anyone try the prosper thing?

[Ns1]

Originally posted by: markgm
<div class="FTQUOTE"><begin quote>Originally posted by: NeuroSynapsis
You guys are all screaming scam, but it looks like p2p lending backed with legitimate credit reports/etc. damn this site is f'n genius.

bookmarked for later.</end quote></div>

It's not a scam, it just reminds me of ebay. They do none of the work, assume none of the risk, and take a chunk of the profit. Though, just like ebay, that doesn't mean you can't make money from it.

I liken it to a p2p bond market.

 

[RossMAN]

Anyone else?

 

[SilentRavens]

This reminds me of the mirco-loans going on in India to the very poor.

Admittedly circumstances are wildly different, and the intents of the system are different.

 

[WingZero94]

Wow, this seems uber sketchy

 

[jackace]

Originally posted by: markgm
<div class="FTQUOTE"><begin quote>Originally posted by: NeuroSynapsis
You guys are all screaming scam, but it looks like p2p lending backed with legitimate credit reports/etc. damn this site is f'n genius.

bookmarked for later.</end quote></div>

It's not a scam, it just reminds me of ebay. They do none of the work, assume none of the risk, and take a chunk of the profit. Though, just like ebay, that doesn't mean you can't make money from it.

Bingo. This thing could be a gold mine for people, but it could loose you a lot of money as well. There is no backup like banks receive from the federal government so if your money is gone its gone.

Good luck to all that use it. I hope you don't get screwed by someone that needs money for school or a large purchase and then files bankruptcy on you.

 

[RossMAN]

Originally posted by: mugs
I just signed up. Waiting for bank verification.

Any new updates since the bank verification?

 

[mugs]

Originally posted by: RossMAN
<div class="FTQUOTE"><begin quote>Originally posted by: mugs
I just signed up. Waiting for bank verification.</end quote></div>

Any new updates since the bank verification?

I have not yet done any loans. Not sure if I'm going to. The thing is, the amount of money I'd be willing to put into this is so small that I'm not sure it's worth my time. Even if I make 10% on a few thousand dollars, it's not really worth the additional risk and time.

 

[daveymark]

I've done well so far. been lending since last year with no problems.

hint: stick with AA ratings

 

[UNCjigga]

Originally posted by: daveymark
I've done well so far. been lending since last year with no problems.

hint: stick with AA ratings

Sure that'll limit your downside, but you're severly limiting your upside as well. How many loans can you make to AA borrowers at 24%?? If done right, you can make way more money with this than the stock market over a 3-5 year period.

I'm new to the whole p2p lending market, and I need to do more research before I jump in. But from what I've seen in various Prosper forums recently, the heyday may have already passed. It seems that all the good Groups are no longer accepting members or are shutting down since Prosper got rid of the Group Leader rewards last week. Add to that the fact that sketchy borrowers are now learning about this and how group members might make payments for them if they renege, and I'm not sure if this is the right model for this market. I'll have to check out kiva and the other business models too.

 

[BlancoNino]

Is it possible to borrow $10,000 from prosper using a good credit score and history at a low interest rate and then turn around and lend that 10K to somebody with worse credit and make a profit by virtually doing nothing but taking a risk?

 

[Ns1]

Originally posted by: BlancoNino
Is it possible to borrow $10,000 from prosper using a good credit score and history at a low interest rate and then turn around and lend that 10K to somebody with worse credit and make a profit by virtually doing nothing but taking a risk?

Don't think so; you're pretty much playing the arbitrage game. Your risk is those who you loan to defaulting and not being able to cover what you owe your lenders. You would also need to earn more than prosper fees + taxes + inflation to make this worthwhile.

 

[BlancoNino]

Are there only 3 year loans?

 

[mugs]

Originally posted by: BlancoNino
Is it possible to borrow $10,000 from prosper using a good credit score and history at a low interest rate and then turn around and lend that 10K to somebody with worse credit and make a profit by virtually doing nothing but taking a risk?

The reason those people pay high interest rates is because they have a high risk of default. Theoretically, in a perfect system, your profit from all interest rates would be the same after factoring in defaults.

And while they do offer the services of two collection agencies, their average recovery rates are pretty darn low (which is probably normal in that industry, but when you're the one who only gets 10% of his money back you'll probably care).

 

[Dacalo]

My transfer became available to lend, woohoo.

 

[krunchykrome]

Originally posted by: Dacalo
My transfer became available to lend, woohoo.

How much did you transfer?

 

[Soapy Bones]

marked for later

 

[Dacalo]

Originally posted by: krunchykrome

Originally posted by: Dacalo
My transfer became available to lend, woohoo.

How much did you transfer?

Just a minute amount, $300. I want to test it first.

 

[bigdog1218]

Originally posted by: UNCjigga

Originally posted by: daveymark
I've done well so far. been lending since last year with no problems.

hint: stick with AA ratings

Sure that'll limit your downside, but you're severly limiting your upside as well. How many loans can you make to AA borrowers at 24%?? If done right, you can make way more money with this than the stock market over a 3-5 year period.

I'm new to the whole p2p lending market, and I need to do more research before I jump in. But from what I've seen in various Prosper forums recently, the heyday may have already passed. It seems that all the good Groups are no longer accepting members or are shutting down since Prosper got rid of the Group Leader rewards last week. Add to that the fact that sketchy borrowers are now learning about this and how group members might make payments for them if they renege, and I'm not sure if this is the right model for this market. I'll have to check out kiva and the other business models too.

Right. Lets see you make WAY more money. The highest annual return rate is from D borrowers, at 11.65%. That doesn't even beat the S&P 500, let alone come close to what you can make investing in individual stocks. I'd rather have complete access to my savings account and make 5% instead of waiting 3 years to get marginal returns.

 

[markgm]

http://www.ericscc.com/lenders/markgm

 

[RossMAN]

Anyone else try this?

 

[ultimatebob]

Originally posted by: RossMAN
Anyone else try this?

Funny... I would have thought that you would be a top lender by now

 

[RossMAN]

Originally posted by: ultimatebob

Originally posted by: RossMAN
Anyone else try this?

Funny... I would have thought that you would be a top lender by now

That's why I'm researching Prosper.com

 

[Greenman]

Originally posted by: FoBoT
how do you break their knee caps if they are late on paying?

With a hammer, duh.

 

[StageLeft]

Originally posted by: BlancoNino
Is it possible to borrow $10,000 from prosper using a good credit score and history at a low interest rate and then turn around and lend that 10K to somebody with worse credit and make a profit by virtually doing nothing but taking a risk?

YES. People are doing this. I have seen request for many loans for about $10k from AA rated people who clearly state the intent is to relend on Prosper. They are offering about 9-11% on their loans.

I want to do this. However, b0mbrman's experience scares the hell out of me. I have no concern about the risk from individual lenders. Any lender has to face those, but if the site can lock an account indefinitely, then that is a real concern. Also, is this site secured/guaranteed in any way? As somebody else alluded to, what is truly preventing the owners from waiting until they are stinking rich with the money in people's accounts prior to withdrawal and then just retiring to some warm climate?

Rossman I know you do your due diligence, what are your thoughts so far?

Also, there are other sites like prosper such as lendingclub.com

 

[zinfamous]

Originally posted by: UNCjigga
I am very interested in the shylocking business and would like to subscribe to this thread.

yeah, I listened to the NPR story this morning. sounds rather sketchy, but I am intrigued.

Those with experience, does prosper.com rent out goons in the event that you will (likely) need them?