Author Topic: A Question about $50 notes on Folio  (Read 2940 times)

investforfreedom

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A Question about $50 notes on Folio
« on: August 23, 2013, 01:28:51 PM »
Because of the fast evaporation of loans on the LC platform, I am contemplating going from $25 to $50 loan fractions.  I have sold some $25 notes on Folio before, so I have some sense of the markups and markdowns.  I just have a question about selling $50 notes over there:

Are the markups and markdowns--in terms of percentage--for $50 and $25 notes roughly the same?  Or do you have to mark down more for $50 notes?

Thanks for your pointers.

« Last Edit: August 23, 2013, 01:35:38 PM by investforfreedom »

core

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Re: A Question about $50 loans on Folio
« Reply #1 on: August 23, 2013, 01:38:15 PM »
If every payment has been on time then the markup is roughly the same.  But once you have a grace period payment in the history, of if it's IN grace status, you have to mark it down a bit more than you would for $25 notes.  It seems speculators don't like to gamble with the larger amounts.
« Last Edit: August 23, 2013, 01:40:30 PM by core »

lender_john

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Re: A Question about $50 notes on Folio
« Reply #2 on: August 23, 2013, 02:33:02 PM »

From my experience, roughly the same.
Once you get to about 100/note or more, it will have to be a greater discount.

New Jersey Guy

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Re: A Question about $50 notes on Folio
« Reply #3 on: August 23, 2013, 04:06:05 PM »
I agree with Lender John.

However, when selling a $50 note, I'll check with Interest Radar to see what $25 notes are selling for.  I try to price my $50 notes a few pennies less just to make it more attractive to potential buyers. 
Return over deposits:   66.82%
IRR:   86.54%
As of April 30, 2014

investforfreedom

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Re: A Question about $50 notes on Folio
« Reply #4 on: August 23, 2013, 05:09:13 PM »
Thank you guys for the pointers.  It certain makes sense that people are more cautious about notes with larger denominations.

dontvote

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Re: A Question about $50 notes on Folio
« Reply #5 on: August 23, 2013, 06:36:03 PM »
incidentally I'm sure there is a regulatory reason why the platforms can't sell unit shares of a loan (1sh = $25) then could could buy 1/2 a folio offering like a normal person instead of even having to worry about this junk.

dontcallitequity
dontvote

Interest Radar IRR: 46.11%
NSR ROI: 41.22%
Average Loan Age: Your Moms

core

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Re: A Question about $50 notes on Folio
« Reply #6 on: September 06, 2013, 02:10:17 PM »
For the record... I just found out the hard way that large virgin notes do not sell very well.  At all.  I was finally able to get rid of a $2k note that I've been trying to sell for over a week.  Grade E2, 21%+ rate, brand new, and this should have been an easy sell.  I had to part with it at a 6.5% discount.  core is not happy.

I blame the fact that newly issued notes do not show up in Folio's 'Never late' search.  Those search categories are so broken it's not even funny.

cfb

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Re: A Question about $50 notes on Folio
« Reply #7 on: September 06, 2013, 06:46:55 PM »
If it makes you feel better, I just had a $500 note go from paying well for a year to bankruptcy and default.  I see from the questions answered after I bought the note (and never saw) that he was borrowing the money to give to his "long time significant other" since she couldn't get the loan on her own.  I guess they stopped being significant.  I only have a few of these from my first week of investing when I used the LC autoinvest tool and threw 10k at it just to see what would happen.

Not always good things...