 06:00:00 PM
Post by: TravelingPennies on December 31, 1969, 06:00:00 PM
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Post by: TravelingPennies on December 31, 1969, 06:00:00 PM
Post by: TravelingPennies on December 31, 1969, 06:00:00 PM
If you have a question about my service, please post in the P2P Picks section to keep the original thread on topic and I'll answer it there. More or less it's a unique credit scoring technique, whereas filtering just looks for one specific combination of attributes.
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Post by: Fred on December 31, 1969, 06:00:00 PM
Post by: Fred on December 31, 1969, 06:00:00 PM
I also noticed that the number of "Removed" fully-funded loans is lower recently. Usually about half of my fully-funded loans didn't get to the "Issued" status; however, most of them do nowadays.
Perhaps this is another reason for the lower number of borrowers: LC is now more stringent on the borrowers.
Perhaps this is another reason for the lower number of borrowers: LC is now more stringent on the borrowers.
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Post by: GS on December 31, 1969, 06:00:00 PM
Post by: GS on December 31, 1969, 06:00:00 PM
I would not be surprised if LC sees a surplus of investors as a reason to raise fees on investors.
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Post by: SeanMcD on December 31, 1969, 06:00:00 PM
Post by: SeanMcD on December 31, 1969, 06:00:00 PM
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Post by: TravelingPennies on December 31, 1969, 06:00:00 PM
Post by: TravelingPennies on December 31, 1969, 06:00:00 PM
Down to 85 loans on LC right now ... geez ... I think I'm going to have to start investing $50 or $100 when I find a loan I like.
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Post by: Zach on December 31, 1969, 06:00:00 PM
Post by: Zach on December 31, 1969, 06:00:00 PM
I would just suggest everyone start using Interest Radar to compete with these big fish...it's not that there aren't enough, its that unless you have automated investment capabilities (via the API that Interest Radar uses) you can't compete to get the loans you want.
It would be the best $60 you've ever spent...trust me.
Disclaimer: I don't receive any compensation for suggesting that you join. I just firmly beleive its the best LC account management tool end-to-end. Not only does it provide you with the most extensive research options, a proprietary loan scoring model, complete portfolio management, but also risk management and SO much more....
It would be the best $60 you've ever spent...trust me.
Disclaimer: I don't receive any compensation for suggesting that you join. I just firmly beleive its the best LC account management tool end-to-end. Not only does it provide you with the most extensive research options, a proprietary loan scoring model, complete portfolio management, but also risk management and SO much more....
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Post by: storm on December 31, 1969, 06:00:00 PM
Post by: storm on December 31, 1969, 06:00:00 PM
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Post by: TravelingPennies on December 31, 1969, 06:00:00 PM
Post by: TravelingPennies on December 31, 1969, 06:00:00 PM
Lending Club's priorities lie in maximizing originations subject to some minimum acceptable basal return on their portfolio.
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Post by: Peter on April 15, 2013, 11:00:00 PM
Post by: Peter on April 15, 2013, 11:00:00 PM
Storm, I have known Rev, the person behind Interest Radar, since before the site began. For the first six months of the site's existence everything was free although it did require an email registration. People here recommend it because they like it and it provides good value for money. No one here, myself included (and I a full paying member of Interest Radar) receives any kickbacks from Rev.
One of the other attractions to investors is that Rev is very active on this forum. Just look at the Interest Radar board - there are a passionate group of investors who interact with Rev on a daily basis.
Of course, Interest Radar is not for everyone, if you are happy using your own scripting tools the you should continue to do so. And you are obviously entitled to your opinion. But I can tell you that Interest Radar has become an integral tool for many LC investors.
One of the other attractions to investors is that Rev is very active on this forum. Just look at the Interest Radar board - there are a passionate group of investors who interact with Rev on a daily basis.
Of course, Interest Radar is not for everyone, if you are happy using your own scripting tools the you should continue to do so. And you are obviously entitled to your opinion. But I can tell you that Interest Radar has become an integral tool for many LC investors.
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Post by: rev on December 31, 1969, 06:00:00 PM
Post by: rev on December 31, 1969, 06:00:00 PM
Thanks Peter!
I actually never realized that you could only see the subscription price after logging in. I made the Subscription page login-only for the sole reason that I need to know the user that is on the other side in order to credit the access after the payment, not to hide the price.
That said: it's fixed. You can now see the page before you sign up.
http://www.interestradar.com/subscribe
Cheers
I actually never realized that you could only see the subscription price after logging in. I made the Subscription page login-only for the sole reason that I need to know the user that is on the other side in order to credit the access after the payment, not to hide the price.
