For Those Who Wonder – Is Lending Club Legit?

Is Lending Club Legit - Dumb Passive IncomeIs Lending Club legit? Yes. I happen to know that 170 people per month in the United States wonder about this very topic. I have to ask myself – who are these people that are wondering whether or not Lending Club is legit. They have to be one of two types of people. Either people who are looking to borrow money via personal loans or people who are looking to invest money. It is perfectly reasonable and rationale that they are skeptical. Borrowing or investing money 100% online in a peer to peer format seems a little bit sketchy. Is peer to peer lending safe? Is it safe to borrow money online from a P2P site like Lending Club? How much risk is involved if I am considering investing on a site like Lending Club? All of these are fair questions and I will do my best to point you in the direction to answer them and prove that Lending Club is in fact 100% legit.

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Foliofn Note Trading Platform for Lending Club Investing Review

Lending Club Investor Availability by State
Foliofn Note Trading Platform for Lending Club - Michigan Lighthouse
Michigan’s West Coast

As an investor at Lending Club, and a resident of the great state of Michigan, I currently have only one of two options available to me for how I am able to obtain notes. I must purchase notes via the note trading platform by Foliofn, which is the secondary market used by Lending Club, for trading peer to peer (P2P) notes. The other option is to fund notes directly through the more common retail platform, which is not currently available to investors in all 50 states. The difference between these two options is basically this – the retail platform is for notes that are not yet fully funded or acitve and the note trading platform consists of notes (or loans) that already exist and are active. After reading through several blog posts and blog comments, I am finding that a lot of people prefer the retail platform and feel that the secondary note trading platform by Foliofn is inferior. I am the exact opposite. Although I am not able, or even allowed (currently), to take part in the retail platform – I actually think I like the note trading platform better. Only three months in to my Lending Club investing experiment, and I’ve been able to maintain a Net Annualized Return of over 22%!

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Passive Income with Peer to Peer Lending at Lending Club

Lending Club Investing - Dumb Passive IncomeMuch of my focus on this blog so far has been on my attempts at internet marketing through building various types of websites to try to create a passive income. However, there is one other thing that I am doing to create passive income online that does not require the work and knowledge that it takes to build a website. I recently invested some money at a peer to peer (P2P) lending site, Lending Club. Whether or not investment income from interest of this nature is considered passive or not is debatable. For me, it is passive enough. I spend about 30 to 60 minutes per month choosing notes to reinvest my principal and interest payments into. So it isn’t completely passive. But, I am not actively trading time for money like I do at my day job. I choose the notes to put my money into about once a month, then they sit there and earn interest for the entire month while I do nothing. Allow me to explain how and why I got started in P2P lending at Lending Club.

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Passive Income Opportunities for 2013

Passive Income Opportunities for 2013 - Dumb Passive Income
Passive Income Opportunities for 2013 - Dumb Passive Income
Image from Flickr by paul bica

As the New Year is upon us, I for one am excited about the passive income opportunities that await me in 2013. 2012 was a whirlwind of a year for me as I quit my original plan for a money-making blog. I wanted all of the work and time that I put in online to create more of a passive income. It’s been a long and slow learning process for me, but I am definitely heading in the right direction. I’ve attempted several different methods throughout the past year to try to create online passive income. Most of them had something to do with creating different types of websites, and that is mostly what I blogged about on this site. I didn’t have a ton of success with my niche sites, but there still is hope for a few of them in the future. I do have three passive income opportunities that I have been working on that I am really excited about and plan to concentrate on in 2013.

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