Harmoney

[alistar_mid]

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?

[BJ1]

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).

[Cool Bear]

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.

[Cool Bear]

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.

[IntheRearWithTheGear]

dunno, if i should be happy or sad.

newblah.jpg

[joker]

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

[joker]

dunno, if i should be happy or sad.

newblah.jpg

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?

[IntheRearWithTheGear]

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

[myles]

Charge offs: 0.82% (on number of loans)
Avg weighted Interest: 20.08%
RAR: 16.32%

[beacon]

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