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Author Topic: Over 200 loans and flat return after ~ 3 months

P
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Over 200 loans and flat return after ~ 3 months
OP: June 14, 2016, 11:00:00 PM

I am a new investor in LC loans, and essentially have been invested with majority of money in over 200 loans for about 2-3 months. I already have 5-6 late payments (which after I count as zero value) ate all my interest away.

Either statistically I am the unluckiest investor on here per historical return data or something is different on the platform with the current vintage.

I essentially randomly chose loans of B-D grade and credit scores of 700+ with no other criteria.

Anyone else who recently began investing getting defaults well above the historical norm?
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t
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Over 200 loans and flat return after ~ 3 months
#1: June 14, 2016, 11:00:00 PM
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F
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Over 200 loans and flat return after ~ 3 months
#3: June 14, 2016, 11:00:00 PM
I am fairly new as well. I am on month one with 52 notes, with another 40 on the way. But I have a tight restriction on what I invest in. Even though they are on the riskier spectrum (C-Es notes) I by all means do not do random. I look at credit, inquiries, income, loan amount, years at job. There are many factors that I look at the more picky I am the better. That way when someone does default hopefully I learn a thing or too. I know there will be defaults but hopefully less then just looking at credit score...
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f
  • Posts: 132
Over 200 loans and flat return after ~ 3 months
#6: June 14, 2016, 11:00:00 PM
My account is 2.7 months old
160 current notes. 3 paid early 1 I wrote off already due to bankruptcy.  1 was IGP, but paid yesterday.  :)  (both notes bought with bad filter on 3rd party site)

I have very stringent filters though, which I strongly suggest doing.  Check out NSR and backtest there. 
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  • Posts: 300
Over 200 loans and flat return after ~ 3 months
#7: June 14, 2016, 11:00:00 PM
You are afflicted with, what I call, "excessive monitoring" that most new lenders contract. Just relax and let your portfolio build up and achieve steady state. There is nothing wrong with your loan selection strategy of B-D grade with 700+ FICO score. The Grade and FICO are two highly relevant parameters. Though it is simple and effective, I will suggest adding DTI < 20% - 25% to your selection strategy. FICO doesn't incorporate Income and Grade is mildly influenced by DTI.
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F
  • Posts: 282
Over 200 loans and flat return after ~ 3 months
#9: June 14, 2016, 11:00:00 PM
My FOLIO portfolio has 100% late, because I bought late notes.  ;)
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