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Messages - Dennis

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Investors - LC / How long are loans "In Funding"
« on: October 01, 2014, 11:00:00 PM »
Tuesday (2 days ago, Sept 30) I was sitting on about 120 fully funded notes "In Review" at LC (between 2 accounts).  Most of them had been fully funded for 1 to 3 weeks.  Between today (Oct 2) and yesterday (Oct 1) about half those notes finally issued.  I'm in my fourth year now with LC, and this has been a practice for quite some time.  They hold notes at the end of the month to pad the next months numbers so their flow charts look pretty.  I don't like this practice, a lot of money gets tied up, earning nothing, far longer than it should.  I just filled out a LC survey they sent me and in the comment section I complained about this practice.  That said, I have little else to complain about with LC since they seem to be doing everything else right for me.  Prosper on the other hand, has been terrible for me.  I've been draining my funds there over the last 6 months and putting them to work at LC.  After 3 years with them, I'm done.  Today I can't even get into my Prosper account for some reason (who knows why), and the web site has been an ongoing frustrating experience for me, slower than molasses, frequent missing money, and pages that routinely take 30 - 60 seconds to load - but that's a whole other story......     
Investors - LC /
« on: January 13, 2014, 12:00:00 AM »
Rob, you post a great question with this topic, one that has me really thinking.  I haven't been on these boards for about 2 months now because the posts were becoming way too social and not very informative.  But now you pose this great question....

I admit I'm one of those "best notes" people, in that I have my own criteria or "subset" as you put it, in choosing notes.  The challenge then, for me, is to beat the averages which I have consistently done for 2 1/2 years now.  This is a hobby for me, so I've mostly enjoyed the note selection process and I still do most of it manually.  I have been using filters at LC somewhat the last several months though as it has become increasing difficult to get those "best" notes if you're not fast enough.  But I use no filters at Prosper, and still hand pick (after using a general filter) all my notes at LC.

So personally I do think there is a subset within note grades (that's just my opinion) that can outperform the average in that grade.  I have nowhere near the skill set of many here who can run numbers, accurately configure probabilities, or create API's or other software, but I still do okay.

I have 3 P2P accounts, and even with the many defaults I get because of my high risk exposure, my current combined weighted average return for those accounts is currently 14.72%.  I've hovered around 15% for the last year and am currently at about the lowest return rate I've been at in 2 1/2 years.  The first notes I purchased will start paying off in the next 6 months (for those that go full term), and my 3 year experiment with P2P should yield some interesting results.  I am impressed with it so far.

Maybe I've been lucky, maybe I've stumbled on some skillset I don't know I have yet, or who knows what, but I will continue doing what I'm doing as long as I continue to get these results, which means that I believe there is a subset of notes that will outperform the averages. 

All that said, I don't like all the defaults I get, I hate when borrowers make less than 10 payments, and in some cases they make only 1 or 2 payments and then pay off the note - those things waste my time and frustrate me, but I've learned that it's just part of the game and you have to accept it.

Again, great question........

Investors - LC / Accrued interest no longer reported in Account Total
« on: October 09, 2013, 11:00:00 PM »
Nice observation.  This is what is so great about this board, I wouldn't have noticed that change so quickly, and now that I know about it I'm happy the accrued interest figure is gone (I'm easily pleased) - that number held little to no meaning for me.  I like real time, not maybe or should-be or will-be time.  Good move, nice improvement for LC.  I give it a 9.5 on the 10 scale.
Investors - LC / Employer removed from loan description
« on: September 26, 2013, 11:00:00 PM »
I think my favorite job title (sarcasm) would have to be analyst.  For those of you who have Prosper accounts, have you noticed how so many people seem to have that title??  I guess it's right up there with consultant, professional, other, administrative assistant, etc., all descriptions that tell you little or nothing about the job.  Which brings me to another point, Prosper has always (or at least for the two years I've been there) only listed occupation, not employer, on its loan listings.  So this is nothing new for some of us.   
Investors - LC / Time
« on: September 04, 2013, 11:00:00 PM »
DutchNurse, we have something in common, I also trade through Scottrade - great company.  I think you'll find investing in LC to be far less stressful than stock trading.  I've been doing this for 2 years now and not lost one second of sleep over worry of losing money.  I definitely can't say that about stock trading.  I hand pick all my notes here, I don't use tools or filters, and between 3 P2P accounts have maintained a 15%+ return for 2 years running.  Everyone here has a different investment style, no doubt you will discover what works best for you. 

