Comments on: lending club, my best investment of 2008 http://www.bripblap.com/lending-club-my-best-investment-of-2008/ thoughtful personal finance, career and health advice Sun, 05 Feb 2012 07:46:58 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Steve @ bripblap http://www.bripblap.com/lending-club-my-best-investment-of-2008/comment-page-1/#comment-29174 Steve @ bripblap Tue, 13 Oct 2009 11:30:14 +0000 http://www.bripblap.com/?p=1077#comment-29174 <!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN"><br><html><br><head><br> <meta content="text/html;charset=UTF-8" http-equiv="Content-Type"><br> <title></title><br></head><br><body bgcolor="#ffffff" text="#000000"><br><font face="Helvetica, Arial, sans-serif">DELETE</font><br></body><br></html> <!DOCTYPE html PUBLIC “-//W3C//DTD HTML 4.01 Transitional//EN”>
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]]> By: Steve @ bripblap http://www.bripblap.com/lending-club-my-best-investment-of-2008/comment-page-1/#comment-29173 Steve @ bripblap Tue, 13 Oct 2009 09:30:14 +0000 http://www.bripblap.com/?p=1077#comment-29173 <!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN"><br><html><br><head><br> <meta content="text/html;charset=UTF-8" http-equiv="Content-Type"><br> <title></title><br></head><br><body bgcolor="#ffffff" text="#000000"><br><font face="Helvetica, Arial, sans-serif">DELETE</font><br></body><br></html> <!DOCTYPE html PUBLIC “-//W3C//DTD HTML 4.01 Transitional//EN”>
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]]> By: unsecured loans for bad credit http://www.bripblap.com/lending-club-my-best-investment-of-2008/comment-page-1/#comment-29172 unsecured loans for bad credit Thu, 08 Oct 2009 15:18:15 +0000 http://www.bripblap.com/?p=1077#comment-29172 thats a nice article. ... thats a nice article. …

]]> By: 401k_ira http://www.bripblap.com/lending-club-my-best-investment-of-2008/comment-page-1/#comment-28967 401k_ira Fri, 04 Sep 2009 05:19:56 +0000 http://www.bripblap.com/?p=1077#comment-28967 Thanks for information, I'll always keep updated here! Thanks for information, I'll always keep updated here!

]]> By: P2P Liquidity Concerns at Prosper and Lending Club - No Problem for YadYap | YadYap Lending News http://www.bripblap.com/lending-club-my-best-investment-of-2008/comment-page-1/#comment-27413 P2P Liquidity Concerns at Prosper and Lending Club - No Problem for YadYap | YadYap Lending News Fri, 13 Mar 2009 20:27:18 +0000 http://www.bripblap.com/?p=1077#comment-27413 [...] lending club, my best investment of 2008 (bripblap.com) [...] [...] lending club, my best investment of 2008 (bripblap.com) [...]

]]> By: Friday Finance Findings for January 30th | Finance Money Financial News http://www.bripblap.com/lending-club-my-best-investment-of-2008/comment-page-1/#comment-27154 Friday Finance Findings for January 30th | Finance Money Financial News Sun, 01 Feb 2009 20:28:01 +0000 http://www.bripblap.com/?p=1077#comment-27154 [...] Lending Club, My Best Investment of 2008 - It should actually come as no surprise, but many people who use Lending Club or Prosper to fund loans are finding they were the best investments of the year. I actually just signed up and funded a bunch of loans this past week myself. I’m going to give it a try and see how it works so I can hopefully provide an in-depth review of the process and performance for everyone here. [...] [...] Lending Club, My Best Investment of 2008 – It should actually come as no surprise, but many people who use Lending Club or Prosper to fund loans are finding they were the best investments of the year. I actually just signed up and funded a bunch of loans this past week myself. I’m going to give it a try and see how it works so I can hopefully provide an in-depth review of the process and performance for everyone here. [...]

]]> By: Steve @ bripblap http://www.bripblap.com/lending-club-my-best-investment-of-2008/comment-page-1/#comment-27148 Steve @ bripblap Sat, 31 Jan 2009 01:10:20 +0000 http://www.bripblap.com/?p=1077#comment-27148 Sure, I think that's understood, Elaine. The fact that it's effectively an unsecured loan is what drives the higher rates of return. It's the same with credit cards and mortgages - the credit card rates are higher since they are unsecured. Sure, I think that's understood, Elaine. The fact that it's effectively an unsecured loan is what drives the higher rates of return. It's the same with credit cards and mortgages – the credit card rates are higher since they are unsecured.

