Author Topic: Cashing Out  (Read 16112 times)

Triplell

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Cashing Out
« on: July 06, 2016, 10:48:55 AM »
So I haven't found many topics on cashing out, and I have been attempting to do so since April. Here is my very skewed,limited data:

Month% of remaining investment sold
April18.4415%
May12.092%
June29.8%

All percentages are based off the months starting amount. All notes sold at note + principal.

Lovinglifestyle

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Re: Cashing Out
« Reply #1 on: July 06, 2016, 11:05:10 AM »
I don't understand what "note + principal" means.  Help?

lascott

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Re: Cashing Out
« Reply #2 on: July 06, 2016, 11:55:25 AM »
So I haven't found many topics on cashing out, and I have been attempting to do so since April. Here is my very skewed,limited data:

Month% of remaining investment sold
April18.4415%
May12.092%
June29.8%

All percentages are based off the months starting amount. All notes sold at note + principal.
Would be simpler to understand if you put it in terms of % of investment remaining
April 100%
May 83.4% (or whatever it is)
June 64.9% (or whatever it is)
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

Rob L

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Re: Cashing Out
« Reply #3 on: July 06, 2016, 02:16:57 PM »
I seem to be moving at a much slower pace.
Transferred cash from LC to SDIRA for the first time today (my account is IRA).



Triplell

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Re: Cashing Out
« Reply #4 on: July 06, 2016, 09:39:35 PM »
I don't understand what "note + principal" means.  Help?

Oops. Should say Principal + interest.

So I haven't found many topics on cashing out, and I have been attempting to do so since April. Here is my very skewed,limited data:

Month% of remaining investment sold% of total investment remaining
April18.4415%81.6%
May12.092%71.8%
June29.8%50.4%

All percentages are based off the months starting amount. All notes sold at note + principal.
Would be simpler to understand if you put it in terms of % of investment remaining
April 100%
May 83.4% (or whatever it is)
June 64.9% (or whatever it is)

Added total percentage

sommers

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Re: Cashing Out
« Reply #5 on: July 07, 2016, 05:42:16 AM »
So I haven't found many topics on cashing out, and I have been attempting to do so since April. Here is my very skewed,limited data:

Month% of remaining investment sold
April18.4415%
May12.092%
June29.8%

All percentages are based off the months starting amount. All notes sold at note + principal.

I have taken $90K invested in 3 year notes (all A-B-C and a few D--on the auto invest program) down to $5K in 3 months.  I shut down the auto invest feature in April based on concerns about consumer credit (sub prime auto loans etc)--the oil bust (hurting employment in some key regions like TX) and the likely hood of a recession at some time in the not too distant future --along with the advertised Fed tightening (which doesn't look like it's happening any time soon!)
My plan was to just let my portfolio run off (no immediate need for the liquidity elsewhere)--and repatriate to my Schwab IRA (home for most of my stuff).  THEN the sh*t hit the fan with La-whoever's antics and the LC mess in general  THAT woke me up and I started learning more about what I had invested in (really)--silly me!
About 15K ran down to cash and I started putting my notes up on the folio site.  Just started at a 3% MARK UP on all current notes with $10 or more principal remaining---and each week or so would move my mark up down until I hit zero and have been in discount mode since.  I am now at a 6% discount on my remaining $4K of current/issued notes  (am offering my grace period notes at 35% off---seems to take about that to move any of those).  Anything late--I don't even try to sell (at this point)
Over all--without crunching it--I'd estimate that I have gotten out at very close to par on my entire portfolio----AND DO I EVER FEEL GOOD ABOUT THAT !!
This is all IRA--and in the Self Directed IRA services custodial account (the cash).  So, I feel safe there as they're FDIC insured.  As notes transact been just periodically xfering the cash out of LC to Self Direct $5K or so at a time. 
I investigated the robo selling programs but decided to just wing it manually with a pretty simple strategy of SLOWLY discounting my notes once convinced they weren't going to move at a particular markdown/discount %.  Probably left some money on the table--but will bet not much (if any)
FYI and for what it is worth !!

lascott

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Re: Cashing Out
« Reply #6 on: July 07, 2016, 09:34:42 AM »
I seem to be moving at a much slower pace.
Transferred cash from LC to SDIRA for the first time today (my account is IRA).



My similar chart in my taxable account starting 4/9/2016 showing my rate. I was withdrawing every day to get data points and watch XIRR so it turned out good for the chart.  I started taking money out to pay for fed taxes, upcoming vacations, pad emergency fund, etc when the $hit hit the fan. 

