LC to Michigan

[p2pguy]

Any of you guys know when LC is getting in to Michigan? I have been waiting for this in a while. Ofcourse i have Prosper account, but wanted to try LC..If you guys have any idea, pls share..

[core]

Good news.  Michigan residents have been allowed on LC for years.  Sign up for LC, create your FolioFN account, and off you go.  You will have access to tens of thousands of notes right away.

As for having access to newly issued notes (why would you want those is beyond me, and there are plenty of those too on Folio), I wouldn't expect LC to be jumping through any state-specific hoops from this point on at all.  The IPO and blue sky exemption will make all of this irrelevant in the very near future so why would they bother?  It would be lawyer $$ down the drain.

It is unfortunate that you say you've been waiting for a while, when you could have signed up at any point.    Perhaps they need to change the site so this is more clear to new users.

[p2pguy]

Thanx for ur reply core,
However i am not interested in investing through secondary market. I am aware that LC is allowed through secondary market for a while, but unfortunately am not looking for that option. Anyway, guess i need to wait for ever....

[core]

Can I ask why this doesn't interest you?  I ask that every chance I get.  I only remember getting one answer:  The guy fessed up said it was because he never bothered to look into it.  I believe that same individual is now more actively using the secondary market.  It has many advantages over the slow/dicey origination process.

[New Jersey Guy]

I'm curious also.
If it wasn't for Folio, I wouldn't be here.

[cnmor54]

Maybe if Core and NJG would give us some more hints on using the secondary market .....

I am considering opening up a separate LC account to play around with folio ... but it's very overwhelming. However, I will have lots of free time soon so I hope to get started. I did sell a late note last month on folio that hasn't recovered yet.

Any hints from you two would actually be appreciated.  I do realize that anything Core says will have to be decoded first but I'm game.

[New Jersey Guy]

"Maybe if Core and NJG would give us some more hints on using the secondary market ....."

I'm not sure where Core lives, but living in NJ has forced me to use Folio only.  So either I learn how to use it, or not play at all.

Tip:  Regardless of whether you are purchasing Buy/Hold notes or playing the Buy/Sell game, you need to sign up with Interest Radar.  This is the only way you can filter notes from Folio to find exactly what you are looking for.  Without it, your Folio lessons are over. 

[core]

It's your lucky day, cnmor54, I have nothing to say that requires a decoder ring today!

All I can say is it requires patience.  And you're definitely going to want some filters like Interest Radar offers, or any other site (if any others are even out there).  Half, if not more, of the money's made in the buy.  If someone wants out they're going to get out, even if they have to post at a hefty discount to do so.  If you've just spent all your available cash the day before on B notes, you're not going to be able to take advantage of that.

For example, this morning I posted 130+ notes at 20%+ discounts that were current, and many of them had nothing wrong with them at ALL (perfect payment histories).  Some had 1 grace period payment many months ago, big deal.  All had decent FICOs.  They just weren't selling like they usually do, I don't know if it's this shutdown stuff, the VIX, or what.  But I'm not a buy-and-holdie so I'm getting rid of them at a loss.  Those notes are going to make somebody very happy.  That person could be you.

Go in there, search for 'never late', sort by discount, make sure the payment's not settling today or tomorrow, and start buying.   

[rawraw]

I've noticed reduced activity on FolioFn during my sales.

[cnmor54]

Thanks guys!

Checking out Interest Radar now.

One of my biggest gripes with LC is how long it takes for them to transfer money into my account. But my $s aren't making that much money in my checking account so I am trying to set the right amount for weekly transfers.

[New Jersey Guy]

"Half, if not more, of the money's made in the buy. "

Tip #2:  Core is correct.  When making profits from Folio, you don't make your money when you sell the note.  You make your money when you buy your note.  Buy the note right, you open yourself up for a larger gain.  If the note goes south on you, your loss is limited to what you paid.

[core]

One of my biggest gripes with LC is how long it takes for them to transfer money into my account.

How long are they taking lately?  I would expect ~3-4 days; any less than that and they're just doing you a favor.  Some of my banks do that but not many.  Are we talking like more than a week? 

I think we scared p2pguy away.  He never did come back and say what he didn't like about purchasing notes the secondary way, even though he was here yesterday.   Ask the question and you always get crickets.  Maybe you should have posted the link to your guest blog post, NJG.  You can lead a sheep to water, but you can't help him through the fence.  Or however that saying goes.

[viking]

For example, this morning I posted 130+ notes at 20%+ discounts that were current, and many of them had nothing wrong with them at ALL (perfect payment histories).  Some had 1 grace period payment many months ago, big deal.  All had decent FICOs.  They just weren't selling like they usually do, I don't know if it's this shutdown stuff, the VIX, or what.  But I'm not a buy-and-holdie so I'm getting rid of them at a loss.  Those notes are going to make somebody very happy.  That person could be you.

I have never tried FolioFn and I am, like so many else, trying to understand how to make [more?] money that way.
 
May I ask why you are selling the notes at 20%+ discount? Wouldn't they also sell well at 10%+ discount? Did you increase the discount because they were currently hard to sell at a lower discount?
Why are you getting rid of them at a loss? It seems impossible to make any money if you by them at a less than 20% discount and then turn around and sell them at a more than 20% discount?

[core]

May I ask why you are selling the notes at 20%+ discount? Wouldn't they also sell well at 10%+ discount? Did you increase the discount because they were currently hard to sell at a lower discount?

Precisely.  I already had these notes up for a lesser discount, and for whatever reason they are just not selling as well lately. 

Why are you getting rid of them at a loss? It seems impossible to make any money if you by them at a less than 20% discount and then turn around and sell them at a more than 20% discount?

Yes, buy high and sell low is a good way to go broke.  I bought some of these at 5-10% discount.  But the alternative is to sit on them and maybe make whatever the interest rate is on these.  I'm not in this game to make 10-15% annually.  If I still had $20k uninvested cash sitting around I probably would in fact just hold them because I know they're worth more than that.  But I'd like to take my loss, get my cash back and move on to more profitable trades.  If things don't improve in the coming weeks, then the solution is simple:  Treat it as the new normal and adjust my buying accordingly.

[viking]

Why are you getting rid of them at a loss? It seems impossible to make any money if you by them at a less than 20% discount and then turn around and sell them at a more than 20% discount?

Yes, buy high and sell low is a good way to go broke.  I bought some of these at 5-10% discount.  But the alternative is to sit on them and maybe make whatever the interest rate is on these.  I'm not in this game to make 10-15% annually.  If I still had $20k uninvested cash sitting around I probably would in fact just hold them because I know they're worth more than that.  But I'd like to take my loss, get my cash back and move on to more profitable trades.  If things don't improve in the coming weeks, then the solution is simple:  Treat it as the new normal and adjust my buying accordingly.

IF this would be the new norm, in order to continue to make money while selling at a 20%+ discount,you would need to find notes at a 30%+ discount.
Is that feasible? I assume that you are mainly interested in quality notes that you can turn around and sell quickly?
(or maybe you are buying heavily discounted notes in grace and hoping that they will turn around - that would seem like a bit of a gamble...?)

p.s. Sorry if this thread is getting off topic.