Money Lending
One of the most interesting sites I found last year was Prosper who facilitates person to person lending or P2P for short. Lending on prosper is a great way to get your savings to work for you. There are many different kinds of loan requests to choose from. I found it so interesting that you can “be the bank” and review peoples credit history to make informed decisions on whom to lend your hard earned money to. Another great reason I like prosper is the fact that I can earn a much higher interest rate than any fixed income security and with less risk than any other non-insured investments. They have a new system called a portfolio plan that makes it easy to start a diversified P2P lending portfolio.
Borrowing
Borrowing money on prosper can also save you money in interest charges when compared to bank or credit card rates. With current credit conditions deteriorating it is becoming more difficult to qualify for loans from institutions if you can get a loan at all. P2P lending helps Borrowers find lenders who are not constrained by these limiting factors. By joining a group on prosper you can get an even better rate because the group will stand behind you and give lenders confidence that you will repay the loan. If you are currently looking for a loan consider a loan at prosper.
Prosper
Prosper, which is based here in San Francisco, is like the ebay of person to person lending with people bidding the lowest interest they will take on their money loaned out. They really are helping us regular people “cut out the middle man” with regards to dealing with banks. They held a lenders lunch meeting, which I attended, at their old headquarters early last year shortly after launching the site to the public. It was impressive that the CEO Chris Larsen, who used to run E-loan, was on hand running the meeting and answering questions. In fact, when the company found loopholes early on they covered the losses for the early lenders to make it right! They have by far the most comprehensive P2P lending site out there at this time and it is only getting better.
My Experience
I personally have many loans, average over 13% return, and have had a low percentage of defaults. Making transfers into and out of prosper electronically is very easy although there are wait periods for certain transactions for safety purposes. While I wouldn’t suggest lending all of your savings in prosper I would suggest you take a serious look at opening an account and giving it a try. With the CD rates declining, and the uncertainty in the financial markets, you can help keep your money working for you with the tools on prosper. There is a book written about it called How to lend money to friends you never met
. If you have any questions regarding P2P lending please email me.
One of the most interesting sites I found last year was Prosper who facilitates person to person lending or P2P for short. Lending on prosper is a great way to get your savings to work for you. There are many different kinds of loan requests to choose from. I found it so interesting that you can “be the bank” and review peoples credit history to make informed decisions on whom to lend your hard earned money to. Another great reason I like prosper is the fact that I can earn a much higher interest rate than any fixed income security and with less risk than any other non-insured investments. They have a new system called a portfolio plan that makes it easy to start a diversified P2P lending portfolio.
Borrowing
Borrowing money on prosper can also save you money in interest charges when compared to bank or credit card rates. With current credit conditions deteriorating it is becoming more difficult to qualify for loans from institutions if you can get a loan at all. P2P lending helps Borrowers find lenders who are not constrained by these limiting factors. By joining a group on prosper you can get an even better rate because the group will stand behind you and give lenders confidence that you will repay the loan. If you are currently looking for a loan consider a loan at prosper.
Prosper
Prosper, which is based here in San Francisco, is like the ebay of person to person lending with people bidding the lowest interest they will take on their money loaned out. They really are helping us regular people “cut out the middle man” with regards to dealing with banks. They held a lenders lunch meeting, which I attended, at their old headquarters early last year shortly after launching the site to the public. It was impressive that the CEO Chris Larsen, who used to run E-loan, was on hand running the meeting and answering questions. In fact, when the company found loopholes early on they covered the losses for the early lenders to make it right! They have by far the most comprehensive P2P lending site out there at this time and it is only getting better.
My Experience
I personally have many loans, average over 13% return, and have had a low percentage of defaults. Making transfers into and out of prosper electronically is very easy although there are wait periods for certain transactions for safety purposes. While I wouldn’t suggest lending all of your savings in prosper I would suggest you take a serious look at opening an account and giving it a try. With the CD rates declining, and the uncertainty in the financial markets, you can help keep your money working for you with the tools on prosper. There is a book written about it called How to lend money to friends you never met
. If you have any questions regarding P2P lending please email me. 
2 comments:
Love to hate Prosper.
My Average loan rate is 17.77% and one default. The problem is that you really have no collateral for your money.
I've had good luck with the higher interest loans. With more risk by looking for loans that are small amounts (IE 1,000 - 2,500) and higher rates.
17.7% is really great! The collateral is not there but you have a better chance getting money back from the collection agnecy on a defaulted loan than from a company that goes bankrupt when you own a stock!
Thanks for the tip on what has worked for you so well.
Post a Comment