Author Topic: Best tools for Secondary Market?  (Read 4368 times)

velacreations

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Best tools for Secondary Market?
« on: January 09, 2013, 07:50:42 PM »
Hi,

I am a total newbie to p2p lending, though I am reading like crazy and studying as much as I can.  I have discovered that I am in a forbidden state for LC, but my state is ok for Foilofn.

I have registered at Interest Radar, because they have stats and filters for Folio notes.  Are there any other tools like this?  I like IR, but the information available for Folio notes is somewhat limited.

I am still learning the terms and their significance, but I'm hoping to start investing a few hundred dollars a month in the next few months, so I am trying to get the hang of things before then.  If you have resources that relate to the Folio notes and filtering them, please post them here.  I would greatly appreciate it!

On a side note, are there other markets where people can trade notes/loans like this?  I own a mortgage note that I am thinking of selling, and it would be nice to find out how much it is worth by looking at similar ones in a market.


SarahV

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Re: Best tools for Secondary Market?
« Reply #1 on: January 09, 2013, 08:08:35 PM »
Hi - I'm in the same boat as you as far as being in a limited state, and Interest Radar is the best I've found as far as filtering/buying. What other sort of information are you looking for?

velacreations

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Re: Best tools for Secondary Market?
« Reply #2 on: January 09, 2013, 08:21:10 PM »
I'd like to see more info on the borrower, similar to the original loan data (job status, home ownership, credit score, debt to income ratio, inquires, etc)

The other thing I am confused about is how is the Interest Radar YTM calculated?  Is that just pulled from FolioFN, or is it calculated based on the data?  If it is recalculated, then it might have some significance.

Also, please note that I am new to all of this, so maybe my data desires are misplaced.  I am an info-junkie, so I like all the info I can get my hands on.

Do you have any particular filters on IR you'd like to share with me?
« Last Edit: January 09, 2013, 08:24:03 PM by velacreations »

Zach

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Re: Best tools for Secondary Market?
« Reply #3 on: January 09, 2013, 09:48:26 PM »
I'd like to see more info on the borrower, similar to the original loan data (job status, home ownership, credit score, debt to income ratio, inquires, etc)

Interest Radar doesn't actually display the FICO score, home ownership, or DTI ratio etc., but you can absolutely filter the notes available on FolioFN from the regular filters at the top of the page.

velacreations

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Re: Best tools for Secondary Market?
« Reply #4 on: January 09, 2013, 09:53:19 PM »
I'd like to see more info on the borrower, similar to the original loan data (job status, home ownership, credit score, debt to income ratio, inquires, etc)

Interest Radar doesn't actually display the FICO score, home ownership, or DTI ratio etc., but you can absolutely filter the notes available on FolioFN from the regular filters at the top of the page.
oh cool!  I didn't realize that!

SarahV

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Re: Best tools for Secondary Market?
« Reply #5 on: January 09, 2013, 09:56:48 PM »
I'd like to see more info on the borrower, similar to the original loan data (job status, home ownership, credit score, debt to income ratio, inquires, etc)
All of those things are in the filters - so I usually run the filter on IR, then open everything in LC to read every word of it including the Q&A...

I don't know how the YTM is calculated, but the person who runs that site is a member here so maybe he will be able to answer you. (There is also a whole Interest Radar section of the forum if you haven't seen that... I bet this has been answered over there at some point)

I don't have any unusual filters - I just try to find the highest quality (e.g. no delinquencies, good FICO, 0-1 inquiries, good job history, etc.) notes with the highest interest rates for the lowest price. I am a small enough investor at this point that I can be pretty picky.

rev

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Re: Best tools for Secondary Market?
« Reply #6 on: January 09, 2013, 10:35:27 PM »
I don't know how the YTM is calculated, but the person who runs that site is a member here so maybe he will be able to answer you.

Present.
The YTM is recalculated, because what Folio reports for that field is completely insane in my opinion.
It's simple, the formula is the IRR of the following cash flow: the negative amount for buying the note at that price, plus a series of positive amounts for the remaining payments, assuming the loan will pay as agreed (the status of the note is not used in this formula, so it presumes Late notes will start paying right next payment date).
I also recalculate Markup/Discount (Price / Principal - 1), and Remaining Payments (based on remaining principal, interest rate, monthly payment, loan length, status etc.)

velacreations

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Re: Best tools for Secondary Market?
« Reply #7 on: January 10, 2013, 09:38:28 AM »
The YTM is recalculated, because what Folio reports for that field is completely insane in my opinion.
It's simple, the formula is the IRR of the following cash flow: the negative amount for buying the note at that price, plus a series of positive amounts for the remaining payments, assuming the loan will pay as agreed (the status of the note is not used in this formula, so it presumes Late notes will start paying right next payment date).
I also recalculate Markup/Discount (Price / Principal - 1), and Remaining Payments (based on remaining principal, interest rate, monthly payment, loan length, status etc.)
Oh, that's good to know.  I, too, don't like the crazy Folio figures.

It would be really cool to be able to enter ranges, like for markup, being able to enter a custom range, like <3%.

I notice you are going to start charging for your service.  At your monthly cost, and my level of investment, that eats all of my profits.

So, are there any other usable tools that are free?
« Last Edit: January 10, 2013, 10:05:47 AM by velacreations »

lender_john

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Re: Best tools for Secondary Market?
« Reply #8 on: January 10, 2013, 10:43:47 AM »

I live in one of those states too and we are definitely at a disadvantage compared to those that can invest directly.
That said, after a few initial blunders, I am managing reasonably well.

I tried a few tools, but ended up going without them once I figured out exactly what I was looking for.

I would caution against buying notes at too high of a markup. It may seem that a 3% markup is not that bad, but its a 3% markup over principal and interest.

It may seem like a good deal when the note that you just paid when you expect to get $13 in interest over 5 years..
However it may take you up to 3 payments just to break even based on the higher price.  There is also a small, but real chance that the loan will go bad before you break even.

On the other hand using FolioFn exclusively provides a small advantage.  Since you buy notes all the time, you know a bit more about what will sell and what may not than an average LC investor.

I wouldn't say that I make a significant amount selling notes, but I am generally able to at least make up for any losses.



velacreations

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Re: Best tools for Secondary Market?
« Reply #9 on: January 10, 2013, 05:05:50 PM »
Yeah, I have been trying to just consider notes at 2% or lower.  There are a few at a slight discount (according to IR). IR's markup data doesn't include interest, so You can afford to go higher.

I wonder what the legality is of someone in an approved state taking loans on your behalf?

william

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Re: Best tools for Secondary Market?
« Reply #10 on: January 11, 2013, 05:55:08 AM »
I wonder what the legality is of someone in an approved state taking loans on your behalf?

The only way of doing that (that I know of) would be someone buying a note from LC then selling you that note on folio. That is completely legal. I was thinking of doing that and selling the notes at a ~2.4% markup but I figured people would rather just find notes already on folio at a 2.4% markup as opposed to waiting for the note to go through funding, then review.
« Last Edit: January 11, 2013, 06:11:23 AM by william »