New to LC - Need advice on deploying 250k

[Djnate]

Hello All!

I'm new to LC and need advice on deploying 250k. I've had my account active since Friday. It’s been challenging finding quality notes! I back tested a few filters on NRS and Interest Radar. I set Interest Radar to auto invest, but I seem to get more notes by manually executing right at 6am, 10am, 2pm, and 6pm. Do 3rd party sites using API not get data at the same time its posted to LC? Does anyone have any recommendations for API/Auto investing? I'd like to keep the notes at $200 increments to maintain marketability on Folio. Also, does anyone have a good strategy for buying notes on folio?

Thank you everyone in advance!

Nathan

[hoggy1]

Hey Nathan, welcome to the board. A few pointers:

A) Introduce yourself on the introductions section telling us a little about yourself. I waited until my 50th post to do that and regretted it.

B) There are lots of answers already on here for your initial set of questions. You can use search or some of the other fellows will point you to them after you introduce yourself. I don't have the time to search for you right now. Search LC topic and the 3rd party topics for those you are interested in, read the most recent page thread titles for interest and read thoroughly threads with more than 20 replies going back to April or May.

C) No one is going to give you a full strategy for purchasing anything anywhere. That is known as the secret sauce. Read every day and you'll get hints.

Steve

[PennySaved]

Hello All!

I'm new to LC and need advice on deploying 250k. I've had my account active since Friday. It’s been challenging finding quality notes! I back tested a few filters on NRS and Interest Radar. I set Interest Radar to auto invest, but I seem to get more notes by manually executing right at 6am, 10am, 2pm, and 6pm. Do 3rd party sites using API not get data at the same time its posted to LC? Does anyone have any recommendations for API/Auto investing? I'd like to keep the notes at $200 increments to maintain marketability on Folio. Also, does anyone have a good strategy for buying notes on folio?

Thank you everyone in advance!

Nathan

If you are new to investing at Lending Club, I would suggest reading info on these pages at least.

http://www.lendacademy.com/p2p-lending-investor-resources/
http://www.lendacademy.com/best-of-the-social-lending-network/

You may want to invest less than $200 per note when first getting started.  It will take a while to get $250K invested and you want to keep your investments diversified among as many notes as possible.  You will get defaults and and unless your early money is spread out across a lot of notes, you may be shocked at the losses you incur and pull out too early.  Also you may want to get a little of experience first, before investing larger amounts per note.

I used to invest manually, but now I use Interest Radar.  But I have less than $20K invested.  I only invest $25 per note.

I have not sold much on the secondary market, but I thought others had said that the larger notes are harder to sell.

[lascott]

Hello All!
I'm new to LC and need advice on deploying 250k. I've had my account active since Friday. It’s been challenging finding quality notes! I back tested a few filters on NRS and Interest Radar. I set Interest Radar to auto invest, but I seem to get more notes by manually executing right at 6am, 10am, 2pm, and 6pm. Do 3rd party sites using API not get data at the same time its posted to LC? Does anyone have any recommendations for API/Auto investing? I'd like to keep the notes at $200 increments to maintain marketability on Folio. Also, does anyone have a good strategy for buying notes on folio?
Thank you everyone in advance!
Nathan

If I was doing what you are with 250K I would consider using Lend Academy Investment.

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The Lend Academy P2P Fund has begun deploying capital to Upstart, our fourth platform behind Lending Club, Prosper and Funding Circle. Upstart is an online lending platform that was founded by a team of ex-Googlers that uses a propriety underwriting system based on school, GPA, SAT score, area of study, and other factors to identify high quality borrowers early in their professional careers who are otherwise ignored by traditional credit underwriting systems due to a lack of credit history. You can view their company demo here: LendIt 2014 SF Demo: Upstart.

[Fred]

I'd like to keep the notes at $200 increments to maintain marketability on Folio.

About 75% of all notes on FOLIOfn nowadays have "Original Note Amount" of $25.
About 95% of all notes on FOLIOfn nowadays have "Original Note Amount" of {$25, $50, $75, $100}.

If you are thinking of selling notes on FOLIOfn, you should consider this liquidity issue.

[trevor]

You're going to need to be very patient. Don't sacrifice loan quality just to get more notes. It will take a few months at least, possibly closer to 6.  But once you get the money invested it's smooth sailing from there 

[brycemason]

Do 3rd party sites using API not get data at the same time its posted to LC?

All API users are at a disadvantage to manual buying. The API gets updated around 40 seconds after the hour. The website will have the new loans on the hour. You get a 40 second free-for-all to deploy using your filters on the website. Happy hunting.

[rawraw]

The bigger the loan size, the harder your first mistakes will hit you.  May want to factor that in when you first start

[standby]

Yeah, I've noticed for the last couple weeks I have had a hard time finding notes to invest in.  A lot of people seeking loans with high debt..

[jpildis]

Here's my suggestion...

There are 12,749 notes on folio that meet the following criteria:

- YTM >20%
- FICO >660
- Never Late=true
- Status = current or issued

These notes total $856k of principal and $9.3k of accrued interest.  They are for sale @ $902k.  Because I'm a nice guy, I sorted the results by YTM decending to get to your $250k working.  You would invest in the top yielding 3726 loans, win a minimum 22.7% YTM.  You'll pay an average mark-up of 2.8% so your first month and a half's interest will get chewed up but, after that, you'll have a well diversified portfolio.

If you want to only buy notes with a positive FICO trend, there's still $390k worth of listings with YTM >20%.  You'll pay a higher premium but, after the first few months, you'll be back in the black.

[Fred]

You'll pay an average mark-up of 2.8% so your first month and a half's interest will get chewed up but, after that, you'll have a well diversified portfolio.

2.8% is perhaps not too bad, considering the alternative slow-lane of primary LC market which may take months to fully deploy the 250k.

If you can wait for a few days, you can add "markup < 0" criteria; as of this writing there are $100k notes for sale.  You could deploy $250k in a week, with much stronger portfolio.

Anyway, it seems the secondary market is a better place for you.  Good luck.

[Rob L]

A word of caution. If your account is IRA you are prohibited from trading on the folio market.
Didn't see that mentioned (may have missed it).
The prohibition notices on the LC web site are harder to find than they used to be. Don't know why.

[standby]

Thanks for the numbers jp, I'll have to look into Folio sometime.

[core]

If your account is IRA you are prohibited from trading on the folio market.
Didn't see that mentioned (may have missed it).

Rob, are you serious?  Where did you hear this?  Did Peter make a timely news flash or was it brought up by another member after the fact?  This news is shocking.

[Rob L]

Rob, are you serious?  Where did you hear this?  Did Peter make a timely news flash or was it brought up by another member after the fact?  This news is shocking.

Rick: How can you close me up? On what grounds?
Captain Renault: I'm shocked, shocked to find that gambling is going on in here!

You can find more about this in the thread http://www.lendacademy.com/forum/index.php?topic=1674.0
Seems to be interesting to a fair number of forum participants (more views and replies than any other LA thread to date).
It was started by a formerly prolific forum member about 11 months ago who happened to discover the newly posted ban message(s) himself.
If you haven't seen it, check it out .