Before I get into the history of LendStats.com, let me explain my own history with P2P lending. Back in early 2007 while scouring bankrate.com for the latest CD rates I saw a Prosper ad advertising 8-12% returns. My initial reaction was that it must be to good to be true but I looked into it anyway and decided to give it a try. I started modestly in May 2007 and waited about a year to see what my returns would be and they were not good. While contemplating whether to lend again I reviewed the loans I had already made and realized that I made some very foolish loans. During this time I also discovered 2 great websites offering Prosper statistics: ericscc.com and the now defunct lendingstats.com. With the experience I had gained and the resources from these sites, I was convinced that I could turn a good profit with P2P lending. In May ’08 I started investing heavily and by Oct ’08 I had made 630 loans.
In Oct ’08 Prosper shutdown in order to register with the SEC. Everyone had to stop lending, but at the same time LendingClub had fully reopened so I switched to LendingClub and continued lending. Through the first year my returns were good with LendingClub, but at the same time my returns with Prosper were looking worse and worse and it became clear that my returns may actually turn negative. While reflecting on why my returns were not good with Prosper, I realized one of the biggest negative factors was that I had relied too much on the ROI’s calculated at lendingstats and ericscc. The ROI’s in these sites were much higher than the actual ROI’s, especially for younger loan sets (this really contributed to speculation with Prosper i.e. many lender’s bid on loans solely because another lender with a high ROI bid on it). Also at this time, LendingClub also started advertising very high estimates of ROI. All of these high ROI estimates didn’t seem right, so I finally decided to take the matter into my own hands and calculate ROI’s that seemed accurate to me. In Oct ’09 I started analyzing LendingClub’s data. Looking at their data taught me very valuable lending lessons that I thought everyone should know, so I created a freebie website to share what I learned. That website is still there http://lcstats.99k.org if you want to take a look. It took a while, but eventually I figured out how to open the massive prosper data files and did an analysis of Prosper’s loans. I created a site for that too (that site is also still there www.prosperstats.99k.org). I also created a third site that united those two sites www.lendstats.99k.org. Finally in March of 2010 I had enough of the freebie stuff and thought that its time to get a real domain and I bought www.lendstats.com.
In it’s short existence LendStats.com has already evolved a lot and is continuing to evolve as I learn more about programming. I’ve recently moved all calculations over to the server, added customizable loan filters and now have all data updating automatically everyday. These are all things that I thought would have been impossible for me to do a year ago, but I did it! (with a little help though ) The future of P2P lending is looking brighter and brighter. Prosper’s returns since relaunch in July 2009 have been outstanding and LendingClub’s returns have been good all along and continue to improve. Now LendingClub is even talking about making a profit next year already. The future looks great. As the future of P2P lending looks better and better you can expect LendStats.com to only get better and better also. So keep your eyes peeled because this is only the beginning!
kenL (aka lendstats_com) 2/16/11