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AR15.COM
3/24/2012 4:47:24 AM EDT
So we were talking about this in another thread but I wanted to not totally derail this.

Its an interesting idea but I don't see any rights/protections for the lenders. The worst loan is an anonymous loan.
3/24/2012 5:05:46 AM EDT
[#1]
It is a good idea overall.  The idea is to diversify borrowers, so if a few default it wont hurt you too bad.
3/24/2012 5:17:10 AM EDT
[#2]
Quoted:
It is a good idea overall.  The idea is to diversify borrowers, so if a few default it wont hurt you too bad.


Yeah but the site might just be a ponzi scheme? You don't know that there is actually a borrower? The site likely wins when the loan is made, not upon collections...Don't know...Seems like there is an enormous potential for fraud.
3/24/2012 6:11:59 AM EDT
[#3]
I have used prosper.com for 2 years, and when I needed to get my money out I did with no issues. I have been getting around 10% with it. It is backed by some pretty legit money guys from what I can tell. I have had a few defaults but those have been few and far between. Never invest more than $25 per loan is my advice.

L8r
3/24/2012 6:19:39 AM EDT
[#4]
Have you had any loans go bad?
3/24/2012 6:30:24 AM EDT
[#5]
yeah, a couple of defaults but they have collections like any bank that try to recover etc. you just factor in the loss rate.
3/24/2012 6:57:43 AM EDT
[#6]
I'm intrigued by the concept and I think it would be an excellent way to teach kids about risk, financing and the real cost of money.

I'm thinking about withdrawing a couple of $100.00 from each of their savings accounts to invest in a couple of loans.

TD
3/24/2012 12:54:26 PM EDT
[#7]
I have a small fortune in prosper. The idea is brilliant but my results have sucked!

They used to let you msg the people and ask questions like how much have you saved in the last 6 months etc. really no limits.
It also helped the borrower because you could have your loan bid down if people thought you deserve a lesser rate.

But now it's different. I've had more loans go bad than good as have friends of mine.
They rarely last the full term and I've never seen collections collect a cent,

As I get paid off I'm pulling out my money, theory is great but any idiot can fill in the app and get funded it seems these days..
3/24/2012 1:49:30 PM EDT
[#8]
Quoted:
I have a small fortune in prosper. The idea is brilliant but my results have sucked!

They used to let you msg the people and ask questions like how much have you saved in the last 6 months etc. really no limits.
It also helped the borrower because you could have your loan bid down if people thought you deserve a lesser rate.

But now it's different. I've had more loans go bad than good as have friends of mine.
They rarely last the full term and I've never seen collections collect a cent,

As I get paid off I'm pulling out my money, theory is great but any idiot can fill in the app and get funded it seems these days..


At some point there likely became more people interested in lending than there was borrowers so they lowered the bar. I know the company that is the prime investor and I have a very dim view of their ethics and wisdom.