Tell me about lendingclub.com - pretend I'm a 4-year old child

You let someone borrow your piggy bank and IF they give it back, they will give you some extra coins to put in it

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You let someone borrow your piggy bank and IF they give it back, they will give you some extra coins to put in it

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Nicely played.

I looked into it briefly, if you have the time and inclination to actively manage a large number of notes (several hundred) you can supposedly get a nice return. Keep in mind that the income you get will be considered ordinary income by the IRS, not capital gains.

The guys who have been doing this for awhile seem to be getting around 10% pretax overall even including defaults, which isn't a bad number at all these days. Just make sure it's worth your time to spend on it. If you invest $25k then you're only making about $2.5k in taxable income for the year. It might be worth it if you invest more than that though. Or maybe just invest in a decent corporate bond ETF - you won't get as high a return but then you can watch TV instead.

I have some candy in my black van that you can enjoy while I explain on it our road trip.

I have around 850 notes, $25 in each, I set my investing at 7% A loans, 45% B loans, 35% C loans, 10% D loans, and 3% E loans, I stay away from F and G loans, great returns but to risky for me.

I get a Net Annualized Return so far right at 12%, however every time I get over $25 in my account it is put back into another loan so my compounded return is just over 20%.

They have done over 6 Billion in loans, the average charge off is 2% of loans, with only $25 per loan I expect to lose less then I would pay in brokerage fees over the same time frame.

Since I don't take money out and let it compound at around 20%(after fees and charge offs)I expect to double my money every 3.5 years.

I put in my first few buck last week. Your strategy is similar to what I've researched I should do.

LINK


Borrowers reduce their rates by an average of 30%1!

Borrowers who used a personal loan* via Lending Club to consolidate debt or pay off high interest credit cards report in a survey that the interest rate on their loan was an average of 6.6 percentage points lower than they were paying on their outstanding debt or credit cards.

How can Lending Club offer better rates to borrowers?

The loan application process through Lending Club bypasses many of the costs and the complexity of a traditional bank loan. These savings are passed through in the form of lower rates. Lending Club does not have the high administrative, marketing, and infrastructure costs of a traditional bank loan program and therefore can reward members with an efficient process and cost savings.

lots of info, to much to put here, follow link and read up on it.

If anyone wants more info please e-mail me at dantes69@iwon.com and I will have them e-mail you all the info you need, I get credit for it.
Thanks.

You get asked this question signing up:

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State and Financial Suitability
I currently reside in one of the following states: CA, CO, CT, DE, FL, GA, HI, ID, IL, KY, LA, MA, ME, MN, MS, MT, NH, NV, NY, RI, SD, UT, VA, VT, WA, WI, WV, or WY;

I have an annual gross income of at least $70,000 ($85,000 if residing in CA) and a net worth (exclusive of home, home furnishings and automobile) of at least $70,000 ($85,000 if residing in CA); or a net worth of at least $250,000(determined with the same exclusions) ($200,000 if residing in CA), OR, if I live in Kentucky, that I am an "Accredited Investor" as determined pursuant to Rule 501(a) of Regulation D under the Securities Act of 1933, AND,

I will not purchase notes in an amount in excess of 10% of my net worth, determined exclusive of my home, home furnishings and automobile and if I live in California and do not satisfy any of the above tests, I will not invest more than $2,500 in Notes

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