The following is a graph of estimated ROIs for all lenders that have an average portfolio age >720 days with a portfolio size of at least 20 loans.
I quoted the chart and questions for the benefit of Your_bank.
Per an email from P* recieved in the last month or so trying to get me to lend again, they sent some stats on my performance. Please note this was the bigger one of two accounts I was using here. One for me and one for an adult child with his knowledge and consent. My publicly stated goal was to beat CD rates. I tended to bid on the cream of the crop of the type of loan candidates that are still allowed. Although I must have had at least one paying around 30% which actually bothered me for my usury....
Purchase Period Total Dollars Invested* Number of Notes* Average Note Age* Annual Return**
2009-2010 $0.00 0 N/A N/A
2006-2008 $42,230.68 597 570 Days 4.93%
Overall $42,230.68 597 570 Days 5.96%
The other account was in on many of the same loans and likely has a similar return. I still have 20 some loans paying so my final return may be higher than 6%.
I made loans longer than most of the people here did mainly because I really really really wanted P* to grow and flourish. I made a few "social loans" as well. Loans I knew could not likely be repaid that brought down my total returns. Unlike most of the lenders I also took two loans. One was just a test of the thing, and the other I paid off a little quicker than I had planned because I was afraid P* was going to go belly up before my payments could be processed to the lenders because of the cash burn rate. P* came across additional sources of funding and it continued.
I had never met a company before that went out of it's way to alienate users and partners. About the closest thing to it was a fund that made hard money loans in Las Vegas. They would come up with cash quickly based on collateral for bridge loans on Real Estate. The CEO gave a presentation about how borrowers would always be there with there hands out, but lenders were his partners and he always did what was best for them. Turns out he only did what was best for him, screwed the investors, lent the money to himself, his exwife, and his buddies who defaulted, then took the worthless company private for pennies on the dollar. My take home lesson was run at the first sign of improprieties or conflicts of interest in a financial company. When P3 made the loan obligations totally their assett I could only hear my mind yelling fight or flight.
