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Messages - mitgib

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1

Thanks for the replies.    That is one way in which LC is actually kind of ideal for "emergency funds", or at least temporary job loss.    I would love to get to the point were incoming principal plus interest could cover a decent share of my monthly expenses.   

If you spend your principal, you are spending your "emergency" potion on a non-emegency, but I can see were you would want supplement a large portion of living on the interest only.

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I guess there's two kinds of emergency: sudden need for cash, and job loss.   I worry more about job loss (been there), but that doesn't exactly sneak up on you.  When that happens, you have weeks/months to decide what to do.  When I am facing a sudden need for cash (like a recent unexpected vet bill :-(), I've been willing to put that on a credit card.   I was more willing to go into debt temporarily than to liquidate any of my savings.

I prefer to keep 3-6 months of living expense in cash, I don't care about the low rate of return, this is for what-if "sheet" hitting the fan, and I don't think I would like eating cat food. I also keep silver coins/bullion and guns in my safe, so if cash is worthless, what I cannot trade the silver for, the guns can help out and no, I do not wear a tin foil hat.


2
"With the brown nosing of inst. investors, I fear something very bad will happen in the future and have stopped adding new funds. "

The conservative approach is to look at LC and Prosper like the glass is "Half Empty".

I look at it as "Half Full" and will continue to add funds.

There are still some rough patches for both companies to overcome, but both have rooted themselves as a force in the money-lending world.  The fact that institutional investors and companies like Google are dumping truckloads into this reinforces the fact.


I absolutely agree with you NJ guy. In its most basic sense, one will only reap rewards from an investment by taking risk...

Sent with Tapatalk 4 on my HTC DNA.

Don't get me wrong, I am not proclaiming the sky is falling, or anything along those lines, yet.  My fear is the institutional investors will demand something, LC gives it to them, and creates some form of crisis all of us have yet to think up.

I have not pulled a dime out, have no plans to, but the ability to get idle cash invested, even using IR auto-invest, is unable to keep funds fully invested, or at least it is more work to get the idle cash working that I choose to put new cash to work in other investments, even at lower immediate returns.

3
With the brown nosing of inst. investors, I fear something very bad will happen in the future and have stopped adding new funds.  It's a shame as the returns are better with less risk, but I think LC will do whatever the big money demands and something unforeseen will bring this to a tragic end.

4
Investors - LC / Re: No Collection Log For Missed Payment???
« on: July 01, 2013, 05:17:35 PM »
Just received a call from LC.  They agreed that there is an error in the system as 'in process' payments are not showing up for some loans.  The issue is 'in Engineering' and they are working to resolve.

The last two times this happened to me, they next went from late to fully paid

5
Investors - LC / Re: What's your oldest loan stuck in funding?
« on: June 30, 2013, 06:54:20 PM »
Loan Submitted on   6/6/13 1:35 PM

6
I'd also recommend using a few custom filters for where Rev's filters aren't granular enough. For me, the ones I like a smaller window for are markup/asking price, YTM, and FICO.

To make a custom filter, you go here: https://www.interestradar.com/customfilters  and just fill in the info you want, it's pretty straightforward. E.g., to filter out everything that is marked up more than 2%, you do field: "Markup/Discount"; operation: "less than"; values: "2%".

Custom was the sliced bread! Thanks

7
Maybe explaining how to setup filters on IR would help many who have not used it to locate notes on Folio. It took me at least a month to finally get the semi hang of it.  A step by step might be a lifesaver for some.  Finally today I figured out after buying what I want I had to view my order and submit, I had always figured when I got a string:0 the note had already sold.   It must be maddening for you Folio only investors, but I figured if you could do it, I could at least try it.  I might try putting all free cash to work this way, a few days to settle is far better than the 2-3 weeks it takes for new notes to issues.

8
Investors - LC / Re: New C/Net Interview with Renaud Laplanche
« on: June 09, 2013, 01:37:55 PM »
Does 80% seem like a reasonable number? Sounds extremely high to me!

I wonder what percentage of those "balance declines" are people who take out a LC Loan and then immediately file for bankruptcy.

I am not very familiar with bankruptcy law, but isn't that pure fraud?  If challenged, would it be discharged?

9
Investors - LC / Re: Where did the new loans go??
« on: June 06, 2013, 09:25:15 PM »
If Lending Club doesn't post the loans at the scheduled times then I wasted my time like a fool refreshing the website for 5 minutes and missed out on the loans that fit my criteria when they get released at some arbitrary time.

I've found new loans are like Doritos, don't worry, they'll make more.  It's just not worth frustration.

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Other - I own a small hosting provider, I offer mostly VPS servers

11
I just got my first grace period note.  >:( The guy's FICO score is up to 755-759 now and it was an IR01 401 loan and it seemed to check all the right boxes. The only negative I could think of was the guy was located in Detroit. Income verified, <20% DTI, long employment and credit history, etc. Frustrating but hopefully he gets his act together shortly.

https://www.lendingclub.com/account/loanPerf.action?loan_id=4215518&order_id=6416759&note_id=21985461
You do realize lack of defaults can indicate poor performance, right? It's all about balance. Don't stress about the notes. Just set rules on how to respond and follow them.

Sent from my SAMSUNG-SGH-I747 using Tapatalk 2

Oh yes, I realize defaults and especially grace periods are inevitable. I don't have to be happy about it though. ;)  Unfortunately, I can't sell the notes (at present) because I work in the investment management industry and our compliance department won't allow it. I'm still hopeful this guy will go current though.

This is interesting, what are you not allowed to participate in that I am a normal person can?

12
I certainly wouldn't have the time nor the skill to write a guest post, but an idea I have been kicking around that anyone interested is free to take. 

How much cash flow is generated by payments and is it in danger of exceeding new loan origination?  I'm sure a percentage of lenders take some of that cash out as income to live off, but I would suspect a larger portion keep reinvesting.

13
When I get someone in grace period, as soon as it comes current I like to sell it. Sounds like that may not be a wise choice !!! Thoughts?

I certainly sell those as soon as I can.  Regardless of whose fault it was, you've still got a note which is worth less than it was before.  (Assuming they do not go back and erase the in-grace payment notation.)   You've only got a few days that the note is going to show up in the 'Never Late' search on Folio and after that it will sell for considerably less. 

That one you linked to, I would have gotten rid of that already, even at a 5-10% loss if I had to.

I'm learning towards siding with Show Me The $'s on this one.  I too am quick to unload a note at the first signs of trouble, but am I leaving money on the table over these Grace Period notes?  I guess it will take more evaluation in the future before pulling the sell trigger by looking at the FICO trend as well, not a perfect solution, but seems all we have to work with.

With the way things are today, unless a note is seriously in trouble I think I would rather hold as getting funds invested is not an easy task.

14
Could that get you around contribution limits a la Mitt Romney style?

Looks more like it will get you a job making little rocks out of big rocks.
A free vacation too? :)

Yes, to sunny Ft. Leavenworth, all inclusive

15
Could that get you around contribution limits a la Mitt Romney style?

Looks more like it will get you a job making little rocks out of big rocks.

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