Author Topic: Lendinc CLub vs. BIC comparison  (Read 16613 times)

SeanG

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Lendinc CLub vs. BIC comparison
« on: November 12, 2014, 08:56:06 AM »
I've was researching non traditional investing strategies like P2P and REITs and rental properties when I came across Bakersfield Investment Club. The fund manager claims to be achieving 21 - 27% returns on the LC platform.

http://www.bakersfieldinvestmentclub.com/blog/current-strategy-investment-club

Another blog post asserts that investing in BIC is better than investing directly through LC.

http://www.bakersfieldinvestmentclub.com/blog/comparison-of-bakersfield-investment-club-vs.-lending-club-direct

Not sure what to make of these claims.

S

brycemason

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Re: Lendinc CLub vs. BIC comparison
« Reply #1 on: November 12, 2014, 09:16:25 AM »
They're all geniuses until the next leg down in the world's largest ever housing bubble implosion.

PennySaved

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Re: Lendinc CLub vs. BIC comparison
« Reply #2 on: November 12, 2014, 04:52:45 PM »
http://www.bakersfieldinvestmentclub.com/conversion-page

"Last Year We Paid All Our Members 33%

We offer a minimum return of 15%, a guarantee of principal, 100% liquidity, no fees and no minimum investment. We can do rollovers from any type of retirement account with no taxes. 100k at 30% will give you about 30k per year of income."

Sounds fantastic!.....or what?......   Here I am plodding away with only 9% return when I could be getting 15% and not losing principal :o

Interesting on their page comparing themselves with Lending Club, they claim they will swap out a defaulted note with a new note.  http://www.bakersfieldinvestmentclub.com/blog/comparison-of-bakersfield-investment-club-vs.-lending-club-direct

"What do you mean by helping new members with losses?

Although it hasn't happened yet, we don't want any of our members to have a bad experience, especially when they're just getting started. So if you have a late payment or a default soon after opening your account, we'll just swap out those notes with some new ones up to $50."

They are so new at this that a late or default "hasn't happened yet".

Thatguybil

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Re: Lendinc CLub vs. BIC comparison
« Reply #3 on: November 12, 2014, 05:49:37 PM »
Too good to be true.

bobeubanks

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Re: Lendinc CLub vs. BIC comparison
« Reply #4 on: November 12, 2014, 06:19:03 PM »
"We offer a minimum return of 15%, a guarantee of principal, 100% liquidity, no fees and no minimum investment. We can do rollovers from any type of retirement account with no taxes. 100k at 30% will give you about 30k per year of income."

Uh, sure. Ponzi scheme or other scam.
« Last Edit: November 12, 2014, 06:21:37 PM by bobeubanks »

Jon

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Re: Lendinc CLub vs. BIC comparison
« Reply #5 on: November 12, 2014, 07:21:02 PM »
Quote
Why is Bakersfield Investment Club so much better?

The club pays for itself many times over with the compound interest and benefits you receive. Club members are more than 3X as profitable as people investing on their own. Plus we help you pay off all your debt and allow you to buying rentals with only $1,000 for ownership of about 5% of the cash flow.

"we help you pay off all your debt and allow you to buying rentals with only $1,000"

Grammar errors in e-mail spam is one of the leading indications that the message has nefarious intent.

-Jon

core

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Re: Lendinc CLub vs. BIC comparison
« Reply #6 on: November 12, 2014, 07:49:04 PM »
Grammar errors in e-mail spam is one of the leading indications that the message has nefarious intent.

No, grammar errors indicate that the ad copy was written by a commie/pinko/muslim/etc from India/China/Russia/Nigeria/etc and that's a good indication of nefarious intent.  Or the person is a native English speaker and was simply in a hurry or impaired.  I vote for the latter in this case. 

Right in the first linked post they say they don't even have 2 years of tax statements so I think we can ignore any claims about returns.  A monkey can make 21% for a short while if he gets ahold of the right bananas at the right time.

lascott

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Re: Lendinc CLub vs. BIC comparison
« Reply #7 on: November 12, 2014, 08:07:41 PM »
This business seems like a bad sign.

http://www.bakersfieldinvestmentclub.com/blog/referral-income-and-club-manager-pay

Quote
At the beginning of each year we estimate our yearly income and expenses based on the previous year's financial performance, and make adjustments based on what we expect for the upcoming year. This is how we come up with the estimated profit margin. Since it's easier to give people money, then to take it away, we purposely estimate our profit margin on the low end of what we expect. For 2014 we estimate our profit margin to be 15-24%. It may actually be higher or lower depending on how the BIC Real Estate Development Corporation does during the year. The major factors that influence the profit margin are utilization of funds, size of inventory (number of houses), the actual allocation of funds, and employee expenses (maintenance and property management, not officers).
 
