It’s been 6 months since my last Peer-To-Peer investment update, so I figured it’s time to drop another quick summary on the site. I’ll be changing things up a bit this time, and providing an update for both of my P2P investments: Lending Club and Prosper.
Here are my historical returns with Lending Club…
And here are the details…
|Date||NAR||Current Loans||Fully Paid||Lane < 1 month||Late 30-90 Days||Default||Charged Off|
|August 1, 2011||Initial Investment|
|May 1, 2012||15.34%||311||17||1||6||0||3|
|August 1, 2012||14.32%||354||24||0||9||0||8|
|November 1, 2012||14.15%||376||35||0||13||1||11|
|February 1, 2013||13.37%||390||47||2||13||1||19|
|May 1, 2013||12.59%||403||60||3||13||0||27|
|August 1, 2013||12.54%||413||80||4||12||2||36|
|November 1, 2013||12.755%||450||104||4||17||2||45|
|February 1, 2014||12.97%||486||128||3||21||3||53|
While I still see a high charge-off rate, the annualized returns seem to be settling in at slightly above 12%. My “late 30+ days” category is higher than it’s ever been, but my NAR is also trending up so I imagine that after a few of those late payments get charged off, I’ll return back to around 12.5%. I’m very happy with this return after 2.5 years of investing.
One other update on Lending Club… If you’ve followed the success of LC over the past few years, you may have heard that finding good notes were getting more and more difficult. This definitely was the case 6-9 months ago However, this no longer seems to be the case. This morning, as usual, I logged in to find about 10 notes that met my strict constraints. I’m having no issues keeping my money active.
When I started investing with Prosper, I had my doubts. You see, Prosper was around well before Lending Club, and this meant that they went through many of the growing pains early on that plowed the way for Lending Club and other similar platforms. So if you look around the web at Prosper reviews, you’ll find a LOT of negative reviews from people that tried it out around 2008-2009. Many people lost money, and few had good experiences.
So far, I’ve been extremely happy with my Prosper results. I started about a year after Lending Club, so my net annualized returns are still settling in. I wouldn’t assume my current NAR is something I can count on long term, and you can clearly see from the chart that they are still trending down. Fortunately, the curve seems to be flattening.
|Date||NAR||Current Loans||Fully Paid||Late < 1 month||Late 30-90 Days||Default||Charged Off|
|August 1, 2012||Initial Investment|
|May 1, 2013||18.1%||275||12||12||12||0||1|
|August 1, 2013||16.67%||298||45||15||21||0||15|
|November 1, 2013||15.8%||311||67||17||17||0||31|
|February 1, 2014||15.37%||316||97||13||12||1||50|
If you’ve read my previous LC and Prosper investment updates, you may notice that I’ve greatly simplified this report. I did this because I really don’t enjoy writing the reports, which fed my laziness about keeping up with the quarterly updates. Going forward, I plan on updating these charts quarterly.
With that said, if there’s any information you see missing that you’d like to see then just let me know in the comments.
If you like my investment results and want to try out LC or Prosper for yourself, then feel free to click on the banners below. You should know that I get a small payment if you sign up. (The purpose of this article is to show my honest results, but I’m not so cool that I’ll pass up free money either).
While my personal results have been very good so far, there is still significant risk in this investment – as with any investment. Keep in mind that my $10K and $15K initial LC and Prosper investments are still less than 2% of my overall investment portfolio, so this is a relatively small personal investment.