Recent Posts

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1
Investors - LC / Re: Worst Month Yet
« Last post by SeanMCA on January 17, 2018, 10:52:06 PM »
Down to my last few notes.  When I get those gone, I won't be back.

Good luck on whatever journey you go on next.
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You know it's rounded on the display, right? You have to hover your mouse to see the actual value.
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I've never really paid much attention (me being lackadaisical) at these fees.  The daily rounding is ludicrous, when looked at it on a whole, and on average, winds up being about 1.7% for me.  For example, the other day, I had $62.19 in payments, and $1.64 in Investor Fees...about 2.6%  I've only had one day when the total came in under 1% this month (.98%)  Its been from 1.1% to 2.6%

Does anyone else find this disturbing?  Or should I just chalk it up as the cost of doing business?
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Introductions / Regulation & Compliance Best Practices?
« Last post by Paul Monticello on January 17, 2018, 09:31:29 AM »
Can anyone share any best practices their organizations are using to mitigate compliance and regulatory risks?  Do most breaches results from web or call center communications? 
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Borrowers - LC / Video Production Start up Loan
« Last post by Drew.Baum on January 16, 2018, 09:56:41 PM »
Hello,
Iím Drew Baum and Iím seeking a loan for my business. I am requesting for $20,000 with 25% interest for 5 months.

Iím an 18 year old business entrepreneur. My business is Baum Media and Photography. We are a video production company that films and produces corporate videos for local businesses along with photographing many local events. Since launching in March of 2017 Iíve done $54,000 in revenue, of which $29,000 came in Q4 alone. Weíre on track to double our event bookings and paid corporate videos in the first half of 2018. $6,000 of this loan will be used to begin a marketing campaign to the greater Indianapolis metro area. The other $14,000 will be used to purchase much needed film equipment and software to keep up with my competitors. These 2 things are necessities to continue growth moving into 2018.

I look to keep this loan process as transparent as possible. This loan will be secured with a legally binding contract and collateral which includes my most expensive production camera (Red Epic-W 8K S35 [$29,000 new]). This is for your peace of mind so you know your investment is secure. I would like to thank you in advance for any help you might be able to offer.

Sincerely,
Drew Baum

(With me only being 18 and my lack of credit, no bank or major lending institution is willing to lend me the money I need to grow. One bank did accept me, but with an outrageous interest rate of 36%. 25% is my target. )
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I read somewhere they recently were banned in Australia for doing similar stuff (can't recall if this was in LC reply or somewhere else)

Yeah, I saw the same thing.
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Investors - LC / Re: Worst Month Yet
« Last post by Rob L on January 16, 2018, 10:13:20 AM »
Down to my last few notes.  When I get those gone, I won't be back.

Lucky you!  :)
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Foliofn - LC / Re: Folio notes bought but never got -- ie buy orders cancelled by LC
« Last post by Rob L on January 16, 2018, 10:10:29 AM »
Even doing no scraping,  I lose most of the notes I bid on.  Somebody gets to 'em before I do.  Perhaps I simply have many competitors and its all fair.  I don't know.  However, if I delay even a few seconds, I believe my results will be much worse.  Not impossible, but I think still impractical.

I suspected that LC might offer institutional access earlier than we get to see notes on the market. Today it occurred to me that there's an easy way to test this. I put up a note for sale, a great seasoned note with a 5% discount that any reasonable algorithm would snatch up, and I timed it to see how long it would take to sell.

A little over 3 1/2 minutes later it appeared in the API, and was snatched up-- by my own process on another account. I now think that there are just several of us with automated processes doing purchasing, and sometimes someone else gets to the note first. But as you've said, with the lack of liquidity in this market, is it worth it to try and further optimize the process?

This is an interesting thread (from the bleachers). Just listening to the discussion there doesn't seem to be much mystery about why the best notes go so quickly; there are not very many of them and all the buyers more or less are attempting to buy the same "sure thing" notes. There's probably wide agreement among buyers regarding the definition of "sure thing" (it's not subtle; no secret sauce). Given the poor performance of recent vintages only a "sure thing" will do. Probably doesn't take a very large number of automated buying programs to produce the results observed. Clearly in this situation speed is king.
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Foliofn - LC / Re: Folio notes bought but never got -- ie buy orders cancelled by LC
« Last post by Fred93 on January 16, 2018, 07:13:43 AM »
I suspected that LC might offer institutional access earlier than we get to see notes on the market.

