My Passive Returns: 2019-08 August

My Passive Returns: 2019-08 August

Passive Income from M1 Finance, Groundfloor, Peerstreet and Lending Club.

My Returns

Monthly Numbers
Lending Club, COC: 0.86%
PeerStreet, COC: 0.60%
Groundfloor, COC: 0.21%
M1 Finance, COC: 0.21%
Total, COC: 0.46%
Total Annual XIRR: 6.19%

Summary:

• Continue to hold a large amount of short term debt, mostly 30 day term increasing the amount of 90 day term.
• In August made a large amount of purchases of loans with balloon payment terms in Groundfloor, should depress future earnings for at least one quarter maybe two but will result in $400 bonus in September.
• Hard to find 8% or higher loan in PeerStreet causing cash to sett in account longer.
• Purchasing less loans in Lending Club, focusing on higher yielding strategies and transferring out cash when when its builds up.
• Two LRO's in Groundfloor had their status resolved in a loss of principal. I'll probably do a post examining those loans. 
• Even though this is a down month the Total is trending upward, I expect the trend to increase do to new short term (90 day balloon) loans with higher returns although the the trend may dip as buying ramps up.  

Goals:

- COC 0.59% total monthly return, 7% annualized 

- 25% of portfolio in short term loans 

- At least half of short term loans, 90 term

Background:
I like to compare my results to my peers unfortunately that can be hard to do.  I also like to compare dissimilar investments like stocks vs crowdfunding.  I have come up with a few ways to compare two different investments in my portfolio and with bloggers and Youtubers I follow, the results have been surprising. Actually it's probably not surprising many people (myself as well) seem to think they are doing better than they are. Why? because they let the site or app tell them what there returns are instead of calculating on their own. Some investors like Peter Renton use XIRR method of calculation but I like COC. COC returns has its drawbacks, it can report a lower than actual return when making deposits in large proportion or if you buying loans with balloon payments. but I find it to be most reliable for my needs. And I rather have my metrix be under reporting than over reporting my returns.

Sign up Referral bonus urls

If your  interested in signing up for any of these great investment sites and want to get a bonus when you do, use one of the links below.

Click to sign up for Groundfloor and get your bonus
Click to sign up for PeerStreet and get your bonus
Click to sign up for LendingClub and get your bonus
Click to sign up for M1 Finance and get your bonus

Definitions:
COC - Cash on Cash returns, I define as "how much cash was returned divided by how much cash I have invested."