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The Real LendingClub Returns?

Wednesday, April 28, 2010 - 7:04 PM
On LendingClub's homepage it's stated that "Investors have earned average returns of 9.64% as of 04/28/10." Jonathan at MyMoneyBlog reviewed his returns on his LendingClub loans that are 2 or more years old, and he's reporting an average return of 4-5%.

For those who want to give it a try, LendingClub is offering a $250 bonus when you're referred by an existing member. This requires a $2,500 investment. Check out the MyMoneyBlog post for more details.
1
Ken TuminKen Tumin5,469 posts since
Nov 29, 2009
Rep Points: 125,053
1. Thursday, April 29, 2010 - 1:30 AM
I have never understood why someone would "invest" in a peer to peer loan instead of a trust deed. 

With a trust deed, you at least have the real estate as collateral.

Most trust deeds are priced to yield 10-11%.  At 50-60% LTV.
1
AnonymousAnonymous2,282 posts since
May 9, 2010
Rep Points: 3,917
2. Thursday, April 29, 2010 - 10:54 AM
I continue to think that peer to peer lending is completely off topic for a blog devoted to untrasafe bank investments.   The two have nothing in common.
1
AnonymousAnonymous2,282 posts since
May 9, 2010
Rep Points: 3,917
3. Friday, April 30, 2010 - 7:16 PM
Well for almost one year (started in June 2009) I'm getting 11.57% for 2k invested.  No defaults.  I actively selected the loans and was very cautious on who I picked.  It sounds like mymoneyblog.com did not do too much research into each loan.

 
2
AnonymousAnonymous2,282 posts since
May 9, 2010
Rep Points: 3,917
4. Thursday, May 6, 2010 - 8:09 PM
I've been doing this for almost 2 years now and I'm happy to report my returns are still higher than 8%. That is after a few defaults (about 13 loans out of 400 or so I have made).  The trick for me has been diversifying and investing the minimum $25 per loan.  Every now and then I see a real good loan I like and plunge in $50 or $75.  I love it. It's really fun and you can't beat the return with a savings or CD.
1
AnonymousAnonymous2,282 posts since
May 9, 2010
Rep Points: 3,917
5. Thursday, May 6, 2010 - 8:30 PM
Is this even a real website, or just someone trying to smear P2P lending?  I invest with Lending Club and have a NAR of nearly 11%... it just plain makes sense to me.
1
AnonymousAnonymous2,282 posts since
May 9, 2010
Rep Points: 3,917
6. Friday, May 7, 2010 - 8:47 AM
I'm at 13% ROI thus far. I'm still new to the P2P lending sector, and my ROI could be reduced as time progresses, but I don't quite understand the negativity you're projecting about Lending Club, or P2P lending in general.
1
AnonymousAnonymous2,282 posts since
May 9, 2010
Rep Points: 3,917
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