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Messages - storm

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Investors - LC / Re: Competing with institutional lenders for notes.
« on: July 16, 2013, 04:18:03 AM »
I'm cheap, so I'm waiting ever so patiently for LC to come out with its own auto-invest tool.  I can usually find a couple or more loans that meet my criteria each day, and then I usually invest $50 each as I don't need to diversify my account much more.

I do think LC really needs to think twice how they are treating small individual investors.  If it wasn't for us risking a few hard-earned dollars from our bank account and trying things out for the past 6 years, LC would not be where it is today. 

From an IT perspective, it is less cumbersome to have just a few investors contribute to each loan.  On the other hand, this feeding frenzy they've created 4 times a day is not so good on their servers especially as demand increases and third-party robots keep looking for loans.  I think we are seeing the effects of that with slower payment processing and loan status updates.  My recommendation is to restrict the amount that can be invested per user to, say, $100 for the first 24 hours a loan is posted, and then the institutional investors can swoop in after that.

Investors - LC / Re: Fully Paid but have $0.05 balance?
« on: July 16, 2013, 02:33:44 AM »
Give it some time.  There may be some accrued interest the borrower still owes, or it may need to be adjusted to 0.  This is common with any bank loan that is paid off early.

Investors - LC / Re: Circumventing a Disallowed State
« on: July 15, 2013, 08:27:30 PM »
Do a google search for 1099 reporting requirements for your state.  Many states do not require a 1099 to be reported to them.  On my state return, you just start with your AGI from the federal return (after 1099's and capital gains are calculated) and go from there, so they really don't care about the 1099's.  I imagine many other states do the same.

Investors - LC / Re: No payments for July 6,7,8
« on: July 14, 2013, 04:07:32 PM »
I usually sell the notes that look imminent they will go into their grace period (and they usually do).  Then I sometimes go back and check those notes, and it shows the borrower ultimately paid on time.  It is really frustrating to learn you've sold a perfectly good note at discount just because the payment wasn't processed in a timely manner.  I also wonder how many times borrowers paid on time and had to request LC adjust the status.

Investors - LC / Re: Circumventing a Disallowed State
« on: July 11, 2013, 11:05:41 AM »
I have a regular taxable account that I opened before LCís SEC filing and before my state disallowed it.  LC told me I was grandfathered in and am still allowed to invest in new loans.  I want to open an IRA because it seems like IRS is just taking all my gains, but LC said I would be restricted to FolioFN investing in the new account.  I am contemplating signing up with a cheap mail forwarding service or for a mailbox at a UPS Store in a neighboring state.  This is technically address fraud, but since Iím not planning on skirting any other laws, I donít see how or why anyone would enforce this.  The only down side I can see is that if there was a issue with LC (bankruptcy, etc.), the state attorney generalís office would offer no assistance.  Watching some of the LendIt Conference videos, LC didnít deny seeking an IPO next year.  Theoretically, this should open investing and borrowing in all 50 states, so it may be worth it to just wait and see what happens.

Investors - LC / Re: Discounting Grace/Late Note
« on: June 19, 2013, 10:40:10 AM »
On grace notes, I start with 5% discount and reduce it by another 5% every day it doesn't sell.  Most of mine sell with 5%-10% discount and occasionally a 15%.  Notes that are worth more than $25 seem to require a bigger discount (10-15%) to sell.  I'm not sure if that is a quick enough sell for you.  Rarely do I let a note go late before I sell it, so I can't really say how much to discount them.  I invest in loans with interest > 12%, 0 inquiries, and mortgage holders only.

Investors - LC / Re: What's happened to all the borrowers?
« on: April 16, 2013, 10:21:16 PM »
I would just suggest everyone start using Interest Radar to compete with these big fish...

Call me crazy, but I think it is very shady when a website is not upfront with its pricing.  I shouldn't have to hand over my personal information to access that information.  I won't bother with retail sites that require registration to see the shipping charges, and this is no different.  It is recommended on this forum over and over which makes me all the more suspicious.  Then there is the idea that I shouldn't have to pay some 3rd party to invest my money. 

I have developed my own scripting tools that I use to invest that I'm pretty happy with.  Plus, many borrowers reveal they are using the loan for other purposes in the comments even though it is listed at debt consolidation.  I have changed my habit of investing late at night to waiting until shortly after the 06:00 PDT update.  I think Lending Club needs to limit the investment amount to, say, $100 for the first few days a loan is posted to give the little guy a chance.  Then the big investers can come in and fund the rest of the loan.  It really makes me wonder where LC's priorities lie.

Investors - LC / IRA Minimum
« on: April 27, 2012, 01:13:30 AM »
I am almost ready to open an IRA account with Lending Club.  According to the Lending Club website, "To qualify for a no-fee IRA you must have an initial minimum balance of $5,000 or more in Lending Club Notes and maintain this invested balance for the first 12 months."  Surely, LC doesn't expect me to invest all $5,000 the first day.  I notice on Prosper, it explicitly says you have 2 months to invest your $5k.  I'm wondering if I can take my time investing in my preferred loans or if there is a similar deadline for LC that I have overlooked.  Thanks.

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