Author Topic: Lending Club Account Earning 26%+ Net Return (Screenshot)  (Read 19967 times)

Fred

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Re: Lending Club Account Earning 26%+ Net Return (Screenshot)
« Reply #30 on: December 11, 2014, 01:15:14 AM »
I can't but the company I invest with does, I am the messenger. Making 50%+ and paying out 33% to investors is very feasible

Show some proof, or it does not exist.

Ben

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Re: Lending Club Account Earning 26%+ Net Return (Screenshot)
« Reply #31 on: December 11, 2014, 04:13:10 PM »
Exactly! Convince us and you have a brand new customer base. :)

Randawl

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Re: Lending Club Account Earning 26%+ Net Return (Screenshot)
« Reply #32 on: December 11, 2014, 06:10:29 PM »
As other people have said, the total payments received of under 19k with about 167k outstanding says it all about the account age. . .

renoofturks

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Re: Lending Club Account Earning 26%+ Net Return (Screenshot)
« Reply #33 on: December 12, 2014, 08:01:22 AM »
I can't but the company I invest with does, I am the messenger. Making 50%+ and paying out 33% to investors is very feasible

This is the most moronic thing I have ever heard. Are there people on this planet stupid enough to believe that? What, in the history of the world, has ever had return rates that high for a sustained period? I bet drug and arms dealers don't see those kind of returns on invested capital. It isn't very feasible. It's impossible. If you have money "invested" with them you have been robbed but I think it is more likely you are trying to drum up money for your scam.

rawraw

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Re: Lending Club Account Earning 26%+ Net Return (Screenshot)
« Reply #34 on: December 12, 2014, 10:20:37 AM »
I can't but the company I invest with does, I am the messenger. Making 50%+ and paying out 33% to investors is very feasible

This is the most moronic thing I have ever heard. Are there people on this planet stupid enough to believe that? What, in the history of the world, has ever had return rates that high for a sustained period? I bet drug and arms dealers don't see those kind of returns on invested capital. It isn't very feasible. It's impossible. If you have money "invested" with them you have been robbed but I think it is more likely you are trying to drum up money for your scam.
If you were a leveraged entity, say a bank, it may be possible.  A bank with 100MM in assets, 10MM in capital.  90MM in LC loans.  Paying 1% interest on deposits of 90MM.  A spread 6% net of overhead, interest cost, etc would be a 54% return on equity if the money was distributed and not accumulated (increasing equity).  I'm sure there are other ways to achieve this leverage, but a bank is the one that comes to mind.  That doesn't mean it's risk free, but leverage makes high returns certainly possible.

bobeubanks

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Re: Lending Club Account Earning 26%+ Net Return (Screenshot)
« Reply #35 on: December 12, 2014, 11:09:02 AM »
If you were a leveraged entity, say a bank, it may be possible.

Yeah, like Bear Stearns.

renoofturks

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Re: Lending Club Account Earning 26%+ Net Return (Screenshot)
« Reply #36 on: December 12, 2014, 11:11:40 AM »
Yeah, like Bear Stearns.

That is my point. It is not sustainable.

rawraw

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Re: Lending Club Account Earning 26%+ Net Return (Screenshot)
« Reply #37 on: December 12, 2014, 12:08:11 PM »
If you were a leveraged entity, say a bank, it may be possible.

Yeah, like Bear Stearns.
There are plenty of banks that do this and haven't failed.  Honestly, you are intimately dependent on one.  I haven't looked at Webbank's exact ROE, but I'm sure it's much higher than you'd expect.  If you guys think those sort of returns are not sustainable, you are taking more risk than you realize.

