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Comment by AjithAntony | Hacker News Reader

How long have you held these notes? That seems like an exceptionally high return, and low default rate, unless this is like your first year.

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I started in January of this year. It does seem high for sure. I'd like to think I spent a lot of time finding people that had the most to lose when making a decision (mortgage, relatively high income, stable job, etc) to lower my risk. But who knows.

edit: so i just checked for real. looks like it's been over a year (time flies). for the record, it shows 199 (instead of my stated 200) because i put $50 into one investment instead of the standard $25. http://i.imgur.com/o2DdDLU.png

> i put $50 into one investment instead of the standard $25

It's funny you mention that. I went through a phase where I started doing $50 and $100, becuase I couldn't find enough high quality borrowers. I figured that since I trusted these people with $25, why not a little more. It just hurts more when they default. When I see a high value note charged-off, I just feel more betrayed than usual.

I think that's one of the mistakes people make when investing in LC. The safety of the investment comes from having a small amount invested in a large number of notes. Until you are invested in 800+ notes you shouldn't be investing more than the minimum in any one note. If you look at LC's statistics on investor returns 800 notes seems to be the magic number to amortize the default risk.

It was hard sticking to $25 but other than that one investment I was able to remain patient even though it took me almost 6 weeks to invest my full amount. There was just one person I really felt like I could take the extra risk. Incidentally that person paid off the entire loan in the first payment.

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