I've been investing in lending club for 4 years. Returns on different loan filters vary from 6%-13% on the high end. You're going to have defaults. When I try to explain this investment vehicle they look at me skeptically. Its a great place to invest risk capital as you'll get a semi decent return on your cash but I definitely wouldn't invest anything you can't stand losing. It will be interesting to see how the IPO turns out.

Check out lendingmemo.com and lendacademy.com for more insight on how to invest properly in the platform.