re: Earn a 10% Yield Without Buying a Single Stock, Thanks to Technology

I had what was considered by the old Prosper a B+ portfolio. I had 49 loans over a three year period with $5000 being about the most I had invested. 29 paid off and 20 defaulted. The older the portfolio got the worse the performance was.

They had terrible collection effort.

I understand they have moved to more of a lending club model.

I think that link I posted has a lending clue forum too and those people seem more satisfied than the Proper people.

Here is copy of my loan summary of the charge off loans. Note all the A and AA loans that defaulted. AA was the best rating.

quote:

---

Note ID Original
Share / Loan amount @ Rate Term Loan Origination
Date / Day Prosper
Rating Credit
grade Purchase date Price @ Yield Net rec'd Status
37275-83 $63.03 / $15,000 @ 23.85% 3 years Oct-01-2008 - A Oct-01-2008 $63.03 @ 22.85% $14.51 Charge-off
In collections
36410-194 $51.88 / $21,000 @ 21.45% 3 years Sep-08-2008 - A Sep-08-2008 $51.88 @ 20.45% $17.35 Charge-off
Discharged in BK
35990-70 $250.00 / $15,000 @ 15.25% 3 years Aug-26-2008 - AA Aug-26-2008 $250.00 @ 14.25% $230.69 Charge-off
In collections
35893-39 $100.00 / $3,500 @ 17.45% 3 years Aug-25-2008 - C Aug-25-2008 $100.00 @ 16.45% $63.12 Charge-off
In collections
35670-26 $200.00 / $3,000 @ 31.65% 3 years Aug-19-2008 - C Aug-19-2008 $200.00 @ 30.65% $25.52 Charge-off
BK filed
35110-41 $100.00 / $18,000 @ 19.00% 3 years Aug-07-2008 - A Aug-07-2008 $100.00 @ 18.00% $39.51 Charge-off
In collections
35127-199 $196.80 / $23,000 @ 23.00% 3 years Aug-07-2008 - A Aug-07-2008 $196.80 @ 22.00% $178.86 Charge-off
34957-102 $300.00 / $25,000 @ 16.15% 3 years Aug-01-2008 - AA Aug-01-2008 $300.00 @ 15.15% $72.36 Charge-off
Discharged in BK
34579-121 $50.00 / $15,000 @ 13.00% 3 years Jul-25-2008 - A Jul-25-2008 $50.00 @ 12.00% $59.83 Charge-off
In collections
31344-205 $124.02 / $15,000 @ 13.95% 3 years May-19-2008 - B May-19-2008 $124.02 @ 12.95% $99.49 Charge-off
In collections
31318-164 $100.00 / $15,000 @ 19.00% 3 years May-19-2008 - B May-19-2008 $100.00 @ 18.00% $39.50 Charge-off
In collections
30141-77 $100.00 / $10,000 @ 19.10% 3 years Apr-25-2008 - B Apr-25-2008 $100.00 @ 18.10% $28.75 Charge-off
In collections
30019-106 $50.00 / $24,000 @ 17.60% 3 years Apr-23-2008 - AA Apr-23-2008 $50.00 @ 17.60% $14.38 Charge-off
Discharged in BK
28807-133 $100.00 / $24,000 @ 15.00% 3 years Mar-24-2008 - A Mar-24-2008 $100.00 @ 14.00% $85.06 Charge-off
In collections
27659-213 $133.45 / $24,000 @ 14.45% 3 years Feb-21-2008 - AA Feb-21-2008 $133.45 @ 14.45% $78.03 Charge-off
In collections
26430-82 $50.00 / $8,000 @ 18.44% 3 years Jan-29-2008 - B Jan-29-2008 $50.00 @ 17.44% $24.96 Charge-off
In collections
26235-25 $100.00 / $3,500 @ 33.70% 3 years Jan-23-2008 - HR Jan-23-2008 $100.00 @ 32.70% $34.10 Charge-off
In collections
18423-43 $66.00 / $5,000 @ 16.90% 3 years Aug-28-2007 - C Aug-28-2007 $66.00 @ 15.90% $86.75 Charge-off
18102-48 $50.00 / $5,000 @ 23.00% 3 years Aug-17-2007 - E Aug-17-2007 $50.00 @ 19.00% $16.04 Charge-off
In collections
17918-101 $50.00 / $25,000 @ 14.55% 3 years Aug-10-2007 - AA Aug-10-2007 $50.00 @ 13.80% $25.45 Charge-off
In collections
20 notes

---

quote:

---

Again, the wiki entry on Prosper is worth a read. Prosper oddly IMO ran afoul of basic regulatory rules not once, but twice. I would think a company in the business of microlending would be very good about dotting the i's and crossing the t's.

---

What is frustrating to me is that Prosper seems to have failed to even represent their lenders in bankruptcy proceedings as the borrower filed. I have not received one cent of bankruptcy settlements.

My company uses Lending Club as a way for customers to get financing in hopes they will end being a customer of ours for life. From what I understand the they have only 1 delinquent account.

bump for BigBoyTiger , or anyone else that has been invested in peer 2 peer for several months.

How has it worked out for you so far? Returns?

quote:

---

I ended up with a 1.49% annualized return and I consider myself one of the fortunate ones.

---

You very likely are.

Seriously, what kind of borrower goes this route? Answer: Somebody who can't get a traditional loan. There's undoubtedly a reason why they can't.

Sure, it may be possible to do good research on a borrower but for the amounts we're talking about it just isn't worth the time.

quote:

---

Seriously, what kind of borrower goes this route? Answer: Somebody who can't get a traditional loan. There's undoubtedly a reason why they can't.

---

not everybody will seek out a traditional loan for these things. for many reasons other than what you assume. Especially with today's restrictive limitations. you should be aware of that already.

and that is why the ROR is very high on some. But not all. It's up to you.

quote:

---

Sure, it may be possible to do good research on a borrower but for the amounts we're talking about it just isn't worth the time.

---

wrong again. you can loan them as much as you want. or you can do a minimum and diversify through thousands of borrowers.


Look, it is obvious you do not do it so why do you care? Sounds like it bothers you that some are doing well in something you do not approve of. Hmmnnn.

we can spin the negatives all day on stocks, bonds, RE, futures, etc. It is all up to the investor what route they want to go.