Calculating Returns: IRR or XIRR vs ROI

There’s been much debate in the blogging world for p2p lending about how to calculate returns on our loan portfolios.  Some very prominent people in our industry, including Peter Renton of Lend Academy, believe that the most accurate way to calculate returns is through Internal Rate of Return or IRR and/or its modified cousin XIRR.  … Read more Calculating Returns: IRR or XIRR vs ROI

Stu’s Portfolio Report: August 2013

Another month has come and gone and while I had a little bit of a delay here, I am ready to report on my August results.  I have a total of 19 loans: 8 with Prosper.com, 1 private loan, and 10 with Lending Club. Since I am a Credit Analyst by trade (at an Equipment … Read more Stu’s Portfolio Report: August 2013

Legal Corner part 2: What is a Security? and in the P2P Lending World Why Do We Care?

In part 1, I introduced the P2P Lending Expert legal eagle, Jonathan Wilson, who is going to discuss legal implications and ongoing cases in the securities world and how they affect peer to peer lending, and especially how they affect the little guy like us. Again, my commentary is in parentheses. On to the Howey … Read more Legal Corner part 2: What is a Security? and in the P2P Lending World Why Do We Care?

Legal Corner: What is a Security? part 1

I am happy to announce that this blog will now be broadcasting a regular Legal Corner discussing the legal aspects of recent court decisions and regulations involved that apply to the peer to peer lending industry.   Our legal expert is Jonathan Wilson of Taylor English Duma. Jonathan is an expert in crowdfunding and has … Read more Legal Corner: What is a Security? part 1

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

Credit Analysis: Credit Inquiries in P2P Lending

One of the figures given in the Credit information section of the loan listing for both lending platforms is Credit Inquiries.  Simply put, a credit inquiry is when one of the 3 big credit bureaus (Equifax, Experian or TransUnion) issues a credit report to some outside party that requests it, usually with our permission. For … Read more Credit Analysis: Credit Inquiries in P2P Lending

Stu’s Portfolio Report: July 2013

The month of July came to a close and all of my loans paid on time.  Some of the other p2p lending bloggers have been having an ongoing discussion about how to most accurately assess how returns are calculated. Some are big believers in Internal Rate of Return, otherwise known as IRR.  That being said, … Read more Stu’s Portfolio Report: July 2013

Credit Analysis: Debt to Income

Debt to Income (DTI) is one of the most important pieces of Credit Analysis that we need to learn in order to reduce our risk in investing in P2P Loans. My own Credit Analysis experience led to the development of my own Credit Scoring system and one of the most important factors is Debt to … Read more Credit Analysis: Debt to Income