Author Topic: P2P Lending Options  (Read 4704 times)

scotty0318

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P2P Lending Options
« on: December 28, 2016, 03:02:01 PM »
Outside of LC/Prosper, I'm curious to know:

What other alternative investing vehicles the board is investing in. I'm finding it difficult to uncover additional diversification options. I've set up an account with Groundfloor but have not funded my account. I'm cautiously watching from the sideline at the moment.

Stock Market+LC/Prosper is the name of the game for me right now.

Disclaimer- I am a non accredited investor. I understand that there are plenty of diversification options for accredited investors.

Debt Free

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Re: P2P Lending Options
« Reply #1 on: December 28, 2016, 06:38:17 PM »
I inadvertently discovered https://www.uhaulinvestorsclub.com/ (I haven't joined as of yet) that has been discussed previously on this forum.  Try searching for it, or review the site.

My main interest is in the fact that they accept Coverdell ESA accounts for my kids' college fund.  However, U-Haul is less liquid because you have to hold the notes all the way to maturity.  There is no secondary market yet.

jheizer

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Re: P2P Lending Options
« Reply #2 on: December 29, 2016, 10:53:56 AM »
Yeah not being an accredited investors really limits our options.  The uhaul investors club looks pretty interesting.  I wonder what the are odds of you actually getting any money out of the asset should they go under.
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Debt Free

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Re: P2P Lending Options
« Reply #3 on: December 29, 2016, 02:02:25 PM »
Better than LC or Prosper.  Considering it's backed by physical assets and debt holders are paid before stockholders, I think pretty good.  Maybe not 100%, but part of something is better than all of nothing.

Another investment I've been looking at that I think is becoming more non-accredited friendly is SeedInvest.  A lot more risk however.

rawraw

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Re: P2P Lending Options
« Reply #4 on: December 31, 2016, 01:46:37 PM »
Better than LC or Prosper.  Considering it's backed by physical assets and debt holders are paid before stockholders, I think pretty good.  Maybe not 100%, but part of something is better than all of nothing.

Another investment I've been looking at that I think is becoming more non-accredited friendly is SeedInvest.  A lot more risk however.
It's been several years since I've looked at UHaul, so apologize if my facts are dated.  But this service is a perfect example of how the simplistic approach to lending many of us take gets us in trouble.  Backed by physical assets?  Perhaps, but if you read the legal agreements there was a lot of wiggle room behind this fact.  I vaguely remember very loose limits on right of substitution of collateral and other questionable things.  Maybe they've changed this legal structure since, but when I saw those clauses in the legal agreements I was no longer interested.

jheizer

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Re: P2P Lending Options
« Reply #5 on: January 04, 2017, 12:35:14 PM »
I've been doing more reading and research on Uhaul and GroundFloor the last few nights. 

rawraw is right in that with Uhaul there are some loose provisions on the "collateral".  Its also a bit confusing in that the parent holding company is who you are actually loaning the money too, not the uhaul subsidiary.  I don't know enough about legal structures to know how much of that is a positive vs a negative.

I've also been tempted by ground floor.  My biggest issue there is they are so young still.

I realized missing from the thread is Fundrise's eReit.  Though with their fees and redemption costs it doesn't interest me.  I'd rather just use a regular publicly traded Reit.

I have some bonus money showing up soon and I think I may dip my toes just a tiny bit in Uhaul and GroundFloor.  Though I am not 100% certain yet.
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rawraw

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Re: P2P Lending Options
« Reply #6 on: January 04, 2017, 01:31:32 PM »
I've been using Groundfloor, partly just as market research to see what the industry is doing. You get a lot of stuff as an investor, like borrower said they completed renovating the kitchen, but I don't see any proof Groundfloor is monitoring draws and such like they should. Most of the information they provide appears to be fluff. Also the fact lots of deals are not appraisals concerns me

