Author Topic: LC to Michigan  (Read 7708 times)

New Jersey Guy

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Re: LC to Michigan
« Reply #15 on: October 10, 2013, 04:08:09 PM »
"But I'd like to take my loss, get my cash back and move on to more profitable trades."

Agreed!
I just house-cleaned the remainder of the notes I purchased from May thru August.  Not that they were bad, but they quit perfoming and were getting moldy.  If I can't sell a note within 60 days, then it's a note I don't want to hold anymore.

Regardless the status, I sold every note for 88-cents.  I took losses on every one.  At this moment, I'm still in negative numbers for the month, but quickly climbing out of the hole.  I should be back in the black come Monday.

What is important is that my house is now "clean".  Meaning,  nearly every note I have up for sale is fresh and listed at a profit.

Return over deposits:   66.82%
IRR:   86.54%
As of April 30, 2014

core

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Re: LC to Michigan
« Reply #16 on: October 10, 2013, 04:47:52 PM »
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 don't know if it's feasible or not.  In the past, usually not.  But logically, if a given category of notes is not selling at -20%, then _somebody_ is going to sell them for cheaper if they want their notes to sell.  Maybe not lots of folks right away, but people are always wanting out and if they want their cash they will have to sell at below market rate.  When they do, I will be waiting for them.  Like a cat sitting next to a mouse hole waiting for something to happen.

And yes, I mainly only buy notes that I feel I can turn around and sell in the next month or so.  If that qualifies as "quickly".

I should be back in the black come Monday.

Just a reminder to you trader-types, Monday is a bank holiday.  A BS holiday, but I think it still counts LC-wise. 


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

I don't think I've ever been involved in a thread that _didn't_ get off topic.  Heheh.  I don't think it matters, since the original question was answered.

And even further off topic, how come you never see mouse holes in walls like in the cartoons?  I have lots of mice in this old house and not one of them has ever constructed a nice hole like that.  You gotta wonder where these cartoonists get such ideas.
« Last Edit: October 10, 2013, 04:52:03 PM by core »

thezinfan

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Re: LC to Michigan
« Reply #17 on: October 10, 2013, 04:59:06 PM »
At the risk of asking someone to spill their secrets, are you the guys buying up the $2/$3 31-120 notes? Sold you a few this month. I'm a loan holder myself. To each their own.

core

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Re: LC to Michigan
« Reply #18 on: October 10, 2013, 05:03:31 PM »
At the risk of asking someone to spill their secrets, are you the guys buying up the $2/$3 31-120 notes?

At 31+ days, nope, I won't.  Not at that price, unless it's -99% or some silly discount.  Under a buck I will think about it though.

New Jersey Guy

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Re: LC to Michigan
« Reply #19 on: October 10, 2013, 06:02:53 PM »
"At the risk of asking someone to spill their secrets, are you the guys buying up the $2/$3 31-120 notes?"

I will, but a lot of that has to do with the amount of time since last payment.  If a note is like 45 days since last payment, $3 isn't a bad gamble.  That's considering there aren't negatives like a BK or "Phone out of service" type notes in the log. 

I'll use Interest Radar to see what other sellers are doing.  If there like 5 other notes selling from $3.50 to $5.00, I'll pass.  No where to mark the note up and make any money.

Many times, I'll get lucky and find the next note selling for like $10.  That means I can buy the $3 note, price it at $7.50 and be the cheapest on Folio.
Return over deposits:   66.82%
IRR:   86.54%
As of April 30, 2014

p2pguy

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Re: LC to Michigan
« Reply #20 on: October 14, 2013, 02:22:59 PM »
wowww..... :)...Sorry i only got time to chck the response 2day....amazing info...
Thanx a lot guys...jus 2 ansr, like many newguys, i was trying to fig out how to make money & most importantly how not to loose money through sec market....