Author Topic: Finally broke my lucky streak!  (Read 6049 times)

SarahV

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Finally broke my lucky streak!
« on: March 21, 2013, 06:03:57 PM »
I was starting to think I'd stumbled on some kind of magic Lending Club formula for no defaults  ;D  With 200-some notes in my portfolio and an average interest rate of 16.2%, I went for 35 straight days without a single note missing a payment, going late, grace period, bankrupt, deceased, etc... and today it all ended with a note going into grace period (already sold for a slight discount). One of those infuriating notes with nothing in the collection log indicating what the problem is. Hmph.

Still, if I keep it to one a month I'll be pretty ecstatic  ;) 

New Jersey Guy

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Re: Finally broke my lucky streak!
« Reply #1 on: March 21, 2013, 06:56:50 PM »
Sarah....The earth shook, the ground opened up, and part of New Jersey floated away in the Atlantic (which isn't such a bad thing).

After my wife came-to from getting hit in the head by a large chunk of hail the size of a basketball, I told her what happened.  "Somebody at Lending Club had a note go into grace".

Sorry to hear it was you.  I hope your new streak goes much, much longer than your last.  We don't have much of New Jersey left to spare. 
Return over deposits:   66.82%
IRR:   86.54%
As of April 30, 2014

SarahV

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Re: Finally broke my lucky streak!
« Reply #2 on: March 21, 2013, 07:02:33 PM »
I'll try to aim it for Long Island next time.

SkaXc0re77

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Re: Finally broke my lucky streak!
« Reply #3 on: March 21, 2013, 07:13:51 PM »
Lay off my island!

rawraw

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Re: Finally broke my lucky streak!
« Reply #4 on: March 21, 2013, 08:37:13 PM »
I was starting to think I'd stumbled on some kind of magic Lending Club formula for no defaults  ;D  With 200-some notes in my portfolio and an average interest rate of 16.2%, I went for 35 straight days without a single note missing a payment, going late, grace period, bankrupt, deceased, etc... and today it all ended with a note going into grace period (already sold for a slight discount). One of those infuriating notes with nothing in the collection log indicating what the problem is. Hmph.

Still, if I keep it to one a month I'll be pretty ecstatic  ;)
Just when I was thinking you were perfect you go and prove to me you aren't.  What am I going to do with this pedestal I made for you in my mind?  I thought you were the one :(

Show Me The $

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Re: Finally broke my lucky streak!
« Reply #5 on: March 25, 2013, 08:57:44 AM »
I was starting to think I'd stumbled on some kind of magic Lending Club formula for no defaults  ;D  With 200-some notes in my portfolio and an average interest rate of 16.2%, I went for 35 straight days without a single note missing a payment, going late, grace period, bankrupt, deceased, etc... and today it all ended with a note going into grace period (already sold for a slight discount). One of those infuriating notes with nothing in the collection log indicating what the problem is. Hmph.

Still, if I keep it to one a month I'll be pretty ecstatic  ;)

I don;t understand!!!I have had never late notes, and good rates on Foliofn for a while, I could not sell at a modest discount even! Any tricks?

SarahV

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Re: Finally broke my lucky streak!
« Reply #6 on: March 25, 2013, 09:11:20 AM »
Tricks to sell, you mean? I mostly only sell the notes that go late, and I discount them to sell quickly, so I don't know too much about selling good notes for mark-ups...

I do think it is important to think about how people will find your notes in the Folio interface (because it is so awful). It could be a great deal and a great note but if it is on the 42nd page of listings when people are searching for notes to buy, no one will find it.

Show Me The $

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Re: Finally broke my lucky streak!
« Reply #7 on: March 25, 2013, 09:18:20 AM »
Tricks to sell, you mean? I mostly only sell the notes that go late, and I discount them to sell quickly, so I don't know too much about selling good notes for mark-ups...

I do think it is important to think about how people will find your notes in the Folio interface (because it is so awful). It could be a great deal and a great note but if it is on the 42nd page of listings when people are searching for notes to buy, no one will find it.

I was even selling nonlate good loans at a discount...no takers. I dont get the system at all!

Cliff_S

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Re: Finally broke my lucky streak!
« Reply #8 on: March 25, 2013, 10:55:10 AM »
I was even selling nonlate good loans at a discount...no takers. I dont get the system at all!

Just keep relisting them:  I sold about 140 A grade notes over the course of a couple of weeks and there was no rhyme or reason to what worked or what didn't.  I did sell most at a slight discount (.25 to .5) and most would sell within a few days.  If they didn't I'd relist.  I did have two or three that I relisted twice, but most sold the first or second listing.

Cliff

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Re: Finally broke my lucky streak!
« Reply #9 on: March 25, 2013, 11:12:00 AM »
"I did have two or three that I relisted twice, but most sold the first or second listing.
"


I just finally worked up the courage to come back to this post.  Sarah's devistating hit to her portfolio scared me so much that I had a total emotional breakdown and I couldn't bear the carnage any longer.

Anyway, I'm better now.

Cliff is right.  No rhyme or reason.
I've had notes sell faster than I could refresh the screen.
Many sold in less than 2 hours.
Some sold in less than 48 hours.
Some just never seem to attract attention.

Keep in mind nearly all of my "Current" notes that I've sold were previously "31-120 day late" notes where the borrower made a mistake and accidently left money in their checking account for LC to get a hold of.  So the payment historys are really sloppy, not the kind most here would want in their portfolios. But, eventually, all sold.   
Return over deposits:   66.82%
IRR:   86.54%
As of April 30, 2014

SkaXc0re77

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Re: Finally broke my lucky streak!
« Reply #10 on: March 25, 2013, 01:06:13 PM »
Hell,  I sold a note 2 weeks ago that said the lender was deceased after one payment... And I didn't mark it down... I marked it up enough that when the 1% was taken out, I broke even!!!!!

But then the good notes I try and sell rarely move.  The whole things crazy but whats the harm in relisting the ones you don't want.  Worst case, they keep paying while noone buys it and you make the smaller interest then you coulda with a riskier note, best case - someone eventually buys it.  Doesn't cost you anything to keep it listed.