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I like the idea. Check their filing with the SEC to see if they have problems. I think a recall a lender (not sure which one) that was not doing a good job of evaluating borrows. But this defect could be corrected by now.
I've had an account with Lending Club for about 3 years now. I'm running an average of 11.16% profit, and so far knock on wood have never had a default. But I'm fairly careful and look at the full page for each borrower and keep each loan investment to only $25.
Thanks for the feedback! I'll check out that blog. Initially, it sounded too good to be true, but it really seems like a viable and profitable alternative to more traditional short-term investments.
Never made much sense to me, the returns aren't much better than other investments... the collateral sucks...
if someone wanted to loan money to people, they could buy mortgage notes instead and have a house as collateral
people who say it is to diversify? how and why? why diversify into lending money to people for vacations, why diversify into people needing money for consolidation? and how does it make your portfolio better?
Never made much sense to me, the returns aren't much better than other investments... the collateral sucks...
if someone wanted to loan money to people, they could buy mortgage notes instead and have a house as collateral
people who say it is to diversify? how and why? why diversify into lending money to people for vacations, why diversify into people needing money for consolidation? and how does it make your portfolio better?
First, if you're only lending $25 to each person, your odds of default would be a lot lower.
I hedge my bets by only loaning to people that are asking for $5-7,000--I totally stay away from people wanting to borrow $30,000 "for loan consolidation" and such.
So far, every one of my loans has paid off, in full, and usually early. I'm not willing to commit more than maybe 2 or 3% of my total investment amount to this, so on that basis, it's great.
I am seeing some folks netting returns of 9%+ over the past few years through it, including their defaults and etc. Not too shabby!
i see that with my investments over the past few years as well... so what advantage does lending club provide?
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