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Topics - SLCPaladin

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General P2P Lending Discussion / Opinion on Wunder Solar Funds
« on: July 20, 2017, 11:59:35 AM »
I read the feature article on about Wunder capital (e.g., retail investor solar financing platform) and I was wondering if there are any Lend Academy forum participants who have invested on their platform. If so, what is your experience been?

Matt Levine's Money Stuff linked to this very fascinating article regarding big data and lending:

How to Predict If a Borrower Will Pay You Back

Of course this was back in the day when Prosper had a free text field where borrowers were able - but not obligated - to provide a free-text summary of the purpose of the loan, essentially serving as a pitch to persuade investors to fund their loan.

This part of the article really brightened my day:

"Now, let’s consider language that suggests someone is unlikely to pay their loans. Generally, if someone tells you he will pay you back, he will not pay you back. The more assertive the promise, the more likely he will break it. If someone writes “I promise I will pay back, so help me God,” he is among the least likely to pay you back. Appealing to your mercy—explaining that he needs the money because he has a relative in the “hospital”—also means he is unlikely to pay you back. In fact, mentioning any family member—a husband, wife, son, daughter, mother or father—is a sign someone will not be paying back. Another word that indicates default is “explain,” meaning if people are trying to explain why they are going to be able to pay back a loan, they likely won’t."

Investors - LC / Soliciting feedback for my strategy
« on: February 24, 2017, 11:54:03 AM »
Let me first start off by saying that I am not a data-head. I am an RN at a hospital, who happens to love investing. I'm not overly technical, but I grasp most, if not all, of everything on the forum. And I have had success with marketplace lending in general. I've invested with LC and Prosper for about 5 years now and my returns have slowly declined from about 12% to 7.5% now. I am not an accredited investor, though I am close. I'm perplexed with how, and if, to continue investing.

My skill set is probably different than some of those on this forum who run advanced analytics, portfolio analysis, and who automate tools and build scripts for back-testing and modeling. I do none of this. I probably could if I invested the time into learning, but my extra time is usually invested into my career working long hours at the hospital, or playing with my young son. Here's how I basically operate: I use LC's filters to give a first-pass and then I spend about 5-10 minutes every day or so and select notes to purchase based on some pre-screening from filters.

With that background, I'm soliciting insight to where I have room for improvement, or any blind spots. Here are some of my filter criteria:

1) Exclude sand states (Arizona, California, Florida, Nevada)
2) Max DTI of 20%
3) Min length of employment of 5 yrs
4) Homeowner
5) Exclude the following loan purposes: medical, business, invest in learning/training, wedding, vacation, moving
6) Monthly income >$4000
7) Inquiries < 2

For the last 6-9 months, I have shifted to the front of the spectrum, only investing in A,B, and C grade notes. I was very heavy in the lower end as I chased yield. My returns have suffered for this as LC delinquencies and charge-offs have been ugly as of late for this part.

At this point, I'm just looking for input from what I may be missing in terms of strategy or new ideas I haven't considered. Most of what I filter on is stuff I picked up from this forum, from Peter, and others. I wonder though if this is still working. Any thoughtful advice is appreciated.

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