My First Lending Club Loan Paid Off. Now What??!??!!

As reported in my recent post on my update to my portfolio, one of my loans within my Lending Club loan portfolio paid off after only one monthly interest payment.  So this loan paid off successfully ( a plus) but I only made minimal interest prior to the payoff (a minus).

So what do I do from here?

One of the most important aspects of portfolio management and investment allocation is consistency. This is true in our p2p lending portfolios as well.  This is discussed in detail in the threads and tags for Loan Portfolio Management and here is my first post on that subject here.  For reasons I will explain in future posts on portfolio management, the amount I am comfortable risking on a loan is $250. I don't yet have an additional $100 for reinvestment purposes, so this means I have to take my $250 that I put into this loan that paid off and deploy it elsewhere.  Again, consistency is important. Now that I have some interest earned, I could put in more than $250 into this new loan I will buy, but I am NOT going to do that. Only $250 and the only time I am moving off of that is when I get $100 in interest to deploy into new loans like a Dividend Reinvestment program.

About the author

Stu Stu Lustman, the author of this post, is a Credit Analyst by trade trying to bring Commercial Credit Analysis techniques to the world of Peer to Peer Lending. Check me out on Twitter, LinkedIn and Google+

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