Returns without the Work: Lend Academy Managed Accounts

I was fortunate enough to go to the Lend Academy Investments presentation in Midtown Atlanta yesterday and learned about the 4 fund options that they have on offer. Jason and Bo of Lend Academy outlined all of their programs for us including their partnerships with Nickel Steamroller and Funding Circle (who you have seen here on this blog when they were known as Endurance Lending Network on a post about Peer to Small Business Loans).  Let's take a look at the options available.

One option is for accredited investors only. That option, known as the Private Fund, invests in 4 options: Prosper, Lending Club, Funding Circle and Upstart and seeks to earn at least 10%.

The other 3 investment options are open to individual/little guy/retail investors. They have 3 options based on risk tolerance

Conservative: You can go for the most Conservative option, with an average FICO score of 740 and a target net return to investors after all fees of 5%

Balanced: the middle of the road option targets an average FICO score of 711 and a target net return to investors after all fees of 7%.

Aggressive: the most aggressive yield seeking option targets an average FICO score of 697 (still a solid credit) and 9% return for investors

These 3 managed personal accounts, so far, only invest in Prosper. They are setting up with Lending Club but are not there yet. They use Nickel to test and backtest all of the Current and former loans and use a proprietary credit model that focuses on 29 different Credit attributes that they believe can get them the returns that they seek.

Here on this blog, I believe in learning about credit analysis to improve returns. The only thing I believe in about this market more than this is in the prospects of the P2P Lending market itself. This market is on track for long term success.  I know that not everyone is interested in, wants to, or has the time to learn about the techniques I use in this blog to achieve better than market returns with lesser risk.  If that sounds like you, then one of these managed accounts might be the entry way into peer to peer lending to earn the returns without all the extra work of analyzing and selecting loans for yourself.

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.

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