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 moreP2P Lending Best Practices: Diversification
Time for the April 2013 portfolio report. Let’s see how I did. In my previous report, I outlined what I have in my portfolio currently so lets go through the changes first. In my last blog post, I indicated that I bought a new loan for $100 of my interest earned on previous loans. However, … Read moreStu’s Portfolio: April 2013 Report
A recent post I put on this blog was about how to start using dividend reinvestment and portfolio management techniques to enhance our P2P Lending returns. Well all of that is true except that my loan that I picked to invest in on Prosper.com with my interest earned never funded. As a result, I had … Read moreP2P Loan Portfolio: Dividend Reinvestment Take Two
So by this stage maybe you have put some money in some peer to peer loans. Once you do, you have a P2P loan portfolio that now has to be managed. How d owe manage this? For better or for worse, there’s alot of information we can use from the investment world in the management … Read moreP2P Loan Portfolio Management: ‘Dividend’ Reinvestment
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 moreHow Does Prosper.com or Lending Club Make Money?
Here is my first portfolio report for you guys. What is in my own loan portfolio? Well, I’m a Credit Analyst so I put my money where my mouth is. I currently have zero loans with Lending Club, 6 loans with Prosper.com, and 1 private loan with a former client of mine from equipment finance … Read moreStu’s Portfolio: March 2013 Report
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 moreHow Risk Averse Are You?
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 moreWhat Types of Loans Can I Invest In on Prosper.com?
Credit Analysis is an important part of our process of learning which loans fit our appetite for risk as all loan listings on a peer to peer lending site are not created equal. The first piece involved in credit analysis is the credit score. This is a single number score and the most common are … Read moreCredit Analysis: What is a Credit Score?
So let’s jump right in. How Does Prosper.com rate its loans? Prosper.com is one of the leading peer to peer lending sites on the web today. Prosper was the first peer to peer lending site created on the web, at least according to their own website. It’s a great site and platform for adding peer … Read moreHow does Prosper.com rate its loans?