P2P Lending Best Practices: Diversification

Any blog about P2P lending as an investment talks about diversification. Many of these blogs, including great blogs from different perspectives than mine that I read regularly like Lending Memo or Nickel Steamroller advocate heavy diversification. By heavy, I mean advocating a strategy of putting very small amounts like the $25 minimum or $50 across … Read more

How Does Prosper.com or Lending Club Make Money?

 This is an important question because if we want to use these lending platforms successfully, then we need for the platform to stick around. In other words, it has to make money so we can make money.  First, Prosper.com makes money on loan originations. When a loan funds through their platform, they charge an origination … Read more

How Risk Averse Are You?

  How you put your money into peer to peer loans or social lending is a byproduct of many factors. One of the biggest is our own tolerance for risk. Do you know what your tolerance for risk is? There are numerous self evaluating tools for this on the web. This is one of my … Read more

What Types of Loans Can I Invest In on Prosper.com?

The Prosper.com loan site lists 11 different types of loans that are available. Those loans are: Debt Consolidation Home Improvement Short Term & Bridge Loans Auto & Vehicle Loans Small Business Loans Baby & Adoption Loans Engagement Ring Financing Wedding Loans Friends & Family Loans Green Loans Military Loans   By far, the most common … Read more