EarnByLoaning - earnbyloaning.com

[jlpicard]

Originally Posted by lavanya318

Checked the ebl forum. Also confirmed with kerry via skype. I remain corrected. It is possible to make a 120 day loan every 30 days.

Here's to a wonderful monthly money flow folks

Currently, paypal is doing a review of ebl accounts (normal according to moderator kerry).
The possibility of Funding via paypal should be up on monday

lavanya

I just checked the EBL forum and I am very please with the response I got. Now there is no question about what I'm going to do over the next 4 months. Readers can find this here:

http://earnbyloaning.com/forum/viewtopic.php?t=209

My only primary decision now is how much to keep in Legisi and how much to move over to EBL. Nice 'problem' to have though since both are so dang solid.

.

[addbball]

Originally Posted by swany

From this chart, it appears that the highest annualized rate of return is the 120 day, PLP 2-4 package, which has a maximum amount per loan of $25,000. One can also see the P&I per 120 day term: 16.5% per month is 66% for the 4 months.

That's right. From the chart PLP 2-4 has the highest annualized return with compounding (unless you include PLP 1-4 which isn't listed). However, we all need to be careful and calculated when we attempt to compound. We should use a spreadsheet to make calculations of what's the best way to go with compounding. This is because while some of the shorter term loans have a higher annual return with compounding they also have a lower return if you are maxing out the amount you put in.

To fully maximize the return you should be comparing the final amounts for different loans while using the same starting amounts and the same amount of time. So if you have $1,001 to put in either a 120-day plan or a 365-day plan, you would compare plans 2-4 and 3-4. Plan 3-4 would give you $3,193.19. Plan 2-4 would give you $4578.87 (rolling over two times).

The tricks to maximizing return in this program are the following:
1) Figure out which loans have the highest annual return with compounding interest.
2) Don't max out a loan if you can put some money in a loan with a higher daily interest rate .
3) If you plan to compound by rolling over your balance, make sure that your balance at the final planned rollover doesn't exceed the maximum for that loan (ideally it will equal the maximum).

If it will help, I can give some examples of why I say what I do in numbers 2 & 3.

[in3worlds]

Hi everyone, wow a lot of posts in the past day.

First, jlp, no I'm not the "Martin" from legisi, if that was who you were referring to. I was just checking out legisi when it closed. Fortunately, I was able to find ebl. I am registered as in3worlds in the ebl forum as well.

Second, I was focusing on the PLP 2-4 because of its high annualized rate. jlp is essentially going to do same thing I'm doing. 4 consecutive 120 loans, so that they mature on a rolling basis. Under current rules, when a loan matures, you can "roll-over" that loan, and that "roll-over" does not count in that month as a "new" loan. That's why I said if you happen to have loaned the max for 2-4 (25K), and could not "roll-over" the interest back into the renewing loan, then you would sign a new contract and initiate your one "new" loan for that month with the interest. The interest in that case would be $16,500, or whatever amount you'd wish to reinvest after taking profit off of the table.

In ebl's most recent post, it looks like they will add the ability to electronically "sign" a new contract with each new loan AND with each renewed loan. Currently, if I "roll-over" a loan, since there is a signed contract on file for that particular loan, I do not need to sign a new contract for the roll-over loan. I only sign a new contract if I am initiating a new loan that month as well. I can see why ebl would like to make it simple and have each new or renewing (ie, rolled over) loan have its own electronically signed contract. They won't have to track between loans that "already" have contracts and are being renewed, and loans that are brand new that month. It is just simpler to say your loan has matured. If you want to relend, then please resign electronically for the new term.

If you had not maxed out the 2-4, then when it matures, you'd have some room to renew and leave your interest in the "rolled-over" loan without starting a new one. Having to start a "new" loan in that 30 day period where the prior loan matures becomes an issue if the maturing loan is at max principal.

