Well I unfortunately didn’t get the co-op (extended internship) that I was hoping for. Considering that was a missed opportunity for lots of experience for my career and good chunk of change for investment opportunities (approximately $25,000 before tax). I am looking into other alternatives for income and investments this spring and summer. I was originally looking at purchasing a house this summer in my college town to rent to my fraternity brothers. Unfortunately that will most likely not be possible without that initial capital I was planning on getting from the co-op. I will keep updating this situation as it progresses, but looks like I’ll be busy on getting this blog up to full capacity this winter break along with some side hustle and establishing passive income streams.
An alternative investment vehicle I use is P2P lending (peer to peer). I use the platform lending club and a full review is to follow.
*I began using this platform in April of 2017 so I am still relatively knew to it and have not explored all aspects of it.*
“For those of you that are unfamiliar with P2P lending it has been around for a little bit now. On the lending club platform individual investors purchase portions ($25 increments) of loans.
Lending Club operates an online lending platform that enables borrowers to obtain a loan, and investors to purchase notes backed by payments made on loans. Lending Club is the world’s largest peer-to-peer lending platform. The company claims that $15.98 billion in loans had been originated through its platform up to December 31, 2015. “
Above is the summary page. In the upper left you can see the note status menu showing where your notes all stand. If you take a look at the note composition you can see I have a very aggressive note portfolio, the notes are graded on an A-E scale with A being the safer lower interest loans and E having the highest risk highest interest loans. A couple months ago lending club eliminated the F and G category of loans, you can no longer purchase these loans but I was grandfathered in with the F and G loans I already own.
Above is the notes detailed page. You can see my adjusted net annualized return of 11.84%, this accounts for the late and defaulted notes within the portfolio.
Lending Club info
NAR % return
Lending club interest collected
1 year gain
The tables above are my own personal information pertaining to Lending Club and how I track my notes. I try to update my running total every 2 weeks approximately and I track my total interest for the month via the monthly statements I receive. As you can see my I make around $40 a month in interest now that my notes are all matured and in place ( I was still buying notes up till mid August). My favorite thing about this platform is how easy it is to compound your returns assuming you do not withdraw your interest and principal which is what I’m doing, (Refer to my stretch investing post). I originally started with a very aggressive portfolio and when I was compounding my returns I was purchasing safer lower interest loans to help balance the portfolio. I am looking forward to investing more into P2P lending and to compounding my returns this spring when I get a little more money, as I pursue my goal to have multiple passive income streams bring in $500 a year and then $1000 a year by the end of 2018.
I came up with this idea not too long ago. As a college student with no job, I have little to zero income 9 months out of the year. The little income I do produce (dividends, stock gains, interest, odd jobs etc.) goes right out the door. As a way to decrease the necessity to pull money out of my investments to support my living while at school I started to do a little challenge. I started recording and tracking my “side income”, by side income I mean anything I make besides my internship or co-op income. Some would also call this your “side hustle” your secondary income in addition to your normal job. In 2018 one of my primary focuses will be expanding my income streams, particularly passive income streams. This is just the first step in exploring that avenue further. As you can see in the table below, I am 1 for 2 on the challenge, Thanksgiving break did not go as planned and I failed to capitalize on some of my resale opportunities. As of writing this (12/4/17) December isn’t off to a bad start, again opportunities for resale and side jobs when I return home for winter break.
Let me know what you think, or if you have your own side hustle or gig.
Goal $80/month mark
credit card rewards
online side money
swagbucks amazon gc
Goal: $300 month
credit card rewards
online side money
amazon gc sb
Thanksgiving break was a hard flop, strong dividend count, online money was strong
I am currently using a method that I have called stretch investing in my current life and we will see how it turns out as I make it through this school year. In case you didn’t know. I am a student and I have little to no income coming in from August to May every year. Fortunately I work as an intern/co-op in the engineering industry in the summer which is a very lucrative and rewarding experience. This past summer I was working at a large manufacturing company as an intern and decided I was going to try to maximize my returns and to stretch the money I made as much as I can. So here is what I did. I invested everything I made and I mean EVERYTHING. I use excel spreadsheets to track my income and expenses down to the dollar every summer when I work and as you can see I spared no expense to invest everything I made.
