Skip to main content

Recent Posts

1
General P2P Lending Discussion / sharestates? (real estate p2p)
« Latest by flyp52 on December 20, 2021, 12:26:15 PM »
Thanks for the detailed summary! I decided to try groundfloor out, invest in some loans that mature in the next few months..
2
General P2P Lending Discussion / sharestates? (real estate p2p)
« Latest by Fred93 on December 17, 2021, 08:21:10 AM »
Sorry I can't offer any experience with Sharestates. But can you offer your experiences with Groundfloor? Have you experienced any defaults or delayed payments?

Sure.  Lots.  A significant fraction of the loans default.  (I don't have stats in front of me at the moment.)  However, these are secured real estate loans, so after a considerable delay where they dive in and work with the borrower, then they move thru a complex set of legal steps to foreclose, and then eventually you get your money back.  Unless they have mis-appraised the property, you get your money back.   There's just a delay.  Requires a bit of patience.  This is VERY different from the situation at LendingClub or Prosper, where defaults almost always result in total loss of investment.

One aspect of this situation is that it takes a long time to understand how well you're doin'.  You have to allow time for defaults to work out.  My spreadsheet shows I'm makin'  6.88% IRR after everything, even including my estimate of what fraction of the currently defaulted loans will pay off.  My return has been remarkably consistent over time. 

You used the words "delayed payment", but this is essentially the same as default.  Most of the Groundfloor loans have only one single payment, at the end of the loan, usually 1 year from start.  That's another reason it takes a while to understand how well you're doin'.  You don't get that monthly feedback like you do at LC and Prosper.  If you want to calculate your return in a meaningful way as you roll along, you have to include a term for accrued loan payments discounted by some guessed loss fraction.

I might mention that my 6.88% is lower than Groundfloor's return estimates.  This is exactly the same as the situation at LC and Prosper.  In the case of Groundfloor, one of the substantial reasons their estimate and mine differ is that my money sits allocated to loans that are not yet funded for a considerable time.  I commit the money, and then it can take a couple of weeks for the loan to close.  They compute return based on invested money, and I compute return based on my whole account.  There may be other reasons, but I compute IRR based on my account value, and I'm happy with the result.

I invest, as I did at LC and Prosper, in mostly the higher quality loans, and avoid a few states I consider sketchy.

I started investing at groundfloor in 9/2015, so that's a 6 year track record.
3
General P2P Lending Discussion / sharestates? (real estate p2p)
« Latest by flyp52 on December 16, 2021, 02:54:49 PM »
I also invested on LendingHome (now Kiava). I used their auto-invest feature, but experienced too many defaults. Foreclosures took a long time, and I often did not get all the principal back.
4
General P2P Lending Discussion / sharestates? (real estate p2p)
« Latest by flyp52 on December 16, 2021, 02:50:59 PM »
Sorry I can't offer any experience with Sharestates. But can you offer your experiences with Groundfloor? Have you experienced any defaults or delayed payments?
5
General P2P Lending Discussion / sharestates? (real estate p2p)
« Latest by Fred93 on December 16, 2021, 04:18:26 AM »
I am in groundfloor.us  .  I'm always surprised when they don't often get mentioned in a list such as they one you gave.

They have a large # deals open at any one time, so I have no trouble investing a bunch of cash when I dump it in.

I'm looking to maybe diversify, as these are all small companies, and that led me to look into Sharestates, which led me to the question above.

6
General P2P Lending Discussion / sharestates? (real estate p2p)
« Latest by flyp52 on December 16, 2021, 02:14:30 AM »
I've been tracking Sharestates, Peerstreet, and Yieldstreet. Yet to pull the trigger on any of them. Peerstreet seems to have some volume. Yieldstreet has some interesting alternative investments, I'm close to trying them out. I like Fundrise, Realty Mogul, and Crowdstreet, have had good experiences on all those platforms.
7
General P2P Lending Discussion / sharestates? (real estate p2p)
« Latest by Fred93 on December 07, 2021, 06:13:34 PM »
Anyone have any experience with sharestates?

I created an account, but the first thing I notice is that there are only 2 loans open for funding.  Are these guys too small to be of value?

I'd like any feedback from sharestates users.

I've been investing for several years at groundfloor, and they have dozens open at once.
8
Investors - LC / The wind-down
« Latest by lascott on December 06, 2021, 02:04:18 PM »
One of my 3 remaining accounts was paid off in 7/2020 but still shows as open.

I called today to ask about it and they just called it a glitch.  When my other 2 notes get paid off and disappear from my list I'm wondering what pain-in-the-butt issues having this one open will cause ... meaning having to sign things saiding I will forego payments from it ... since it is open.

Any others run into this?

9
We don't know each other, but we've had a good ride together! Back in May of 2018 your finances weren't in great shape, that ~660 credit score implies you were having a bit of a rough time, and you needed to refinance your credit cards. I know that $411.19 monthly payment wasn't always easy, there were a couple of times you only made a partial payment, and you had to defer your payments through COVID--but you made it! You always caught back up on your payments, and today, Nov 5th, 2021, you have finally paid off your loan. Great job! I see things are turning around for you, with that credit score now closing on 720. You must be feeling pretty good right now, and you deserve to feel good--congratulations on getting your financial affairs back in order!

I was one of the 363 people who invested in you back then, through the Lending Club platform. It was new to me in those days, and I was excited about the prospect of being able to get involved in lending directly to folks like you, through peer to peer lending. Alas, it didn't work out as well as I had hoped, Lending Club eventually terminated the peer to peer lending system, and I am exiting the platform.

In fact, yours was the very last loan I still had outstanding on the platform, and today I got the 44 cents that was my share of your final payment, and the last loan payment I will receive. I am sure you were glad to make that final payment, and I am glad to receive it!

As of today, we're both done with Lending Club. Thanks for being a great borrower! So sad we won't be able to do this again.
10
Investors - LC / AltoIRA == Bozos
« Latest by Fred93 on November 05, 2021, 12:13:48 AM »
This question has been discussed several times on the forum.  I believe a recent answer said LC would send you a check, but you had to ask for it.  I'm workin' from memory here, so that may be only partially correct.