Comments on: Prosper – the Ebay of Person to Person Lending http://cashmoneylife.com/person-to-person-lending/ Money Management, Small Business, Career Thu, 09 Feb 2012 19:08:34 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Ryan http://cashmoneylife.com/person-to-person-lending/#comment-5232 Ryan Sun, 03 Feb 2008 14:50:26 +0000 http://cashmoneylife.com/2008/02/01/person-to-person-lending/#comment-5232 Money Blue Book, Prosper and Lending Club have become very popular because they are changing the way banking and lending are being done in the US. The short answer to your question is no. The rate of return is not 100% guaranteed. But I will send a more detailed answer to your e-mail account, and I will post another installment about how lending works next week. I think it will clear a few things up. Ron, Prosper has been around for 2 years now. Stay tuned for my next write-up next week. There will be some good info about the process. Money Blue Book, Prosper and Lending Club have become very popular because they are changing the way banking and lending are being done in the US. The short answer to your question is no. The rate of return is not 100% guaranteed. But I will send a more detailed answer to your e-mail account, and I will post another installment about how lending works next week. I think it will clear a few things up.

Ron, Prosper has been around for 2 years now. Stay tuned for my next write-up next week. There will be some good info about the process.

]]> By: Ron@TheWisdomJournal http://cashmoneylife.com/person-to-person-lending/#comment-5175 Ron@TheWisdomJournal Sat, 02 Feb 2008 16:25:24 +0000 http://cashmoneylife.com/2008/02/01/person-to-person-lending/#comment-5175 I'll be interested to see how this pans out. How long has Prosper been around? I’ll be interested to see how this pans out. How long has Prosper been around?

]]> By: deepali http://cashmoneylife.com/person-to-person-lending/#comment-5124 deepali Sat, 02 Feb 2008 06:15:25 +0000 http://cashmoneylife.com/2008/02/01/person-to-person-lending/#comment-5124 I'm too risk-averse to put more than $100 or so. :) Also, my current Prosper loan was to someone with a high rating and maybe 20% DTI (or less), so it wasn't the riskiest of loans. I'm new to this, so I'm not keen on taking any chances, even with $100. I’m too risk-averse to put more than $100 or so. :)
Also, my current Prosper loan was to someone with a high rating and maybe 20% DTI (or less), so it wasn’t the riskiest of loans. I’m new to this, so I’m not keen on taking any chances, even with $100.

]]> By: Money Blue Book http://cashmoneylife.com/person-to-person-lending/#comment-5126 Money Blue Book Sat, 02 Feb 2008 05:31:23 +0000 http://cashmoneylife.com/2008/02/01/person-to-person-lending/#comment-5126 Frankly, I'm just amazed at how popular Prosper and these sites have gotten. Is the rate of return that stable and assured? Frankly, I’m just amazed at how popular Prosper and these sites have gotten. Is the rate of return that stable and assured?

]]> By: Ryan http://cashmoneylife.com/person-to-person-lending/#comment-5105 Ryan Sat, 02 Feb 2008 00:30:23 +0000 http://cashmoneylife.com/2008/02/01/person-to-person-lending/#comment-5105 Mrs. Micah, I don't think the market is that rough - it is just competitive, like Ebay. People do their research and place their low bid, and when you undercut them, it will automatically take their bid lower if they approved it, just like bidding a max bid on Ebay raises automatically raises the bid to the highest level. You just need to pay attention if you want to win! :) deepali, I agree, it can be a fun way to earn some extra money, but I wouldn't use this as your main form of investment, and I wouldn't invest any money that you absolutely need any time soon! Kirk, as you know, there are inherent risks to any investment. Some of these borrowers have very high credit ratings, but prefer to take loans from people rather than institutions. The benefit for them is that the lenders will bid the loan rate lower because there is less of a risk involved. On the flip side, there are other loans that are just as good as gambling. If you select carefully, you can make some well placed investments with a good chance of not having any defaults. Like everything else though, there is risk involved. :) Mrs. Micah, I don’t think the market is that rough – it is just competitive, like Ebay. People do their research and place their low bid, and when you undercut them, it will automatically take their bid lower if they approved it, just like bidding a max bid on Ebay raises automatically raises the bid to the highest level. You just need to pay attention if you want to win! :)

deepali, I agree, it can be a fun way to earn some extra money, but I wouldn’t use this as your main form of investment, and I wouldn’t invest any money that you absolutely need any time soon!

Kirk, as you know, there are inherent risks to any investment. Some of these borrowers have very high credit ratings, but prefer to take loans from people rather than institutions. The benefit for them is that the lenders will bid the loan rate lower because there is less of a risk involved. On the flip side, there are other loans that are just as good as gambling. If you select carefully, you can make some well placed investments with a good chance of not having any defaults. Like everything else though, there is risk involved. :)

]]> By: Kirk http://cashmoneylife.com/person-to-person-lending/#comment-5102 Kirk Fri, 01 Feb 2008 23:37:16 +0000 http://cashmoneylife.com/2008/02/01/person-to-person-lending/#comment-5102 I need to get more familiar with Prosper. My instincts tell me this is probably riskier than the stock market as the folks you are helping are very high credit risks. People who can't afford their credit cards or mortgages...or small businesses where the failure rate is 80% over a five year period. I realize it is nice to invest where there is a good story attached to it, but that is a dangerous practice. When investing, it is best to have no emotional attachment. I hope you can straighten me out with regard to Propser. I need to get more familiar with Prosper. My instincts tell me this is probably riskier than the stock market as the folks you are helping are very high credit risks.

People who can’t afford their credit cards or mortgages…or small businesses where the failure rate is 80% over a five year period.

I realize it is nice to invest where there is a good story attached to it, but that is a dangerous practice. When investing, it is best to have no emotional attachment.

I hope you can straighten me out with regard to Propser.

]]> By: deepali http://cashmoneylife.com/person-to-person-lending/#comment-5101 deepali Fri, 01 Feb 2008 23:10:37 +0000 http://cashmoneylife.com/2008/02/01/person-to-person-lending/#comment-5101 I was kind of looking at it as a place to stick a few extra bucks for a decent return with some risk. Kind of like the stock market, only a little more... interesting. :) I was kind of looking at it as a place to stick a few extra bucks for a decent return with some risk. Kind of like the stock market, only a little more… interesting. :)

]]> By: Mrs. Micah http://cashmoneylife.com/person-to-person-lending/#comment-5098 Mrs. Micah Fri, 01 Feb 2008 21:29:05 +0000 http://cashmoneylife.com/2008/02/01/person-to-person-lending/#comment-5098 I hadn't realized the bidding process was so rough... I hadn’t realized the bidding process was so rough…

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