Anyone dabble with Prosper.com? | TigerDroppings.com

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HBR
LSU Fan
225
Member since Sep 2010
3200 posts

Anyone dabble with Prosper.com?


I've been fooling around with it for 2 years... pretty happy thus far






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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
80157 posts

re: Anyone dabble with Prosper.com?


This isn't another bitcoins thread, is it???





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Vols&Shaft83
Tennessee Fan
Member since Dec 2012
11749 posts

re: Anyone dabble with Prosper.com?


quote:

I've been fooling around with it for 2 years... pretty happy thus far



Really? You're happy assuming a risk of an unsecured loan for the possibility of mediocre returns?


OOOOOOOOOOOOOOOOKay






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HBR
LSU Fan
225
Member since Sep 2010
3200 posts

re: Anyone dabble with Prosper.com?


quote:

Really? You're happy assuming a risk of an unsecured loan for the possibility of mediocre returns?


Unsecured, yes, but Prosper does an excellent job of collecting. This isn't just you lending money to some stranger and crossing your fingers. They are all screened by prosper and have to submit several documents in order to open an account. I'm pretty happy with the results.

I have nearly $2,500 invested and got a 16.8% return for 2012. Out of nearly 60 loans I've contributed to, 3 of them have gone into collections. Of those 3, I have received all of my money back on 2 of them, while one is still in collections. I contributed $25.00 to that one and the borrower paid me back 18.00 before going belly up. The other 57 or so loans are all paid on time impeccably thus far.

In contrast my other investments (IRA, Mutual Funds, etc) barely did 4% last year.

Prosper is actually pretty reliable if you don't put all of your eggs into one basket of course. I'd much rather have it there than a CD or some shitty savings account. I don't contribute more than $50.00 to any single loan and I keep a good mix of HR and A+ ratings. I also don't invest in any loan more than 1 year and more than $3,000. Since 2011 I've done pretty good. Probably going to push it up to $5,000 by the end of this year.

I've done plenty of research on it so if you have any questions, please feel free to ask. I asked TONS of questions before getting into it.






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Lsut81
USA Fan
Member since Jun 2005
63067 posts

re: Anyone dabble with Prosper.com?


quote:

In contrast my other investments (IRA, Mutual Funds, etc) barely did 4% last year.



You only earned 4% last year on your IRA and the likes? People posted their year returns a few months back and I don't remember seeing one person under 8% with most being in the mid teens.






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Teddy Ruxpin
LSU Fan
New Orleans, LA
Member since Oct 2006
18062 posts
 Online 

re: Anyone dabble with Prosper.com?


quote:

In contrast my other investments (IRA, Mutual Funds, etc) barely did 4% last year.


This is where your problems are.






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diat150
Tulane Fan
OPELOUSAS
Member since Jun 2005
18731 posts

re: Anyone dabble with Prosper.com?


quote:

I've done plenty of research on it so if you have any questions, please feel free to ask.


what are the tax ramifications on this?






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HBR
LSU Fan
225
Member since Sep 2010
3200 posts

re: Anyone dabble with Prosper.com?


quote:

You only earned 4% last year on your IRA and the likes? People posted their year returns a few months back and I don't remember seeing one person under 8% with most being in the mid teens.


Yep, bad year... messed around with some stocks against my better judgment.






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HBR
LSU Fan
225
Member since Sep 2010
3200 posts

re: Anyone dabble with Prosper.com?


quote:

what are the tax ramifications on this?


My account is listed under my main business so I show it as other income. Not sure how it would affect you if you used it personally.






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foshizzle
LSU Fan
Washington DC metro
Member since Mar 2008
29597 posts

re: Anyone dabble with Prosper.com?


quote:

I've done plenty of research on it so if you have any questions, please feel free to ask.


Soooo ... you didn't really start this thread b/c you were curious about Prosper then.

Do you work for them?

quote:

I have nearly $2,500 invested and got a 16.8% return for 2012. Out of nearly 60 loans I've contributed to


This is kinda the big problem I have with small lending schemes like this. Clearly you spent some time picking 60 loans, and all you have to show for it is $420. I made more than that in 2012 in credit card rewards.

Yes, there can be good returns in microcredit lending but is it worth the time?






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notiger1997
Member since May 2009
22110 posts

re: Anyone dabble with Prosper.com?


quote:

I made more than that in 2012 in credit card rewards.








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Vols&Shaft83
Tennessee Fan
Member since Dec 2012
11749 posts

re: Anyone dabble with Prosper.com?


quote:

I made more than that in 2012 in credit card rewards.



$1123 in Debit card rewards






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foshizzle
LSU Fan
Washington DC metro
Member since Mar 2008
29597 posts

re: Anyone dabble with Prosper.com?


quote:

$1123 in Debit card rewards


Nicely done, I only managed a little over $600.

My banner year was 2011, I had a credit card offer for 0% APR for 18 months plus 5% cash back on spending at Lowe's and Home Depot. I decided that was just the time to redo my kitchen and bathroom. Piled up about 2k before the year was over.






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HBR
LSU Fan
225
Member since Sep 2010
3200 posts

re: Anyone dabble with Prosper.com?


quote:

Soooo ... you didn't really start this thread b/c you were curious about Prosper then.

Do you work for them?

Actually that's exactly why I started it and no, I don't work for them.

quote:

This is kinda the big problem I have with small lending schemes like this. Clearly you spent some time picking 60 loans, and all you have to show for it is $420. I made more than that in 2012 in credit card rewards.

Yes, there can be good returns in microcredit lending but is it worth the time?


There is an auto invest option that I use. I didn't spend anytime selecting the loans, only a few minutes setting the parameters of the auto invest option.

I agree that it wouldn't be worth the time but this is only a fraction of my investments. I was just curious if anyone else on TD had a prosper.com account.






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