Apr 09, 2017
I deployed $35K over 9 months starting in Sep 2015. Out of 176 loans, 8 have defaulted. My simple annualized rate of return since fully deployed has been steadly declining due to defaults, and is currently at 5.8%. I was under the impression that these loans were secured by real property, but they seem to simply write them off after a few months of non-payment. I have had no recoveries or updates talking of recoveries.
Example: "The borrower has filed a personal bankruptcy and has told us the business is no longer a going concern. We have been able to verify that the business has no assets to speak of and so a suit against the business entity at this time would be unwise. We plan to default this loan at 90 days past due and will continue to monitor both the personal bankruptcy and the state of the business. Chances for further recovery are low."
I am exiting this investment. This will take 3 years..