Earlier this month I was reading a post from a guy a few years ago who decided to stop investing at Prosper because his returns were better than a bank, but not what he expected. He thought that for the risk he was taking, he should be getting better than 8%. He related that he was disappointed at the number of people who had defaulted on their loans which caused his overall return to drop. Keep in mind that even after all the defaults his return was around 8%.
There are a lot of people who would be happy with a return of 7% or more. Still, I am striving for more and looking for ways to invest in people and still get a good or even great return.
While I am definitely new to loaning dinero at Prosper, I have not yet had anyone stop paying on a loan. If this trend continues I will be receiving much more than 8% on my money.
You have the option to look at each loan individually and decide to take a risk on a real person instead of simply going by the numbers. I do not mean to say that the numbers mean nothing, but they are only one factor. This is the method I choose as I am of the opinion that this will increase my skill of making profitable loans over time.
As of this morning I have received payments of 1.12, .18, .91, 2.29, 1.05, .91, 1.08, 1.01, 1.10, .22, 1.10, .98 and one complete repayment of 26.06. There are also 5 more payments in process, which I assume means that these payments have left the financial institution of the borrower and are somewhere in between there and my account at Prosper. I encourage you to invest in people by loaning to them.
In my back office at Prosper the line that reads Gain/Loss to date equals 5.53.
All numbers above are in dollars and cents.
If I can do this, so can you. Keep in mind that you could lose money. I hope you don't.
I am currently in the black.
Click here or on the title of this post to visit Prosper.com and find out more about how to make a profit loaning money to real people.
Down Over 9 Pounds In 8 Days!
14 years ago
