tomtom
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Post by tomtom on Jan 7, 2016 10:39:32 GMT
I am trying to get my head round buying on sh market with loans with premium added,
Regarding loan 17043 I prchased 1 x£40 at 8.3% before it was fully loaded.
This morning I see that there is a part for sale at£40.43 with £0.2 premium which shows buyer rate of 7.7% can someone please explain to me how the rate has dropped from 8.3% to 7.7% . I amassuming the increase of £0.43 is made up of two parts £0.2 premium and £0.23 interest am i right in this ?
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blender
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Post by blender on Jan 7, 2016 11:02:18 GMT
Correct. The buyer rate is the return you will get on the loan part if it runs to term making all the payments. It takes account of any premium or discount. When paying a premium the buyer rate drops more if the remaining term is shorter. With 60 months to run quite a large premium has little effect on the buyer rate - but - if the borrower repays immediately you lose the premium, and if a taxpayer you pay tax on the interest rate, not the buyer rate.
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tomtom
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Post by tomtom on Jan 8, 2016 11:23:55 GMT
Over the past 2 weeks, I have now purchased 10 items both on pm and sm and beginning to see that as I get more loans and begin to sell some loans it become difficult to keep track on what is happening and more important what I should be planning to do regarding my overall plan , ie maintaining some items as short term investment against my overall plan of trying to achieve a annual return of 10%.At present I have listed them on a spread sheet but can see that this will difficult to understand what is happening with a more loans.
How do other investers get over this problem?
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SteveT
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Post by SteveT on Jan 8, 2016 11:40:56 GMT
I record all my new purchases (loan ID, RB, rate, term, amount, CB, etc) and then download my loanbook regularly to keep track how much of each loan I've sold / got left and keep note of current status (eg. Reduce at 2 months, Hold to 6 months, Listed at par, Listed at 1.5%, etc)
You need to do a bit of Excel manipulation with the download data to extract the loan IDs so that you can automatically match the remaining balances to your original purchases.
The formula =NUMBERVALUE(RIGHT(A2,5)) in an extra column "I" in your "CSV Extract" sheet will give you the clean loan ID numbers
Then use something like =INDEX('CSV Extract'!E:E,MATCH(B2,'CSV Extract'!I:I,0)) on your tracking sheet to pull across the current balance remaining (Principal) for each loan, where columns E and I on the "CSV Extract" sheet are Principal and Loan ID respectively, and column B on the tracking sheet contains the Loan IDs you're trying to match up.
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blender
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Post by blender on Jan 8, 2016 11:56:33 GMT
I keep no records other than those which FC supply. But then, I never buy at a premium and so do not have to keep track of that, and being an arch diversity criminal I have few loans to keep track of. Keeping records and using them takes more time up.
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tomtom
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Post by tomtom on Jan 19, 2016 15:16:10 GMT
can some one please explain to me how FC arrabge my loans I have purchased under " my loans" as each time I buy a new load the I would have thought the last loan purchased would be the last one on the list but it new is why is this?
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adrianc
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Post by adrianc on Jan 19, 2016 15:29:38 GMT
can some one please explain to me how FC arrabge my loans I have purchased under " my loans" as each time I buy a new load the I would have thought the last loan purchased would be the last one on the list but it new is why is this? On the summary page? Alphabetically by loan title. Yes, seriously. But you can, of course, click on any of the column heads to sort them.
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sl75
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Post by sl75 on Jan 19, 2016 15:29:50 GMT
can some one please explain to me how FC arrabge my loans I have purchased under " my loans" as each time I buy a new load the I would have thought the last loan purchased would be the last one on the list but it new is why is this? You can arrange the loans by any of the displayed columns by clicking on the column header. Sometimes this doesn't work due to a bug in the page - reloading it (and waiting for the page to full load before touching anything) usually resolves that. I don't think it is possible to arrange by purchase date - I'm not aware of this being shown anywhere other than the statement.
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adrianc
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Post by adrianc on Jan 19, 2016 15:35:53 GMT
The missing column head that I'd find most useful is by loan number.
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registerme
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Post by registerme on Jan 19, 2016 17:28:37 GMT
I find the most useful way to look at loans / find loans etc is actually via the sell loan parts page listings. The sort options are much better (which is daft, but hey ho).
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tomtom
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Post by tomtom on Jan 20, 2016 9:49:54 GMT
How can you relate a part number to an item you have purchased on SM to the original loan part number?
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adrianc
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Post by adrianc on Jan 20, 2016 10:20:45 GMT
How can you relate a part number to an item you have purchased on SM to the original loan part number? I'm not quite sure what you mean. The number of a part doesn't change through its life. If you want to know when you bought a part, then put "My Loan Parts" on the "My Summary" page into "Loan Parts" view (dropdown, top right). The date column shows when you bought it, the seller column will be empty if you bought it on the PM, and the rate column takes account of any SM premium or discount.
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tomtom
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Post by tomtom on Jan 23, 2016 11:44:13 GMT
I have now been reading various notes on this and other boards and would welcome comments on the advantages/disadvantages of purchasing cash only loans. I know they offer a much lower interest rate and are for shorter terms but are they safer compared to other loans?
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bigfoot12
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Post by bigfoot12 on Jan 23, 2016 12:40:22 GMT
I have now been reading various notes on this and other boards and would welcome comments on the advantages/disadvantages of purchasing cash only loans. I know they offer a much lower interest rate and are for shorter terms but are they safer compared to other loans? Sorry what are "cash only loans", it isn't a phrase I recognise from Funding Circle? Did you mean Funding Circle?
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tomtom
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Post by tomtom on Jan 23, 2016 12:47:34 GMT
I have now been reading various notes on this and other boards and would welcome comments on the advantages/disadvantages of purchasing cash only loans. I know they offer a much lower interest rate and are for shorter terms but are they safer compared to other loans? Sorry what are "cash only loans", it isn't a phrase I recognise from Funding Circle? Did you mean Funding Circle? Sorry should have said Interest only loans.
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