P2P Lending / NFT Lending Forum

https://forum.lendacademy.com/index.php?topic=4584.msg41887#msg88888888Quote"> from: Rhonda9080 on September 17, 2017, 08:07:44 PM

I got an e-mail from the CEO promising a big announcement on September 12th. What do we think that is?

I am much more bullish on them at the moment.  I have had a ton of homes pay off this month including one that was in default. I now have invested in about 60 properties. And 21 of them have been paid back in full. That was about 1000 dollars as an investment and I got $50 in interest. That is not as good as Lending Club. For my 2000 dollar investment there... I have gotten about $150 dollars in interest.  This is all since January 2017.

The issue seems to be that Groundfloor investments do pay off early a lot. If I immediately reinvest I am all set but, at the moment, they have nothing to reinvest in.

They also announced that they are limiting the amount of money any one investor can put in. I think that makes some sense. But do wonder if it will cause the properties not to be funded quickly.

I agree that House flippers were a problem and as a ground floor investor I often cringe at the shoddy jobs the flippers do and the insane prices they price the houses at, but I have some first hand experience with some of the loans during that time and it was seriously, insane lending practices. Giving a 400,000 mortgage to someone who makes 18K per year. 

I suspect now that there are regulations in place that make things more reasonable. And truth... some of the properties that the GF people list that are junk, usually get reduced.

For my money the prime bubble instigators remain money from foreign interests such as china. When new housing gets built it is invariably insanely priced. Forcing real people into bad decisions just to have a roof over their heads.  It is my hope that crowdfunding investors can blunt this trend but the influence of new housing into markets that creates competition and reasonable housing.

As I mentioned in my comment these reviews are only of accredited investor sites. Investor Junkie has tons of reviews for these sites which are off limits to most investors. Please review the non accredited sites or.. find someone to review them for Investor Junkie.

I have an account with Synchrony Bank. It is actually doing pretty decently. The interest rate has gone up 2 times since I got it and given how safe my investment is... I have made more than Lending Club and Groundfloor. Though obviously I have put in more money.  Some of the CDs are offering 1.55 % which is more than I have seen in a while. Anyone else ?

https://forum.lendacademy.com/index.php?topic=4532.msg41592#msg88888888Quote"> from: rawraw on August 06, 2017, 11:28:58 AM

So I invested $500 into Fundrise today. I know nothing about it. Looking forward to see what happens.

Now I am invested in
- Lending Club
- Upstart
- Groundfloor
- Fundrise

I cannot invest in Prosper due to my State not allowing it.

Anyone done this? Apparently most of the in grace period notes will not default. So I have been looking at them on Folio and buying them.

1. Usually I buy a note with 10 payments or less left.  I am guessing they won't want to incur a hit to their credit for 10 payments.
2. The cost of the note is so little that if it defaults.. it doesn't hurt too bad.  Usually under $5.00.
3. Sometimes you can see right in the history that there is a problem with the mechanism of payment not necessarily that they don't have the money.  Payment bounced back / non sufficient funds.
4. You can actually find some grace period notes with high credit scores and high income. I can't say for sure if they won't default but, it seems unlikely.
5.Usually this discount is like 30% or more. This makes for quite the profit if the person does not default.

Thoughts?

I only put in $500. 

The pros.
- so far no defaults though a couple of close calls
- You can fund it via your credit card. Great for converting credit card to cash.  And great for points.

The Cons.
- you are not allowed to control your notes. They do the investing for you.
- No liquidity. You can't sell your investments.

In the future I probably would use Lending Club.

https://forum.lendacademy.com/index.php?topic=4239.msg40648#msg88888888Quote"> from: Skeptical on April 26, 2017, 10:43:19 PM

I have been buying notes that are 1/2 done off the folio site. So far so good. The thinking is that if you have paid 1/2 the loan you will pay the whole thing and also.. these notes are generally offered at a discount. So you buy a note that is worth more than you paid for it.  So far so good. Also, there is no wait time to "fund" a new loan. If one note pays in full.. the next day you just buy a new one.

Anyone do this? Thoughts?

https://forum.lendacademy.com/index.php?topic=4288.msg41521#msg88888888Quote"> from: Fred93 on August 01, 2017, 04:27:13 PM

So far I am disappointed in Groundfloor. I invested in them starting in January. $50 per loan.  In pretty much every loan they had. Of about 70 loans so far, 20 have paid off early. Despite their site saying I got 10% I got about 3% due to the short term.  This drastically reduces my return. I have 50 more outstanding so I guess we will see.  But I have received $28.00 total. Sad.

Currently, one loan is in default. I would like to tell you why but the updates have been so vague and confusing I have no clue what is happening and am just hoping for the best. You should note this is an A graded loan. So the grades are not a good indicator of safety.  I used alternate sources to check the loan out but there is only so much you can do from the outside.  I am frankly confused as to how Groundfloor could ever lose money. They have a lien on the property. So the property (or funds) can't be sold until the lien is satisfied right?  The information they have provided on each loan is usually wrong. With some D investments being fast and hassle free and A investments going into default.

There is no opportunity to sell your investment once invested ( like Lending Club) and for the paltry money received back, I do actually think Lending Club would be a better place to stash my money.

Groundfloor needs to do a few things
(1) be more careful on what loans they fund. They should, by now, have a good database of flippers with good track records. Incentivize those people do work with them more often.
(2) fund more loans. Some states they have very little going on, such as Massachusetts and Washington, though the states are real estate hot spots. Stop with all the Georgia and Florida loans.
(3) Get more investors. Loans shouldn't sit around for weeks waiting for people to fund it and they shouldn't have to hit up their investors for more cash.  I see almost nothing on the "investor junkie" sites telling people this things exists.
(4) I am getting tried of seeing massive loans on homes that just don't seem to justify it. If the flipper cannot make more than 30% on the investment is seems like a recipe for disaster.  The loans should be small enough that it is likely they will finish the job.

I think the concept can work. I just think they are doing a poor job at the moment.