Rawraw, you almost need to separate the amount you have invested in your speculative notes away from what you have invested in your good, interest bearing notes. Unless you have two different accounts, this is difficult to do using the LC platform. The NAR Lending Club shows on your account page reflects Charge offs (from your speculative notes) BUT FAILS TO FIGURE IN GAINS YOU MADE SELLING OTHER SPECULATIVE NOTES. This is why my NAR shows a -11.49%, and this is why you'll never get a true, actual NAR when mixing the two accounts together.
Since 3/4 of my notes are speculative, I spend no time chasing NAR on the 1/4 of my notes that are good. If they pay, they pay. And yes, most do.
I set up a spread sheet on EXCEL that will calculate my monthly return based only ON THE ENTIRE AMOUNT OF MONEY I HAVE INVESTED OUT OF POCKET! This does NOT include interest paid to me on the good accounts. But, it will include gains (or losses) of notes I sell. Therefore, I look at interest strictly as a bonus, and is NOT calculated into my returns.
For example, if you invest $1,000 of which $250 is set aside for quality notes, your out of pocket investment is still $1,000. So, let's say I sell a note for a $5.00 gain, my out of pocket will automatically increase on Excel to show $1,005.
So, at the end of the month, let's say with all your gains and losses, you end up making $90. You'll end up at the end of the month with an out-of-pocket investment of $1,090 or pretty much a 9% gain for that month only!
Now you can look at it as "Okay, I made $90 on my $1000 investment. Oh, and lookie here! I also made an additional $2.99 interest on notes that actually paid! Isn't that cute!"
Now, starting at the first of the new month (with a clean Excel worksheet) I'll enter $1090 as my starting investment, and the game begins all over again.
I did some house cleaning on Christmas Day and listed a bucket of non-selling notes pushing the 120 day limit for dirt cheap. They were selling as fast as I could get them up. I lost money on all of them. Despite that, I'm still going to end up making over 9% for the month of December alone.
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