.75 of paycheck
IN tax refund
alternate income sources
% invested of net
% invested of tot
invested per month
How and why did I do it?
How: I use my credit card for all purchases, between the ease of keeping track of what I was spending and where I also received cash back rewards. On pay day (every 2 weeks on Friday) when the direct deposit hit my bank account I would pay off my credit card routinely. This kept my credit utilization low and prevented me from digging myself in a hole. The rest was invested as you can see nearly 98% of what I didn’t spend to live (food, gas, rent, etc). I didn’t really have any savings that summer, I didn’t intentionally stash away money in a savings account or anything, it all went to investment accounts (Robinhood for stock investing, Lending club for peer to peer lending, and Stash to invest in ETF’s)
Why: I believed that the returns of over investing and the hassle it created would outweigh the risks. I should also mention that a job as an intern is relatively secure, it would cost more to hire and fire me than it would to let me work the 12 weeks I was designated to. The pay was consistent, if anything big happened I had my parents I could rely on and a joint debit card between my dad and I. With all of that in mind that is why I assumed this risk.
What happened afterwards:
The plan was to use Lending Club payments to cover my weekly expenses and use returns in stash to cover larger expenses that came up. Again my parent’s cover my living costs at school and what not so I have relatively little financial obligations during the school year besides what I do myself (going out to eat, bar, etc). Unfortunately I do the latter quite often and the $100 a month I was receiving a month from Lending Club just couldn’t keep up. That and added costs of things like winter break trips etc required me to pull money from stash more often than I liked to. Overall I think it worked out alright, if you can stick to a stricter budget and can forecast your expenses well then the returns you receive from your investments will benefit you. An example is while I was pulling money out of Lending Club from September to November 15th, my immediate average return increased 2.8% in 2.5 months. Which is clearly better than sitting in a savings account earning a measly .1% interest annually.
I plan to keep updating this method that I have created and give my results and feedback from it. I would also like to point out that this is not for everyone by any means. I took a calculated risk with a safety net of my parents should anything go seriously wrong with my investments.
If you read my “about me” post then you know that I’m interested in real estate investing. I have spent many hours watching Grant Cardone on YouTube and am a big fan of what he does. I’ve been thinking over this whole scenario for quite some time now and the opportunity doesn’t get much better than this, but if you think otherwise I would love to hear about it.
The situation is I will graduate from college in May of 2019 approximately. That gives me another full summer to work (hopefully the co-op I’ve been looking into) and 2 semesters after that. I am in a medium sized fraternity (50 members) and our fraternity house only holds 26 members. I have held 2 executive positions and numerous other committees and would say I am well respected within the chapter. I believe that if I were to buy a house or other rental property in my college town, and use my chapter as a feeder system into my house to keep it filled, and fraternity brothers to manage and upkeep the property after I graduate, I could pay them less than I would for a professional property manager and would have closer contact with them I am sure. Pair that with a visit back to the alma mater every now and then and I think I would have a sustainable rental income system with little work to put in besides the initial bit. The situation to me seems optimal, I’ve found a property with optimal location and good cash flow. The move would have to be made prior to the Fall 2018 semester and be able to fill the house for the year. The problem lies in the down payment aspect. I simply do not have the $35,000 necessary to put the down payment up and to cover closing costs/tax etc. The hope is between my co-op, a little luck from my current investments, and maybe an outsider taking a stake in the investment that I would be able to secure the property in May/June ish, put a little bit of work and money into the property and be able to have it rented out for August 2018.
That’s the anticipated game plan as of right now. So let me know, tell me what you think. Have I lost my mind or could this investment move set up my future success down the road.
Hi my name is Brandon and this is my financial and investing blog!
A little bit about myself, I am a 22 year old college student, studying in the engineering field. I currently invest in ETF’s, stocks, 401k, and peer-to-peer lending. I am looking into real estate investing, options trading, and drop shipping in the future.