Author Topic: What are your favorite P2P ProTips  (Read 1406 times)

sethdrebitko

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What are your favorite P2P ProTips
« on: July 13, 2015, 09:01:49 AM »
While I'm still in the process getting my bearings in regards to stocks, I'm plowing into P2P lending as my initial investment vehicle. I thought I'd offer some of my stand by ways of squeezing as much as I can out of the platform(s).

Right now I am just in Lending Club so I don't know 100% how this will translate to other platforms: as I diversify I'll provide additional thoughts though.

Automate from the start

Even though Lending Club won't let you use their tools until you've dedicated $2,500, you can use arguably more sophisticated options after your first $250. I use Lending Robot [MOD EDIT: Spam link removed. PM poster if you'd like the link.] which lets me get 10+ filters instead of the 1 that Lending Club allows. Which ever automated lone picker you go with the benefit is that while you get a sense of the market and your own preferred filters, you can have something making decent buys for you.

Always Be Closing

The secondary market is a super awesome way for people just starting to generate that momentum. Without having to big of a portfolio I can build up and re-invest my monthly returns at roughly the efficiency someone with a much larger account could.

Always Be Selling|

While ultimately I'm in these loans for the full term, I'm not going to turn down the chance to flip them for a short term gain that I'll just plow straight back into another loan. I'm basically selling any loan with a non upward trending credit score for at least 3% markup at any given time.  This can go from infusing a smidge of extra purchasing power to a decent short term return: I just offloaded a note I bought at a 10% discount for a 2% return on the note value.

Any favorite methods you have used to squeeze every bit you can out of your P2P accounts?
« Last Edit: July 14, 2015, 10:27:48 AM by arebelspy »

forummm

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Re: What are your favorite P2P ProTips
« Reply #1 on: July 13, 2015, 01:11:29 PM »
OK to do LC. Just be aware that if there's a huge recession, defaults will go crazy. It's not risk free. That's why the interest rate is so high. It's unsecured debt with borrowers who can't get loans elsewhere.

sethdrebitko

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Re: What are your favorite P2P ProTips
« Reply #2 on: July 13, 2015, 09:20:49 PM »
Very much agree. Right now I'm more heavily weighting it than I will in the long term. My main goal is to take advantage of higher returns to more quickly get some portfolios through various p2p shops in a self sustaining growth pattern.

I see the P2P environment as an excellent way to play some early catch up. I'm also funding my minimum needed to get the employer match at work, as well as into an index fund.

Forummm do you use P2P services? If so what role do they fill in your overall investing strategy.