Speed of New Funds Deployment

[jheizer]

I am pretty new to the P2P world, but have done my research.  After lots of research, back testing, and programming I have a API buyer running purchasing loans for me.  I started off with 1 strict set of conditions and that has slowly evolved to 7 of differing strictness fulling in 7 portfolios so I can track each.  It grew to that because after the first week I realized it was going to take a year to deploy funds.  That led to calculating how much of my total account each strategy would be allowed to be, etc, etc.  And it's not that the additional filters are bad, just will have greater variance.

So my question finally, how long would it take you to deploy $10k?  Just picking a nice even number.  I'm trying to decide if once my looser strategies reach their current allocation limit if I should be increasing that or not.  Once full invested they are ranked so it will no longer be an issue.  This place seems to have by far the most experienced P2P investors so I'd appreciate your advice/comments.

[lascott]

I've been doing this a year and that answer would vary almost every month.  I have many portfolios because I use different filter criteria based on loan grade.

To answer your generalized question I'd say 1-1.5 months @ $50 or 1.5-3 @ $25.  Keep in mind the stricter you are on your criteria not only will you obviously pick up less notes but X% of those will not be issued. Smarter borrowers with good credit may have found other places to get the money cheaper.

Example of an email I got this morning. Quote

[Kombinator]

Broadly speaking your notes invested but not issued will hover at about 35% for higher grades.  So keep that in mind when planning your deployment.  also take into account that there is pre-payment going on on loans you already funded, as well as regular CF, so that will add to your funds idle build up as well.

If your system is fast enough to grab all the loans you want in time, you can expect to see about 200 decent loans in a month out of which 140 will fund, so at $50 clip, the estimate above is correct.

[rawraw]

My reinvestment alone are $1,000 a month in payments in $1,000 or so a month in sales.  It really depends the type of notes you are buying.  Are you buying A/B paper?  You can deploy quickly.  Are you buying G paper?  It will be a slow process.  I normally buy my low rate notes during time of quality high rate note scarcity.   But sometimes deploying $2,000 can take a few weeks.  Just depends

[TravelingPennies]

Thanks.  It appears I am on about the same track now you guys as I am buying about 10 notes/day before I put in my last loosest filter.  That took it to about 15.  I think once it's allocation is up I'll let it hold for the time being.  Maybe I'll bump my best filter to $50 each.

I keep waiting for a significant number of not issued notes, but it hasn't happened yet.  I have 49 issued so far and received my first rejecting this morning actually.  I was starting to wonder if I would get an active notification when it happened for a bit there.  Guess I need to get ready for the disappointment.  haha

So far getting what I want has not been a problem.  I've only got an error on two and I am fairly sure it was a bug with their API as I was then able to buy them via the website (LC).

Thanks for the replies.  Just a bit discouraging at first after waiting a week to get money transfers, waiting to buy, waiting on first payment.  The last money ends up uninvested for weeks.  I did transfer in 3 chunks so it could remain invested other places longer.

[TravelingPennies]

https://forum.lendacademy.com/index.php?topic=3108.msg28145#msg88888888Quote"> from: jheizer on March 19, 2015, 10:15:46 AM

[TravelingPennies]

https://forum.lendacademy.com/index.php?topic=3108.msg28148#msg88888888Quote"> from: lascott on March 19, 2015, 11:23:41 AM

[TravelingPennies]

Trust me, you would rather a slow deployment than accumulating bad credits

[Fred93]

https://forum.lendacademy.com/index.php?topic=3108.msg28140#msg88888888Quote"> from: jheizer on March 19, 2015, 09:31:52 AM

[TravelingPennies]

Yeah basically what I have been expecting, 2-3 months.  Though I had not actually been thinking about the drag from the not issued really making it 30% longer.  Either way I went ahead and tightened up my 2 loosest filters so I should be back around 8-10 per day.  Thanks again everyone.

[Fred]

You should also consider buying notes from Folio.  It's faster because you don't have to wait for the loan to be fully funded and reviewed.  There is no case of "rejected" loans (all are already approved).

Some additional benefits:
- you don't have to participate in the 4-daily races
- more notes are available in Folio than in LC platform
- notes are seasoned
- some notes are discounted

[TravelingPennies]

I've actually spent most the night finally diving into Folio.  My initial conclusion is it appears that the premium I'd have to pay to fulfill my same set of criteria is too high for my liking.  It'd be nice if I could run the same code over them.  I may have to code up something to do that so I can get better numbers.

[TravelingPennies]

https://forum.lendacademy.com/index.php?topic=3108.msg28165#msg88888888Quote"> from: jheizer on March 20, 2015, 12:51:12 AM

[TravelingPennies]

https://forum.lendacademy.com/index.php?topic=3108.msg28165#msg88888888Quote"> from: jheizer on March 20, 2015, 12:51:12 AM

[TravelingPennies]

Secondary markets are interesting, but does require additional coding indeed, which is a bit different that the one used for the main API.  There is not too much really great stuff there, but you should be able to pick up possibly 3-5 loans daily that are decent.