At the end of October, I had a total of $4,046.64 in outstanding notes, another $200 (4 notes worth) committed to loans that were in the process of being funded, and a few hundred dollars of cash on hand.
During October, I continued to receive payments from borrowers that I backed with my initial investments. As that money accrues, I’ll be reinvesting it into $50 notes, just as I do when investing any new money that I deposit.
Looking inside my portfolio, I had 83 active notes, which included mostly Grade C notes (60), with a handful of Grade D (22) and E (1) notes. This reflects my overall strategy, which is to target somewhat riskier notes to achieve higher returns.
Related: Check out my Lending Club review to see my loan filters…
The average interest rate of these notes was 16.07%. As I’ve noted in the past, however, this doesn’t account for the likely occurrence of defaults, so the effective rate will undoubtedly end up lower.
As for my returns, Lending Club is currently estimating my Net Annualized Return (NAR) at 16.41%. Not too shabby.
And, because 100% of my notes are current, my adjusted NAR is exactly the same.
Of course, these numbers (even after adjustment) are still somewhat inflated by the fact that an unknown (hopefully small) fraction of my notes will eventually go late with some ultimately being charged off. As always, my goal is to achieve returns in the 10-12% range.
Going forward, I’ll be continuing to invest my monthly allotment as well as any principal and interest payments that I receive. And, of course, I’ll be documenting everything for you guys as it happens.
If you’re interested in playing along, you can get started here.