number5
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Post by number5 on Nov 9, 2018 15:42:31 GMT
... I am struggling to see how you could be making 11% on AC with that strategy... You can't. Not any more - some time ago loans over 10% may have been commonplace, and you will see a few remnants of that in the lower loan numbers now. But these are very difficult to buy into, for obvious reasons. A more sensible target for MLA now would be 8%, I think. That is more what I was thinking based on what I have seen so far of AC.
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Nov 9, 2018 15:57:14 GMT
Apologies if Ive misunderstood but you dont seem to understand how it works. hammertime number5 you dont have to spot loans that are available to buy and you will never see most of them. Just decide what loans you wish to invest in and set targets on them, make sure you have funds available in your MLIA (swept to QAA so you are earning some interest) and the system will buy when there is availibilty Apologies...I have not yet invested in AC yet. Was trying to gage an understanding of the return I could make following a strategy that I would be comfortable with. So are you saying, you can set a setting where if any loans come available at 9.5% say for this example, it will automatically take funds from your QAA and invest into them, without you having to do anything? Yes. You can set a buy target on any loan on an individual loan basis. You need to have funds within the MLIA but when not required you can set it to 'sweep' those funds into the QAA. When there is availability on a loan you have a buy target on, the system automatically calls the funds from the QAA to buy into that loan. The system will buy a proportion of the sum availiable for each lender with a buy target. So if 100 people want £10 and there is £100 on sale it will invest £1 for each lender. Obviously if there is sufficient availability to fulfill all requests then the full sum will be purchased at once. Funds have to be in the MLIA not directly invested in QAA or cash account or it wont buy.
You cant set a generalised target ie buy any loan over 9.5% it has to be a target for each individual loan, thats why it is manual investment account.
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number5
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Post by number5 on Nov 9, 2018 16:06:44 GMT
Apologies...I have not yet invested in AC yet. Was trying to gage an understanding of the return I could make following a strategy that I would be comfortable with. So are you saying, you can set a setting where if any loans come available at 9.5% say for this example, it will automatically take funds from your QAA and invest into them, without you having to do anything? Yes. You can set a buy target on any loan on an individual loan basis. You need to have funds within the MLIA but when not required you can set it to 'sweep' those funds into the QAA. When there is availability on a loan you have a buy target on, the system automatically calls the funds from the QAA to buy into that loan. The system will buy a proportion of the sum availiable for each lender with a buy target. So if 100 people want £10 and there is £100 on sale it will invest £1 for each lender. Obviously if there is sufficient availability to fulfill all requests then the full sum will be purchased at once. Funds have to be in the MLIA not directly invested in QAA or cash account or it wont buy.
You cant set a generalised target ie buy any loan over 9.5% it has to be a target for each individual loan, thats why it is manual investment account.
That's really helpful...I assume this only works in the QAA account and the same doesn't apply for the 30DQAA due to the notice period?
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Post by GSV3MIaC on Nov 9, 2018 16:40:26 GMT
IIRC you can only 'sweep' funds into the QAA .. if you want to put them in the 30 day account you do it manually. Only 'swept' funds are available for purchases. If you manually put them somewhere, they stay there.
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Post by hammertime on Nov 9, 2018 17:04:40 GMT
Hi.Well my actual MLA interest i am receiving is 10.83% at the moment .And yesterday i was able to add about £3500 into four loans ranging from 10% to 11%. I also keep my idle funds in the QAA until they are swept into the MLA. And it seems to be going very nicely thank you. I think some people on this forum just get jealous of other peoples good fortune.
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Post by hammertime on Nov 9, 2018 17:09:17 GMT
... I am struggling to see how you could be making 11% on AC with that strategy... You can't. Not any more - some time ago loans over 10% may have been commonplace, and you will see a few remnants of that in the lower loan numbers now. But these are very difficult to buy into, for obvious reasons. A more sensible target for MLA now would be 8%, I think.
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Post by hammertime on Nov 9, 2018 17:11:40 GMT
Well maybe you are not playing the system properly as i am making 10.83%. And lets face it we are all on here to make money .Maybe you are not doing something correctly.