As far as you possibly wanting to automate your investing, if you are pressed for time that may be the way to go.  I too have a very busy schedule, and lately have been finding it cumbersome to stay fully invested as note selection has become challenging lately.  So my "old fashioned" way of doing things here may be coming to an end for me.  But if you can find the time, it may be more beneficial to research what has been working for those here who are getting superior returns.  You certainly can do it too.

I don't know what kind of a stock trader you are, but you may need to temper you expectations regarding returns here when compared to stock trading.  The money can be very good trading stocks, as I'm sure you know, but there can be a fair amount of stress that goes with that.  I've certainly had sleepless nights from that.  But like I said, there is very limited stress here so you may enjoy this more than trading, even if returns are a little less.

So best of luck to you......... 
So does this mean Prosper interest rates will be further reduced in the higher risk notes (D - HR)?  It wasn't that long ago I could find all the HR notes I wanted since there were many borrowers in that class that met my criteria.  The new management changed all that though and those higher risk applicants got assigned a lower risk rate (lower interest rates).  It was probably more fair and more accurate to the borrower, but gone were my 30% returns in that class.  However, with the lower rates, it probably brought a few more borrowers to the platform - there's good and bad to everything.  Lower rates may help to increase the supply of notes on the platform, by attracting more borrowers, but that may also mean fewer lenders attracted to Prosper as investor returns will be lower - not saying that's a bad thing.....  So in a nut shell, more borrowers but lower investor returns.

I did a little research on FICO® 08 and found at least one thing in their scoring that may be a little disturbing:

"If you have a single serious delinquency, that is, one account that's gone 90 days past due or more, your FICO 08 credit score won't hurt as much if you have several other accounts that are in good standing."

So not paying your bills now is no big deal??  It's a big deal to me if I'm the lender on the other side of that borrower, 90 days late is serious.  In my opinion that should be reflected in a persons credit score.  But with FICO┬« 08 it's no big deal anymore and that borrower will have a higher FICO score now.  I don't like it...

What does everyone think................

Investors - LC / Do I have this right?
« on: August 29, 2013, 11:00:00 PM »
The interesting thing in all this is that institutions are not only swallowing all the whole loans, but now they seem to be invading and dominating the partial loan platform also.  Of course I can't prove that, but there does seem to be evidence of that.  So as institutions may now be dominating P2P, how on earth does Lending Club market their company for an IPO.  What the company is/was founded on, P2P, seems to be a broken model now.  And how do you market a broken model but still convince future stock holders that what the business was founded on is sound?  I would think the SEC would also have something to say about full disclosure if LC tries to market themselves as a P2P company.  It kind of puts LC in a confused bind, IMHO.
Investors - LC / Do I have this right?
« on: August 28, 2013, 11:00:00 PM »
I know this has been talked about on these boards at length, but do I have it right:

- notes at LC are issued en masse 4 times a day.
- the second (and I mean the absolute second) those notes appear on the platform, large institution/s with endless amounts of cash immediately suck most of them into their LC cache for review, temporarily locking them out to most small investors (the peer investors).
- then, after a relaxed review of those notes, the undesirable ones get tossed back onto the platform again, but often into the clutches of yet another institutional player - and the notes quickly disappear again.
- this process, where notes get pitched back and forth, gets repeated over and over again (in what seems like milliseconds), until they finally get fully funded.
- the small investor (the peer investor) must be quick and/or lucky to get one maybe two notes a session unless he/she is not picky on note quality.
- so the small investor (the true peer investor) who generally has limited amounts of cash, and maybe limited software capability, has very little or no chance of competing with all this.
- the small investor then is at the mercy of the big investor/s for notes, or for leftovers deemed too risky by the big guys to invest in.
- so the small investor (the true "peer" investor) starves while the big guys feast.
- P2P lending then is now mostly institutional lending, and we seem to have come full circle again in the finance community, where the big guys call the shots.  Nice concept, P2P - if it only worked.......

Now I know what I just wrote isn't always true or always happens, but I'm speaking in general terms where those things happen a lot or most of the time.

Did I get it right?

Investors - LC / Well, I did it....Transferred my money out
« on: August 20, 2013, 11:00:00 PM »
I haven't given up yet, but I think about it quite often now.  I've become a slave to the clock with both LC and Prosper, and I'm barely treading water keeping up with reinvestment.  I've been at this for 2 years, invested a sizable amount with very good returns, so I'm content to wait until another P2P player comes along.  In the meantime, I'm back to trading stocks again and doing quite well, with far less frustration. 
Investors - LC / LC website crashed?
« on: August 19, 2013, 11:00:00 PM »
Ditto here, can't get logged in.

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