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Post by charliebrown on Jan 2, 2019 11:30:20 GMT
2 years’ where capital is trapped even where there’s ultimately a full recovery (which is highly unlikely) is still a pretty bad situation when you look at the ratio of good to bad loans on platforms like FS and especially LY. I feel unless you are extremely skilled at DD and/or extremely lucky then we’d be better with something like RS at a much more predictable 6% return. I don’t like using lucky and investment in the same sentence. No luck involved just work. Never hold loans to the end that are more than 1% of portfolio and you will make good return providing you buy the right one to begin I manage well over 15% in FS on a few hundred £K LY has Loans that are well over a year. MT and others have 5 year Loans it’s the fixation on 6 months that causes perceived problem. If you’ve avoided all LY bad loans then you’re either a total genius or you’d make more money by buying a lottery ticket with your luck 😊 selling out of loans before term is a nice idea but it’s been said many times that it’s a risky strategy as there’s no guarantees you can sell out. I always appreciate your advice on these forums though, you’re a very knowledgeable contributor.
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Godanubis
Member of DD Central
Anubis is known as the god of death and is the oldest and most popular of ancient Egyptian deities.
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Post by Godanubis on Jan 2, 2019 12:37:51 GMT
No luck involved just work. Never hold loans to the end that are more than 1% of portfolio and you will make good return providing you buy the right one to begin I manage well over 15% in FS on a few hundred £K LY has Loans that are well over a year. MT and others have 5 year Loans it’s the fixation on 6 months that causes perceived problem. If you’ve avoided all LY bad loans then you’re either a total genius or you’d make more money by buying a lottery ticket with your luck 😊 selling out of loans before term is a nice idea but it’s been said many times that it’s a risky strategy as there’s no guarantees you can sell out. I always appreciate your advice on these forums though, you’re a very knowledgeable contributor. Sell out is restricted to FS and usually low LTV loans which I resell (at a profit of course) . You are correct about Ly I have about 100K tied up with them the were never my preferred P2P because of tax implications. Moving LY to Welendus however because I could probably fund their whole loanbook only moving smaller amounts. MT loans not due for ages. There is always an element of luck but that is incedental. No matter the temptation Don’t put >1% in anything I try to restrict it to .1-.5% but I have a lot relatively speaking. It is still doable with £25K . Let us all hope a platforms get their act together and do what the investors want and go for recovery early and keep borrowers on their toes. A profitable New Year to all investors and borrowers.
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