b*******s
发帖数: 308 | 1 I want to share my lending club experience here:
Open a lending club account (www.lendingclub.com) and deposit money via
paypal. You can add as much money as you want ($5000 each time). You can add
many times even with different credit cards. And you can even open many
lending club accounts with the same ssn number.
From the trading platform, you can buy the good notes (credit score and
history are good, etc....) with >1% discount. Some time you can get >20%
discount. When you sell your notes, there is a 1% transaction fee. It is
quite similar to stock exchange. The difference is that the interest is fixed (up to 23 ish% APY).
At the beginning, you can not withdraw your money to your checking account.
But you can withdraw it to your credit cards. After your selling is great
than your cc deposit, you may withdraw your available cash to your checking
account.
My experience: I deposited $30,000 via credit cards in 06/2010. I have sold
more than $330,000 notes so far. And the earnings are more than $8,000. If I
add the 1% fee to the earnings, they would be more than $11,000. Another
benefit is that I had -$3,000 loss (when I calculated the schedule D) for
the tax return this year of 2011.
If you get a referral from someone to open an account, you can get a bonus
up to $300 as I know. The person who recommend you will get nothing, which
is unfair I think. |
y****i
发帖数: 17878 | 2 LendingClub could be an excellent alternative for someone who seeks higher
return, but there are risks associated to it as always just like other
investment tools.
LendingClub/Paypal route might have loopholes to be taken advantage of, but
from what I read it is not an easy sail.
I don't quite follow your math:
"I deposited $30,000 via credit cards in 06/2010. I have sold
more than $330,000 notes so far. And the earnings are more than $8,000. If I
add the 1% fee to the earnings, they would be more than $11,000. Another
benefit is that I had -$3,000 loss (when I calculated the schedule D) for
the tax return this year of 2011."
add
fixed (up to 23 ish% APY).
.
【在 b*******s 的大作中提到】
: I want to share my lending club experience here:
: Open a lending club account (www.lendingclub.com) and deposit money via
: paypal. You can add as much money as you want ($5000 each time). You can add
: many times even with different credit cards. And you can even open many
: lending club accounts with the same ssn number.
: From the trading platform, you can buy the good notes (credit score and
: history are good, etc....) with >1% discount. Some time you can get >20%
: discount. When you sell your notes, there is a 1% transaction fee. It is
: quite similar to stock exchange. The difference is that the interest is fixed (up to 23 ish% APY).
: At the beginning, you can not withdraw your money to your checking account.
|
b*******s
发帖数: 308 | 3 The key for the math is: sell the old notes and buy the new notes again. |
b*******s
发帖数: 308 | 4 I answered some questions here:
The cc deposit is considered as a purchase for all the credit cards.
Note is like a stock to some extent. For example, someone borrows your $500, you have $500 note. the risk is that someone will not pay the money back (he filed a bankruptcy) or on time (late on payments like a credit card). Therefore, when buying a note, check its description carefully. Choose a note when you are comfortable. Buy notes with small amount (like $25) is better to reduce your risk. If you buy a note of $2000, and the borrower did not pay it back, you are screwed. |
y****i
发帖数: 17878 | 5 OK, your initial investment was $30,000. You bought low and sold high, you
repeated this 11 times, your net gain was $8K after $3K fees
that sounds like a lot of work to me.
also, while you can deduct $3k in Sch D, you need to report $11,000 gain,
don't you?
【在 b*******s 的大作中提到】
: The key for the math is: sell the old notes and buy the new notes again.
|
b*******s
发帖数: 308 | 6 Some more answers:
You have to buy notes with the initial deposit. For example, you deposit $
5000, you must buy $5000 notes. Then if you sell some notes like $25, you
can withdraw the $25 to your credit card.If you have sold more than $5000,
then you might be able to withdraw the cash to your checking account.
Yes, someone else will buy your notes if your notes are good and have a
discount, like 1% discount. So the key is that you buy good notes with big
discounts most of the times. Otherwise, you have to wait for the interest to
earn money.
FYI, I sell about $1000 every day. Sometimes $3000 a day.
If you have any more question, please let me know. |
b*******s
发帖数: 308 | 7 Do not forget the interest that I earned, too.
Yes, it needs some time to check and buy the good notes and compete with
other people. The good notes with >10% discount will be gone in a minute.
I do not need to report the $11,000 gain when I file the tax return. The
lending club issued me some 1099 OID forms with less than $1000 interest.
【在 y****i 的大作中提到】
: OK, your initial investment was $30,000. You bought low and sold high, you
: repeated this 11 times, your net gain was $8K after $3K fees
: that sounds like a lot of work to me.
: also, while you can deduct $3k in Sch D, you need to report $11,000 gain,
: don't you?
|
b*******s
发帖数: 308 | 8 I have $100 bonus and $300 bonus referral.