Looked it up for you.  As of 9/30, Webbank's ROE is 38.04

renoofturks

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Re: Lending Club Account Earning 26%+ Net Return (Screenshot)
« Reply #38 on: December 12, 2014, 01:08:26 PM »
38.04 is not 50%+

And these banks are not out soliciting funds from individuals.

rawraw

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Re: Lending Club Account Earning 26%+ Net Return (Screenshot)
« Reply #39 on: December 12, 2014, 02:00:26 PM »
38.04 is not 50%+

And these banks are not out soliciting funds from individuals.
So then where is the line of demarcation?  All Webbank has to do is dividend 100% of earnings instead of 50% for a few quarters to end up at 50%.  My point is that while returns are useful as a metric for what isn't realistic, it is still only one metric.  Webbank is a very peculiar entity, as is the case with most of the Utah Industrial Chartered Banks.  I still think this guy is full of it, but it isn't impossible.

renoofturks

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Re: Lending Club Account Earning 26%+ Net Return (Screenshot)
« Reply #40 on: December 12, 2014, 02:11:55 PM »
It is very much impossible given any decent time line. No individual investor is going to get 33% returned to them for any length of time. It just isn't possible. We cannot compare what an individual is able to accomplish to what a highly leveraged FI can do. They are two very separate things.

evergreen

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Re: Lending Club Account Earning 26%+ Net Return (Screenshot)
« Reply #41 on: June 16, 2015, 11:22:32 PM »
Percentages have held steady over several years, so the adjustment is not valid. It probably has something to do with Lending Club trying to be very conservative in the eyes of regulators.

Screenshot of company account earning 26.81% Net Annualized Return on Lending Club. Over a year ago this account was making 23.70%.
Lending Club is great but our investors actually do better than this



Those are some great numbers Dario.

Unfortunately...
1. I notice that you turned off the "adjust... for past due notes." feature.  I suggest you turn that on.

2. I note that LC has paid you $18,885 in interest.  You have $166,991 invested at present.  If I divide, I get 11.3%   Comparing that to the displayed NAR, I conclude that you have had most of that money invested for a very short time.  If you had the money invested for say about a year, I would expect those two numbers to be about equal.

It is trivial to get a high NAR when most of your money has been invested for a short time, as yours has.  All you have to do is invest in the riskiest loans.  NAR doesn't say much about your performance until the portfolio has aged some. 

During the 1st month of a loan, it can't be late, because no payment is due yet.
During the 2nd month, it can be late, but it can't yet be 1 month late.
During the 3rd month, it can be 1 month late.
During the 4th month, it can be 2 months late.
During the 5th month, it can be 3 months late.
During the 6th month, it can become 4 months late, and can be charged off.

So all those risky loans you recently (less than 6 months ago) purchased can't be charged off yet.  Therefore your NAR simply reflects the interest rate on those loans, and not your investment performance.

I wish you well.

Thank you for the feedback

evergreen

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Re: Lending Club Account Earning 26%+ Net Return (Screenshot)
« Reply #42 on: June 16, 2015, 11:24:01 PM »
Primary notes, not possible. Highest gross return is about 26%. Can't compound that much.
Traded notes are at 28%, so it might be possible.

It is very much impossible given any decent time line. No individual investor is going to get 33% returned to them for any length of time. It just isn't possible. We cannot compare what an individual is able to accomplish to what a highly leveraged FI can do. They are two very separate things.

evergreen

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Re: Lending Club Account Earning 26%+ Net Return (Screenshot)
« Reply #43 on: June 16, 2015, 11:25:00 PM »
100K is no small amount. Just a recent deposit.

Very nice!  You guys must be making a pile of money since you don't even need to invest half of your cash in notes.  Is LC giving you a special interest rate on that idle cash?

By the way, I like the palm trees on your web site.  Whenever I see palm trees and a beach, I pretty much know I'm dealing with a reputable company right away.  But I would have preferred to be able to do some reading on the site without having to supply my email address and phone number.

evergreen

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Re: Lending Club Account Earning 26%+ Net Return (Screenshot)
« Reply #44 on: June 16, 2015, 11:26:40 PM »
I can't but the company I invest with does, I am the messenger. Making 50%+ and paying out 33% to investors is very feasible

Show some proof, or it does not exist.