I have a confession to make: I’ve forgotten about my Lending Loop account. For the last six months, I’ve hardly logged into my account. What can I say? Life took over.
I enjoy finance and investing…but I also have a very young family, wear many hats and have too many things to do…like everyone else in the world.
After getting ready for work, making lunches, getting dinner ready, running around to activities and overseeing my real estate portfolio, I forget about logging into Lending Loop.
And when I do get the few minutes of time, I still find it time-consuming filtering through financials, researching companies, scouring through questions and answers…especially when my loans are only $25.
So I stopped.
And as the interest payments and loan payoffs rolled, I didn’t reinvest the income so my account was doing absolutely nothing!
Fortunately, Lending Loop evolved and progressed fast because now they have an automated lending feature called Auto-Lend. It has made my investing through Lending Loop so much easier.
I really like Auto-Lend because not only have I diversified with more loans BUT I’ve also averaged an 8.8% annual net return since activating it.
And in this blog post, I’m going to share my strategy with Auto-Lend, how it has performed and how my investments have done over the past two years.
Lending Loop recently raised $2M in funding to help launch Auto-Lend. Since Auto-Lend started, I’ve been a super fan because the feature is so easy to use.
With Auto-Lend, I’ve continued with small loans, typically $25. And I only loan out to grades B and higher. Although the lower grade loans have higher interest rates, they are also riskier so I use Auto-Lend to avoid them.
Over the past two months, even with these conservative filters, I’ve made 12 loans with Auto-Lend!
Currently, I’m investing $25 per loan and it is easy to reinvest the interest income. I have received $122 in interest payments back (after fees) and it is slowly building up in my account.
I hope Lending Loop adds more features to Auto-Lend in the future. I’d love to see more filters like: debt to income ratio, company age greater than X, etc. so that Auto-Lend is more personalized.
I made 34 small loans over the past two years resulting in $1,667.41 in total investments. And I’ve netted average returns of 8.8%.