Comments on: Simple Filters for Investing in Lending Club and Prosper

By: writing2reality

writing2reality — Tue, 04 Mar 2014 18:16:11 +0000

I think part of the reason the returns are lower is that the UK companies have default guarantees in place, essentially eliminating defaults. As a result, given the lower level of risk involved, you are getting a corresponding lower return.

Thanks for stopping by Firestarter!

By: thefirestartercouk

thefirestartercouk — Tue, 04 Mar 2014 17:59:58 +0000

Great article W2R. The returns here look awesome!

The P2P lending sites in the UK only advertise around 5% returns which are just not worth the hassle. I wonder why it’s so much lower over here, any ideas?

By: writing2reality

writing2reality — Mon, 03 Mar 2014 17:54:26 +0000

I’m not sure what you mean by delays, but for those investing in higher risk notes, finding notes has been tough outside the note release times. Prior to the beginning of this year I was investing manually only and kept my Lending Club accounts fully invested with no issue. Of course, I was logging in during release times to find notes. Since then, I’ve gained some limited access to some automated tools to try out. However, I will say that manually investing for above average returns is still possible, especially given broader filters like the ones above.

With Prosper recently limiting institutional investors even further, retail investors this past month or so have had much more success. I have always used Prosper’s Quick Invest feature with varied levels of success, so the recent change is a boon for individual investors (as long as they keep the borrowers coming in).

Thanks again for your input and question!

By: writing2reality

writing2reality — Mon, 03 Mar 2014 17:48:15 +0000

I agree there are plenty of options for folks to invest in, however it is a much more tedious process given the current limitations of the secondary market. For example, I can filter based on credit report inquiries, monthly income, public records, etc. All things that are unavailable directly through the secondary market without a lot of clicking, or use of other third party tools.

Thanks for your additional input and experience PMU!

By: writing2reality

writing2reality — Mon, 03 Mar 2014 17:45:57 +0000

Like I've said before Brent, hang on for a few more months and you should be good to invest directly once Lending Club has their IPO. Once that happens I'd encourage you to check things out with a larger account to ensure some solid diversification. The secondary market can be a phenomenal means of investing if you take the time to filter and understand the options available. I know some secondary market investors utilize tools like Interest Radar to help filter and go through notes in further detail besides what is available in the current filters. I appreciate you stopping by and your continued interest in Lending Club and P2P Lending as a whole.

By: pullingmyselfup

pullingmyselfup — Mon, 03 Mar 2014 16:30:58 +0000

wyor: how have you found the primary market experience in getting your money deployed? Are there delays like all the horror stories I hear implay? I’ve never done the primary market so your post was really interesting to me. Thanks.

By: pullingmyselfup

pullingmyselfup — Mon, 03 Mar 2014 16:25:24 +0000

AAI: I actually prefer the secondary market. Why do you believe that there is only a small fraction of notes to choose from? My experience have been that there are more then enough notes.

By: Brent @ All About Interest

Brent @ All About Interest — Mon, 03 Mar 2014 15:29:26 +0000

I like the P2P lending but am somewhat restricted in Texas. I can only buy notes on the secondary market. This means I have a small fraction of notes to choose from and limited filters. I am adding $25/week to lending club to play around on the secondary market and so far it looks pretty good. They have added a couple of filters but it’s nowhere near the amount you can get if you invest directly. I’m finding decent notes but it’s tedious to do so. Therefore, I’m not planning on a huge account there yet.

Thanks for providing the filters and the strategy you use. This is helpful.

By: Dividenden-Sammler

Dividenden-Sammler — Sun, 02 Mar 2014 16:25:29 +0000

Hi w2r,

thank you very much for your answer!
Now it has become clear to me!
In Germany I have heard from Auxmoney, but I have never dealt with it.

Best regards
D-S

By: writing2reality

writing2reality — Sun, 02 Mar 2014 04:21:41 +0000

Lending Club is an American company that facilitates peer to peer loans between borrowers and investors. Peer to peer lending is a growing industry in which individuals, like myself, can lend money to other individuals. Lending Club is the market share leader for this industry in the United States with Prosper Marketplace being other major peer to peer loan facilitator. For those in Germany, I believe Auxmoney and isePankur are two options available to you for investment. Hope that brief synopsis answers your question!