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09-03-2018, 12:36 PM
#3101
Member
Originally Posted by BJ1
Attachment 9544
Just for additional info Joker, my average loan is $600 and I've had two write-offs over 3 years
Nice.
So because you put more into each loan I assume you read the descriptions and stuff?
Also admiring your RAR with your mix, any reason for the 50/50 of 36/60 months?
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09-03-2018, 01:20 PM
#3102
Member
Apart from about 4 autolend all of my loans are carefully chosen. I don't do anything with a funny "smell" to it. I started off with 60 mth loans in A and B and 36 mth for C D E but in the past year have allowed "better" C to go to 60 mth but overall concentrated on reducing term as markets moved more and more to being over extended - when the inevitable crash comes I want to have options and also I want my borrowers to be able to extend their payment plans (and thus clear me if they do refinance).
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09-03-2018, 01:32 PM
#3103
Member
charge off vs int and RAR
Originally Posted by joker
Hi Alistar and thanks for posting. I'm amazed that your charge-offs vs interest = 22% ($4.5K vs $20K) and yet your RAR is still so good. I assume many of your original loans were at 30%+ interest rates and that current charge-offs have dropped significantly now.
Mine are 4.79% ($149 vs $3,110) RAR 12.69% but I've only been invested for 7 months so more no doubt to come.
I would be interested to read other investors' charge-off vs interest vs RAR stats for comparison.
TIA all.
The average for HM atm is $22,880,104/$99,747,404 (market stats at 1.26pm 9 March) = 22.94%. So Alistar's 22.23% is still below average.
Mine after 33 months (5000++ loans) is 21.32%. My RAR is just above 14% atm, so I am still happy.
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09-03-2018, 01:38 PM
#3104
Member
And with Joker's 4.79% and BJ1's 2.27%, there must be quite a few with well over 50% for the average to be 22.94%!! But of course the real objective is the net returns - which RAR is a (not so accurate but still a) decent measure.
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09-03-2018, 02:12 PM
#3105
Member
dunno, if i should be happy or sad.
newblah.jpg
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09-03-2018, 02:25 PM
#3106
Member
Originally Posted by BJ1
Attachment 9544
Just for additional info Joker, my average loan is $600 and I've had two write-offs over 3 years
Thanks BJ1. I envy your obvious skill in picking sound loans - I could never pick/reason which loans are worthy of $600. Your low level of charge-offs is nothing short of amazing. My loans are 50/50 autolend/picking and are almost exclusively $25 units. I also like your reasoning with 36 month loans.
Attachment 9551
Last edited by joker; 09-03-2018 at 02:33 PM.
Reason: Spelling
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09-03-2018, 02:32 PM
#3107
Member
Originally Posted by IntheRearWithTheGear
I think happy - the return still looks good. Looking at your investment grade mix, I am assuming that you are now leaving D,E & Fs alone to reduce charge-offs as surely $8K can't be as a result of A,B & Cs?
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09-03-2018, 02:41 PM
#3108
Member
I intially invested in anything with a ratio of 15% monthly payment to income ratio across all bands, in the early days there wasnt enough loans to get to get the cash into the system - so you couldnt invest fast enough and maintain diversity. So early days was across all loan types. NOw i only do a-b-c
A mistake ive made is that i have 50k spread over 785 loans (most are a-b types)(roughly $75 per loan).
Most days i have less than $200 as a float in the account so constantly renewing everyday. - ideally it should be 25 per loan - world is not perfect. It took a year to spend the first aprox 80k - so its not an investment in one lump sum.
Using excel the xirr is 11.54% after tax over 1137 days since first investment.
Breakdown of charge offs, debt sold and hardship
C5 |
17 |
C4 |
8 |
E4 |
26 |
E5 |
27 |
E2 |
28 |
F3 |
14 |
C2 |
7 |
B1 |
3 |
B5 |
10 |
D1 |
24 |
D4 |
18 |
D5 |
18 |
D3 |
13 |
F2 |
16 |
F1 |
21 |
E1 |
16 |
B3 |
8 |
C1 |
9 |
C3 |
9 |
E3 |
28 |
F4 |
10 |
D2 |
20 |
B4 |
6 |
F5 |
36 |
A5 |
5 |
A1 |
1 |
B2 |
3 |
A3 |
1 |
A4 |
1 |
|
403 |
Last edited by IntheRearWithTheGear; 09-03-2018 at 03:14 PM.
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09-03-2018, 09:45 PM
#3109
yeah, nah
Charge offs: 0.82% (on number of loans)
Avg weighted Interest: 20.08%
RAR: 16.32%
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10-03-2018, 08:33 AM
#3110
Commendable results, myles, joker and BJ1. $600 per loan is indeed brave for an early 6-figure portfolio, BJ1, but had you not shown the numbers I would never have believed what you've achieved over 3 years, could be done. Kudos!
Interesting raw default data, ITRWTgear
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