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Sneak Peak at the P2P Lending Wealth System

by Peter Renton on December 1, 2011

Last week I announced I would be introducing my new video course for p2p investors soon. I also asked for your help in filling out a short survey.

I certainly appreciated all of your responses – 91 of you told me exactly what you would like to see covered in this course. I have incorporated a lot of your feedback into the course and today I am going to give you an early sneak peek at the course itself.

But before I do that let me give you a bit of background as to why I created this course.

It is no secret to even the casual reader of this blog that I am a big fan of p2p lending. Ever since I started investing in 2009 I have been adding more money into this asset class. And the more I have learned the more bullish I have become about its future.

No Training Course Available

I firmly believe that every investor should have a portion of his or her portfolio dedicated to p2p lending. And word is definitely spreading. New investors are coming on board every day. But how do these investors learn the ins and outs of investing?

Lending Club and Prosper provide little help. Because of the onerous SEC regulations they are prevented from providing investment advice. So, rather than negotiate that fine line they provide virtually no advice on how best to use their platforms.

Now, I know this blog has been a great resource for many people. But I cover a large range of topics here and I jump all over the place from topic to topic. What was needed was a comprehensive course that takes investors through all aspects of p2p lending in a systematic and hands-on manner.

If you want to learn about investing in the stock market or bond market or virtually any other investment vehicle there are plenty of options for new investors. No so with p2p lending. Until now.

Announcing the P2P Lending Wealth System

Next week I will be launching the world’s first ever video course dedicated to p2p lending. It will be called the P2P Lending Wealth System. It is a practical, hands-on course that provides investors with everything they need to be successful.

The P2P Lending Wealth System digs deeply into the investment platforms of Lending Club and Prosper. We talk a lot about loan filtering on both platforms and we also show investors how to leverage p2p lending statistics sites Lendstats.com and Nickelsteamroller.com.

The course will have some informational slides but I really wanted to leverage the power of screencasts where I take investors through the most important components on the various websites.

The Most Requested Topic from the Survey

The most requested topic from last week’s survey was advice on how to improve returns. This is really what most investors are looking for.

So, in this sneak peak I go through an example of how to use Lendstats.com to analyze the loan history of Lending Club. You will see how in four simple steps you can setup some filters that provide a 4% increase over the average estimated ROI.

Watch the sneak peak of the P2P Lending Wealth System. But please be patient, the 10-minute video can take up to 30 seconds to load.

Thanks again to everyone who participated in the survey. I really appreciated all the great feedback.

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{ 11 comments… read them below or add one }

Louis Lamoureux December 2, 2011 at 5:50 am

HI Peter,
A couple things.
1) Is there fast forward or rewind capabilities?
2) When you did your analysis on lendstats, you changed the start date to 2007, but you left the ending date as December 2011. This will greatly overstate returns. If you change the end date to June 2010, the expected return drops to 7.9%, that’s almost 3% lower than what you show onscreen.
3) You may run afoul of those very same onerous SEC regulations if this is construed as investment advice.

Lou

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Peter Renton December 2, 2011 at 6:39 am

@Lou, Thanks for your comments. In response:
1. The default settings for this video player is allowing no fast forward or rewind. I have changed that, so you can have controls on the video player.
2. The point with this exercise was not to say you will get 10% returns but to point out that you can get returns at 4% above average. The overall return is out of our control but what we can control is beating the average.
3. Good point. I have a disclaimer in the course itself but obviously not in that video. I will be more careful in future.

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Louis Lamoureux December 2, 2011 at 9:12 am

I understand the exercise was showing how to beat the average, but the points I was trying to make are
1) new loans skew the data (Newbs may not realize how much they affect returns). That might be a perfect time to show the default curve.
2) Showing a 10.6% interest rate without any caveats might set an expectation. What harm would it have done to do that analysis with the newer loans pulled out? The interest rates would have been lower, but it still would have shown your point and it may be closer to reality. It’s better to under-promise and over-deliver.

Lou

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Dan B December 2, 2011 at 9:27 am

I haven’t watched the video yet, but I must say that the title made me queasy when I first saw it last week & still has the same effect on me today. Perhaps I’m the only one who feels this way but it sounds way too much like an infomercial’s title…………which in my mind translates into something with 90% marketing, 10% product.

But then again, many infomercials are super successful for the producer & I’m hardly the target audience for yours…………..so please feel free to ignore what I’ve said.

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Marc December 2, 2011 at 10:18 am

Excellent information in the video. Thanks.

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Mike December 2, 2011 at 11:51 am

I agree with Dan with respect to the title. Can you substitute something else for the word ‘wealth’?

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Louis Lamoureux December 2, 2011 at 1:07 pm

I disagree Mike, I think its the perfect title. If you are going to make a product that thousands will want to download, give it a catchy title, especially one that’s slightly controversial and has keywords like “wealth” and “system” in the title. Peter will have affiliates begging him to sell it on their websites.

As Dan said, we are not his target audience. While it may make Dan a little queasy, it’ll be packed with good information (based on Peter’s work on this blog), so it’s not like Peter is fleecing people. The title will lead people to buy and the content will help people make that money back on LC.

If I were to change the title, I’d take out “P2P” and maybe use the term “Peer Lending” or better yet “Social Lending Network Wealth System” or “Renton’s Social Lending Network Wealth System”. Incorporating your website name and/or your last name will help build your brand. Later if you add affiliates, your website name in the title will point people to your website.

Lou

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Peter Renton December 2, 2011 at 1:48 pm

@Lou, I do mention the borrower default curve and I also say several times in the course about the impact that defaults have on returns and the fact that initial returns are always higher than log term returns. The sneak peak was not designed to comprehensive just to give people a flavor of what to expect. I am glad you like the title. I have some definite ideas about branding and you will see some changes on that front in a few months.

@Dan/@Mike, I spent a lot of time thinking about the title. My first thought was the P2P Lending Video Course but that didn’t seem very compelling. Yes, it was a marketing decision to call it the P2P Lending Wealth System and I don’t apologize for that. You can have the greatest product in the world but without good marketing no one will find out about it.

@Marc, Thanks, I am glad you like it.

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Dan B December 2, 2011 at 3:10 pm

Lou…………I’m sure what you meant to say was that I am not within Peter’s target audience. That is, without a doubt, correct.

Peter………I understand the necessity of marketing, though my default reaction is to cringe when I perceive it to be blatant. Are you sure you don’t want to ratchet it up just a tiny bit more? You could title it P2P Lending: Your Road To Riches…………. or how about Make Million$ with P2p Lending…………or P2P: Lend Your Way To Financial Independence. I can come up with crap like that all day long.

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Peter Renton December 2, 2011 at 8:20 pm

@Dan, My target market for this video course is new investors or people who may have been investing for a while and want to increase their returns but don’t know how to go about it. I imagine most of my regular readers here do not fall into this camp. But I have a suspicion that there are plenty of people who do. I guess we are about to find out.

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Dan B December 3, 2011 at 5:00 am

I don’t think anyone here has questioned the potential demand that you might find for this item. I certainly haven’t.
On the contrary, I’d expect that a number of people even here would be interested in this video. That really wasn’t my point at all, but this doesn’t matter enough to me to motivate me to clarify.

Reply

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