I'm not exiting LC note investing I'm just taking some money off the table as I now think I was over investing ... which I was confident in when the company went public and I thought there was total transparency <oops>

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

Rob L

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Re: Cashing Out
« Reply #7 on: July 07, 2016, 10:00:58 AM »
About 15K ran down to cash and I started putting my notes up on the folio site.  Just started at a 3% MARK UP on all current notes with $10 or more principal remaining---and each week or so would move my mark up down until I hit zero and have been in discount mode since.  I am now at a 6% discount on my remaining $4K of current/issued notes  (am offering my grace period notes at 35% off---seems to take about that to move any of those).  Anything late--I don't even try to sell (at this point)

Sounds like a good approach and certainly sounds like you did well "price wise" on the way out. A couple of questions if you don't mind providing the details. By how much did you increase the discount each time you lowered the price and re-listed? How did you handle the note listings that were automatically canceled when loans went into payment in processing status? Did your sales come in bunches, steady pace or what? TIA.

Rob L

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Re: Cashing Out
« Reply #8 on: July 07, 2016, 11:48:05 AM »
I'm not exiting LC note investing I'm just taking some money off the table as I now think I was over investing ... which I was confident in when the company went public and I thought there was total transparency <oops>

Yeah, me too. I'll probably take out about 75% or so and leave the rest as a hobby rather than as a serious investment.
Funny, but then I'll have more in Prosper than in LC. Never saw that one coming.

sommers

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Re: Cashing Out
« Reply #9 on: July 08, 2016, 05:42:17 AM »
About 15K ran down to cash and I started putting my notes up on the folio site.  Just started at a 3% MARK UP on all current notes with $10 or more principal remaining---and each week or so would move my mark up down until I hit zero and have been in discount mode since.  I am now at a 6% discount on my remaining $4K of current/issued notes  (am offering my grace period notes at 35% off---seems to take about that to move any of those).  Anything late--I don't even try to sell (at this point)

Sounds like a good approach and certainly sounds like you did well "price wise" on the way out. A couple of questions if you don't mind providing the details. By how much did you increase the discount each time you lowered the price and re-listed? How did you handle the note listings that were automatically canceled when loans went into payment in processing status? Did your sales come in bunches, steady pace or what? TIA.
I'd decrease by 1% and then just watch what happened.  I think there's a lot of program / robo programs doing sweeps--because I'd get most of my action within 24 hours and then it would start drying up.  After the "take rate" greatly diminished I'd just cancel that order and start over You can never get all your notes up on folio because many are always in payment processing.  Once I got to -4% I lowered my reductions to 1/2% to see what would happen. 
It's not scientific and I'm sure I've left some $ on the table---I could have gone even slower and let each discount hang out there longer and/or tracked the payment processing ones to recycle those at a higher discount rate (since many could have been missed when I was at a particular discount level)---
The "net adjusted annualized return" (on 2100 traded notes so far) shows 9.75% this morning and I am down to $4K total notes (all status').
I am relieved to be out of this.  I am a little gun shy these days as I've entered into some other investments that have gotten a little dicey--so when I get a whiff of something amiss--I hit the exit
However, I am not condemning the P2P space---and might even re enter it later---as at least I've learned a lot through this process

Rob L

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Re: Cashing Out
« Reply #10 on: July 08, 2016, 10:11:39 AM »
Yeah, very nice. Good to see some actual results on the topic posted.

As you inched down the asking price there was only a subset of notes that were competitively priced and the remainder were over priced. Let the competitively priced ones sell and then move down a click. Might have been able to catch some of the "in processing" notes by canceling and re-listing after a few days at the same mkup/discount. The notes that go away in-processing have already had their time listed at that price and the re-list includes new notes that were in-processing when notes were first listed at that price. Wouldn't have to keep up with which is which. Maybe not worth the trouble, I dunno, just a thought.

Same as you, I see the robo buying almost immediately, then steady buying over a number of days. Think there are a lot of manual buyers that read the note specifics before purchasing. Buying has been quite intelligent.

Larry321

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Re: Cashing Out
« Reply #11 on: July 08, 2016, 10:54:07 AM »
I'm not exiting LC note investing I'm just taking some money off the table as I now think I was over investing ... which I was confident in when the company went public and I thought there was total transparency <oops>

Yeah, me too. I'll probably take out about 75% or so and leave the rest as a hobby rather than as a serious investment.
Funny, but then I'll have more in Prosper than in LC. Never saw that one coming.

Just curious, and looking for ideas..... Where did you move the money to that you took out of LC?
What looks good for investing for you?


LC notes investor for 3 years

Bitcoin speculator

Rob L

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Re: Cashing Out
« Reply #12 on: July 08, 2016, 11:16:41 AM »
Haven't decided. Just moved some cash from LC to SDIRA. Need to review options there, move back to Fidelity, or whatever.
A little extra cash right now isn't such a bad thing. May even increase my Prosper account by a bit.

Half Right

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Re: Cashing Out
« Reply #13 on: July 08, 2016, 12:07:17 PM »
Everything i am switching to requires Accredited and/or Qualified investors

Rob L

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Re: Cashing Out
« Reply #14 on: July 08, 2016, 12:13:24 PM »
Everything i am switching to requires Accredited and/or Qualified investors

And those might be ... ?