]]> By: Steve @ bripblap http://www.bripblap.com/lending-club-my-best-investment-of-2008/comment-page-1/#comment-27147 Steve @ bripblap Sat, 31 Jan 2009 01:09:10 +0000 http://www.bripblap.com/?p=1077#comment-27147 It's hard to say - maybe I've been lucky so far, but I've only got one late loan and so far no defaults. Certainly I'd be singing a different tune to a 53% default rate - but then again, one of my mutual funds is down 60%, so it's hardly unusual. It's hard to say – maybe I've been lucky so far, but I've only got one late loan and so far no defaults. Certainly I'd be singing a different tune to a 53% default rate – but then again, one of my mutual funds is down 60%, so it's hardly unusual.

]]> By: Steve @ bripblap http://www.bripblap.com/lending-club-my-best-investment-of-2008/comment-page-1/#comment-27146 Steve @ bripblap Sat, 31 Jan 2009 01:06:21 +0000 http://www.bripblap.com/?p=1077#comment-27146 @PFO: I didn't invest much - we're talking less than $1000 all told. I would have invested more recently but Prosper's not accepting new lender activity and Lending Club hasn't been "approved" or whatever the term is in New Jersey yet, although I am sure they will be shortly.<br><br>I don't think saying I've got a 12% return to date is any more or less accurate than talking about my unrealized stock gains/losses would be. That represents the rate on the loans, and I've realized SOME of the interest and SOME of the principal being returned. It's just the same as saying a mutual fund lost 30% this year... it did, but if I haven't sold it yet the return might be different next year.<br><br>Well, the 2% rate comes from Lending Club, and to be honest most of the loans I've made on LC and Prosper aren't for desperate people refinancing - it's people who are consolidating and taking a very measured approach to debt repayment, or trying to raise capital for a venture. <br><br>I've seen a few of the stats sites, and I'll probably cover that in a future post if I write more about LC or Prosper. And you're entirely correct that the default rate would represent a decrease in my overall return, but I've been lucky (or a good loan picker) and haven't seen defaults yet. @PFO: I didn't invest much – we're talking less than $1000 all told. I would have invested more recently but Prosper's not accepting new lender activity and Lending Club hasn't been “approved” or whatever the term is in New Jersey yet, although I am sure they will be shortly.

I don't think saying I've got a 12% return to date is any more or less accurate than talking about my unrealized stock gains/losses would be. That represents the rate on the loans, and I've realized SOME of the interest and SOME of the principal being returned. It's just the same as saying a mutual fund lost 30% this year… it did, but if I haven't sold it yet the return might be different next year.

Well, the 2% rate comes from Lending Club, and to be honest most of the loans I've made on LC and Prosper aren't for desperate people refinancing – it's people who are consolidating and taking a very measured approach to debt repayment, or trying to raise capital for a venture.

I've seen a few of the stats sites, and I'll probably cover that in a future post if I write more about LC or Prosper. And you're entirely correct that the default rate would represent a decrease in my overall return, but I've been lucky (or a good loan picker) and haven't seen defaults yet.

]]> By: Steve @ bripblap http://www.bripblap.com/lending-club-my-best-investment-of-2008/comment-page-1/#comment-27145 Steve @ bripblap Sat, 31 Jan 2009 00:59:03 +0000 http://www.bripblap.com/?p=1077#comment-27145 I certainly will cover it a bit more, although my earlier post "what is Lending Club" covers a lot of ground. In a nutshell, you're making 3-year loans at a set interest rate. That's massively oversimplified (maybe too much) but effectively that's what's happening. I certainly will cover it a bit more, although my earlier post “what is Lending Club” covers a lot of ground. In a nutshell, you're making 3-year loans at a set interest rate. That's massively oversimplified (maybe too much) but effectively that's what's happening.

]]> By: Business & Finance Blogs » Blog Archive » Friday Finance Findings for January 30th http://www.bripblap.com/lending-club-my-best-investment-of-2008/comment-page-1/#comment-27139 Business & Finance Blogs » Blog Archive » Friday Finance Findings for January 30th Fri, 30 Jan 2009 20:11:23 +0000 http://www.bripblap.com/?p=1077#comment-27139 [...] Lending Club, My Best Investment of 2008 - It should actually come as no surprise, but many people who use Lending Club or Prosper to fund loans are finding they were the best investments of the year. I actually just signed up and funded a bunch of loans this past week myself. I’m going to give it a try and see how it works so I can hopefully provide an in-depth review of the process and performance for everyone here. [...] [...] Lending Club, My Best Investment of 2008 – It should actually come as no surprise, but many people who use Lending Club or Prosper to fund loans are finding they were the best investments of the year. I actually just signed up and funded a bunch of loans this past week myself. I’m going to give it a try and see how it works so I can hopefully provide an in-depth review of the process and performance for everyone here. [...]

