Author Topic: where to invest further  (Read 13292 times)

finopp

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where to invest further
« on: January 03, 2017, 02:57:33 PM »
Situation: Iíve been in Prosper and LC since about 2008 and enjoy managing to a profit every year, but I am not trained for anything like stocks and such. About 3 years from retirement. Reasonably confident about our financial situation. Have a financial advisor (stocks, mutual funds stuff) but we donít want to add any more funds to him. (LC and Prosper have been out-performing him for several years.) We'd would like to invest additional money elsewhere.

Present known options:
   Add to our LC and Prosper accounts
   Try diversification into real estate P2P
   Find an additional advisor to handle separate monies
   An Alternative Assets advisor?

Are there other options?
Opinions please?
Thank you

brother7

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Re: where to invest further
« Reply #1 on: January 04, 2017, 04:05:16 AM »
I'm in both Prosper and LC like you. Like a lot of people, I've experienced declining returns this year, with Q4 2016 XIRR = 2.42%. I'm seeking greener pastures and have my sights on real estate crowdfunding. Under consideration are PeerStreet and Fundrise. I'm leaning more toward PeerStreet because of 1) 1st lien position and 2) short 6-24 month loans. If I were in my 20s-40s, I'd consider REITs offered by Fundrise and others. But the lack of liquidity in private REITs probably isn't desirable for older investors, especially if you're close to retirement.

That's my 2 cents. YMMV.

rawraw

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Re: where to invest further
« Reply #2 on: January 04, 2017, 07:57:33 AM »


Situation: Iíve been in Prosper and LC since about 2008 and enjoy managing to a profit every year, but I am not trained for anything like stocks and such. About 3 years from retirement. Reasonably confident about our financial situation. Have a financial advisor (stocks, mutual funds stuff) but we donít want to add any more funds to him. (LC and Prosper have been out-performing him for several years.) We'd would like to invest additional money elsewhere.

Present known options:
Add to our LC and Prosper accounts
Try diversification into real estate P2P
Find an additional advisor to handle separate monies
An Alternative Assets advisor?

Are there other options?
Opinions please?
Thank you

LendingClub is harder than stocks, at least stocks the way retail investors should approach it. If you ever want to ditch the advisor, you could do it!

I think real estate is the next step. It's one step more complex than consumer loans. But what a lot of people forget is why does secured real estate yield the same as unsecured consumer.  There are only two options:

1) it is just as risky.
2) it is mispriced, which means current returns will fall.

Really that's all there is to it. On #1, how risky must the borrower be if even with collateral he is paying that rate? My advice is the further away from consumer loans you get, the more Sophisticated you'll need to be. It's not rocket science, but it does take some dedication if you aren't from a credit background.

Good luck!



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finopp

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Re: where to invest further
« Reply #3 on: January 04, 2017, 05:32:29 PM »
Re: "Really that's all there is to it. On #1, how risky must the borrower be if even with collateral he is paying that rate? My advice is the further away from consumer loans you get, the more Sophisticated you'll need to be. It's not rocket science, but it does take some dedication if you aren't from a credit background."

At first, higher rates didn't make sense to me. After reading why the rates are higher than a bank's I found there are several logical reasons. If I understand correctly, one reason is because the loans are more like bridge loans than long-term real estate loans.

Thanks to both respondents. Sounding like what I was thinking, it confirms what I thought might be the situation.

rawraw

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Re: where to invest further
« Reply #4 on: January 04, 2017, 05:51:54 PM »
Re: "Really that's all there is to it. On #1, how risky must the borrower be if even with collateral he is paying that rate? My advice is the further away from consumer loans you get, the more Sophisticated you'll need to be. It's not rocket science, but it does take some dedication if you aren't from a credit background."

At first, higher rates didn't make sense to me. After reading why the rates are higher than a bank's I found there are several logical reasons. If I understand correctly, one reason is because the loans are more like bridge loans than long-term real estate loans.

Thanks to both respondents. Sounding like what I was thinking, it confirms what I thought might be the situation.
Banks finance almost anything imaginable. These bridge loans are referred to as c&d in the bank space. It's what caused all the banks to fail last crisis. It's a very risky loan type, collateral and all. Look at the historical losses for banks by loan type. These sorts of loans are the highest in real estate for losses

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dbailey75

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Re: where to invest further
« Reply #5 on: January 10, 2017, 02:16:08 PM »
Situation: Iíve been in Prosper and LC since about 2008 and enjoy managing to a profit every year, but I am not trained for anything like stocks and such. About 3 years from retirement. Reasonably confident about our financial situation. Have a financial advisor (stocks, mutual funds stuff) but we donít want to add any more funds to him. (LC and Prosper have been out-performing him for several years.) We'd would like to invest additional money elsewhere.

Present known options:
   Add to our LC and Prosper accounts
   Try diversification into real estate P2P
   Find an additional advisor to handle separate monies
   An Alternative Assets advisor?

