More experiences selling notes

I offered four notes for sale on FOLIOfn. I started with a slight premium and moved the markup down to a discount when none sold. I started at 1% discount, then changed to a 2% discount. Two of the notes sold at this discount and the other two were cancelled due to a status change. Basically, they had payments due and were in the process of having these applied. (Typically, there is a 4-5 day span from the due date to the date the payment is creditted to your account in Lending Club.)

I’ve decided to sell all my notes that don’t end until 2021. It appears these will have to be discounted to sell. With the discount and 1% transaction fee I could lose around 5% on each note I sell. I don’t like it, but it isn’t as bad as it sounds. Since the principle left on these notes is less than $20, the loss on each would be less than $1. And the cash I get back can be reinvested.

Today, I offered 10 more for sale at slight markup around 0.5%. Based on past experience I don’t expect these to sell so I’ll start discounting these more each day. These notes are picked randomly and they all have about the same principle remaining. I haven’t looked at the notes in detail so one could assume some will be more attractive than others. They range in grade from A to D with interest rates from 7.91% to 18.49%. They are all current on their payments.

Check back at the end of the week and I’ll update the status of these.