How I Make Over 15% On Funding Circle

Henrik - sorry if you felt it was negative. But it's pretty much inherent in the investing game to have large doses of scepticism.

Here is a suggestion which you might want to consider - or not. If you think your book has good content, why not offer it for free? It's a device that fiction sellers use a lot when they are trying to establish a brand. Amazon won't let you do it directly, but you can publish it at zero price elsewhere and then point it out to Amazon, at which point they will price-match.

Personally, I felt that you might have something interesting to say on some points but it was all hidden behind "buy the book", which is what makes cynics think of a scam. But make it free, establish your credibility over a period of time, and see where it takes you.

Good luck

You're right that you can't buy with one payment remaining, the minimum is two so I will correct that.

How many property loans do default? I've only used figures from the stats book for property loans (I filter out for interest paying only). I get £1.6m of defaults against £360m of property debt issued across all risk bands. That's only 0.4% but I think would expect the default rate to be higher than that so I don't think 1% is too far off.

I agree that it's completely normal for property loans to be re-financed. I wouldn't expect all of the late loans to default, but it's possible that some of them might.

I think we agree on the fact that people should be careful when buying these loans late into the term and the post is partly to help warn new investors about that. Theoretically, there must be a correct price to buy these loans for. 

If everyone was fully aware of the issues with property loans then perhaps loans with 2 months remaining would sell at a discount because no one would want to buy them at the same time that no one would want to hold them. If the discount was large enough then I would be prepared to take the risk. Exactly what that discount should be, I don't know but we can have a go at estimating it.

Any muppet can invest on FC and think they are making 15%. If anyone has been doing it for 5 years rather than a few months, then I would be very interested to hear how they do it.