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Messages - rawraw

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Investors - LC / AltoIRA == Bozos
« on: July 16, 2021, 08:55:36 AM »
That is wild
I'll see if I still have them.  A buddy has done the same thing and he may have the documentation, since he actually emailed GroundFloor about it.  He works in banking and has stopped investing in the platform due to the experience and response.

In his case, the updates on the file were something like "Landscaping complete, renovation mostly complete, everything A-Okay!"  But if you drove past the property, the building looked rough with a yard that wasn't mowed - almost looked abandoned.  It was clear there was no landscaping or renovation happening, in contradiction to their notes.  When he tried to post in the Facebook Groundfloor group, the mods prevented the post from going through.  When he contacted the help line, they basically said "thanks for bringing to our attention we will look into this".  They continued to update the progress on the real estate, but passing by the property showed those updates weren't visible.  I think the loan eventually did default, but I can't recall.  This was a year or so ago.  If I find details, I'll let you know.
I personally think Groundfloor is a train wreck waiting to happen.  I've caught them in several "misrepresentations".  Let's just say if you ever drove past the properties you are receiving updates on, you may be shocked.  From what I can tell, they are doing none of the required practices to prevent the construction lending from blowing up next down cycle.  Reminds me of plenty of C&D banks before 2008.

Personally, I've moved to turnkey real estate, rental cars, and index funds for now.  I'm evaluating CrowdStreet.  For those interested, I've been doing an leveraged index fund for several years now.  I think most on this forum have lower risk tolerances than myself, but for posterity.

I started here:

And then modified it based on this:
Investors - LC / The wind-down
« on: July 03, 2021, 08:18:29 AM »
If you wanted to beat stock returns using consumer debt, that was never a winning beta unless you planned to use leverage.   I am happy with my Lending Club performance, but I used it instead of bonds
Suggestions / # posts
« on: June 24, 2021, 03:42:07 PM »
I was thinking the same thing.  I was like 500 posts?  I'm pretty sure that is low
Investors - LC / AltoIRA transfer
« on: June 24, 2021, 03:40:27 PM »
A buddy of mine works at Alto.  Pretty cool to see them being a place LC notes are ending up :)
Suggestions / Testing it out
« on: June 15, 2021, 08:02:00 AM »
test test test
Investors - LC / RIP Lendingclub Notes
« on: October 18, 2020, 11:00:00 PM »
All we need is New Jersey guy and Bryce for the reunion. It was a good run 😊
Investors - LC / Folio ending August 28th.
« on: August 08, 2020, 11:00:00 PM »
My account just recently got to the point where it rounds to zero.  LendingClub was a great ride,  but since I never used it in a tax advantaged account that spike in losses a few years back made it tax inefficient quicker than I expected.  Plus returns have come down a lot vs. the days where I could sell notes before they missed their payments :)  I miss my virtually risk free profits.  It was a fun ride!  The notes I bought during the LC scandal on the secondary market performed extremely well.  For those sticking around, this may be a similar situation - buy those severely distressed notes :)  If I didn't have prior commitments for my capital, I'd probably be funding up a small LC account for one last hurrah.

The portfolio I manage for my parents continues to do well.  But they've always been in the low grade notes.  I used to constantly warn some extreme people on this board about the risk they were taking with those high grade notes.  Several years later, most left because they complained about their returns and those charge offs  :-  Who could have seen chasing yield ending badly?
Got to get those risk weighted assets ready for credit losses 😊
Investors - LC / What is the lifecycle of a "hardship" loan?
« on: June 24, 2020, 11:00:00 PM »
If it makes you feel any better, the hardship equivalent loans we've been making at my employer are performing quite well. So hopefully it won't be an expensive mistake
Investors - LC / What is the lifecycle of a "hardship" loan?
« on: May 12, 2020, 11:00:00 PM »
I doubt LC will give any guidance on this, since it is forward looking.

How would I approach it? Well I'd start with the base charge off rates for the loan attributes in 2008 time frame. This would give us a base rate of charge off by risk characteristics.   From there you can make judgements on whether to adjust it up or down depending on the trends in the economy.

They won't just keep deferring, that is typically a frowned upon lending practice. But there are unique rules being applied now, so it may defer longer than we expect. I'd assume LC is making this up as they go. I work for a consumer lender and we are making it up as we go as well
General Lending Club Discussion / LC workforce reduction
« on: May 08, 2020, 11:00:00 PM »
One thing banks do in crisis is shrink assets. This keeps capital ratios strong. So I am not surprised they don't want to grow a bunch in consumer loans, but the drop is quite amazing
This is why origination businesses trade at lower multiples. Very volatile earnings stream
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