That said: it's fixed. You can now see the page before you sign up.
http://www.interestradar.com/subscribe
Cheers
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Post by: Randawl on December 31, 1969, 06:00:00 PM
Post by: Randawl on December 31, 1969, 06:00:00 PM
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Post by: Zach on December 31, 1969, 06:00:00 PM
Post by: Zach on December 31, 1969, 06:00:00 PM
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Post by: Fred on December 31, 1969, 06:00:00 PM
Post by: Fred on December 31, 1969, 06:00:00 PM
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Post by: dontvote on December 31, 1969, 06:00:00 PM
Post by: dontvote on December 31, 1969, 06:00:00 PM
Really pulled it out of the crapper!
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Post by: jsmathur on December 31, 1969, 06:00:00 PM
Post by: jsmathur on December 31, 1969, 06:00:00 PM
for those interested in an official explanation of the lower perceived loan volume on the LC platform, there is a new posting by the company on the Lending Club blog that addresses this issue.
I pasted it below for those who are interested:
"
Posted by Lending Club :: April 20, 2013 @ 12:20 am
You may have noticed that the number of Notes listed on our Web site has recently been lower than usual. This is not due to any slowdown in Lending Club's growth -- April will be our largest month ever with roughly $140 million in loans issued, a 10% increase over March and more than triple our volume in March of last year. More loans than ever are hitting the platform.
The decrease visible loans is due to recent record inflow of investors and capital over the past two months (we signed up 2-3 times more new investors last month than average). This capital is causing loans to be fully funded very quickly after listing -- usually within 24 hours.
We understand and apologize that the limited selection at any one time makes it harder to invest.
Actions we are taking to increase the number of Notes visible on the Platform include:
- We are, where possible, prudently reducing our investor acquisition efforts
- We are spreading larger investments out over time
- We are working on an automated investment tool that will enable you to specify your parameters and have trades executed on your behalf without the need to visit the website. (We hope to have this ready by late summer.)
In the meanwhile, it may be helpful to know that new loans are listed on the website at 6AM, 10AM, 2PM, and 6PM Pacific Time. Visiting the website at these times will allow you to see the broadest possible selection.
Thank you for your patience and support of Lending Club."
I pasted it below for those who are interested:
"
Posted by Lending Club :: April 20, 2013 @ 12:20 am
You may have noticed that the number of Notes listed on our Web site has recently been lower than usual. This is not due to any slowdown in Lending Club's growth -- April will be our largest month ever with roughly $140 million in loans issued, a 10% increase over March and more than triple our volume in March of last year. More loans than ever are hitting the platform.
The decrease visible loans is due to recent record inflow of investors and capital over the past two months (we signed up 2-3 times more new investors last month than average). This capital is causing loans to be fully funded very quickly after listing -- usually within 24 hours.
We understand and apologize that the limited selection at any one time makes it harder to invest.
Actions we are taking to increase the number of Notes visible on the Platform include:
- We are, where possible, prudently reducing our investor acquisition efforts
- We are spreading larger investments out over time
- We are working on an automated investment tool that will enable you to specify your parameters and have trades executed on your behalf without the need to visit the website. (We hope to have this ready by late summer.)
In the meanwhile, it may be helpful to know that new loans are listed on the website at 6AM, 10AM, 2PM, and 6PM Pacific Time. Visiting the website at these times will allow you to see the broadest possible selection.
Thank you for your patience and support of Lending Club."
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Post by: TravelingPennies on December 31, 1969, 06:00:00 PM
Post by: TravelingPennies on December 31, 1969, 06:00:00 PM
For reference, the LC blog link: http://blog.lendingclub.com/2013/04/20/a-note-on-our-recent-loan-volume/
- This capital is causing loans to be fully funded very quickly after listing -- usually within 24 hours.
I think LC is being overly generous by saying "within 24 hours". I suspect, it is much shorter than that.
- We are, where possible, prudently reducing our investor acquisition efforts
The phrase where possible is the key here.
- We are spreading larger investments out over time
I need to see specifics about this. How is this accomplished?
- We are working on an automated investment tool that will enable you to specify your parameters and have trades executed on your behalf without the need to visit the website.
Looking forward to it!
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Post by: rawraw on December 31, 1969, 06:00:00 PM
Post by: rawraw on December 31, 1969, 06:00:00 PM
Am I the only one who thinks that we as a "community" of LC investors whine a little too much? I for one am happy I get the exposure to consumer credit and am perfectly willing to sign on at specific times to compete with the 'big guys.'
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Post by: TravelingPennies on December 31, 1969, 06:00:00 PM
Post by: TravelingPennies on December 31, 1969, 06:00:00 PM
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Post by: Lloigor on December 31, 1969, 06:00:00 PM
Post by: Lloigor on December 31, 1969, 06:00:00 PM
This week has been better for me. While total notes available is still only in the 300s after a batch is released, I have been able to find 3-5 I like in most of those batches.