There was a post that talked about 1-4, the 30 day loan with the $2000 max. That is one of my loans currently as well. And if you were to compound that over 12 compounding periods in the year, it would yield an annual rate of 535.03%. That was the highest. However, it had the limitation of $2000 per loan. Of course, you could theoretically begin a new $2000 loan every 30 days such that at 12 months, you'd have 12 loans going, with $24,000 in principal working. But it would take you the entire year to build up this prinicipal, when a 2-4 loan lets you put in $25K in month 1 and compound manually twice. I haven't run the numbers, but I believe 2-4 nets more during that 12 months. Also, I was thinking that ebl probably would have a heck of a time in terms of efficiency managing a voluminous number of 30 day, $2000 loans. It seems it's more efficient for them to manage 120 day loans so that money is not always moving from the business activities account back to the virtual funds account of the lenders.

I know the admins have said the 30 day loans will return after the new site launch. I just would not be surprised if it was restructured a bit to try to control the volume of the smaller loans. If we can still initiate a "new" $2000 loan every 30 days, I may choose to put some money in that route since, as the prior poster pointed out, 1-4, had the highest annualized rate. But if there are adjustments to the number of 30 days loans that can be made simultaneously in order to maximize efficiency and our returns, then I would personally be in favor of that. I do like 30 day loans, don't get me wrong. I just want ebl to be around for a long time, and give us the best returns. So, we'll see what the program looks like in the 30 day arena after its return in July.

Finally, I wanted to comment on the poster who talked about SEC registration and seems to write off the whole program out of hand. I certainly respect your choice to not risk your capital. I just want to echo the excellent point jlp made. Banks don't generally lend to trading companies.

In one of the ebl threads, there was an excellent point made that Craig Jolly and his team invested extensively in legal fees prior to start up to ensure they were within compliance. The poster said ebl should consult an accountant. EBL went further and consulted with attorneys. The key issue is that ebl is a private corporation seeking unsecured loans.

One of the threads talked about how some companies do seek secured private loans. They can be secured with the corporation's inventory, for example. In that scenario, people would make a loan to said corporation so the company can purchase the inventory to do business. The lender holds a security interest in the inventory, and expects to earn a return on his/her investment. This would require SEC registration as the loan was securitized.

EBL's scenario is specific. They are not offering any security to the loans. The loans are guaranteed repayment by a contract, but there are unsecured, private loans. To further protect ebl from any mistakes, I have read that they cannot discuss the specifics of their business operations with lenders because that might lead to an opinion that they are involving the lenders as investors, and not just as lenders - which is what we are.

Of course, the naysayers will say, ah hah, ebl won't disclose their specific business strategies with you! It must be a hoax. All I can say is that there is a good legal reason for this, and the loan contract structure makes sense to me. So, when I cash a check for $xx,xxx, I'll remember that while some may say I didn't work for that money, I will know that I am being rewarded for risking that money and providing liquidity to a private corporation. It is the risk that is bringing the reward. Some folks are not comfortable with risk and loss, and I completely respect and understand that. I wish them well in what they are comfortable pursuing!

Of course, all of the foregoing is my own lay opinion, and relies on my own and others dd. I personally am very glad that ebl did hire attorneys early on in order to structure themselves properly and legally.

Hopefully this additional information provides some perspective.

Also, addbball, I'd love to see examples of what you mean by not maxing out a loan if you can get a higher percentage in a loan with a higher interest rate. I assume you probably mean with an equal length? Like the different 120 day loans? I haven't actually thought about what would be the ideal strategies for lenders of varying levels. For example, if a person was only willing to lend $1001 (could be in 2-3 or 2-4), what is ideal there, versus someone willing to lend $25,000? There are probably many different optimum routes for the different kinds of lenders and how they plan to relend or take their interest off of the table.

Well, that's it for now. Sorry for the long post again. I just loved reading the variety of posts on here, and I wanted to contribute my part.

Take care everyone! Happy lending.

