P2P Lending / NFT Lending Forum

Keep in mind there is a 1% fee for selling on FolioFN.  I'm selling my portfolio of notes from my taxable account to close out that account.  I started with a 3.5 percent markup, on Sunday, and so far have sold 3 of my ~50 notes.   I figure Ill lower my mark up a little each month until they are all sold.  When my Roth gets funded I might buy some of my own notes that go unsold and eat the fee.

One of the main problems with selling performing notes is that it will probably take you a couple of weeks, on average, before the money is reinvested and earning again, so your return takes a hit. 

Rather than selling all your performing notes, I'd try a strategy of watching the FICO score for a big drop or general downtrend to pick the ones to sell preemptively

Same here, but I only have one 5/20 note.  Still waiting on payments from yesterday too.  I'm not too optimistic at this point, especially since they seemed to have a server meltdown yesterday.

I have 3 from 5/11 that updated yesterday but haven't posted to cash, and one from 5/13 that didn't update, but two from 5/12 that did update and post to cash ... Seems like there is a problem.

It is possible to lose principal on early payments.  Worst case, an A1 $25 loan pays $0.13 interest the first month.  So, with a $0.25 fee, you lose $0.12, which works out to a roughly -5.5% APR ...

This is one area where LC could use a rule change, to reduce the fees on early payoffs.  I think, at a minimum, LC should make the fees no greater than the interest paid, so investors are at least guaranteed to break even on one-month payoffs.

I put together a chart that tabulates payment as a percentage of monthly income, and how that relates to loan performance.

I used all data prior to 12/31/2012, and for the purposes of the charts, "troubled loans" are considered any loan not listed as "Current" or "Fully Paid".  In the chart, the bottom number represents the percentage of loan payment to monthly income, truncated.  So, for example, "2" would be 2.000 to 2.9999. 

As for the results, I expected to see more of a correlation.  There seems to be an inflection point after 15%, but for most part, stays within a range below 15%.  Perhaps you could say that <8% is slightly better than >8%, and greater than 15% should be avoided.  At least, that's what my "eyeball test" is telling me.

I thought 10% was interesting, though.  I can't help but wonder if people who lie about their income shoot for 10X their expected loan payment. 

Edit:  If anyone can repost the images properly, feel free.  I don't have easy access to image hosting.  Also, now that I look at the graphs, I should not have labeled the graph with "Default rate", since it also includes "Late" notes ...

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I thought I would bump this one since, as a new investor, I found it helpful. 

I know with etrade, my transfers are instant.  I believe etrade puts a hold on the funds in my account, and they are withdrawn the next day.  I really like that.  I noticed that even with LC, when I look at my bank account transactions, it appears that the money is transferred to LC within 1 day, so I've wondered why they hold the money for an additional 3 days.

Yeah, I've noticed this too ... I think it's because when a note becomes due, they will subtract the accrued interest for those notes from your account total at some point before it posts to cash.  It seems like there is 24 hour lag between the time the note is posted as "paid" (and the accrued interest adjusts down), and the time the cash is posted.  Did you have notes post as "paid" today?

They made $3400/mo and their payment was $608.  That is 18% of their income.  I keep that ratio at less than 10%.

I never used Intrade, but I did visit quite a bit during the 2012 political battles.  For those of you not familiar, they sold what they called futures contracts for event predictions.  For example, you could buy and sell Romney or Obama futures, and be paid out based on who wins.   Some people just called it straight out betting.  They were banned from holding accounts for US citizens in late 2012.  Pretty scarey to see how these loosely regulated "investment" sites can go south fast.

http://www.intrade.com/v4/home/" class="bbc_link" target="_blank">http://www.intrade.com/v4/home/

I'm new to this, but I've browsed FolioFN and it all appears to be loans with steep mark-ups or loans with payment issues.  I was going to see if I could purchase something there as my first round of payments started rolling in, but it all looks like junk to me.  Why in the world would FolioFN allow people to post notes with negative YTM?  There are currently 6000+ loans posted with negative YTM.  They should at least you give the users the option to block those postings, or better yet, make that the default option.

I would not be surprised if LC sees a surplus of investors as a reason to raise fees on investors.

Crowd funding, or maybe "Crowd Investing", seems to be a new investment concept taking off due to changes to laws in 2012.  One of the more interesting ones I've heard of is Solar Mosaic, where you can invest in Solar Panel Projects.  It looks like a $25 minimum investment.  https://joinmosaic.com/" class="bbc_link" target="_blank">https://joinmosaic.com/  Although, it only seems to be open to accredited investors and residents of NY and Cali, they claim they are working to get Federal Law changed to fix this problem.  It does seem kind of dumb to me that I can't invest $100 in a solar panel project because I'm not a millionaire.

Unfortunately, I couldn't get too deep into their website because, being a resident of Florida, I was asked about my "accredited investor" status upon trying to sign up.  This seems like a pretty safe investment for a 6%+ return. 

Edit:  I should also meantion that I signed up with a crowd funding website called Bolstr.com, but once in, they too said that current laws do not allow me to invest unless I'm invited by company owner, but that they was working to change that...