I made a quick video demonstrating how to purchase loans on the Lending Club secondary market with FolioFN. In is very easy to purchase these — It only took a few minutes to purchase. There are a few things to keep in mind when purchasing Lending Club loans via FolioFN:

• You must meet certain income and net worth requirements
• It is not available in every state
• Even if your state does not allow you to directly buy loans through the primary market, you can likely participate in the secondary market.
• You pay no fees as a buyer — the seller pays a 1% fee
• You can resell the loan on FolioFN when you wish (less a 1% fee)

An additional item that I should have demonstrated in the video is how to drill into the loan. If you click on the loan status field (contains “issued”, “current”, etc) it shows a few details on the loan, but not as many details that I would like to see. I wish it contained all the loan information that the original lender was able to see. Here is the screen shot of the details available (click to enlarge):

Lending Club Secondary Market Loan Details

My quick thoughts on purchasing loans through FolioFN:

• The website is a little slow.
• Your account balance should be at the top of the page where you are shopping for the loans. You can see that I fumbled around a bit looking for the balance in the video.
• It would be much better if you could see the original loan details including the description and Q&A information.

I will offer this loan for sale on the secondary market to create another video. I’ll post it when it is available.

Several months ago, I made a video demonstration of using the Lending Club portfolio purchase feature if you are interesting in seeing how to purchase loans in large quantities.