Martin

PS - As I mentioned previously, I had been investigating legisi when it closed, and it looked solid. I saw they were going to 6% per month, or about 100% annualized. I think this is very good, but I'll bet when the current 10 and 12.5% loans mature in a year, there may be a migration of money to some of our PLPs that offer a higher annualized return. It will be interesting to see. I know you guys in legisi probably can't talk about legisi itself since it's now private. But I'd be interested in hearing your speculation about what a hypothetical legisi member might do in a year?

[in3worlds]

Originally Posted by swany

BTW, in what order are you all taking the required steps for these loans? ID reqs, money in, contract? Thanks

Hi swany, I just had a loan activate yesterday. PLP 2-4. To my knowledge, they are not yet requiring full id docs yet. I've seen the admins say this will be forthcoming. That is, unless you have multiple people signing up in the same household. They may want to see who is doing what then.

But for a loan, I just mailed in my check via Certified mail for proof of mailing. The contract can be faxed in, or mailed with the check. I just use checks since there is only a $5 cashier's check fee for withdrawals instead of the 3% paypal fee. That 3% can add up. But if I were international, then I probably would use paypal.

so, to answer your question: send money with contract (important, write your username and phone # on the contract in case Kerry or Troy have a question), or send money and fax contract. Wait appropriate time for Craig to deposit your check in the bank in Spokane, WA. Then Craig instructs Kerry to "activate" your loan in the system. You can then look in your account, and it will show the precise time of day the loan was activated, and everyday at that time, it pays the daily interest amount and shows days remaining to maturity. If you think it's been a bit long for your loan to be activated, Kerry and Troy are awesome at follow-up. If you are using paypal, and doing an instant transfer from funds in paypal, I believe the loan funds immediately, but I haven't used that option. so perhaps someone else can illuminate.

Happy lending.

Martin

[hpagan]

Originally Posted by in3worlds

Hi everyone, wow a lot of posts in the past day.

First, jlp, no I'm not the "Martin" from legisi, if that was who you were referring to. I was just checking out legisi when it closed. Fortunately, I was able to find ebl. I am registered as in3worlds in the ebl forum as well.

Second, I was focusing on the PLP 2-4 because of its high annualized rate. jlp is essentially going to do same thing I'm doing. 4 consecutive 120 loans, so that they mature on a rolling basis. Under current rules, when a loan matures, you can "roll-over" that loan, and that "roll-over" does not count in that month as a "new" loan. That's why I said if you happen to have loaned the max for 2-4 (25K), and could not "roll-over" the interest back into the renewing loan, then you would sign a new contract and initiate your one "new" loan for that month with the interest. The interest in that case would be $16,500, or whatever amount you'd wish to reinvest after taking profit off of the table.

In ebl's most recent post, it looks like they will add the ability to electronically "sign" a new contract with each new loan AND with each renewed loan. Currently, if I "roll-over" a loan, since there is a signed contract on file for that particular loan, I do not need to sign a new contract for the roll-over loan. I only sign a new contract if I am initiating a new loan that month as well. I can see why ebl would like to make it simple and have each new or renewing (ie, rolled over) loan have its own electronically signed contract. They won't have to track between loans that "already" have contracts and are being renewed, and loans that are brand new that month. It is just simpler to say your loan has matured. If you want to relend, then please resign electronically for the new term.

If you had not maxed out the 2-4, then when it matures, you'd have some room to renew and leave your interest in the "rolled-over" loan without starting a new one. Having to start a "new" loan in that 30 day period where the prior loan matures becomes an issue if the maturing loan is at max principal.

