Author Topic: Worst Month Yet  (Read 248330 times)

Rob L

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Re: Worst Month Yet
« Reply #615 on: December 07, 2019, 09:41:30 AM »
Finally all done!



dr.everett

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Re: Worst Month Yet
« Reply #616 on: December 07, 2019, 09:55:47 PM »
Savor the feeling of being done, but at the same time, mourn the loss. I always felt like there was a lot of lost potential that LC left on the table when they decided to make whatever changes were made. I've since moved on to Fundrise, and have never looked back. That was 2+ years ago.

The decision to leave was the right one for me and I regained so much time by doing so. They even recover their own losses. They had one go bad about a month ago and just announced that they were able to fully recover it on their own so the investors were made completely whole. When did we ever see that with LC?

Rob L

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Re: Worst Month Yet
« Reply #617 on: December 08, 2019, 10:23:59 AM »
Savor the feeling of being done, but at the same time, mourn the loss. I always felt like there was a lot of lost potential that LC left on the table when they decided to make whatever changes were made. I've since moved on to Fundrise, and have never looked back. That was 2+ years ago.

The decision to leave was the right one for me and I regained so much time by doing so. They even recover their own losses. They had one go bad about a month ago and just announced that they were able to fully recover it on their own so the investors were made completely whole. When did we ever see that with LC?

Yes, it is a bittersweet feeling. For me it was a great hobby and a quite profitable one until it wasn't.
I do miss the good old days; it was a lot of fun. Guess all good things come to an end as they say.
The shrinking individual investor share of the pie as provided in LC quarterly reports tells the tale.
Best of luck with Fundrise! Sounds like you have a winner.

lctz

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Re: Worst Month Yet
« Reply #618 on: December 09, 2019, 09:16:52 PM »
If a note has > $0.01 outstanding principal I can list it for $0.01 and it will be bought.
If a note has $0.01 outstanding principal I can list it but it will not be bought.
If a note has $0.00 outstanding principal I cannot even list it!
Why are there rules that prevent me from giving notes away for an asking price of $0.00 if I so choose?

If you list for $0, folio cannot collect fee from you (1% * 0 = 0).

lctz

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Re: Worst Month Yet
« Reply #619 on: December 09, 2019, 09:34:02 PM »
Savor the feeling of being done, but at the same time, mourn the loss. I always felt like there was a lot of lost potential that LC left on the table when they decided to make whatever changes were made. I've since moved on to Fundrise, and have never looked back. That was 2+ years ago.

The decision to leave was the right one for me and I regained so much time by doing so. They even recover their own losses. They had one go bad about a month ago and just announced that they were able to fully recover it on their own so the investors were made completely whole. When did we ever see that with LC?
what is the differences between fundrise and other REITs?  From their website I see equity investment into real estate and CMBS, CDO etc from their document.  It is totally different instrument from consumer debt and completely different risk.  I am not sure if the return is enough to compensate for the risk should it hit a trough.  There are plenty of publicly traded REITs have an annual dividend of more than 9%.

Rob L

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Re: Worst Month Yet
« Reply #620 on: January 23, 2020, 06:24:47 PM »
As of 1/21/2020 I was notified by LC my account has been closed.
I can no longer log in. My account was active a tad under 7 years.
Bitter sweet! All things come to an end.  :'(

dr.everett

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Re: Worst Month Yet
« Reply #621 on: January 24, 2020, 01:16:15 PM »
Felt the same way when mine closed.  :'(

One thing to be aware of that I've got going on right now. LC tells us that when our account is closed they will "periodically" send back any recoveries either via check or ACH to our primary bank account. I've got $25ish waiting right now to be sent- I know this because I've received several of the "We have notes matching your criteria" emails in the last few days.

Can't do anything about it since my account is closed. Can't initiate the ACH transfer myself.

Wondering when I'll get that $25 check or ACH. Or if I'll have to call them and yell at them to get it?

The joys of being a former LC member...

Rob L

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Re: Worst Month Yet
« Reply #622 on: January 24, 2020, 05:33:03 PM »
Felt the same way when mine closed.  :'(

One thing to be aware of that I've got going on right now. LC tells us that when our account is closed they will "periodically" send back any recoveries either via check or ACH to our primary bank account. I've got $25ish waiting right now to be sent- I know this because I've received several of the "We have notes matching your criteria" emails in the last few days.

Can't do anything about it since my account is closed. Can't initiate the ACH transfer myself.

Wondering when I'll get that $25 check or ACH. Or if I'll have to call them and yell at them to get it?

The joys of being a former LC member...

