Peer lending and crowdfunding are making their way into the Bitcoin ecosystem/economy and people are starting to take notice. I have gotten to know alot of great people in the Bitcoin (BTC) ecosystem so far including England's own Jamie Cressey, despite the fact he's not an Arsenal fan like I am.  Jamie is the creator of the newest and most user friendly Equity Crowdfunding platform in the market today called Coinsortium. While my focus is on peer lending and crowdfunding from the borrowing Click Here To Continue
If you are like many of us in the p2p lending world, you have told friends and family how awesome it is and how safe an investment these loans are.  Most of our friends and family don't care or don't realize or don't want to realize these benefits and that's ok, but some people actually listen to us when we talk about the benefits of peer to peer lending. Some of us are involved in affiliate programs to bring referrals to the lending platforms, although I am not one of them. Some of these friends Click Here To Continue
June has come and gone. As you have seen and heard, I have taken on a new category of loans this month, Bitcoin. I have new loans based in Bitcoin and to be repaid to me in Bitcoin. Going forward, I will convert all my BTC loan stats into US Dollars based on the price of Bitcoin at the end of the month, in this case June 30th. This has no impact on my returns since 1% is 1% whether its in USD or BTC or EUR or whatever other currency.  There may or may not be an impact from Currency conversion Click Here To Continue
My first month investing in peer loans based in Bitcoin (BTC) has come to a close and I have learned some VERY important lessons.   Lesson 1: LC is Blind but BTC Sees Prosper and LC are double blind meaning we don't know who our borrowers are and the borrowers don't know who we are. BTC lending is different. Social matters. The lending platforms look to link up LinkedIn, Facebook, EBay and PayPal accounts as ways to verify identity and sift legitimate borrowers from those just looking to Click Here To Continue
Peer lending, what some people are starting to call Marketplace Lending (I like this name), is a source of excellent returns at low risk. Reinvestment is the key to big profits. Those that follow my returns know that my reinvestment philosophy is to reinvest every $100 earned in either Prosper or Lending Club.  I outline my philosophy here http://p2plendingexpert.com/p2p-loan-portfolio-management-dividend-reinvestment/ My initial investment was $2500 in each platform or $5000 total. Reinvestment Click Here To Continue
Bitcoin is important to peer to peer lending in many ways. One of the biggest reasons why is that it leads to easy, simple and inexpensive cross border lending. What many people are not aware of is that after the dollar (USD) and the British pound (GBP), the next biggest peer lending currency is Bitcoin (BTC). What happens to Bitcoin affects the entire p2p mkt whether we realize it or not. The US Marshal Service (USMS) announced this week that with a $200,000 cash deposit, you or me or anyone Click Here To Continue
May was an eventful month for me. I had my first chargeoff loan. One of my Prosper loans. Interestingly, they had paid for over a year before defaulting.  This was one of my 'foundation loans' that I made when I first started that were for $250 each and my written off principal is $194. My year's worth of payments earned me more than the $56 difference since I earned principal and interest so while still a loss, it's not as terrible as it looks on paper.  I have added this $194 to my principal Click Here To Continue
Diversification is a greatly misunderstood idea in investments in general and its just as true in p2p lending. The idea that you have a Lending Club account and a Prosper account or the idea that you buy some A loans and some E loans does NOT mean you are diversified. Both big platforms invest in US based consumer unsecured credit, credit given to individuals without the security of collateral. This means that both are the same and this whole asset class is exactly the same. Returns have been Click Here To Continue
Many of you know by now that I have been working on my own credit scorecard.  For those that didn't know, many of you are aware that I come from an equipment finance background.  Many large equipment finance companies create a credit based scorecard for their smaller transactions either as a quick way to approve deals or as a way to filter out deals they want from those that are either undesirable or need greater scrutiny and due diligence to approve for financing. Taking a page from their book Click Here To Continue
April saw some interesting happenings. Let's get to it.  here is how I did.   My first consistently late loan with Prosper has gone into collections. It is now 90 days late.  I have not developed a policy on what to do with late paying loans, yet, but I will have to decide how I'm going to deal with them. One of my private loans refinanced with an additional $3000 at a slightly lower rate which skews this month's interest and rate down as that is my largest loan that I have on Click Here To Continue
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