P2P Lending / NFT Lending Forum

Quote from: rawraw on July 03, 2021, 08:19:52 AM
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.

Details please. 

None of the properties are near me, so it is unlikely that I will "drive by".  But if you sent an example, with pictures, that would be great.

My IRR after several years is around 6.5% and has been very consistent.  They quote a "return" of around 10%, but you know how these companies (LC, prosper, ...) always create some funky return measure which doesn't line up with the more critical IRR.

I should note that there are some serious differences between groundfloor's real estate loans and the LC and prosper consumer loans.   These are loans that are paid off in one lump at the end, not monthly amortizing like LC and prosper.  So the first time you get a real indication that you're not gonna get paid on time is at the end of the loan,  usually 1 year after the origination.  The next difference is that it takes a LONG time to resolve what happens next.  GF creates some workout scenario, and that takes a few months, and may be extended multiple times, and then if you're not paid they start foreclosure.  Foreclosure can take a very long time, depending on the state.  Often more than 1 year.  Then the property has to be sold.  So it takes a very long time for the bad loans to get resolved.  The really good news is that once foreclosure is complete, you almost always get most of your money back, because these are collateralized loans.  Whether you take a significant loss depends on how well GF figured the value of the property before making the loan some 2 years or so earlier. 

This has worked out well for me, but you gotta understand how different these loans are from LC & Prosper, and you gotta have patience.

I have a substantial amount invested with Prosper, and have increased that amount as my LC account has wound down.

I'm invested in groundfloor for real estate loans, and have been increasing that allocation as well.  I haven't deeply investigated any of the other real estate platforms.

Your efforts are appreciated.

archive.org most recent archive says I have 2231 posts.  This forum says I have 592 posts.  Only 26% recovered?

Ok, I did the Alto transfer this morning. 

I thought Strata customer service was bad.  At least Strata had a phone number.  I've discovered that Alto provides no way to interact by phone at all.  There's no phone number on their web site!  You have to fill out a form to "ask a question".

Heh heh.  I've been waiting to hear reports from others before I do it!

Strata has never been known to be fast at anything, so their normal slowness is the most likely culprit.

I have transferred cash out of Strata to the IRA at my stock broker several times, so I know it is possible.  Has always taken longer than I expected, and a few times has required calls to Strata to wake them up.  All of those completed within 2 weeks however.

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I voted "transition to prosper".  I have been moving money from LC to Prosper, but not all. 

I've been moving some money to stocks, in other words changing my allocations.  There aren't good alternatives in fixed income any more.

For me, Prosper reports 4.98%. 

I expect that collections will continue as before.

LC is NOT eliminating their loan program.  What they are eliminating is RETAIL LENDERS, ie you and me.  For several years, most of the lenders on LC have been institutions such as banks or hedge funds.  LC services the loans for these customers, so loan servicing, collections, etc should continue.  The people doing these functions probably won't even notice that the retail investors are gone.

https://forum.lendacademy.com/index.php?topic=21699.msg62218#msg88888888Quote"> from: macroman7799 on October 16, 2020, 09:20:39 AM

Started working again shortly before noon today. 

Patience.

Its been clear to me for the last several years that LC had deprecated the retail investor.  We became a smaller and smaller fraction of their total business, and one that they were no longer trying to grow.  The smaller and smaller allocation to retail investors made that clear, as did getting rid of all the retail-investor oriented customer service people. 

This has been a long time coming.  No one who was observant should be surprised.

Clearly their plan was to slowly drive away the retail investors so they could eventually shut down the retail operation with minimum fuss.

Unfortunately, management was never honest about this.  That's a big negative mark for them in my book.

They have accomplished their goal, and have now just admitted it.

Lending Club has told us they will soon announce a special "a high-yield savings account exclusively available to our Notes investors".  What an opportunity! 

They have not yet said what the interest rate on this special high-yield account will be. 

Would you like to guess?  Place your bets gentlemen.  Pick the answer closest to your guess.