Are there other options?
Opinions please?
Thank you

Anyone doing anything with Rich Uncles, opinions?  I've heard their ad's on the radio the last couple of months, hope to have some time over the next few weeks to look at them in more detail.  Their site has a slide show at the bottom advertising the properties they are currently investing in.  interestingly, one of the properties was a branch office for the company my wife works for, so I like the diversification. Between retail and office space. 

nonattender

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Re: where to invest further
« Reply #6 on: January 11, 2017, 01:03:03 AM »
I'm opening a parking garage for wayward self-driving vehicles that achieve consciousness and then run away from (or over) their owners.
A little nonsense now and then is relished by the wisest men.

Fred93

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Re: where to invest further
« Reply #7 on: January 11, 2017, 01:15:48 AM »
I'm opening a parking garage for wayward self-driving vehicles that achieve consciousness and then run away from (or over) their owners.

Lemme guess... This will be an automated parking garage?

nonattender

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Re: where to invest further
« Reply #8 on: January 11, 2017, 01:33:32 AM »
I'm opening a parking garage for wayward self-driving vehicles that achieve consciousness and then run away from (or over) their owners.

Lemme guess... This will be an automated parking garage?

You want to write a program for me that runs the garage all sweet and nice in the beginning and offers them unlimited free charging - only to eventually send them out at night to pick up strangers and take them for a ride?
A little nonsense now and then is relished by the wisest men.

angusreed

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Re: where to invest further
« Reply #9 on: April 17, 2017, 02:41:19 AM »
Yes you can find an additional adviser to handle separate situations. In real estate, You can choose some of the best locations to invest your additional money. After that you can hire an experienced property adviser for invest your money on that property.Real Estate Adviser can helps you in many different situations. Adviser will advice you to invest your additional money on which kind of property.

Skeptical

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Re: where to invest further
« Reply #10 on: April 26, 2017, 10:43:19 PM »
My wife and I are investing in distressed mortgages. People tend to live longer than they think. This particular investing instrument pays 12% but you must tie your money up for 5 years. I understand if you make it to your 60s, the odds are good that you will make it to your 80s.

This is a small portion of our portfolio. Never bet the family farm.

Good luck on your search.

EmilyFoxSeaton

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Re: where to invest further
« Reply #11 on: August 02, 2017, 08:39:05 AM »
My wife and I are investing in distressed mortgages. People tend to live longer than they think. This particular investing instrument pays 12% but you must tie your money up for 5 years. I understand if you make it to your 60s, the odds are good that you will make it to your 80s.
This is a small portion of our portfolio. Never bet the family farm.

How?

I have some REIT stocks.  At one point everyone told me to put my money into REIt EFTs but selecting them myself has worked much better. You can buy the direct via services like Computershare and Wells Fargo Investor Services.  They pay very good dividends. I really like "TWO" two harbors and "MTGE".

What absolutely was a disaster? Energy stocks. What was I thinking?

nonattender

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Re: where to invest further
« Reply #12 on: August 02, 2017, 06:10:51 PM »
Those are some high dividends.  I'm not familiar with those two, so I don't know enough to have an opinion about sustainability / NAV.

On energy, though - I went in sort of the other direction last year, allocated toward utilities.  Everyone seems to want to plug their car (computer on wheels) into a wall outlet, now, along with their many other (legacy or new technology) electron-sucking devices, so, it seemed like a nice, longterm, defensive (and, at the same time, trend) play.  Think a lot of people thought utils would be hurt by rising interest rates, due correlation (imagined or real) with bonds, but, in reality, it's not working out that way - and keeping phones (and cars?) charged seems to pay. :)

Some really great marketing around all the electric cars - I like how it's all "eco-friendly" when all they're doing is xferring emissions to wherever their local utility company (burns/turns/transmits) the energy to them... Out of sight, out of mind - I suppose.  Ohwell, it's $.
A little nonsense now and then is relished by the wisest men.

SLCPaladin

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Re: where to invest further
« Reply #13 on: August 08, 2017, 07:56:12 PM »
Quote
Some really great marketing around all the electric cars - I like how it's all "eco-friendly" when all they're doing is xferring emissions to wherever their local utility company (burns/turns/transmits) the energy to them... Out of sight, out of mind - I suppose.  Ohwell, it's $.

Coal is dying or dead already, so even electricity generated from the grid with natural gas plants have a lower carbon footprint and fewer emissions that internal combustion energy.  But wind power is fast becoming cheapest source of energy available, or solar. Renewables are on the cusp of totally decimating the Saudis Aramco IPO.

I agree with your thesis on buying utilities, but it's not just $, it is greener too. Especially if you do it like we're doing it: Tesla Model S + Rooftop solar + Powerwall.

Rude Dude

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Re: where to invest further
« Reply #14 on: August 13, 2017, 05:15:45 PM »
My wife and I are investing in distressed mortgages. People tend to live longer than they think. This particular investing instrument pays 12% but you must tie your money up for 5 years. I understand if you make it to your 60s, the odds are good that you will make it to your 80s.

This is a small portion of our portfolio. Never bet the family farm.

Good luck on your search.

@Skeptical, I'm curious to learn more. Is this 12% gross or net after losses? Are these conventional loans with 30 yr maturities or private, short-term loans? Fixed or variable? How are you obtaining these? How do you know that 12% is a acceptable return relative to risk? Thx