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Messages - faeriering

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Is funding someone's breast enhancement any more narcissistic than funding the purchase of an expensive car or a swimming pool or a big weeding or getting the latest and greatest 4 wheeler? 

We had a discussion on the forum some years ago about medical expenses indicating an inability to work.  This might be the case, but there are other instances where having a procedure (sciatic nerve back surgery) may make someone more employable. . . it really depends on the procedure which of course we have no mechanism for knowing.

I'd say in general I don't fund medical categories as statistically at the grades of notes I look at, they don't perform well as well as the main categories I target.  (weddings and cars and vacations are usually off my list too).

I think it's funny that they used retail investors to "pilot" the whole concept of "P2P" investing; but now that they have larger private equity firms in the mix, they are giving them first and only dibs on the new options.

General P2P Lending Discussion / Re: Automated vs. Manual investing?
« on: March 29, 2015, 10:03:51 AM »

For my portfolio (which is substantially less than what you are suggesting investing),  I use automated tools.  For some of these tools I pay a small fee (<0.3% of portfolio), for some of them I don't.  The return for me isn't worth the time it would take me to build the automated tools, mostly because my programming skills are 15 years out of use and based in ancient technology like FORTRAN and Pascal.

So I would say for a 1M portfolio it would be very difficult to manage without some automation.  You might consider paying someone a one time fee to build your automation for you, they could teach you how they did it, then you could keep it up and "own" it and not have to pay ongoing fees for it?  Totally depends on your ability/comfort/opportunity costs to do the work.

If you find a couple super awesome filters that yield great results, you may not want to put them up on some of the other automated sites.

I don't know what the options for management are on the whole loan market, but if you may want to consider it if you are looking at the $10M as you would be pretty diversified (in >300 loans at 30k each). There might be other tax advantages to using the whole loan market.  The competition for loans on the whole loan market might be stiffer than the fractional market.

There are still minimum qualifications to be an investor at LC:

in most states an income of $70k/yr & a net worth (excluding home) of $70k, and you can't invest more than 10% of your net worth.

This isn't checked before you invest (at least it wasn't for me), but if you can't afford the capital and don't meet the above requirements . . . This might be a really really risky idea for you.

When Rawraw tried it, he had a back up plan if all his notes went bust how he was going to pay the credit card back.

Best of luck!

Investors - LC / Re: Where are all the high quality loans?
« on: July 27, 2014, 01:40:22 PM »
with all the loans that have been available over the last couple months  I'm sitting at my lowest cash level in a long time.  That being said, usually when this happens I tend to move to higher grade borrowers like Fred implies.

I would suggest one cavet to Rawraw & Anil's points above.  If you are only planning on holding the notes for 12 months, and then looking at selling them on Folio then a shorter loan history might be okay to review.  If you are looking to hold the notes to maturity their points are very valid.  Of course if you do sell them on folio and they have a high likelihood of default it might be harder to off load them.

Investors - LC / Re: I wonder what's the secret
« on: July 17, 2014, 01:48:47 PM »
I have traded on Folio and I have a dot.  I think it might just mean that your trades aren't reflected in ones' NAR.

you either have to download the cvs file for the notes or you need to pull the loan up on another website like Interest Radar.  As a third option, you could look at the loans through the API, but that is beyond my ken.  There are other folks here who have successfully used the API.

Investors - LC / Re: Math on benefit of avoiding defaults
« on: July 06, 2014, 08:17:04 AM »
this was just posted on Lending robot:

might give you a better formula to use for PD?

Investors - P / Re: Prosper as a cash or CD proxy - Advice requested
« on: July 03, 2014, 10:58:00 AM »

Just please be aware of the risk you are taking.  CDs and cash in savings accounts at banks are FDIC insured.  This investment vehicle isn't.  The default rate on the higher grade notes are very low, but the asset isn't liquid and it isn't backed by the feds.

edit: corrected the cash statement to be specific about which cash accounts are FDIC insured thanks seattle sun for pointing out the mistake.

Investors - LC / Re: Bankruptcy Dismissed
« on: June 22, 2014, 06:37:11 PM »

I was interested in the discussion on this.  I agree with you focusing on the details of individual notes when we own hundreds or thousands is a waste of time, unless we are learning about aspects of the borrowers that apply more globally.  these "case studies" can give broader insight into the borrower pool.  I'd be really interested to learn about the bankruptcy being dismissed and the impacts on the loan recoveries at LC. 


thanks for the interesting break from the rule.  It will be interesting to see how much gets recovered.

Interest Radar / Re: CRITICAL: Strategy Shop IRR Reporting Error?
« on: June 22, 2014, 06:09:41 PM »
I've been noticing the same thing on my filters... it made me really nervous.  I hope rev get's it sorted in the not too distant future.

Investors - LC / Re: 7 mortgage accounts why??
« on: June 22, 2014, 06:08:29 PM »
Since it's an unsecured loan, they don't have to be accurate with the loan title (business vs. credit consolidation). Thanks so much for the perspective on this one though.  Being a real estate investor makes loads of sense.  I don't mind them paying off early or being occasionally late, as long as they pay all the fees and whatnot.

Investors - LC / Re: 7 mortgage accounts why??
« on: June 22, 2014, 08:23:29 AM »
I had a CC when I turned 18 and a car loan at 20. . . and of course student loans at 18.  most of the people I was in college with had at least one credit card, but that wouldn't be reflective of the population in general.  I think when my parents were in college it was much less common for people to have credit cards, but they still had car loans in their early 20s.  I think it's a fairly good 4 year number maybe move it to 20 ish.  I just use it for an approximation to get at someone's life stage.

Investors - LC / Re: 7 mortgage accounts why??
« on: June 21, 2014, 01:14:48 PM »
to see the mortgage accounts you have to look at the whole loan.  there is more data available on the CSV file: here

I tend to see it on Interest Radar when I sort loans there.

for the age.  I look at the date for the earliest credit line.  This date is usually around when the person turns 18.  not always.  I totally did my math wrong on this one though, they are likely closer to 50 not 65 for an engineer you'd think I could do better. 18+(2014-1984) = 48.

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