Author Topic: Lending Club Results  (Read 4626 times)

TSR Capital

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Lending Club Results
« on: January 13, 2017, 10:37:11 AM »

I've been using LC for about a year now and have a gross yield of 9.4% and no defaults (across over 300 loans).  I tend towards borrowers with lower rate loans but also lower default rates.  I also tend towards the 60 month loans.  I looked up recent results from major credit card issuers, and my return is somewhat better.  How are others doing recently in LC?  Are there any specific tactics you would recommend to improve net returns?

Bank of America net rate: 6.6%   (9.2 gross - 2.6 charge off)
Wells Fargo cards net rate: 8.6%   (11.7 gross - 3.1 charge off)

Crazycarl

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Re: Lending Club Results
« Reply #1 on: January 13, 2017, 10:52:30 AM »
I am currently using Prosper, but have Annualized net return of 12.3%, with a Seasoned Net return of 12.32%.

I am about 75% in C class 5% in B class and 10% in D and 10% in High Risk. I have a very strict guideline that I would be happy to share if anyone wants it.

TSR Capital

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Re: Lending Club Results
« Reply #2 on: January 13, 2017, 11:14:20 AM »
Yeah, put it up.

Crazycarl

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Re: Lending Club Results
« Reply #3 on: January 13, 2017, 11:23:52 AM »
Loan term:   3 year, 5 year
Loan category:   Debt Consolidation, Home Improvement, Business, Auto / Motorcycle / RV / Boat, Other, Baby & Adoption, Boat, Cosmetic Procedures, Engagement Ring Financing, Green Loans, Household Expenses, Large Purchase, Medical / Dental, Motorcycle, RV, Taxes, Vacation, Special Occasion
Hidden listings:   Exclude
Credit score:   640-Any
Now delinquent:   0 delinquent accounts
Delinquencies in last 7y:   0-1 delinquencies
Public records:   0-1 in last 10y
Public records:   0 in last 12m
Inquiries in last 6m:   0 inquiries
First credit line:   5-50 years ago
Employment status:   Only Self-employed, Other, Employed
Length of employment status:   5 years 0 months-50 years 0 months
Stated income:   Not displayed, $25,000-$49,999, $50,000-$74,999, $75,000-$99,999, $100,000+, Not employed
Active Prosper loans:   0-1 active loans


There is a new format where I can choose the percentage for each Loan class. Hopefully the image attaches, not sure how to get it to show up.

AM43

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Re: Lending Club Results
« Reply #4 on: January 13, 2017, 12:33:04 PM »
I've been investing with LC since 2009.
Invest in 36 months loans.
Currently invested in 900 notes all in C, D, E and F grades.
NAR 8.5%  ANAR 7.5%


SuperMex

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Re: Lending Club Results
« Reply #5 on: January 15, 2017, 03:08:35 PM »
Crazycarl were you with prosper when they had people write a statement about the loan?

I stopped investing when they did away with that and I am almost fully out of the loans now. I can't get my head around loaning out money to people who don't even have to say anything about their plans, budget, etc.

I was thinking if I was unscrupulous I would just take out the max loans and then retire to Mexico all they can do is ruin my credit which I never intend to use anyway.

chasesfish

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Re: Lending Club Results
« Reply #6 on: January 15, 2017, 04:39:38 PM »
Invested since 2011

2512 Notes
7.16% NAR
5.06 ANAR

I've tried almost everything between statistical screeners to three year notes, hand picking or automated.  The only thing I learned NOT to do is to buy off the secondary market.

My brokerage account has averaged over 11% for the same period.  No longer an LC fan

zazpowered

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Re: Lending Club Results
« Reply #7 on: January 16, 2017, 02:37:15 AM »
Invested since 2011

2512 Notes
7.16% NAR
5.06 ANAR

I've tried almost everything between statistical screeners to three year notes, hand picking or automated.  The only thing I learned NOT to do is to buy off the secondary market.

My brokerage account has averaged over 11% for the same period.  No longer an LC fan

I see LC/Prosper as something to diversify my portfolio, not necessarily beat it. I think it's hard to compare most investments to stocks because they are liquid plus returns are great

Crazycarl

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Re: Lending Club Results
« Reply #8 on: January 16, 2017, 08:36:46 AM »
Crazycarl were you with prosper when they had people write a statement about the loan?

I stopped investing when they did away with that and I am almost fully out of the loans now. I can't get my head around loaning out money to people who don't even have to say anything about their plans, budget, etc.

I was thinking if I was unscrupulous I would just take out the max loans and then retire to Mexico all they can do is ruin my credit which I never intend to use anyway.

I have been with them for about 2 1/2 years now. They are a very small portion of my investments with only about $5k. I first started with about $3500 to try it out and was around 13% for the first 15 months, then decided to put in an additional $50/month. After reading all the news and peoples thoughts and returns, I am wondering if I should start to pull back and phase it out. It was always more of a very long term plan, where one day I pull out a few hundred or more a month and let the rest just cycle back in.

