I Thought it would be interesting to give an update on my status. I haven't been calculating any return details, but here is where I currently stand and how I view the experience so far.
Started $31,000 loans in May 2010 (325 notes at peak in May)
Current $19,000 outstanding
Principal paid $12,800 (also sold 125 notes at ~3% premium)
$270 charged off (3 notes), but that doesn't tell the whole story. I have another 17 notes totaling $2,500 in the 15-90 day range I fully expect to default
$3,900 payments in excess of principal
So the way I look at it is this-----> $3,900 minus $2,500 minus $270 puts me about $1,200 in the black.
I continue to put all my notes up for sale at a 3% premium and sell 5-10 a week. I figure if I make a little money I did ok, but not enough to compensate for the time and the risk.
Any thoughts are welcome. I'm not sure how to calculate a return on this, but if I do some simple math of $1,200 on my initial investment I get 4%. If I use an average balance for the year and then annualize the return I get around 8-9%. Any way I look at it I don't think I'll hit my 12% bogey.