Ah. Conspiracy theories.  Fun, but doesn't seem likely to me.  The volume on the secondary market is too low.  No reasonable sized "institution" would be able to use this tiny market.  Small hedge funds need to be >$100M in size to be reasonably profitable.  By the time you pay the lawyers, securities custodians, a software guy, a receptionist, the customer guy who scares up investors, office rent, share fees with finders, etc...  I believe the secondary market is dominated by retail investors.  The volume just isn't here.  Took me a year to get $100k invested in the secondary market.

Of course part of any good conspiracy theory would be that the volume of this hidden trading is ... hidden from us.  I just don't buy it.  (sorry for the pun)

Quote
Today it occurred to me that there's an easy way to test this. I put up a note for sale, a great seasoned note with a 5% discount that any reasonable algorithm would snatch up, and I timed it to see how long it would take to sell.

A little over 3 1/2 minutes later it appeared in the API, and was snatched up-- by my own process on another account.

Cool experiment.

Quote
I now think that there are just several of us with automated processes doing purchasing, and sometimes someone else gets to the note first. But as you've said, with the lack of liquidity in this market, is it worth it to try and further optimize the process?

My working presumption is that there are simply quite a few of us, in a fair competition.  I'm not sure of that tho.  I figure if its a fair competition, then I can win. 

In the primary market, I've been running my own software since January 2015, and in the first two years it almost always won.  In other words,  I got the loans I bid on a large fraction of the time.  I think this means I implemented well and figured out the tricks before other people did.  During 2017, my success rate decreased substantially.  There are now some days where I don't win any.  I am guessing this means other folks have caught up.  Luckily the volume in the primary market is large enough that I can still operate.  I only mention this to say I had a good experience automating the primary market, so figured the same was possible in the secondary market.

The investment of figuring out the secondary market note evaluation process, writing the software, is behind me, ie sunk cost.  Mostly I just let it run.  However, from time to time I do study where I'm failing and try to understand.  For example, the recent look into why so may successful transactions are cancelled.  I think I understand that pretty well now.  In the end there was no useful revelation there. 

It is a bit of a puzzle still why so many of my secondary market buy orders fail with NOTE_NOT_AVAILABLE status.  Could it be that there are enough other automated players, who have their software working well enough that they just beat me to the notes I want a good fraction of the time?  Are there tricks that they've figured out that I haven't?  Is the market broken in some way that just makes it look like somebody gets there first?  I don't know the answers.  The TOTAL lack of transparency in the secondary market makes it quite challenging to answer such questions.  One has to learn by experiment, as you have.

The protocol for the primary and secondary market, and the internal timing of the implementations, are so different that success in one doesn't tell you how to proceed in the other.  You've already discovered a lot of the minutia re how the secondary market works, the timing oddities etc. 

No conclusion.
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Foliofn - LC / Re: Folio notes bought but never got -- ie buy orders cancelled by LC
« Last post by Dave101 on January 15, 2018, 11:52:10 PM »
Even doing no scraping,  I lose most of the notes I bid on.  Somebody gets to 'em before I do.  Perhaps I simply have many competitors and its all fair.  I don't know.  However, if I delay even a few seconds, I believe my results will be much worse.  Not impossible, but I think still impractical.

I suspected that LC might offer institutional access earlier than we get to see notes on the market. Today it occurred to me that there's an easy way to test this. I put up a note for sale, a great seasoned note with a 5% discount that any reasonable algorithm would snatch up, and I timed it to see how long it would take to sell.

A little over 3 1/2 minutes later it appeared in the API, and was snatched up-- by my own process on another account. I now think that there are just several of us with automated processes doing purchasing, and sometimes someone else gets to the note first. But as you've said, with the lack of liquidity in this market, is it worth it to try and further optimize the process?
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