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Messages - Bohb Daishi

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Investors - LC / Re: Firesale!
« on: March 26, 2014, 02:39:39 AM »
Good point. I did have a subscription to LendingRobot. But I still think I'd want to be active in getting rid of late notes to on the trading platform and checking to make sure everything was working so that I could get a great return. I'm the type that would need to be hands on with that kind of stuff (if it was only a login away). So I guess I'm just too much of a control freak to set it on autopilot. And the headache at tax time just isn't worth it when I can put it someplace that gets slightly better tax treatement and someone who is working full time with my money to make sure I get good gains.

Unless the funds explicitly state that they intend to sell bad notes on Folio, I would not assume that they will. Heck, they will probably just let notes charge off instead of getting a guaranteed -95% discount at the last moment.

Investors - LC / Re: So Many Loans!
« on: March 25, 2014, 02:51:19 AM »
Note to radio advertisers:  There are no "backslashes" in URLs.  They are forward slashes, or just "slash".  If you start to feel the word "backslash" coming out of your mouth, just stop.  Don't do it!  You sound like an idiot and it reflects poorly on your company.  If I can track down who writes this garbage I will go to their house and choke them.

http:\\\forum works just fine for me.  ::)

Investors - LC / Re: Firesale!
« on: March 25, 2014, 02:45:09 AM »
At the end of the year for the 3-4k in profit...minus terrible tax treatment, I'd be better off, as is often stated on this board, getting a job at McDonald's.

With the recent initiatives to raise the minimum wage, this option is looking a lot better. Might want to get in early though. The demand for these jobs is going to go through the roof if the law passes.

Unlike what your name suggests, it sounds like you were mostly looking to purchase notes for investment. Why not just get a subscription to All you need to do is set up your purchase filters then turn on the auto-buy feature. There's virtually no work involved after that, other than to periodically log into Lending Club to see how much interest you've earned.

Investors - LC / Re: 2013 LC Tax Guide?
« on: March 25, 2014, 02:28:13 AM »
I signed up as an individual (apparently since that's all they allow), and then used only company funds. I didn't put any personal funds in. I used my business address, business funds from business bank account, business email, but with my social security number on record with them.

I don't see how this would run you into a legal issue. It's structurally similar to someone in a sole proprietorship designating one of their personal credit cards as a "business-only" account. As long as this business account remains completely separate from your personal funds, then you'll probably be ok. The taxes should be pretty simple as long as you are a 100% owner of your business. But if you don't own 100%, you should talk to your accountant.

Here's one that got Charged Off less than a month after a payment was made. It might have been on a Payment Plan, but any evidence of that has been wiped out. It even looks like the borrower kept making his reduced payments (see the Recoveries) until he figured out his loan had already been Charged Off.

11/5/13 payment $0.53
11/22/13 (Friday)   Charged off. PAYMENT 120+ past due. Collections efforts exhausted. Recovery unlikely

Double-check your recoveries. I noticed that the vast majority of them do not show up on the Loan Performance page; you need to search for them as "miscellaneous credits" in the Account Activity for the specific LoanID. The whole process is a total pain in the ass.

Investors - LC / Re: Can't ask questions?
« on: March 24, 2014, 02:11:37 AM »
For me it wasn't about spelling, it was spotting and avoiding borrowers obviously didn't care a lick about how they presented themselves to the people who were loaning them thousands of dollars.  To me, that's a red flag. 

Based on the suggestion of one of of users, we tested a language analysis algorithm to establish an 'English correctness' score for each loan application. Oddly enough, such score was poorly but negatively corrected with returns. Said otherwise, people who 'didn't care a lick' seemed to be, on average, slightly better borrowers! Like you, I would have guessed the opposite.

That's very counter-intuitive. I can't really think of a good explanation, either.

Investors - LC / Re: Bankrupt Note Went Current!
« on: March 24, 2014, 02:09:03 AM »
Now here's a fun problem that I've run into. I can't sell the note! Even though the borrower is most likely no longer "bankrupt", the status is still there...

Investors - LC / Bankrupt Note Went Current!
« on: March 21, 2014, 04:09:14 AM »

In total, two loans went current out of my 100 bankrupt loans. I even have a few that got charge-off recoveries. I'm liking these odds.

General P2P Lending Discussion / Re: BitCoin P2P Lending
« on: March 21, 2014, 03:47:15 AM »
So how exactly do these loans work? If a borrower takes out a 200-Bitcoin loan at a 10% interest rate and paid it off at the end of the year, would they only need to pay back ~220 Bitcoin? What if the price of Bitcoin goes up to $5,000 or down to $10?

I'm basically asking if I can use one of these Bitcoin loans to place a short position on the currency. I want to profit when it goes to zero in a few years after being replaced by something else that's not deflationary.

I'm curious how difficult it would be to manage $10-50M of notes with existing software. Vs having to build own custom software.

If you had a portfolio of that size, you should most certainly have your own software linking to LendingClub's API. The only other way to do it is to invest in $1,000 notes.

Investors - LC / Re: So Many Loans!
« on: March 21, 2014, 03:10:08 AM »
Isn't one of the directors at Lending Club also on the board at Prosper?

Investors - LC / Re: Non-Descriptive Job Titles
« on: March 21, 2014, 02:58:54 AM »

That's actually a legitimate job title. I got a buddy who does mAAAngaking.

Investors - LC / Re: Lending Club to stop screen scraping?
« on: March 21, 2014, 02:56:09 AM »
This alone would drop LC's computing footprint from a dozen racks in a data center to a laptop in the janitor's closet.

That would have to be a pretty beefy laptop.

Investors - LC / Re: Charge-Offs Start Soon
« on: March 21, 2014, 02:54:01 AM »
Thanks Bohb,  for the heads-up re the 20th.

I was spot-on this month, exactly on the 20th. Last month it was the 29th and in January it was ~24th. But historically they start on the 20th.

About 85% of my charge-offs were in default or bankrupt. The rest were past-due.

Investors - LC / Re: New Loan Status?
« on: March 21, 2014, 02:46:16 AM »
Bohb, what's a guy like you doing on the primary platform?

You must have some new super duper strategy you're trying out?  Or you have way too much cash lying around, which forced you to start scraping bottom?  Or maybe your account rep talked you into buying some to "help out" with the surge in new loan apps this week?

To answer your questions in order, yes, yes, and no (though I would have been amused if he reached out to me).

You know those two perfect-credit 20% PRIME notes I picked up? One of them sold on the market at +7%. Nice return considering that I've only held it for few weeks. My cash balance has been a bit high as of late, so I decided it might be time to test out Interest Radar's autobuy feature with a filter that's even more strict than what I have on Prime. So far I've had a dozen hits and a few even got funded, but it's nowhere near enough volume to make an investment portfolio of "reasonable" size. I figure, if I'm holding onto stellar-quality 20%-ish notes that often flip at +7%, I'm not doing too bad.

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