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Post by hammertime on Nov 9, 2018 17:20:31 GMT
Apologies if Ive misunderstood but you dont seem to understand how it works. hammertime number5 you dont have to spot loans that are available to buy and you will never see most of them. Just decide what loans you wish to invest in and set targets on them, make sure you have funds available in your MLIA (swept to QAA so you are earning some interest) and the system will buy when there is availibilty
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number5
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Post by number5 on Nov 9, 2018 17:26:00 GMT
Hi.Well my actual MLA interest i am receiving is 10.83% at the moment .And yesterday i was able to add about £3500 into four loans ranging from 10% to 11%. I also keep my idle funds in the QAA until they are swept into the MLA. And it seems to be going very nicely thank you. I think some people on this forum just get jealous of other peoples good fortune. How do you find these 10% - 11% loans? Maybe I am not looking at the platform correctly, but most of what I see available is much lower than that? Are these discounted loans? Do you the automated setting?
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Post by df on Nov 9, 2018 17:27:01 GMT
My return from FS is lower - mainly due to being very uncareful at the start. My more recent strategy is giving better returns, but it includes selling loan parts at discount I'm afraid. Selling becomes more and more difficult, which makes me be more and more selective, hence reduction of my funds on FS. Yes, FC's SM was very "vibrant" prior to change... After giving it a lot of patience I've recently given up, sold everything I could and hoping for some returns from recoveries. As it stands today I've earned 3.6% in two years, much lower than "estimated return". I have far more better returns from LC and Rebs (both 9%+). I think I have lucky to date but not being careful how much I invest in a loan has come to bite me, hoping the loan renews and I am out! I am also having to sell loan parts at discount, what is your FS strategy now? Can't say I have looked at either LC or Rebs so far...a liquid SM? My FS strategy now is: 1 - Stay low in each loan. 2 - Attempt to sell all property loans 100-90 prior to their maturity. 3 - Avoid 2nd charges. 4 - Avoid most of facilities ranking behind the original loan. 5 - Avoid large collectibles/memorabilia loans. 6 - Avoid unsecured VIP and those secured on donation promises. I do try to get any bling I can. Got one today, but generally my fingers are not fast enough for small loans. I'm not an SM person when it comes to LC and Rebs. I bought some at the beginning to get it going, but only sold one on LC and none on Rebs. Rebs SM is full of loans at very high premium. I don't know how successful these sales are, but I'd imagine it will be easy to sell a small amount at par or little premium. Rebs charge 0.5% of your remaining capital if your part is sold. LC charge the same 0.5% for selling. There is no discount/premium scheme, all parts are sold at the interest rate at which you initially bid. The part I put on sale was sold next day.
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Post by hammertime on Nov 9, 2018 17:28:15 GMT
Yes you are quite correct i also do this .But sometimes a loan may pop up that you had not noticed and you can then flood some funds into the loan. Or maybe you only have put up a certain amount of cash to be invested . And then when the borrower requests funds its more than you first would of liked to invest.But if things are going well then you can invest more. Well its working for me thats all im saying.
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number5
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Post by number5 on Nov 9, 2018 17:31:12 GMT
Yes you are quite correct i also do this .But sometimes a loan may pop up that you had not noticed and you can then flood some funds into the loan. Or maybe you only have put up a certain amount of cash to be invested . And then when the borrower requests funds its more than you first would of liked to invest.But if things are going well then you can invest more. Well its working for me thats all im saying. I am sure it is...it probably doesn't help I am not invested on AC currently so don't really know the platform well enough to understand everything said I do get your strategy and it all does seem to make sense, until you mention the 9.5% loans you managed to get hold off...I cannot find them from an outsider of the platform
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 11,329
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Post by ilmoro on Nov 9, 2018 17:34:05 GMT
Well maybe you are not playing the system properly as i am making 10.83%. And lets face it we are all on here to make money .Maybe you are not doing something correctly. Not a case of not doing something correctly. If your making 10%+ that suggests you are heavily weighted in loans over a certain rate and ignoring lower rate lowers. So either you are in older loans or potentially more risky loans. Some people would want to be more diversified which would not allow a return of that level. Incidentally is that your actual return or the displayed return. The latter includes loans that are suspended so doesn't give a true return as it may never be realised. Also does it include capital gain from discount purchases?
Edit I make it about 20 loans over 10% (non suspended), at least 50% of those are near term, in technical default, non property secured or have potential question marks.
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Post by hammertime on Nov 9, 2018 17:37:45 GMT
Maybe just put a small amount in and play around with it to see how you get on .Its not much different from F/C really.
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Post by hammertime on Nov 9, 2018 17:45:13 GMT
I have not had discount purchases and it is actual interest rate. And over the time i have been with A/C i have been diversified by one level or another.
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