Comments on: My Foray into Prosper as a P2P Lender http://www.moolanomy.com/340/my-foray-into-prosper/ Personal Finance. Investing. Wealth Building. Sat, 20 Mar 2010 00:04:39 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Andrew http://www.moolanomy.com/340/my-foray-into-prosper/comment-page-1/#comment-26179 Andrew Wed, 17 Feb 2010 14:26:53 +0000 http://www.moolanomy.com/340/my-foray-into-prosper/#comment-26179 Do you think this will work for small business lending... also I wonder what % of folks borrowing are doing so to keep their home business burning - which brings me to convertible debt scenarios. What happens if the person is willing to settle the debt with some equity... or asset? Do you think this will work for small business lending… also I wonder what % of folks borrowing are doing so to keep their home business burning – which brings me to convertible debt scenarios. What happens if the person is willing to settle the debt with some equity… or asset?

]]> By: Prosper - Peer-to-peer lending network | Personal Finance Directory http://www.moolanomy.com/340/my-foray-into-prosper/comment-page-1/#comment-15280 Prosper - Peer-to-peer lending network | Personal Finance Directory Wed, 06 Aug 2008 02:49:13 +0000 http://www.moolanomy.com/340/my-foray-into-prosper/#comment-15280 [...] My Foray into Prosper as a P2P Lender at Moolanomy [...] [...] My Foray into Prosper as a P2P Lender at Moolanomy [...]

]]> By: Free Bonus Money | beingfrugal.net http://www.moolanomy.com/340/my-foray-into-prosper/comment-page-1/#comment-8185 Free Bonus Money | beingfrugal.net Tue, 08 Apr 2008 11:01:34 +0000 http://www.moolanomy.com/340/my-foray-into-prosper/#comment-8185 [...] to Peer Lending is all the rage these days. Blog posts about Prosper and Lending Club are all over the place. If you’ve ever wanted to try to earn interest [...] [...] to Peer Lending is all the rage these days. Blog posts about Prosper and Lending Club are all over the place. If you’ve ever wanted to try to earn interest [...]

]]> By: Pinyo http://www.moolanomy.com/340/my-foray-into-prosper/comment-page-1/#comment-3636 Pinyo Mon, 07 Jan 2008 14:39:45 +0000 http://www.moolanomy.com/340/my-foray-into-prosper/#comment-3636 @Personal Loan - I started with <a href="https://secure.lendingclub.com/refer.action?referrer=Moolanomy">LendingClub.com</a> a few days ago and I am still trying to get my account verified. I think it's easier to start with LendingClub because of the $25 minimum to lend (vs. $50) -- also, if new lenders use an affiliate link to sign-up, they automatically get $25 that they can lend out for free. I agree that nobody should dump all their money into these 2 sites, but they could be a part of any portfolio -- so far, I am looking at 11.99% return, which is not bad considering what the market is doing. Note: <a href="https://secure.lendingclub.com/refer.action?referrer=Moolanomy">Use this affiliate link to get $25 sign-up bonus</a>. @Personal Loan – I started with LendingClub.com a few days ago and I am still trying to get my account verified. I think it’s easier to start with LendingClub because of the $25 minimum to lend (vs. $50) — also, if new lenders use an affiliate link to sign-up, they automatically get $25 that they can lend out for free.

I agree that nobody should dump all their money into these 2 sites, but they could be a part of any portfolio — so far, I am looking at 11.99% return, which is not bad considering what the market is doing.

Note: Use this affiliate link to get $25 sign-up bonus.

]]> By: Personal Loan Portfolio http://www.moolanomy.com/340/my-foray-into-prosper/comment-page-1/#comment-3628 Personal Loan Portfolio Mon, 07 Jan 2008 03:34:21 +0000 http://www.moolanomy.com/340/my-foray-into-prosper/#comment-3628 Personally, I decided to lend with Lending Club first, but I will also invest some money with Prosper in the near future. I will not loan a great deal of money with either site because the superior tax and time efficiency of index fund investing. Before jumping in check out the late rates for yourself on one of the many Prosper statistics sites available rather than relying on any press accounts of the default rate. Personally, I decided to lend with Lending Club first, but I will also invest some money with Prosper in the near future. I will not loan a great deal of money with either site because the superior tax and time efficiency of index fund investing.

Before jumping in check out the late rates for yourself on one of the many Prosper statistics sites available rather than relying on any press accounts of the default rate.

]]> By: Prosper Blog: Prosper, the online marketplace for people-to-people lending » Blog Archive » Prosper Roundup — Prosper Blog Nominated For An Annual Award(?) Edition http://www.moolanomy.com/340/my-foray-into-prosper/comment-page-1/#comment-3605 Prosper Blog: Prosper, the online marketplace for people-to-people lending » Blog Archive » Prosper Roundup — Prosper Blog Nominated For An Annual Award(?) Edition Sun, 06 Jan 2008 16:39:05 +0000 http://www.moolanomy.com/340/my-foray-into-prosper/#comment-3605 [...] Moolanomy talked about his Foray into Prosper as a P2P Lender [...] [...] Moolanomy talked about his Foray into Prosper as a P2P Lender [...]

