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Friday, October 11, 2013

Noted Mistakes

So After my initial setup of lending club I have also bought about 15 more notes in the trading platform and I have noticed a few things that I don't like and notice so mistakes that I have gotten my self into.

We I bought about 2 notes last week and these notes were not negative in value compared to the price in which I bought the notes. But... I bought a few notes last night that I thought were good, but they all show a negative income or ROI. These were cheaper notes that only have 10 months or less and so they only costed around $5+ to $10 but I started doing the math and some of these notes had to following information.


I bought a $6.00 note and then looked at the Monthly payment amount X the months left and got 6.09 Not bad but not good either on .09 cent profit.



I bought a $5.59 note and then looked at the Monthly payment amount X the months left and got 5.68. Again Not bad but not good either on .09 cent profit.

I bought a $5.71 note and then looked at the Monthly payment amount X the months left and got 5.71. This is Bad NO profit here. Waste of time.

I bought a $5.89 note and then looked at the Monthly payment amount X the months left and got 5.74. This is Bad NO profit -.15. Waste of time. Seems that a payment went through last night before I could take ownership of this note.

Again, I bought a $6.33 note and then looked at the Monthly payment amount X the months left and got 5.68. This is Bad NO profit -.65 Waste of time. Seems that a payment went through last night before I could take ownership of this note.

Again, I bought a $8.64 note and then looked at the Monthly payment amount X the months left and got 7.91. This is Bad NO profit -.73 Waste of time. Seems that a payment went through last night before I could take ownership of this note.

I bought a $9.58 note and then looked at the Monthly payment amount X the months left and got 9.73. Again Not bad but not good either on .15 cent profit. But I might miss the payment is the note doesn't settle today.

I bought a $7.79 note and then looked at the Monthly payment amount X the months left and got 7.82. Again Not bad but not good either on .03 cent profit. But I might miss the payment is the note doesn't settle today.

I bought a $8.63 note and then looked at the Monthly payment amount X the months left and got 8.79. Again Not bad but not good either on .16 cent profit. But I might miss the payment is the note doesn't settle today.

I bought a $8.59 note and then looked at the Monthly payment amount X the months left and got 8.85. Again Not bad but not good either on .22 cent profit. This is a little better, But I might miss the payment is the note doesn't settle today.

I bought a $7.73 note and then looked at the Monthly payment amount X the months left and got 7.77. Again Not bad but not good either on .04 cent profit. But I might miss the payment is the note doesn't settle today.

Hmmm. This doesn't look good... I will have to chalk these up as  minor set backs as a learning charge.

Future notes to my self and others. Make sure, double sure, that there is a + turn around and don't pick up notes that are within a 4 day window of the borrower making payments. You might miss that profit and it might cause you to be negative.

I think for now I will stop buying existing notes unless they have a larger profit margin and the borrow is in good standing on their loans. I will just stick to buying new notes for now.


Tuesday, October 1, 2013

Summary of September

So this month was very exciting. Let's go over everything a see how we are for our first month in becoming financially free and also setting up for a nice passive income.

So this month 
  1. I signed up to Amazon Affiliations 
  2. Assigned my Google Adsense account to my blog
  3. Filled out and application for affiliation with Lending Club
  4. Started isolating my debt, preparing to pay off debt.
  5. Opened an lending club account to start investing.
    • opened a Note trading account (FolioFn) as well
  6. Bought two share of stock in PSEC to earn dividends. 
Setting up the affiliation with Amazon was pretty easy only took a minute or two. (Done)

I already have an approved Adsense account so associating the account wasn't too to hard. (Done)

As for the Lending Club Affiliation I haven't heard anything back on that yet. (Pending)

I took a long look at my debts and started to pay and extra $250 at the minimum towards a credit card that is one of two cards that I have. This card has a balance as of today of $2812.67, which currently has nothing due for the monthly payment. (never NOT[double negative] make a payment) All the rest will be paid at their normal level. If I have more funds available in October I will shoot for a goal of paying $1000 towards that card. 

Now with Lending club I invested $1000 to start. My goal is to add $250 every month to invest in more Notes. 

As you can see below in the summary. I have earned $1.57 in interest since 9/19/2013 (not bad, something is better then nothing) I invested all $1000 into 40 note ($25 each). 27 loans have been issued and 13 more are still in review. 


I started out with just the defaults to get thing invested fast. this is the first portfolio that states "Auto Day 1"
Then over the next few days the notes went from "InFunding" status to "InReview" and as you can see 8 notes dropped and reduced my "Auto Day 1" from 40 notes to 32. So I had to create another portfolio for just the once that dropped over the weekend called "The Beginning" and then on the first sold week as the onces from "The Beginning" fall off. I created another portfolio called "Week 1"... but now that September is over I will just combine all the portfolios into one."The Beginning".  
I hope i didn't lose you there. :)

I also build out a prediction excel sheet to help with working in my goals. Also to track all interest earned payments received and ROI's

One of my goals in the short term is to get the account to 10,000 before the end of next year. And then look into opening another P2P investment account with Prosper.

I think this is all for now. I will add more later. I'm thinking that I will go over the excel spread sheet that I have developed once I get thing cleaned up and organized little better.