Anyone scaled their lendingclub investments?

[drave]

Deposit $30k using my credit card with 1.5% cashback.
Invest $30,450 into LendingClub
Make 10% annualized return and have $33,495 the next year.
Withdraw the money with a 1% commission and receive $33,160

Where is the lack of profit?

(and of course multiply $30k by whatever amount you want to deposit)

 

[aproxaday]

Awesome thread! Greatly intrigued in this type of investment, sadly I am in Ohio which is restricted from P2P, any type of work around so I could do this? Seems like an amazing opportunity.

None that I know of. I'm in AZ so I can't invest in it directly, I can only invest in it through the trading platform. I talked to a guy at lendingclub today and he says that if they were to file an IPO then all the states would be able to partake in this. I don't really see how that makes sense or if I believe him, either way it's probably a couple years out.

I'm surprised they let you deposit via credit card. Wouldn't the fees destroy their profit if they only get 1% or whatever.

This got me thinking a lot. How do they make their money? I still don't know, but I thought about something else in the meantime.

To my understanding these investments are not guaranteed. Let's say someone was to get a loan to buy a new car and they were to default. Does lending club own the car? Do the investors who bought the notes now own 1/4000th of a car or what? I can't imagine that the person who got the loan now gets to keep the car as long as they don't mind bad credit. Sorry if this is a dumb comment, does anybody know more about this?