Lending Club update

Things are moving slowly on the Lending Club front. As I wrote a few posts back I had a major problem when I turned on automated investing to fill one of the test cases. It immediately purchased 151 notes and drained the cash in my account down to nothing. I initiated a process with Lending Club to undo this mistake but they indicated that it would take 6-8 weeks to do. Meanwhile I was out of cash in my IRA Lending Club account.

This has made acquiring new notes for the test cases difficult. I can only invest cash as it comes in on my previous notes. This results in acquiring only 2-3 notes per day. It also is going to lessen the value of reporting on the test cases as they will have notes of more varied age than I hoped for. Thus, any measurements will be somewhat skewed,

I have decided to keep the 151 notes acquired during th automated investing fiasco. The notes that I have produce a somewhat steady cash flow, although not a high return on investment. At my current stage in life this is a reasonable choice for me.

I’ve also started to look art selling some of the longer-term notes on the secondary market FOLIOfn. I have some terminating in 2021 and will consider selling these to be able to totally get out by 2020. I’ve had limited experience trying to sell notes and am not overly optimistic. Right now, there are 320,000 notes available on FOLIOfn. I suspect the only way to sell many notes would be with deep discounts. I’ll report on my experiences with this soon.