Friday, July 29, 2016
First Lending Club update
Last year Lending Club finally became available to Texas residents. Initially I started out with a small investment of $1000.
Over the last six months or so, I have been adding $200 a week and now have a balance of just under $5900.00.
I have been investing $25 at a time and now have 263 total notes and climbing. While there are many different strategies and investment criteria that can be sifted through, I chose to go automated and let the computers spread the capital across a variety different loan grades.
Right now, as you can see above, My current return is 6.77% after all defaults and pass due loans have been written down. This is about what where I thought the returns would fall. It is uncanny that LC advertises a projected return of 6.68% under the Platform Mix.
There have been times when this number has been over 9% and below 3%. It tends to stay around 7% most of the time. It will be interesting to see how the loans perform during an economic slowdown. Fortunately they have held up pretty well for me.
I will continue to invest $200 a week until I reached $10,000. At that point I will probably continue investing new capital, but may stick with higher credit borrowers.