recording P2P investments

Jon's Avatar

Jon

24 May, 2019 01:10 PM

I'm wondering how people are recording their peer to peer (P2P) investments with Lending Club, Prosper, et al.

I've read the knowledgebase article suggesting tracking each note individually, but as most P2P investors know, you want to diversify to reduce risk, so it's common to have hundreds if not thousands of notes depending on how much you invest. So tracking each note isn't feasible.

I've created a custom security type (P2P) and a security (Lending Club Note) and using a $1 security value similar to tracking a money market. Now i'm wondering about the best way to enter aggregate transactions to still be able to track my performance.

To start, I've been entering 3 transactions
- DivReinvest for interest received, note recoveries, and other income received that month
- SellXfr for note writeoffs
- SellXfr for maintenance fees, recovery fees, and other expenses

This gives me an accurate balance when reconciling against my monthly statement. But I'm wondering about that SellXfr for the expenses and writeoffs and that it will artificially inflate my returns in the investment performance report.

Any suggestions on how to track aggregate performance but still be able to see the investment performance?

  1. 1 Posted by derekkent23 on 24 May, 2019 02:28 PM

    derekkent23's Avatar

    I am not support staff, just a user.

    I don't know if this is relevant to you but take a look at https://infinitekind.tenderapp.com/kb/investment-accounts/peer-to-p...

    Hope this helps.

  2. 2 Posted by Jon on 26 May, 2019 12:55 PM

    Jon's Avatar

    I've changed how I'm entering my transactions.

    Instead of entering expenses and losses and SellXfr, I'm just adding all gains, losses, expense into a single number and then entering that as a DivReinv transaction. I lose the granularity of being able to track writeoffs, expenses, and gains separately. But it appears to be maintaining the cash value of my portfolio and my annual ROI in the investment performance report correctly. Time will tell.

    If anyone else is tracking P2P loans in Moneydance, please share your method.

  3. 3 Posted by caewok_2000 on 12 Jul, 2019 01:32 AM

    caewok_2000's Avatar

    I agree that tracking notes individually is not useful. I created two custom securities, one for P2P loans and one for in-funding loans, because Lending Club and Prosper both split those out separately.

    For the in-funding loans, I just enter a buy or sell each month to reconcile those amounts.

    For funding loans, I will enter some or all of the following each month, based on statements:
    • Buy for purchased loans.
    • Sell for principal received.
    • Sell for charged off loans (remaining principal) with price set to 0.
    • Div for interest, late fees received, recoveries, etc. I put the various fees in as separate fee categories, similar to how you would enter commissions for a stock purchase.
    • MiscInc or MiscExp if the cash balance needs to be adjusted slightly due to rounding.
    • Buy/Sell shares if principal needs to be adjusted slightly due to rounding.

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