]]> By: Pinyo http://www.moolanomy.com/340/my-foray-into-prosper/comment-page-1/#comment-3288 Pinyo Sun, 30 Dec 2007 16:33:33 +0000 http://www.moolanomy.com/340/my-foray-into-prosper/#comment-3288 @PeerLend - thank you for sharing all these other sites. I will check them out. The better quality borrowers on LendingClub is definitely desirable. I agree, Zopa model is not as attractive. @PeerLend – thank you for sharing all these other sites. I will check them out. The better quality borrowers on LendingClub is definitely desirable.

I agree, Zopa model is not as attractive.

]]> By: PeerLend.com http://www.moolanomy.com/340/my-foray-into-prosper/comment-page-1/#comment-3281 PeerLend.com Sun, 30 Dec 2007 06:09:22 +0000 http://www.moolanomy.com/340/my-foray-into-prosper/#comment-3281 In addition to Prosper, there are several other P2P Lending players entering the space. In early December, LendingClub.com opened their (formerly FaceBook users only) lending application to the wider public. They do things a bit differently than Prosper, as they underwrite the loans (ie, bucket by credit grade and set interest rates for each bucket). They have a 640 FICO minimum for borrowers, as well as a max. 30% DTI, so maybe a better pool of borrowers.. plus they have a $25 minimum bid, which means you can diversify into twice the number of loans as with Prosper's $50 minimum. Zopa.com launched in the US in early Dec, but it's nothing like their original UK version and is oddly "un-P2P". Lenders just buy into a 5.1% guaranteed CD, and, from what I can tell, Zopa pockets the rate-spread between 5.1% and whatever they charge borrowers (up to 17% or so). Other weird stuff about their model, as well, including a mandatory "help" (ie, a forced donation of part of your return to at least one borrower). May be viable for borrowers, but as a (young-ish) lender who has no interest in "testing out" an unproven asset class for MMKT returns, not too interested. Loanio.com is scheduled to launch in Jan '08, and, while little is known, think it may tend toward a more free market / auction-style P2P marketplace... similar to Prosper. It's fun to watch the space, anyway. In 5-10 years, this stuff could be huge (and reliable, too). In addition to Prosper, there are several other P2P Lending players entering the space.

In early December, LendingClub.com opened their (formerly FaceBook users only) lending application to the wider public. They do things a bit differently than Prosper, as they underwrite the loans (ie, bucket by credit grade and set interest rates for each bucket). They have a 640 FICO minimum for borrowers, as well as a max. 30% DTI, so maybe a better pool of borrowers.. plus they have a $25 minimum bid, which means you can diversify into twice the number of loans as with Prosper’s $50 minimum.

Zopa.com launched in the US in early Dec, but it’s nothing like their original UK version and is oddly “un-P2P”. Lenders just buy into a 5.1% guaranteed CD, and, from what I can tell, Zopa pockets the rate-spread between 5.1% and whatever they charge borrowers (up to 17% or so). Other weird stuff about their model, as well, including a mandatory “help” (ie, a forced donation of part of your return to at least one borrower). May be viable for borrowers, but as a (young-ish) lender who has no interest in “testing out” an unproven asset class for MMKT returns, not too interested.

Loanio.com is scheduled to launch in Jan ‘08, and, while little is known, think it may tend toward a more free market / auction-style P2P marketplace… similar to Prosper.

It’s fun to watch the space, anyway. In 5-10 years, this stuff could be huge (and reliable, too).

]]> By: Prosper and Collections Agencies | Mrs. Micah: Finance for a Freelance Life http://www.moolanomy.com/340/my-foray-into-prosper/comment-page-1/#comment-3196 Prosper and Collections Agencies | Mrs. Micah: Finance for a Freelance Life Wed, 26 Dec 2007 19:31:32 +0000 http://www.moolanomy.com/340/my-foray-into-prosper/#comment-3196 [...] Prosper, you’re taking the risk that someone won’t pay you back. Therefore, Prosper has you specify which collections agency you want to use (two choices) before you fund the [...] [...] Prosper, you’re taking the risk that someone won’t pay you back. Therefore, Prosper has you specify which collections agency you want to use (two choices) before you fund the [...]

]]> By: Pinyo http://www.moolanomy.com/340/my-foray-into-prosper/comment-page-1/#comment-2954 Pinyo Wed, 19 Dec 2007 02:24:56 +0000 http://www.moolanomy.com/340/my-foray-into-prosper/#comment-2954 @hank - I don't think you are being mean. I view it more as an alternative way for people to lend and borrow. Certainly, there's opportunity for bottom feeders to take advantage of the system. However, you can always choose to lend to someone with good profile and no prior delinquencies. Anyway, I have concerns about Prosper as well and I don't recommend that anyone jump in without familiarizing themselves with the nuances first. I am currently investing only $50, so that I can learn. Experimenting is a good thing. @Mike - thanks @hank – I don’t think you are being mean. I view it more as an alternative way for people to lend and borrow.

Certainly, there’s opportunity for bottom feeders to take advantage of the system. However, you can always choose to lend to someone with good profile and no prior delinquencies.

Anyway, I have concerns about Prosper as well and I don’t recommend that anyone jump in without familiarizing themselves with the nuances first. I am currently investing only $50, so that I can learn. Experimenting is a good thing.

@Mike – thanks

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