]]> By: Elaine http://www.bripblap.com/lending-club-my-best-investment-of-2008/comment-page-1/#comment-27142 Elaine Fri, 30 Jan 2009 19:43:03 +0000 http://www.bripblap.com/?p=1077#comment-27142 hope you get your principal back, especially in this environment.<br><br>if you read closely at their prospectus - if the person you're lending to is insolvent, you lose your principal. if LENDING CLUB is insolvent, you lose your principal. you are technically lending at the unsecured tranche of debt to the company. hope you get your principal back, especially in this environment.

if you read closely at their prospectus – if the person you're lending to is insolvent, you lose your principal. if LENDING CLUB is insolvent, you lose your principal. you are technically lending at the unsecured tranche of debt to the company.

]]> By: Scott http://www.bripblap.com/lending-club-my-best-investment-of-2008/comment-page-1/#comment-27138 Scott Fri, 30 Jan 2009 17:20:50 +0000 http://www.bripblap.com/?p=1077#comment-27138 Um....yeah. That's because you went with Prosper. There is actually a big difference between the two. Um….yeah. That's because you went with Prosper. There is actually a big difference between the two.

]]> By: Jim @ InvestWithLessRisk.com http://www.bripblap.com/lending-club-my-best-investment-of-2008/comment-page-1/#comment-27137 Jim @ InvestWithLessRisk.com Fri, 30 Jan 2009 15:16:43 +0000 http://www.bripblap.com/?p=1077#comment-27137 I haven't figured out my yearly return yet but my experience doesn't look to be quite as good as yours.<br /><br />http://www.investwithlessrisk.com/the-death-of-... I haven't figured out my yearly return yet but my experience doesn't look to be quite as good as yours.

http://www.investwithlessrisk.com/the-death-of-...

]]> By: Personal Finance Ology http://www.bripblap.com/lending-club-my-best-investment-of-2008/comment-page-1/#comment-27135 Personal Finance Ology Fri, 30 Jan 2009 01:06:14 +0000 http://www.bripblap.com/?p=1077#comment-27135 How much did you invest in these two? That can make all the difference. I invested 2k. While I am still positive. I have had 2 charge-offs already. If you have invested very little, their is a good chance you just wouldn't have gotten any defaults yet.<br><br>A would be a little wary of posting 12%+ returns like that. The three years isn't up yet, you have no idea how you will fare by the end of it. They could all default tomorrow and you would have gotten a -90% return or something.<br><br>Also default rate of 2% is a joke. It is way higher than that. Even if you invest in A's or higher. 2% may be the average default rate that credit cards get, but those stats don't apply hear. Usually the people who are on Prosper and lending club are desperate, their cards are already maxed out and they don't have any other options. Meaning their default rate is way higher than that. If it were just 2%, I'd plow all my money in! <br><br>By the way, if you did have a 2% default rate on money you got 10% on, that would be like subtracting 2.2% from your return. Meaning you would end up with 7.8% return (not bad). You mention you are losing the principle too, but you would only be losing 2% of your total principle (assuming you were well diversified). Idk if that made any sense but that was intended for the non math inclined.<br><br>There are actually a lot of good sites that track all the stats for these sites, you should check them out. Just google them. How much did you invest in these two? That can make all the difference. I invested 2k. While I am still positive. I have had 2 charge-offs already. If you have invested very little, their is a good chance you just wouldn't have gotten any defaults yet.

A would be a little wary of posting 12%+ returns like that. The three years isn't up yet, you have no idea how you will fare by the end of it. They could all default tomorrow and you would have gotten a -90% return or something.

Also default rate of 2% is a joke. It is way higher than that. Even if you invest in A's or higher. 2% may be the average default rate that credit cards get, but those stats don't apply hear. Usually the people who are on Prosper and lending club are desperate, their cards are already maxed out and they don't have any other options. Meaning their default rate is way higher than that. If it were just 2%, I'd plow all my money in!

By the way, if you did have a 2% default rate on money you got 10% on, that would be like subtracting 2.2% from your return. Meaning you would end up with 7.8% return (not bad). You mention you are losing the principle too, but you would only be losing 2% of your total principle (assuming you were well diversified). Idk if that made any sense but that was intended for the non math inclined.

There are actually a lot of good sites that track all the stats for these sites, you should check them out. Just google them.

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