This for others following us out the LC door. I tried to be very careful when closing my Trad IRA LC account. I moved all my cash, as it was at the time I had no active notes, from LC to STRATA. Then I directed Fidelity to initiate a trustee-to-trustee transfer of all the cash in the STRATA account to them. It was only AFTER this transfer had been executed and all that money was in my Fidelity account that I submitted the LC form to close my account. I did not want a distribution of any significant money from LC/STRATA upon account closure. You no doubt did the same. IIRC STRATA charged me $150 to close the account.

My LC final account at time of closure a couple of days ago was about $15. If I read the account closure form I submitted correctly I ceeded any future recoveries to LC so I'm not expecting anything. It would be great if they sent me distributions from collections but I don't expect it.

.Ryan.

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Re: Worst Month Yet
« Reply #623 on: January 24, 2020, 05:45:02 PM »
This for others following us out the LC door. I tried to be very careful when closing my Trad IRA LC account. I moved all my cash, as it was at the time I had no active notes, from LC to STRATA. Then I directed Fidelity to initiate a trustee-to-trustee transfer of all the cash in the STRATA account to them. It was only AFTER this transfer had been executed and all that money was in my Fidelity account that I submitted the LC form to close my account. I did not want a distribution of any significant money from LC/STRATA upon account closure. You no doubt did the same. IIRC STRATA charged me $150 to close the account.

My LC final account at time of closure a couple of days ago was about $15. If I read the account closure form I submitted correctly I ceeded any future recoveries to LC so I'm not expecting anything. It would be great if they sent me distributions from collections but I don't expect it.

My IRA account is my last active LC account. You just answered so many questions of mine. THANK YOU!

I feel like I am going to be the last one out the door......

lascott

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Re: Worst Month Yet
« Reply #624 on: January 24, 2020, 11:52:58 PM »
STRATA contains a ROTH IRA for me that is comprised of
a) the remaining $5K of LC notes and
b) Wunder Capital "notes" [which have turned out excellent but they no longer offer retail anymore as they got bigger and obtains $ from big investors]. 
This means I'll keep it open for several years.

I have a regular (1099-OID) LC account still too. Not sure that was worth it as takes took too much of the profit.

If I had a do-over I'd probably never bought 5 year LC notes and just stuck with 3 year so the unwinding was quicker.

Was fun and entertaining overall tho.
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

Debt Free

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Re: Worst Month Yet
« Reply #625 on: January 25, 2020, 12:14:30 AM »
I am in the process of shutting down my SEP IRA this past week or so (~$240 cash in Strata, 69 charged off notes remain).

I spoke to Strata first and detailed my intentions of rolling (not direct transfer) the remaining cash and paying any fees with outside funds.  They stated quite certainly that there would be just a $50 final account termination fee.  I then spoke to Nate at LC.  He sent me the Account Closure Request (Strata form tweaked with LC logo and allowing the premature distribution WITH exception (something that is omitted on Strata's form quite specifically.))  The LC form gives a breakdown of Strata fees which appears to be different than the original form I received when I opened the account.  This form indicates account value < $10,000 fee of $50 and >= $10,000 fee of $150.  I originally thought the closure was going to run me $200+.  He also sent me a separate form for the transfer of the charged off notes to one of my taxable accounts.  I have a total of six accounts (2 IRAs and 4 taxable).  These will all be funneled down to one final account as a basket for all of the charged off notes.

If this plays out as described, total fees will run me $75.  $25 from a direct partial transfer of $15,000 last year and then this $50 for the final rollover.  Better than the $150 if I closed it all at once.  Probably could have avoided the $25 last year if I did that as a rollover as well as Strata told me there was no fee for checks.

I just got a followup email from LC indicating they received the paperwork and it is in process...
"...Your documents have been received! We're currently reviewing them and we'll be sure to get back to you with any updates as soon as possible. Typically, the account closure and Note transfer process can take 2-3 weeks to be fully completed..."

Hopefully this IRA will be wrapped up by the end of Jan or first of Feb and will post back with the final results.

Rob L

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Re: Worst Month Yet
« Reply #626 on: Today at 07:36:27 PM »
Folio is dead.
I finished liquidating my Lending Club investment "under the wire" by 8 months using Folio sales.
I'm thankful that I got it done in time (and it was only a matter of time). Turns out it was a good time to invest in stocks.
I'm not young (70), I don't feel old, but every day is a blessing.
Didn't want to potentially leave my heirs (my trustee) with 3 years of "stuck with it" and never invested in 5 year notes for the same reason.
There no doubt are others that are similarly inclined and will offer notes for sale at significant discounts just to be out.
IMO, bargains will be offered to those with the time horizon to accept them.