I have been investing $25 at a time and now have 310 notes up from 263 notes last month. I am continuing to use the automated note selecting mechanism which lets the computer spread the capital across a variety different loan grades.
Right now as you can see above, my current return is 6.33% after all defaults and past due loans have been written down. Last month my return was 6.77% which closely mirrors the predicted 6.68% return under the Platform Mix. Also, my monthly payments have increased to approximately $242 up from around $206.
The returns continue to bounce around like a pinball as notes are written down when they become past due. If and when the notes are made current, the return adjusts upward as expected.
As mentioned last update, I have seen the returns as high as 9% and as low as 3%. It tends to stay around 7% most of the time.
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.
2016 Net Annualized Returns
July --- 6.77%
August --- 6.33%
DEFY MEDIOCRITY
Nice update MDP, that's quite a good return seen as you're being fairly conservative about it. I hope next month is just as good for you!
ReplyDeleteTristan
Tristan,
DeleteIt's actually pretty amazing how little things change from one month to another. I actually thought that my higher interest loans would be more problematic. Of the three charge offs I have, the highest rate has been only 14%. Considering I have loans in excess of 28% that's pretty good. Of course I don't have too many loans over 20% by design so I guess I should expect to see more problem loans in the "middle" of the portfolio.
MDP
Nice update! I'm going to be publishing an update on Lending Club as well. I only have a little over $2000 in it right now as an experiment.
ReplyDeleteScott,
DeleteI started last year as an experiment as well. I had around $1000 invested for about 6 months. Once I realized that I was earning more on $1000 LC notes than my $10000 checking account, I accelerated the investments.
I'll be watching for you update.
MDP
Hmmm, I have never heard of this Lending Club. I'm going to have to dig a little into it. I'm curious how safe it is.
ReplyDeleteInteresting
Divi Cents,
DeleteWell it's not FDIC insured that's for sure! You are basically making unsecured loans to individuals with various financing needs. If they pay the loans everything is great, but if they don't losses can definitely be significant!
Best of luck!
MDP
Last time I checked my return was just above 8%. But, as you say, the return jumps around a lot. I've actually stopped investing in new notes. I'm thinking about closing my account and moving the funds to my Scottrade account so I can do more option trades. Of course, it will take a while before I can get out with all my cash in hand.
ReplyDeleteTake care!
FerdiS,
Delete8% is pretty good in my opinion. The big problem as you mentioned is waiting for the payments to get your money back. It would obviously take a few years for me to get back all my investment. People should not invest if they need liquidity.
MDP