Referrers and Club Managers are paid the same way. BIC is a traditional brick and mortar business with actual locations defined as investment clubs by the SEC. We are not a network marketing company or a multi-level marketing company; we just pay people exceptionally well for referrals. Every year we pay one-third of the company's profit to Referrers and Club Managers.
Tools I use: (main) BlueVestment: https://www.bluevestment.com/app/pricing + https://www.interestradar.com/ , (others) Lending Robot referral link: https://www.lendingrobot.com/ref/scott473/  & Peercube referral code: DFVA9Y

rawraw

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Re: Lendinc CLub vs. BIC comparison
« Reply #8 on: November 12, 2014, 08:33:42 PM »
This is the kind of stuff thats going to blow up and result in tons of unnecessary regulation to protect retail investors from themselves

Fred

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Re: Lendinc CLub vs. BIC comparison
« Reply #9 on: November 12, 2014, 09:09:04 PM »
This is a video of Daniel Nase (CEO of BIC) -- http://www.youtube.com/watch?v=ppDT1alRf0M

A 35-year-old guy with a 19-year-old son.  Financially retired.
« Last Edit: November 12, 2014, 09:24:01 PM by Fred »

core

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Re: Lendinc CLub vs. BIC comparison
« Reply #10 on: November 12, 2014, 09:30:21 PM »
This is a video of Daniel Nase (CEO of BIC) -- http://www.youtube.com/watch?v=ppDT1alRf0M

In that video, notice the big ol' Dave Ramsey Financial Peace thing over his left shoulder.  Irony there.  Strange how it fills the entire glass precisely.  The Financial Peace DVD set is only like 6-7 DVDs max if I recall.  I have no clue what's in that huge box.  And I know Ramsey would have nothing to do with this character, so it cannot be paid placement.

This guy looks like he belongs on an agricultural registered offenders list.  Hate to say it, but he looks more like he belongs in my state. 

He obviously did this whole video himself, including the editing, because the same grammatical and spelling errors are there.  Text title says "principal" when he meant "principle".  What a sorry excuse for a CEO.  Sorry excuse for an investor.  Sorry excuse for a person.

Somebody needs to take this guy offline.  Maybe the regulators would be interested in reading his claims.  Tomorrow I will send off some emails.

Thatguybil

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Re: Lendinc CLub vs. BIC comparison
« Reply #11 on: November 12, 2014, 09:51:53 PM »
"Financially there's no difference. However, a Club Manager is someone identified as a trustworthy individual who's gone through all the hoops of getting a business license, a fictitious business name, a business checking account, business cards, regular meetings, etc. Club Managers typically have more than $100,000 invested, a stable income, perceived good character, good credit, and passed a criminal background check (no felonious behavior, theft or dishonesty)."

lascott

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Re: Lendinc CLub vs. BIC comparison
« Reply #12 on: November 12, 2014, 10:58:22 PM »
Well I give him/them credit for putting the phone numbers including a cell out there.  The claims just seems so high (if it sounds too good).  Sound like it comprised of more than P2P lending tho.
http://www.bakersfieldinvestmentclub.com/blog/current-strategy-investment-club
Quote
As agents of the corporation, me and my wife use notes as an interim place to park our money, cover bank reserve requirements, provide funds to close...
Normally, we tell all of our members the current strategy verbally, but we don't want to run into any issues with people that either didn't hear everything or weren't paying attention, so our attorney is writing up a letter to approve what we are doing.
Egads.





Re: fictitious business name
http://www.sba.gov/content/register-your-fictitious-or-doing-business-dba-name
Quote
What is a “Doing Business As” Name?
A fictitious name (or assumed name, trade name or DBA name) is a business name that is different from your personal name, the names of your partners or the officially registered name of your LLC or corporation.
It’s important to note that when you form a business, the legal name of the business defaults to the name of the person or entity that owns the business, unless you choose to rename it and register it as a DBA name.
« Last Edit: November 12, 2014, 11:24:21 PM by lascott »
Tools I use: (main) BlueVestment: https://www.bluevestment.com/app/pricing + https://www.interestradar.com/ , (others) Lending Robot referral link: https://www.lendingrobot.com/ref/scott473/  & Peercube referral code: DFVA9Y

SeanG

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Re: Lendinc CLub vs. BIC comparison
« Reply #13 on: November 13, 2014, 10:45:54 AM »
What I was most interested in hearing about is how other LC investors feel about BIC's claim to be making 21-26% off of lending club. Is anyone on here making anywhere close to that? I don't even see how that is possible. From what I gather most people on this site seem to be in the 10 - 15% return range.

lascott

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Re: Lendinc CLub vs. BIC comparison
« Reply #14 on: November 13, 2014, 12:07:44 PM »
What I was most interested in hearing about is how other LC investors feel about BIC's claim to be making 21-26% off of lending club. Is anyone on here making anywhere close to that? I don't even see how that is possible. From what I gather most people on this site seem to be in the 10 - 15% return range.
My screen capture from one of the presentation shows the math assumptions.

Rates that are available:
Tools I use: (main) BlueVestment: https://www.bluevestment.com/app/pricing + https://www.interestradar.com/ , (others) Lending Robot referral link: https://www.lendingrobot.com/ref/scott473/  & Peercube referral code: DFVA9Y