I am proud to announce that my investment of the year for 2010 is hands down, Lending Club. My return for 2010 will be between 12.9-13.1%
It’s been a while since I discussed Lending Club on my blog because I was waiting to see how the system worked over the course of an entire year. January 2011 will be my 1 year anniversary of being a Lending Club investor and I am very happy with their platform and of course the stellar returns.
I started with $1,000 in my portfolio and have slowly been putting more and more in. I used Lending Club’s “Prime” account note-placement program where they pick the notes for you, but overall I have been more successful with my own note picking strategy which has turned out to be very stable.
Here’s how my strategy works: I look for debt consolidation loans for borrowers with a stable employment of at least 4 years. I also read all of the questions other investors have asked. If the borrower identifies their home value and mortgage amount, I do not invest in any note where their mortgage is more than 95% of the current home value. I also look for good grammar and diligent answers from a borrower since I feel that is a reflection of their character. I am focusing on C-F grade notes. I do not invest more than $25 in each note so that I am able to diversify my portfolio across a large spectrum of borrowers. I am constantly reinvesting my principal & interest payments I receive into new notes to help amplify my returns over the long run.