Comments on: First Lending Club Loan Payments Received

By: unimax

unimax — Wed, 22 Jul 2009 17:12:49 +0000

They don;t have it for texas yet.

By: carole

carole — Thu, 25 Jun 2009 02:57:53 +0000

Keep the updates coming. I’m planning to invest, but can only buy notes on the trading platform at this time as New Jersey residents can’t invest in the loans initially.

By: retireby35

retireby35 — Wed, 24 Jun 2009 17:56:28 +0000

Nice, I’ll definitely look into this. I’ve heard bad things about Prosper but Lending Club seems to have less risk. I’m considering putting $1,000 into various loans there.

By: Nickel

Nickel — Wed, 24 Jun 2009 15:21:45 +0000

No, the dollar amount of your returns will fall because they’re being calculated on less principal, but the percentages still hold.

By: phung

phung — Wed, 24 Jun 2009 15:12:39 +0000

that makes sense, nickel.

But I still think the 12.45% return is a bit misleading, you will need to reinvest the principal constantly to get the 12.45% return.

There’s a required level of involvement to get to the 12.45% return on the short term.

I am still under the opinion that long term diversified stock investment is probably better.

By: Eric

Eric — Wed, 24 Jun 2009 05:32:21 +0000

keep the updates coming! thanks!

By: Adam

Adam — Tue, 23 Jun 2009 03:04:04 +0000

I’ve been very happy with lendingclub. I only have a couple hundred invested, but am getting 15.47% since I started February. Glad to hear you’re also enjoying it as another investing tool. I’ll be adding more funds as they become available.

By: Nickel

Nickel — Tue, 23 Jun 2009 00:02:59 +0000

Ray: You can sell notes on the secondary market using the LC Note Trading platform. Pricing is based on supply and demand, however, so you’re not necessarily guaranteed to get your money back out in short order.

By: Ray

Ray — Mon, 22 Jun 2009 23:50:10 +0000

Awesome-simply awesome.
I’ll be watching this post.
I have a question though. If you need the cash flow what do you do? How do you liquidate?

By: Nickel

Nickel — Mon, 22 Jun 2009 16:04:13 +0000

phung: After thinking about your comment some more, it seems that you’ve neglected to account for that fact that I’m getting a bit of principal back every month. That total monthly payment includes principal plus interest. Because the loan is paid back gradually over time, the principal dwindles (unless you reinvest). Thus, it’s not like I’ll have $1k invested for 36 months. Note that my outstanding principal is already down to $997.75 and I’ve only recv’d payments on the first four loans.

By: Nickel

Nickel — Mon, 22 Jun 2009 16:00:38 +0000

It’s a three year repayment schedule. Here is how they calculate annualized returns:

https://www.lendingclub.com/info/lendersPerformanceHelp.action

I haven’t run the numbers myself, but perhaps I should.

By: phung

phung — Mon, 22 Jun 2009 15:34:26 +0000

Hey!

what is the repayment terms on your loans? is it 3 years or 5?

i’m curious because if the $33.23 a payment is correct, for the 36 month payment period, you will get $1,196.28 with comes to 196.28 in interest = 20% Interest for 3 Years.

20% / 3 years = 6.5% annual interest rate; not the weighted average of 12.45% as Lending club suggested.

Thoughts?

By: Lara

Lara — Mon, 22 Jun 2009 14:05:28 +0000

Good going!
The trick for me has been to reinvest as soon as I have enough in my cash balance. That keeps the risk down and the return more stable. You seem to have enough in payments to pick one extra loan per month.