In 2017, my net worth increased to $839,107 and overall IRR increased to 11.04%.

Net Worth: $839,107

Account 2016Q4 2017Q4 Change
Cash $42,845 $68,837 $25,992
Lending Club $43,878 $31,977 $11,901
Direct Lending Income Fund $792,181 $134,614 $657,567
Groundfloor $5,190 $27,040 $21,850
iFunding $100,000 $0 $100,000
LexShares $0 $407,500 $407,500
YieldStreet $0 $250,178 $250,178
Debt ($360,996) ($81,039) $279,957
Total $623,097 $839,107 $216,010

The increase was $32,337 more than forecast. This was primarily driven by the litigation finance investments. Towards the end of the year, I had over $300,000 sitting in my bank for 3 months due to no LexShares offerings. In the end I gave up on LexShares and invested all in YieldStreet. I will continue doing credit card balance transfers for the next few years.

Internal Rate of Return (IRR): 11.04%

Account Allocation XIRR (TTM) XIRR (TOT)
Lending Club 3.76% (1.85%) 5.04%
Direct Lending Income Fund 15.81% 9.06% 10.12%
Groundfloor 3.18% 4.17% 5.15%
iFunding 0% 26.38% 15.36%
LexShares 47.87% 33.39%
YieldStreet 29.39% 9.05%
Total 100% 15.24% 11.04%

My IRR skyrocket due to a high return on LexShares. This is a reward for taking risks. Warren Buffett once said that as an investor it is wise to be “Fearful when others are greedy and greedy when others are fearful.” I’m bearish on fix and flip funding and bullish on litigation funding. The return on a hard money loan has been declining due to an excess supply of money. I am moving money out while more entrants are flooding the market. The risks and rewards are no longer in favor of investors.

Income Statement: $363,376

Income 2017 Forecast 2017 Actual 2018 Forecast
W-2 $270,000 $285,692 $270,000
1099 / K-1 $100,000 $77,684 $120,000
Total Income $370,000 $363,376 $390,000
Expenses
Rent $41,940 $41,940 $41,940
Food + Gas + Utilities $15,000 $9,870 $10,000
Miscellaneous Expenses $12,000 $16,740 $16,000
Total Expenses $68,940 $68,550 $67,940

Lower investment return was due to a delayed return of litigation portfolio and large cash drag.