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Messages - Keltset

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FolioFN - Prosper / First
« on: March 19, 2014, 11:00:00 PM »
For some reason I am reminded of the argument that Netscape should be bundled with Windows because Internet Explorer was.... hmmmmm
Investors - LC / Folio and IRAs
« on: March 11, 2014, 11:00:00 PM »
I wonder what the odds are even of being able to transfer notes like this without them being intercepted by a scripter and seeing major losses....
BlueVestment / Is Bluevestment working?
« on: March 11, 2014, 11:00:00 PM »
Investors - LC / Wells Fargo reverses ban
« on: March 10, 2014, 11:00:00 PM »
This is not a surprise at all that Wells would reverse their call on P2P lending. It gave them a black eye and their restated position on investing in equity of a P2P firm makes much more sense.
FolioFN - Prosper / First
« on: March 10, 2014, 11:00:00 PM »
I tested the waters and my dislike for Prosper only grew....
Investors - LC / Is it really worth .25?
« on: February 02, 2014, 12:00:00 AM »
I keep 100% of my notes up for sale in the secondary at a markup. It's just logical to let those who want to give you free money to let them give it to you :)
Investing - General (not P2P) / House Flipping vs. P2P Investing
« on: December 12, 2013, 12:00:00 AM »
My father has done house flipping... For most of his adult life... He does fairly well at it and has a good grasp of it. He is generally making 10-20% per house and is turning that money over several times a year. He comes in well above anything we could make at LC with the equivalent value and he lives on it.

When the market collapsed he lost his shirt and was on the brink of bankruptcy. Today he has resolved all those problems and is doing very well again, in fact he just purchased a 7 million dollar home in California.

That being said, flipping houses -is- a job and it's a lot more work than most think it is. Also you have to have good contacts and be very knowledgeable about the market conditions and what to look out for. It's easy to get screwed bidding the wrong amount for the wrong house with the wrong unknown problems and take a big hit. Meaning you need to have good capital available and be able to properly manage that capital and not over leverage yourself into oblivion. Also, I suspect that my father is an outlier with the returns he makes, I suspect those are very hard and difficult numbers to consistently reach for the average house flipper.

I've had some confusion as to why people really do this when you can get free houses today. Interest is so dirt cheap and the rental market is good and strong. It's not difficult to come out ahead on cashflow when you buy the right properties these days.... Then you also get the benefit of someone else buying a house for you.
Investors - LC / Payment - Settled In Full
« on: December 09, 2013, 12:00:00 AM »
This is directly from the borrower agreement I received when taking out my loan here. (I'm still waiting for it to be issued but I'm a long term investor here as well and see no reason for it to not complete)

"Prepayments and Partial Payments. Borrower may make any payment early, in whole or in part, without penalty or premium at any time. Any partial prepayment is to be applied against the principal amount outstanding and does not postpone the due date of any subsequent monthly installments, unless Lender otherwise agrees in writing. If Borrower prepays this Note in part, Borrower agrees to continue to make regularly scheduled payments until all amounts due under this Note are paid. Lender may accept late payments or partial payments, even though marked "paid in full", without losing any rights under this Note."

Based on what I bolded from the borrower agreement, there is no liability to LC to cash a check marked "Paid In Full" that obligated them to treat the note as fully settled. I believe they are just notating that the check was marked as such and would continue any standard payment methods or collections methods as needed on the account. One of the note links I had clicked on and reviewed indicated that there were collection efforts after the notation on the payment. Had I seen this thread earlier, I would have offered to purchase those notes from you ;)

Edit: Actually this was from the Loan Agreement, not borrower agreement.
I don't generally have much faith in people and so I tend to be less inclined to allow a description to change my mind... Although those military folk (that met my filtering requirements) will always get investments from me...
P2P-Picks / Model Questions
« on: December 31, 1969, 07:00:00 PM »
I think there is something we are all kind of wanting but just doesn't matter. We (myself included) tend to all like to run our own stats and use our own methodology while that's not exactly what this is. This is already the cream of the crop based on Bryce's model which presumably includes all these factors such as state, purpose, income etc... I suppose it's difficult to not want to over-analyze it and tear it apart to ensure it fits into our own individual models and buying patterns.
P2P-Picks / Expected and stated yield to maturity (annualized).
« on: February 17, 2013, 12:00:00 AM »
I would love to see information that shows the lending club interest rate and the models expected yield rate prior to 'making my pick' and being redirected to lending club.  I think this information has good value to allow an investor to pick when and how to enter the market without added addition cost to make the pick. I love the pricing model and would like to see some helpful information before the pick is made without greatly limiting the ability for the site to produce the commission costs that it should. In addition I would not mind seeing the category of the loan (debt consolidation etc...) but this has less value to me if I have enough faith in the model already.
Investors - LC / Beta is Live
« on: February 15, 2013, 12:00:00 AM »
Bryce, I have followed your posts and loved your insight. I hope to be able to check out your site and a big congrats on getting it up and going!!
Investors - LC /
« on: December 31, 1969, 07:00:00 PM »
The most likely scenario is that the person called up, or was called, and said they can't make their payment. The collector/representative asked what he could pay or pressured a 'good faith' payment on the account and this was the result. Back in my collection day's I could always pressure a person on the phone to pay at least $25.00 on the spot.

It's not effective for LC to use the:

100%... decline
80%... decline
60%... decline
40%... decline
20%... decline
10%... approved

Why? Their payment method is via ACH and not debit/credit card. ACH is slow and cumbersome and it would take over 20 day's to process the above transactions if they were hit/fail/try next. Now I do know I used to send 20%, 30%, and 50% out all at once and whatever (if any) cleared it cleared but this is not the common action of a collector.  Now you may potentially find a collector savvy enough to realize they can verify balances over the phone and take that amount, I would presume this is less likely the scenario again because this is not common in the industry. The person was more likely hounded into paying something and so he/she did. The log wasn't updated because the collector/representative didn't notate the actual contact just managed the payment portion of it.

Payment plan would indicate that specifics of payments were scheduled in order to switch the status of the account (putting it into a payment plan). This probably did not happen as the arrangement or payment did not involve the reality of future payments that the collector/representative could schedule.

General rule: Collection logs exist for self preservation and not for any other real purpose. LC's management may want to pass this information on and wish it to always be perfect but implementing that is an entirely different story. I have never met a collector that properly notates and updates every single account for every single attempt and/or contact. It simply doesn't happen. Also keep in mind, we are seeing a very limited scope of the notes on the account which means that a note would have to be done a specific way for the line to populate to the retailers (us). What if they didn't use the 'Customer called in' type of note but instead selected 'Other' and typed in their note. 'Other' wouldn't prompt action onto the retail note whereas 'Customer called in' or 'Customer promised to pay' could. (Obviously I'm making assumptions about how their systems work but I would presume they basically all work the same and its a logical connection to assume a ptp automatically populates the retail side whereas some other type of notation may not.)

Bottom line is that collection logs are useless for anything outside of arbitration or legal action/defense. With the exception of some types of good information that can be gained such as PTP's without payment coming through or BK notifications, and the transition to a 3'rd party agency....
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