The last week has been a banner week for those wanting to find out details of how successful p2p investors put together their portfolios. We have had three leading personal finance bloggers share intimate details of their returns on Lending Club. Here is a quick analysis.
Steadfast Finances – first cab off the rank was Matt with Steadfast Finances. He also has the best return on his investment of the three bloggers with a 15.64% NAR. Matt has a strict investment policy of only investing $25 per loan and looking for borrowers who have job security. His portfolio consists of 279 loans with grades primarily C, D and E, but he has a renewed focus on loans with a NAR of 15% pre more so new loans are mainly grades D, E, F and G. He is adding to his portfolio to the tune of $100 to $150 per week and he spends 1-2 hours a week scouring loans to invest in. He has been an investor for 18 months and has no defaults as of yet, although there are five loans running late. But even that has changed as he shared on Twitter yesterday with two of his late loans returning to current status. Here is one of Matt’s helpful hints:
Don’t invest too much too fast. I know the temptation of investing in something new and cool is difficult to fight, but as with most things in life, exercise some patience by easing into P2P lending. Learn the ropes, get comfortable with the concept of investing in P2P lending before investing $10,000 into your account and end up investing $1000 per person. In my opinion, that’s the wrong way to go about it. [Read more…]