Even if it worked consistently, you would have to sell very large quantities of notes just to make it worth your while. Otherwise, it goes back to the idea of being better off getting a part-time job at McDonalds.
Didn't I read at some point that somebody keeps all of their notes up for sale? If they sell, they sell. If they don't, that's OK, too. Core, was that you?
If your portfolio consisted of say 500 decent, current notes, what would be the harm of keeping them listed at a 4% mark-up if your original intent was Buy/Hold? Hell, mark them up 5% for that matter.
I agree you wouldn't make a ton of money, but it's not about how much you make. It's about raising your overall ROI and IRR.
I truly believe some investors purchase off the LC platform with the intent of resale at a markup and work that system. However, a smart investor would also shop Folio for good, current notes. With the ability to purchase notes at a possible discount, that would help offset the 1% Folio fee. Slightly less cash outlay, too.
This may not be the most profitable system available. And it's certainly not the cheapest. But it is certainly one of the most conservative.