There was a post that talked about 1-4, the 30 day loan with the $2000 max. That is one of my loans currently as well. And if you were to compound that over 12 compounding periods in the year, it would yield an annual rate of 535.03%. That was the highest. However, it had the limitation of $2000 per loan. Of course, you could theoretically begin a new $2000 loan every 30 days such that at 12 months, you'd have 12 loans going, with $24,000 in principal working. But it would take you the entire year to build up this prinicipal, when a 2-4 loan lets you put in $25K in month 1 and compound manually twice. I haven't run the numbers, but I believe 2-4 nets more during that 12 months. Also, I was thinking that ebl probably would have a heck of a time in terms of efficiency managing a voluminous number of 30 day, $2000 loans. It seems it's more efficient for them to manage 120 day loans so that money is not always moving from the business activities account back to the virtual funds account of the lenders.

I know the admins have said the 30 day loans will return after the new site launch. I just would not be surprised if it was restructured a bit to try to control the volume of the smaller loans. If we can still initiate a "new" $2000 loan every 30 days, I may choose to put some money in that route since, as the prior poster pointed out, 1-4, had the highest annualized rate. But if there are adjustments to the number of 30 days loans that can be made simultaneously in order to maximize efficiency and our returns, then I would personally be in favor of that. I do like 30 day loans, don't get me wrong. I just want ebl to be around for a long time, and give us the best returns. So, we'll see what the program looks like in the 30 day arena after its return in July.

Finally, I wanted to comment on the poster who talked about SEC registration and seems to write off the whole program out of hand. I certainly respect your choice to not risk your capital. I just want to echo the excellent point jlp made. Banks don't generally lend to trading companies.

In one of the ebl threads, there was an excellent point made that Craig Jolly and his team invested extensively in legal fees prior to start up to ensure they were within compliance. The poster said ebl should consult an accountant. EBL went further and consulted with attorneys. The key issue is that ebl is a private corporation seeking unsecured loans.

One of the threads talked about how some companies do seek secured private loans. They can be secured with the corporation's inventory, for example. In that scenario, people would make a loan to said corporation so the company can purchase the inventory to do business. The lender holds a security interest in the inventory, and expects to earn a return on his/her investment. This would require SEC registration as the loan was securitized.

EBL's scenario is specific. They are not offering any security to the loans. The loans are guaranteed repayment by a contract, but there are unsecured, private loans. To further protect ebl from any mistakes, I have read that they cannot discuss the specifics of their business operations with lenders because that might lead to an opinion that they are involving the lenders as investors, and not just as lenders - which is what we are.

Of course, the naysayers will say, ah hah, ebl won't disclose their specific business strategies with you! It must be a hoax. All I can say is that there is a good legal reason for this, and the loan contract structure makes sense to me. So, when I cash a check for $xx,xxx, I'll remember that while some may say I didn't work for that money, I will know that I am being rewarded for risking that money and providing liquidity to a private corporation. It is the risk that is bringing the reward. Some folks are not comfortable with risk and loss, and I completely respect and understand that. I wish them well in what they are comfortable pursuing!

Of course, all of the foregoing is my own lay opinion, and relies on my own and others dd. I personally am very glad that ebl did hire attorneys early on in order to structure themselves properly and legally.

Hopefully this additional information provides some perspective.

Also, addbball, I'd love to see examples of what you mean by not maxing out a loan if you can get a higher percentage in a loan with a higher interest rate. I assume you probably mean with an equal length? Like the different 120 day loans? I haven't actually thought about what would be the ideal strategies for lenders of varying levels. For example, if a person was only willing to lend $1001 (could be in 2-3 or 2-4), what is ideal there, versus someone willing to lend $25,000? There are probably many different optimum routes for the different kinds of lenders and how they plan to relend or take their interest off of the table.

Well, that's it for now. Sorry for the long post again. I just loved reading the variety of posts on here, and I wanted to contribute my part.

Take care everyone! Happy lending.

Martin

PS - As I mentioned previously, I had been investigating legisi when it closed, and it looked solid. I saw they were going to 6% per month, or about 100% annualized. I think this is very good, but I'll bet when the current 10 and 12.5% loans mature in a year, there may be a migration of money to some of our PLPs that offer a higher annualized return. It will be interesting to see. I know you guys in legisi probably can't talk about legisi itself since it's now private. But I'd be interested in hearing your speculation about what a hypothetical legisi member might do in a year?

in3worlds,

Why wait a year....I'm already moving some of my interest over now.
I also wanted to say thanks for your contributions in this forum.

