Before I got into these forums and when I just started investing, I started with peer to peer investing. The terms made sense to me, however, after reading a bunch here. I want to start getting out, for a few reasons....
A. The market is down, good time to move. (market timing alert....)
B. The liquidity issue. (more on that later)
C. The returns. (they are going a bit lower every year)
The details...
I have $42,000 (give or take) in LC. This is a rough guess, because within that $42k, I put in $37k (about) myself, though only $40.7k is current. This is where the liquidity comes into play, the entire account is hard to track value wise.
It reports to MINT.COM as a $42k value, but that's not true. A certain portion (usually several grand) is always in flux between late payments and sales of past-due notes. So the late notes have a certain penalty against them.
I am making this thread to hopefully share the experience of paring this down. I don't have a super concrete goal, and part of this will need to drain out over the 5 year length of the loans. However, for now, I put all of my 1200ish notes on sale for +10% to see if any sell outright. I will probably move on, to try and sell them at +7 and then +5 down to maybe +1. I wouldn't go lower than +1 because there is a fee for the sales.
I don't mind keeping the account, my goal isn't to really kill the account, just to start lowering my exposure to it.
Thanks!