Sent from my SAMSUNG-SM-G935A using Tapatalk

jheizer

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Re: P2P Lending Options
« Reply #7 on: January 04, 2017, 02:21:08 PM »
The fluff is what has me debating still on groundfloor.  As of last night there were 12 properties.  6 Had actual appraisals.  All of them had the highest borrower experience level of 5 except there was one 4 and one 3.  So that metric is probably completely worthless.  I'm just not sure there will be enough opportunities available that at a minimum have an appraisal to make it worth the time and effort.
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Fred93

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Re: P2P Lending Options
« Reply #8 on: January 04, 2017, 05:23:31 PM »
I've been using Groundfloor... You get a lot of stuff as an investor, like borrower said they completed renovating the kitchen, but I don't see any proof Groundfloor is monitoring draws and such like they should. Most of the information they provide appears to be fluff.

I've been talking with them about how they present this info to investors.  They've been very interested in this feedback, and do seem to understand some of the issues.  They are planning improvements.  I suggest you give them some feedback.

welltrado

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Re: P2P Lending Options
« Reply #9 on: January 11, 2017, 05:49:02 AM »
If you are searching where to invest, there is a tool to compare p2p lending and crowdfunding platforms. Check it out:
http://www.welltrado.com/investments/

jheizer

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Re: P2P Lending Options
« Reply #10 on: January 18, 2017, 11:15:24 AM »
So I tried to move some money into groundfloor after the last reply and give it a trial period, but it has been slow going.  Some how my first bank linking messed up and I removed it or something.  Second time it errored and gave me an error saying it would be reviewed and an email address for more help.  Finally decided to send them an email on Friday the 13th in the evening.  I just now got a reply and it was simply

Quote
Thanks for your email.

I can’t locate an account for you. What is the email you used to set up your account?

Please let me know and I will follow up with you shortly.

Umm, same email address they just replied to.  I just replied with a screenshot of my entire accounts page.  Maybe that will help.  So far they are not instilling much confidence.  The person who replied to me is listed as "Operations Manager - Managing all the internal workings of the office while also assisting the Marketing VP and CEO to schedule and implement events and community outreach for GROUNDFLOOR. " and been there since 2014 so not new.

Fred93, when you are talking with them are they usually quick to reply?  What's your general gut feeling? 
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Fred93

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Re: P2P Lending Options
« Reply #11 on: January 18, 2017, 01:53:23 PM »
Fred93, when you are talking with them are they usually quick to reply?  What's your general gut feeling?

I was an early Groundfloor investor, and got to know the CEO and other early folk, so I just exchange email with them.  Usually very quick reply.  Guess I've been spared the experience of dealing with first line support!  I continue to invest at Groundfloor.

jheizer

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Re: P2P Lending Options
« Reply #12 on: January 18, 2017, 02:16:38 PM »
Thanks.  Good to know your experience has been positive over all.  No reply from them yet.  It's just one of those if it is this hard to give you my money, what happens when there is a real issue.  I'll give it another day or so before I just give up.
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rpulido

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Re: P2P Lending Options
« Reply #13 on: January 18, 2017, 10:11:31 PM »
I am Rich Pulido, SVP of Lending at Groundfloor.  Thank you for your comments and support.  We continually seek to improve our product, and securing thoughtful, honest feedback is critical to that effort.  In order to provide a better understanding of our underwriting and asset management processes, I provide the following clarifications:  1) Groundfloor’s underwriting policy requires a full interior inspection on every property.  The inspection, market analysis and value conclusion are conducted by a local market, real estate professional.  In addition, at least one AVM from a leading vendor is obtained for every property.  All loans over $250,000, plus properties of 3-units or greater, require full appraisals. This practice forces our underwriters to assess multiple value assessments in order to reconcile to a final valuation conclusion.  2) Pursuant to our loan agreement, we have the right to engage an inspector for every draw. Typically, we have had inspections conducted for the initial draw request and for one subsequent draw request.  However, recently we changed our practice to now require an inspection for every draw request.   Our inspections are conducted by a nationally know vendor, well versed in the standards of the hard money and construction lending business.   Please feel free to contact me with further questions or comments at rich@groundfloor.us