I have also thought about the Mexico thing, but hope that my search criteria would keep me away from those individuals for now. 

MoonLiteNite

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Re: Lending Club Results
« Reply #9 on: January 17, 2017, 03:44:38 AM »
LC here...
Started in may 2016, so just over 1/2 year in.

18% after adjustments.
high risk only, D, E, and F. There is some sprinkled in C's and G's but those are sub 5%

Have around 15 filters on at this point, making it so even if i am spam refreshing my page i see MAYBE 1 or 2 notes in a 24 hour period, so my notes invest 100$ each.

210 notes, 1 chargeoff, and 1 is 60-180 late days, should be going to default in a few days.
I do think my returns will start to drop over the next year or so to around 12-14%. From what i have read, if you do get people who do not pay, it is normally pretty early on.... so most of my notes are at a 3-6 month window already. Which is a good sign!
« Last Edit: January 17, 2017, 03:47:47 AM by MoonLiteNite »

okobrien

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Re: Lending Club Results
« Reply #10 on: January 20, 2017, 09:12:12 PM »
I was just about to start a new post about Prosper, but this is close enough so I'm jumping on board.  OP, if you want, I can move my bitching elsewhere.  I have invested with Prosper for almost 4 years, and have had very good returns (Seasoned Annualized Net Returns reached 15% last summer) 

Here is my issue.  Since last summer, my charge offs have skyrocketed, and my returns the past 7 months or so have been about 1%!  That is annoying, but what really is pissing me off, is their math shows that I still have returns of 14.5%.  No matter how I slice it, that math doesn't add up.  When I started becoming suspicious that something was off, towards the end of last summer, I stopped all my automated investments, and when they got rid of foliofn for secondary market trading, I decided it was time to slowly drain the bucket.

Although I have had great luck with Prosper in the past, I am not looking to stay in this relationship.

HAPPYINAZ

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Re: Lending Club Results
« Reply #11 on: January 23, 2017, 01:44:28 PM »
18 notes hand picked focusing more on A and B class
4 fully paid off, 14 current, no defaults

9.5 months in

Adjusted Net Annualized Return = 8.13%

Lending club says historical returns for a similar portfolio would be 4.6 to 6.6%, so I guess I am doing better than normal for the risk level of the loans I selected.
« Last Edit: January 23, 2017, 01:46:59 PM by HAPPYINAZ »

zazpowered

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Re: Lending Club Results
« Reply #12 on: January 24, 2017, 01:53:48 AM »
What is the threshold of return for you guys to want to keep using LC/Prosper vs putting the money somewhere else?

SuperMex

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Re: Lending Club Results
« Reply #13 on: January 24, 2017, 02:17:41 AM »
I am at 9.72% with prosper and I am fine with that.

I only had 2-3% of my portfolio in prosper and I was dollar cost averaging in every month. I would have put in more but there really weren't enough loans that I thought were a good risk.

However when they changed the way the listings worked and customers no longer needed to write why they wanted the money or how they intended to use it I immediately stopped investing and started pulling out my money as it was paid off.

Just blindly giving money out isn't something I am interested in doing. They changed their model to something I am not willing to participate in.

I tried to put money in Lending club but they required a bank wire transfer and I just never got around to doing it as it is a pain.

Car Jack

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Re: Lending Club Results
« Reply #14 on: January 24, 2017, 07:11:00 AM »
I follow Pete's spreadsheet on MMM and have been matching his returns with an opposite strategy.  A B C loans.  Nothing lower.  No chargeoffs.  On loan was late a few times but back in place.  I'm letting all the loans pay off, then will be done with L/C.  I'm not patient enough.  As it is, I withdraw all of the cash monthly that comes in from payments.  I'm not tolerant enough of risk and would be really pissed if someone wasn't paying back.

Capyy

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Re: Lending Club Results
« Reply #15 on: January 27, 2017, 09:49:32 AM »
I spent a good amount of time coming up with a good filter based on historical data. Have been doing lending club for over 2 years. Was doing 11-12% until around mid 2016. Now I've had so many defaults that my returns are rapidly diminishing. I've almost got enough loans that aren't in good standing to offset all of the interest I've received since inception. -1150 vs 1450 received. Says 8.2% return though. I think it overestimates how many late loans will make a payment.





TheAnonOne

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Re: Lending Club Results
« Reply #16 on: January 28, 2017, 09:25:01 AM »
I sold my entire 42k portfolio over the year.

Some of it for 10% high, some for 99% off.

Netted 37k. I started LC with 32k a few years back.


I think it's a neat fun investment, but the results are kind of just OK. I invested in only the high interest loans and eventually started using interestRadar to robotically pick my custom notes.

Overall glad to be out. (Also yearly taxes are a PAIN)

chasesfish

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Re: Lending Club Results
« Reply #17 on: January 28, 2017, 11:32:08 AM »
What was the discount you took to liquidate?

I've been debating liquidate vs. wind down over its duration.  About this time every year I get irritated dealing with the taxes on a 5% Return investment.