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They claim it's a 9% annual return, which is better than 95% of mutual funds... I started May 2009, deposited $175 just to test the waters, and they also gave me a $25 bonus.
I invested in 8 loans then, now 1 B loan is charged off, 2 (a/c) are late. 5 are "current" (aa/bb/c) (2 were in grace periods at a certain point).
Have withdrew $73.43, $7.51 in cash ready to withdraw. $93.79 is outstanding in principal. The loans expire around 2012. So in a year, I've gotten back half of my money, though 37.5% of loans are nonperforming... If all 5 make it 1 more year, I'll be in the green for sure.
For now, I will hold off in investing more... Maybe it will perform better in a better economy.
They claim it's a 9% annual return, which is better than 95% of mutual funds... I started May 2009, deposited $175 just to test the waters, and they also gave me a $25 bonus.
I invested in 8 loans then, now 1 B loan is charged off, 2 (a/c) are late. 5 are "current" (aa/bb/c) (2 were in grace periods at a certain point).
Have withdrew $73.43, $7.51 in cash ready to withdraw. $93.79 is outstanding in principal. The loans expire around 2012. So in a year, I've gotten back half of my money, though 37.5% of loans are nonperforming... If all 5 make it 1 more year, I'll be in the green for sure.
For now, I will hold off in investing more... Maybe it will perform better in a better economy.
Would you recommend the site to other or no? I was thinking about doing the same thing as you put in a couple hundred bucks just to test the waters.
A buddy of mine works for a company that does research on websites demographics of people who visit, etc. Even though Prosper and Lending Club have been featured on some major financial tv shows and in forbes and stuff traffic to these sites is very low.
My buddy also showed me that one month they had a huge jump, probably because it was on CNBC or something and it totally dropped off. You have to ask yourself if this site is so great why didn't those people continue to use it.
I may throw a few hundred bucks in just to try it out but basically expecting to lose a portion if not all of it.
It is fun to loan to a few folks, picking and choosing borrowers. I would absolutely not manage it actively or invest large sums in it until it better establishes itself.
If so what has your experience been? Do you have lots of people default on loans or no? Do you actually make money?
Yes, I did it and I regret it. The thing is...you only need one person to default to really mess up your portfolio. Fortunately I only lost $50, but I only invested $200.
I don't recommend it because there's really no good way of evaluating who's a good risk and who isn't.
Honestly, I think you're better off investing in a broad based multisector bond mutual fund like Loomis Sayles Bond. (It can invest in junk bonds, investment grade, some international, corporate, government, etc) The fund is volatile but has great long term returns and is less volatile than stocks. I wish I'd put my $200 in that fund back in 2007. I'd be better off if I had.
id sooner take a shot with junk bonds then junk people....there is a reason most are borrowing there
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