I'd love to hear your experience as a LENDER with LENDING CLUB

[Keri Middaugh]

Have you participated as a lender with Lending Club?  I'm eager to hear about how you chose the loan to invest in, how the returns were, quality of customer service, and any other aspect you'd like to share.

Thanks! 

[Chris Mason]

I played it like a video game for a year or so. Was getting 25% ROI, according to their math.

1. Pick a deal that I believe the borrower will make at least one payment on.
2. Invest $25 in it.
3. Wait for that one payment.
4. Immediately sell it on the secondary market. 
5. Goto 1.

As an actual investing strategy, the $25 ones are the most liquid, meaning it doesn't scale up well. Everyone else was chasing [ interest rate + likelihood of full repayment ], I was just chasing "will they make 1 payment so I can flip it?" - giving me a bit of an edge.

To scale it up, you'd have to find some debt instruments that have a secondary market, are liquid, and are far larger than $25 a pop. Tell me if that reminds you of any industry that might have inspired my Lending Club strategy, that I might just know a thing or two about. :P