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Messages - AmCap

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31
Foliofn - LC / Re: Speculators....How were your gains this week?
« on: June 18, 2013, 08:40:19 AM »
Yeah - sorry NJ Guy the market freeze back in the winter really put a dent in my returns.  I gotta stay clean out of that!  It was fun but I concluded it wasn't profitable (in a scalable way).

32
Investors - LC / Re: How much you made in Lending Club after tax?
« on: June 01, 2013, 12:51:49 PM »
My position is to make as much as I possibly can.

+1

In addition, with a little tax knowledge, you can make more money by buying/selling on Dec 31 vs. Jan 1.   ;)

No.  See IRC section 1091.

I wasn't talking about wash sales; I was talking more about long-term vs. short-term treatment of loss & gain.

Ahh I see...

33
There were 291 A1-A4 "business" loans issued in 2012.  So far in 2013, ZERO.  That has to be more than Voodoo.  They changed something here, but what it is, I'm not exactly sure.  I would love to see someone with A1 credit reapply for a business loan.  Either they'd get a higher rate, or they'd be the only person in 2013 to break the A4-business barrier.

My understanding is that loan purpose is taken into consideration and the data suggests that is definitely the case. I remember hearing a comment from one of the lead underwriters that the big changes made late last year included taking into account borrower "self-reported data" which included loan purpose. Makes sense because small business loans have been the worst performing category by far. Although these days borrowers don't really need to worry with every loan being snapped up very quickly.

I trust that's true Peter, but it seems odd.  LC has stated that the one thing they *never* verify is whether the borrower uses the funds for the stated purpose.  If it got out that you could get a lower interest rate by simply lying, then the stated loan purposes would quickly become meaningless...

+1

I had the same thought on this too. Unless they've somehow magically figured out more often than not borrowers are truthful about the purpose of their loans?

It's common in secured lending to have a lot of borrower covenants, but even if you did that I don't see how there's be any recourse as the borrower has likely spent the borrowed funds by the time the servicer figures out that "debt consolidation" loan went to open up Ida's flower shop...

34
There were 291 A1-A4 "business" loans issued in 2012.  So far in 2013, ZERO.  That has to be more than Voodoo.  They changed something here, but what it is, I'm not exactly sure.  I would love to see someone with A1 credit reapply for a business loan.  Either they'd get a higher rate, or they'd be the only person in 2013 to break the A4-business barrier.

My understanding is that loan purpose is taken into consideration and the data suggests that is definitely the case. I remember hearing a comment from one of the lead underwriters that the big changes made late last year included taking into account borrower "self-reported data" which included loan purpose. Makes sense because small business loans have been the worst performing category by far. Although these days borrowers don't really need to worry with every loan being snapped up very quickly.

I trust that's true Peter, but it seems odd.  LC has stated that the one thing they *never* verify is whether the borrower uses the funds for the stated purpose.  If it got out that you could get a lower interest rate by simply lying, then the stated loan purposes would quickly become meaningless...

35
Investors - LC / Re: How much you made in Lending Club after tax?
« on: June 01, 2013, 11:18:07 AM »
My position is to make as much as I possibly can.

+1

In addition, with a little tax knowledge, you can make more money by buying/selling on Dec 31 vs. Jan 1.   ;)

No.  See IRC section 1091.

36
Interest Radar / Re: Why doesn't Interest - Loss = IRR?
« on: June 01, 2013, 10:29:49 AM »
I find it easier on my sanity to eliminate losses rather than trying to lose as much as I'm allowed.  That's just me.

Unless we're playing accounting games.  Those I like.
AmCap junior!

Sent from my SAMSUNG-SGH-I747 using Tapatalk 2



Haha I think yall spend more time fussing about the tax than I do...

37
Investors - LC / Re: How much you made in Lending Club after tax?
« on: June 01, 2013, 10:19:45 AM »
I paid my marginal tax rate,which I won't share here.

Total gains x marginal tax rate = total tax paid on gains

Yes!  Just...this is the answer.  If I made $100 on LC and I had no other earned income, then I would pay a *negative* effective tax rate on my "return." Post-tax conversations aren't useful.

38
I don't believe the stated purpose for the loans has anything to do with the original underwriting.  Any connection might be coincidental.

39
Interest Radar / Re: Surprisingly low IRR for newer notes
« on: May 29, 2013, 08:15:30 AM »
Have we even thought to come up with an agreed upon benchmark for p2p performance?

I think NAR is an option here; I know some of you do not like it. 

However, it's available for all investors, not dependent on tools (e.g. InterestRadar), and useful for "apples to apples" comparisons.

Yeah because of some of the strategies I use personally, NAR is a totally meaningless number.

40
Investors - LC / Re: Platform -> Folio Rotation?
« on: May 24, 2013, 05:48:19 PM »
those investors in Folio only states need supply, someone has to fill it.

This is a charity responsibility that we need to take seriously.   :D

Charity plus markup...

41
Investors - LC / Re: Recoveries
« on: May 23, 2013, 04:43:34 PM »
It just struck me; they probably did a sale to a debt buyer for a portfolio of charged off loans.

42
The combination of A/60 months/$21k-$35k does not exist, forget the rest of the details :)

60 months alone bumps it from A1 to A5, I believe, so adding the "large loan" bump will take it out of the A range altogether.

Hahahaha I am DYING!

43
God forbid y'all should ever find any of my written work online.  Oof!

44
Interest Radar / Re: No Pre-Set Strategy for Auto-Sell?
« on: May 22, 2013, 04:47:06 PM »
Can you suggest some pre-sets you'd find useful?  Curious to know what you'd like to see.

45
General P2P Lending Discussion / Re: Regulatory Challenges for p2p
« on: May 22, 2013, 09:36:50 AM »
I wouldn't be surprised if they moved to an accredited investor only status someday. As others have pointed out, if LC ever goes through a major default cycle they will probably be sued by investors. I could also see the SEC or congress investigating why LC doesn't take more steps to verify that investors are financially suitable. I mean LC's compliance system is basically a joke right now in many ways. That was fine when they were a tiny operation but now that they're moving the needle they will start attracting a lot of attention.

?  These are registered securities. Once you make a public offering, its generally hard to unring the bell.

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