P2P Accounts (Update) - SEPT 2015

On September 1st, our Lending Club account balance was at $7,436.31. We had $839.78 in available cash and out outstanding principal stood at $6,596.53. 

As our followers may already know, it has been more and more difficult to find and buy notes that meet our criteria.  Unfortunately, we don't have the time to search for notes each morning as we once had so we now rely on the automatic investing tool.  We've just haven't had much success through automatic investing.  So this past month, since we had way too much money sitting idle, we decided to open a new Loyal3 account. We will still keep our P2P accounts but plan to slowly move idle cash back to our bank account and invest the money into our new Loyal3 account. This was the reason for the -$1,987.44 net change to our account.

From our outstanding notes, we did receive $43.86 in interest. But was also had $26.27 in charged off loans so we only saw a net gain $17.58 this past month.

We did manage to pick up 5 new notes and thus invest $125 this past month. Hopefully that will help keep the account growing, albeit slowly than we would like. In all, we have a total of 413 outstanding notes and have seen a total of 846 notes paid in full.     

As you can see our  413 active notes are part of a very conservative mix with 69% of the notes being A Rated, 28% are B Rated, and 2% are C Rated.  We do not own any notes with a rating less than C. 

We are currently generating a Net Annualized Return of 5.25% on our seasoned notes. 

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On September 1st, our Prosper account balance was at $9,947.64. We had $1,187.19 in available cash and out outstanding principal stood at $8,760.45.

Although our Prosper account seems to be growing a bit faster than our Lending Club account, the struggle to find additional notes and having too much idle cash also exists for our Prosper account. 

From our outstanding notes, we received $601.63 in payments from our active notes. From those payments, we received a total of $56.89 in interest. But was also had -$5.76 in charged off loans so our net gain was $51.13 this past month. We also managed to re-invest $506.00 into new notes acquired this past month.

Similar to our Lending Club notes, the our Prosper notes are invested into a similar conservative mix. As you can from the pie chart above, majority of our notes are have an A or AA rating, although we do have C rated notes, they make up a very small part of our investments.  As noted above, we unfortunately have way too much idle cash.  That will change as slowly begin to withdraw the idle cash and invest into our new Loyal 3 account.  

We are currently generating an Annualized Return of 6.98% on our seasoned notes. 

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Below are the updated numbers that include both Lending Club and Prosper accounts: 

Total Value of Both P2P accounts: $17,383.95

Estimate Average Interest Earned: 6.11%

Click below to view our peer-to-peer lending accounts history

PEER-TO-PEER LENDING ACCOUNTS

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NOTES CRITERIA:

Our family has been investing in peer-to-peer lending notes for approximately 3 years now. And because of past defaults, we have now refined our search criteria. As a result, we now take a slightly more conservative approach with the notes we invest in. Currently, we only invest in notes that fit the following initial criteria:

• Amount requested is under $6,000;
• Credit score of 700 or more; and
• Monthly payment will be less than $250.

From those we evaluate (Employment Status):

• The borrower's income (prefer > $50,000 but depends on amount requested);
• Length of employment (must be > 2 years); and
• Their occupation (certain occupations, known to be more secured, are more desirable).

We then look at (Ability To Pay):

• Their credit history;
• Revolving balance; and
• Debt to income level, etc.

We do not invest in any notes where borrow is currently delinquent, of if they have had  a public record within the last 12 months. We also do not invest in notes where the description provided is "Other." We feel that there is too much risk involve when the borrower is not willing to reveal why he/she needs the money.