When looking at lendstats, I can't seem to make any combination of filters produce a significant amount of loans that reach anywhere near 15% return. Here's an example of what I've got so far, can you help explain why the returns shown aren't higher and what you're doing differently?
Thanks man, I really need to get on this before I miss out on my sign up bonus. Also, how often to promotional bonuses come up for existing members? I remember you mentioning that you often hold your profits to reinvest during promos.
I recenty started an account from LC, a little disconcerning that they called me three times to answer any questions I have despite telling them I don't need any help. Hope they're not going bankrupt.
anyway, I invested in mostly B, C, and D rank notes and got somewhere between a 10-15% return. One annoying thing is that the return they show you is the estimated one after accounting for the chance of defaults so it says 10% expected return. But without any defaults I should be getting 15%.
With prosper, I only got 2 defaults over 3+ years and those two were the riskiest ones with crazy 25%+ return rates. Lesson learned
Looking at your link, it says 22% interest rate with an expected loss of 8.9%, but that's complete guesswork. As long as you pick the right loans, I would expect a far lower default rate.
Try making a few changes:
I get more than 15% when I do this:
I also use E1-G5 loans, which lowers the percentage a little but gives you more loans in the sample size.
Thanks Leo. I have to invest $5k in a short amount of time to qualify for the promo bonus and with the strict filters you showed, there're only about 250 loans in the past 6 years that gave those returns, loading up those same filters on Lending Club on any given day might show you only one or two loans to invest in.
You don't know anything I don't-- either I have gotten lucky or that lendstats thing is using more conservative guesses than reality. Not sure which. Still-- 10.8% is really good!
They don't do promos anymore...
I think this promo that gives 1.5% bonuses on $500+ recurring deposits is still active, though it's not really advertised so you may have to message your rep:
How do you deal with selling late-paying notes? Do they get bought easily or is it too much of a burden?
A while back I had a friend named Andrew. The tie that bound us was our love for gambling, not as a thrill-seeking diversion, but as a practical application of statistics. We made money gambling together, exploiting any edge we could find, but we also gambled between the two of us.
I forget how it started, but eventually we got to the point where no assertion could be made without stakes being attached to it. Any sentence beginning with "I bet you anything..." was taken literally and was likely to result in a wager of some sort.
For example, if we were talking about going to a restaurant, and I said that it was probably closed, and he thought that it was open, he might ask me what odds I'd give him that it was open. If I was really sure, because I'd been there at that time the day before, I might offer him 3:1. If I was barely sure at all, I might offer him 1:1. Confidence in estimations determined the amount bet.
The interesting thing about this practice was that it made us both think very carefully about the accuracy of all of our statements. The most embarrassing thing ever was to say, "I bet you anything that I'll be on time..." and then be unwilling to back up the assertion with a bet. Failing to bet was an admission that you'd just said something that you had no real confidence in.
I thought it would be helpful for me to dissect the thought processes around my first "official" incursion into blogging so I can have a guidepost to look upon in a few months.
This is not my first attempt at blogging. One of my favorite quotes goes somewhat like this, I'm paraphrasing: "How you do one thing is how you do everything," but I've somehow been able to rationalize blogging as the ONE thing I didn't have to do like all the others.
I should have heeded the call long ago, when I met a prolific blogger and entrepreneur. The first thing he asked me was: "Do you blog?" I knew then that as much as I could contribute by commenting on his posts, there was a whole game being played that I was missing out on.