My August Lending Club Performance Update – Earning a 15% Annual Rate of Return

by Hank Coleman

As of today, I’m enjoying a 14.97% annualized return on my investments with Lending Club, the awesome peer to peer lending investment.  For those of you who are not familiar with Lending Club, there are usually about 180 loans on the website at any given time waiting for lenders like you and me to come along and fund them.  And, you can search through them all by several criteria. 

lending-club-returns

My portfolio of loans primarily contains a mix of Grade C, D, and Grade E loans.  I do not waste my time with conservative A or B class loans which do not pay very much interest.

Try it Now! Join Lending Club.After eight months of lending money to individuals, I have not had a single loan become late.  All of the statuses of my ten loans are still current.  While savings accounts, money market funds, and certificates of deposit are paying minuscule rates of return, I continue to be quite happy with my Lending Club experience and the excellent return that I have been earning.

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{ 4 comments… read them below or add one }

RobG September 2, 2009 at 7:19 am

Glad to see you’re portfolio is default-less after 8 months. That means you must be a superb loan picker. Were you a loan officer in your previous life?

Thanks for keeping us up-to-date on your Lending Club investment!
Rob

Matt SF September 3, 2009 at 10:16 pm

Nice work! I just signed up a few days ago, and I targeted the 12% to 13% range loans. Let’s hope my “luck” is as good as yours.

Hank September 6, 2009 at 8:24 pm

Matt,

Check out this blog post that I wrote a few months ago where I talked about the exact criteria I look for when I chose which loans to invest in. If you are picky, careful, and follow your gut, you will pick the best loan applicants and be well on your way to making a crazy high annual return!

http://ownthedollar.com/2009/06/lending-criteria-making-loans-lending-club/

Jason September 30, 2009 at 7:18 pm

Congrats Hank,
You and I seem to have started using Lending Club at about the same time. I’ve had a great experience so far, and I hope to continue the run. I’m looking for forums to talk to other investors like us about our experiences wih P2P lending. Right now I’m in the 95th percentile on my notes, but I’m sure there are tricks or tips I could be learning. Here’s to a continued dialog.

Best wishes,

Jason

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