It's easy and free to join. Because I invited you, you'll receive a $100
bonus on an initial investment of $2,500 or more.
It's easy and free to join. Because I invited you, you'll receive a $300
bonus on an initial investment of $10,000 or more.
I do not know if you will get the bonus or not if you just buy and sell
notes. Maybe you have to invest the original notes first with your initial
deposit. After that, you can sell and buy notes at the trading platform.
Some states in the USA are not allowed to invest the original notes. But all
the states are allowed to use the trading platform. |
|
b*******s
发帖数: 308 | 9 If you need a referral, please give me your email address. This email
address will be used to open your lending club account (your user name). |
y****i
发帖数: 17878 | 10 good for you that this worked out great
readers of this post should be aware that you will be investing into
unsecured personal loans, and using paypal is limited to initial funding of
up to $5k. and selling your note in the secondary market requires a lot of
work and luck
lastly, your tax situation might be different from OP
as a LendingClub investor myself for about 4 years, all I can say is that it
is not for everyone.
【在 b*******s 的大作中提到】
: Do not forget the interest that I earned, too.
: Yes, it needs some time to check and buy the good notes and compete with
: other people. The good notes with >10% discount will be gone in a minute.
: I do not need to report the $11,000 gain when I file the tax return. The
: lending club issued me some 1099 OID forms with less than $1000 interest.
|
|
|
b*******s
发帖数: 308 | 11 Before you go, read the prospectus:
https://www.lendingclub.com/extdata/Clean_As_Filed_20101015.pdf
Pay attention to "Financial suitability" on Page 5. It looks like all the
states can invest the notes now. They must have changed the rule. |
b****z
发帖数: 4485 | 12 you will lose money, FINALLY. |
b*******s
发帖数: 308 | 13 Why?
I have withdrawn some money because I need the money for some reasons. I
still have $20,000 in there. |
g********x
发帖数: 4671 | 14 What if the borrower of your money ends up cannot pay back the money he
borrowed? |
b*******s
发帖数: 308 | 15 You will lose you money. The borrower will ruin his credit history. |
m****m
发帖数: 2211 | 16 too risky
add
fixed (up to 23 ish% APY).
.
【在 b*******s 的大作中提到】
: I want to share my lending club experience here:
: Open a lending club account (www.lendingclub.com) and deposit money via
: paypal. You can add as much money as you want ($5000 each time). You can add
: many times even with different credit cards. And you can even open many
: lending club accounts with the same ssn number.
: From the trading platform, you can buy the good notes (credit score and
: history are good, etc....) with >1% discount. Some time you can get >20%
: discount. When you sell your notes, there is a 1% transaction fee. It is
: quite similar to stock exchange. The difference is that the interest is fixed (up to 23 ish% APY).
: At the beginning, you can not withdraw your money to your checking account.
|
R*N
发帖数: 2173 | 17 http://www.pluggedinfinance.com/2009/06/i-am-suspending-my-lend
add
fixed (up to 23 ish% APY).
.
checking
sold
I
【在 b*******s 的大作中提到】
: You will lose you money. The borrower will ruin his credit history.
|
x*g
发帖数: 689 | 18 sounds very interesting, could you say more for the tax with your experience
? thanks!
of
it
【在 y****i 的大作中提到】
: good for you that this worked out great
: readers of this post should be aware that you will be investing into
: unsecured personal loans, and using paypal is limited to initial funding of
: up to $5k. and selling your note in the secondary market requires a lot of
: work and luck
: lastly, your tax situation might be different from OP
: as a LendingClub investor myself for about 4 years, all I can say is that it
: is not for everyone.
|
y****i
发帖数: 17878 | 19 http://www.lendingclub.com/kb/index.php?View=entry&EntryID=238
experience
【在 x*g 的大作中提到】
: sounds very interesting, could you say more for the tax with your experience
: ? thanks!
:
: of
: it
|
b*******s
发帖数: 308 | |
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l*****e
发帖数: 413 | |
f**********n
发帖数: 3081 | 22 看来老夫是没有与时具进啊,对这玩意是闻所未闻. |
C******n
发帖数: 9204 | 23 看来就是说可以用cc来fund一个能炒bond的帐户？
来decompose一下收益：
1 cc来fund。不解释
2 炒bond的cap gain\loss。
第二点不影响第一点。 |
s**c
发帖数: 34339 | 24 其实可不可以fund完就withdraw到银行帐号上呢 |
g**n
发帖数: 25142 | 25 不行吧？但是可以买个货币基金什么的，等于存款？
【在 s**c 的大作中提到】
: 其实可不可以fund完就withdraw到银行帐号上呢
|
s**c
发帖数: 34339 | 26 我就是想，要是可以的话，就每个月都用cc fund几千进去，然后再取出来，就当赚cc
点数了
【在 g**n 的大作中提到】
: 不行吧？但是可以买个货币基金什么的，等于存款？
|