Keep them coming....they're very welcomed.

Thanks,
HP

[awty]

One, possibly 'critical' question...
How do YOU know that the funds are actually being loaned out, and that people are actually using those loans and paying them back?
And, if I wanted to obtain a loan from them, how would I go about doing it?
Jeff

[awty]

Originally Posted by jlpicard

That's a nice cop out... First accusing us of not doing enough DD and then making yourself out to be too smart to look into it any further. Nice!

While there are many 'points' made, and I've been down many of those 'roads' myself...
Again, might I suggest, if you're serious about this, looking into SEC registration. It IS required, I believe. And, if it's not in place - Yes, I DO realize that SEC compliance isn't easy, and can be expensive to put in place and maintain, but... When it's YOUR funds on the line, and exposed to risk by SOMEONE ELSE, well, I've just found that might not be a good idea, for many, MANY reasons.
As for me being 'smart'?
Nope. I played with various 'methods' of earning online over quite a few years. (I'm a slow learner...) For the last 4 years, I've been trading on my own, without 'exposing' myself to 'program problems'. I've done OK, and I just happen to think that there's a 'better way' to make money, legally and ethically. I'm working on automating what I've done, in a way that basically anyone can do it, again, without being 'exposed' to 'program problems'.
For those interested, I suppose if you want to place your hard earned funds with ebl, that's your choice. However, it would seem prudent to see if it actually makes sense, and it doesn't hurt to have a good idea of what the actual risks/rewards are. I hope that people realize that there may be more than just financial risk here.

Oh, and, by the way, one CAN get loans/credit for trading...
But, just out of curiousity, what would be the lowest rate that I could get a loan from ebl for trading funds, and for what amounts? (NOT that I would, but - just for 'theoretical discussion'??? The last couple of months, one of my 'toys' has pulled in between 5 and 10% profit/month, and I haven't really even spent any time 'optimizing' it. Oh, and one last thing. I can see that 'contracts' are available for those GIVING loans. However, where can I look to find the contracts for OBTAINING loans? That DOES seem to be a rather critical point, at least to me...

I realize that (No, I haven't looked...) that they're probably using the ol 'we can't/won't tell you' deal, but - does it make sense to SAY that they're paying you interest on loans, when there MAY not actually be a way to GET a loan?

I've just found it's usually best to understand, as much as possible, what's actually going on, would APPEAR to be worth some looking into?

Just my opinion,
Jeff

[awty]

Originally Posted by jlpicard

And what about Legisi?... Still think they are scam or ponzi?

Yep.
Jeff

[addbball]

Originally Posted by in3worlds

There was a post that talked about 1-4, the 30 day loan with the $2000 max. That is one of my loans currently as well. And if you were to compound that over 12 compounding periods in the year, it would yield an annual rate of 535.03%. That was the highest. However, it had the limitation of $2000 per loan. Of course, you could theoretically begin a new $2000 loan every 30 days such that at 12 months, you'd have 12 loans going, with $24,000 in principal working.

The way I understand it: you can only have one of each 30 day loan going at once. You can make another 30 day loan every 30 days, but by the time the 30 days have elapsed the first loan has matured. You can't then loan to the same plan twice. So it seems that you can have only one of each 30 day loan going at once.

[awty]

For those reading, you might note the 'focus' on what people can get OUT of this, many times without considering that for something to go OUT, and be 'profitable', even MORE than is going out, HAS to be coming in. Hence, my 'notes' on the 'business' end of this, the 'loans'...
But - watch. That will likely be, at least by most, ignored, when in fact, it's likely the most important part.
P.S. Don't believe me, just watch.
Jeff