Author Topic: Rate of Return compared to LC's Average  (Read 4512 times)

aliengar0

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Rate of Return compared to LC's Average
« on: April 22, 2015, 04:23:03 PM »
How is everyone doing with their current rate of return compared to the average?

I've been using LendingRobot since I started late last year and did a fair amount of research to dial in my selections. I've done 15 loans that I picked myself and just a bit over 400 issued and current. I'm about to put another 10k with a drip of $200 every few days - I still only buy in $25 increments. I'm hesitant to not put more in or increase my purchase amount to $50. I'm just now over the 10k free amount with LR so i'll have a loss of 0.45% that I'll have to factor in.

My current return rate (the one post on LC's summary page) is 17.03% with a XIRR ROI of 13.97% - I didn't do the best job of adding money over time and instead did some lump transfers. For the LC return I use 30% loss for Grace Period and 100% for the rest.

I'm basically just waiting for the shoe to drop because it seems too good to be true. My weighted average age is 4.1 months so I understand that I'm still very new to all of this.

I have a friend that lives in a FolioFN only state and is showing a 2-3% return and consider him to be intelligent enough to make good choices although he doesn't use any automated tools. Perhaps I've just been very lucky so far.

lascott

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Re: Rate of Return compared to LC's Average
« Reply #1 on: April 22, 2015, 11:36:39 PM »
if you've done a fair amount of research then you are likely picking quality notes, sounds like low grade ones so there is more risk there. nothing wrong with C's imo.

paying lending robot is good thing if you like to use their service.  at your level of numbers youve mention is is not very much money and they have expenses as a business.  compare to eating lunch out even once.
« Last Edit: April 23, 2015, 01:12:05 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

RazzleDazzle

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Re: Rate of Return compared to LC's Average
« Reply #2 on: April 23, 2015, 11:54:11 AM »
While results are great so far, your portfolio is in its infancy. Average returns grade out to 8% overtime.
https://www.lendingclub.com/info/demand-and-credit-profile.action

As an industry (consumer debt atleast), it'll keep moving south.

rawraw

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Re: Rate of Return compared to LC's Average
« Reply #3 on: April 25, 2015, 09:52:54 AM »
Your returns will come down.  Think of it this way -- it takes 30 days to enter your loss category.  You've only given them 120 days to screw up.  One default will wipe out the interest of ~10 notes-ish.  But IMO you can limit the trend down by actively managing the portfolio based on FICO.  My portfolio performance has come down in the past few weeks as I shift into higher grade notes + haven't had time to actively manage the portfolio due to earnings season.  But my returns are still much higher than you'd expect for the loan mix I keep, although the negative trend in stated LC rates has hit me pretty hard.

RaymondG

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Re: Rate of Return compared to LC's Average
« Reply #4 on: April 28, 2015, 11:53:52 PM »
How is everyone doing with their current rate of return compared to the average?

My current return rate (the one post on LC's summary page) is 17.03% with a XIRR ROI of 13.97% - I didn't do the best job of adding money over time and instead did some lump transfers. For the LC return I use 30% loss for Grace Period and 100% for the rest.


Try your numbers on this link: https://www.peertopeerquant.com/percentile-calculator. I myself would like the Percentile vs Similar Age & Similar WAIR Accounts above 80% with actively managing notes through Folio.
« Last Edit: April 29, 2015, 12:11:05 AM by RaymondG »

aliengar0

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Re: Rate of Return compared to LC's Average
« Reply #5 on: April 29, 2015, 03:29:19 PM »
Just above 80 - currently I haven't sold anything via Folio. I'm not sure that the time spent managing that process is worth the benefit yet. Once LendingRobot is able to automatically sell notes based on criteria I can see myself using a feature like that.

Your Notes purchased on the Lending Club platform
Adjusted Net Annualized Return3 ?:   17.14%
Weighted Average Interest Rate:   20.13%
Weighted Average Age of Portfolio:   4.3 mos
Number of Notes:   466


Your Percentile:
vs All Accounts: 99
vs Similar Age Accounts: 98
vs Similar Age & Similar WAIR Accounts: 84

RaymondG

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Re: Rate of Return compared to LC's Average
« Reply #6 on: April 29, 2015, 09:51:10 PM »
4.3 months is really young for a LC account. You may see larger changes of ANAR from now to 10 months (Weighted Average Age). I checked my records. I added $8000 new money. At avg age of 5 months, the ANAR = WAIR = 19% (6 notes were sold in FolioFn though). Now, at avg age of 11.6 months, the ANAR is about 13.5% while WAIR=18.5% with a total amount $20,000.