LendingClub - Thoughts?

First, read the prospectus, it is on their website and only 122 pages!

Risks:

1) Minimum 3 year terms
2) Once loan closes, little transparency to borrower due to privacy laws
3) Not available in all states
4) Actually buying LendingClub note, so you are exposed to them as well as borrower
5) If LC goes under, there is no one to service the loan
6) Rates are actully too low for the risk, current hard money lending with 50-75 ltv's is 14/4
7) There is NO collateral in most cases, just unseceured loans

Not worth it for the rates they offer and the 3 year term

Also, there is a secondary market for these loans, so you should check it out first and buy some seasoned notes to start

https://www.lendingclub.com/foliofn/aboutTrading.action

Thanks Apt_Boy, pretty much confirmed my skepticism.

bjw... oh, r you looking for yield? afraid of inflation? how'd you realize that I started that company? See I earn $400K as "salary" meaning based on my $200K to start that company, I am earning 200%/annum. That portfolio goes to crap, you are left holding the bag.

3 yrs is a long lock up. For friends and family, I let them get out anytime... .i.e. I have discretion to buy out any ppl at par.. or 95% then I buy them a car 2 yrs later so they are whole. Or I let them go on junkets with me, a yacht, vacation, or a new bentley.

See bjw, I knew if you looked hard enough, you'd understand ppl like me earn 100% and give you ninnies 10% and yet you still thank you profusely. : )

w67th, you are hilarious. But really bad at giving decent financial advice, you ninny.

good financial advice--you shouldnta bot that apt at the peak

Good general advice - don't talk outta your bottom, especially when you have no idea what you're talking about.

good financial advice--you shouldnta bot that apt at the peak

Good life advice - get a spell checker. And a fact checker.

Back to topic, hard money real estate lending is a much better option or purchasing discounted car notes.

As far s the car notes, you can do it directly, but it is a lot of work or you can us an originator to do all of the work rates are from 8.5% up to 20%, depending upon risk and tenor...this product is good becasue you can go as short as 6 months, you have collateral and you can pick the lts