01DEC2012 First Update! BOOOM

So this is a little late to be starting but better late than never! I started my Lending Club account back in July of 2012 I believe. Im sure I can look it up but I wont.

*So for those of you who don't know what Lending Club is (or prosper is the other well known one) its a people to people lending site. Instead of people going to a big bank wanting a loan and maybe getting denied for something silly and/or getting a huge interest rate you go here and people invest in your loan. So instead you have a big group of people investing in your loan (wait kinda like a bank except the bank gets all the royalties).

*Depending on you credit history (all personal information is kept from potential investor and actual investors) you get a grade from A to G..A being the best out there but the lowest interested rate (meaning less return for investors) and G being the bottom of the totem pole out there which has a larger interest rate (bigger return for investor but also more riskier because these tend to default more..or so people believe).

*You can request a loan between 1000 and 35000 and invest in people for as little as $25.

*The website states they screen all loans and deny a lot of requests. But even then you get a decent amount of defaults (just like a bank would).

*like a bank if someone goes bankrupt you lose your money.

*if someone is late and gets a $40 fee (I believe that's the fee)  than lending club takes out their 1% and the investors get the rest.

alright enough about that..any more questions you guys can visit Lending Club and read up on it. Clicking on the link will open a new window so you wont lose this site. :-P

Alright now onto my story. I heard about these sites years ago and never really thought about it. Then last summer I was looking for other ways to invest my money. Actually for a long time I thought it would be a cool idea to have a large group of people invest in each other (but with my idea it would be a group of people who know each other investing in each other interest free but just doing so to get each other out of debt). anyways so I get across this site during my search and it caught my attention. I did a lot of research on it and the ratio of good to bad reviews were 10:1. I was shocked how many good things I read about the site in comparison to the bad. So I thought what the heck I'll give it a shot. Now there is a lot of strategies people put out the get the most out of your money. I for right now don't follow any of these. I wanted to just jump in and get crazy. I don't filter out different people or research as much as I probably should and I don't recommend doing what I do. lol. I wanted to jump into the high risk loans and see what I can accomplish with that. My Goal for this year was $2000 invested and if it went well then $5000 more next year.  I am glad to say so far I have no defaults/charge offs. I had one that was a few weeks late but paid before the grace period ended. I just invest the minimum of $25 for now. I didn't want to invest more and have someone default and I lose a bunch of money. I figured I wouldn't cry too much if I lost $25 here and there. I am glad to say things are good. You'll see in the pictures below but no one has defaulted. Everyone has paid and two have fully paid off (I am assuming they found a better interest rate). OK now onto the pictures...i like pictures personally...words can be boring.

 The picture to the right is my home page and pretty much shows everything as of Dec 1st. In payments I roughly get a dollar a day. (I'm trying to make it so I get a total of $50 a month so I can reinvest twice a month). My net return is a whopping 22.41%! where else can you get that?!?! But that I'm sure will go down a bit with less riskier investments and people defaulting. As much as I don't want defaults I must learn to expect them.




       

 The picture to the left is my portfolio. I have my investments right now broken up into actually six categories but I have only invested in four. I have its split up into high, medium, and low risk and from those I have them separated into 36 month and 60 month loans. then as you can see it tells you your expected monthly payments from each of the categories.

Here is a look at some of the Notes I invest in. Most are high risk and I invest some in the low risk. This site give you a ton of information letting you know if they are current, late, new loan, interest gained everyday, and just about anything you wanted to know.

I'm gonna try to do an update with pictures every week. (Saturday morning) We'll see how long that lasts lol. Maybe I'll post helpful pages and reviews and what not. Maybe I'll rule the world. Who knows. Have any comments or questions or helpful tips feel free to shoot them my way.