Comments on: How I Overcame My Fear of Lending Money on Prosper.com http://www.doughroller.net/p2p-lending/how-i-overcame-my-fear-of-lending-money-on-prospercom/ Money Management and Personal Finance | The Dough Roller Mon, 13 Feb 2012 05:44:53 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: chris http://www.doughroller.net/p2p-lending/how-i-overcame-my-fear-of-lending-money-on-prospercom/comment-page-1/#comment-61470 chris Sat, 07 Jan 2012 20:43:16 +0000 http://www.doughroller.net/2008/01/15/how-i-overcame-my-fear-of-lending-money-on-prospercom/#comment-61470 many people refer to lendingstats.com but when i eneter it no page comes up????????????????? thanks many people refer to
lendingstats.com

but when i eneter it no page comes up?????????????????

thanks

]]> By: Matt http://www.doughroller.net/p2p-lending/how-i-overcame-my-fear-of-lending-money-on-prospercom/comment-page-1/#comment-29703 Matt Thu, 03 Mar 2011 19:50:33 +0000 http://www.doughroller.net/2008/01/15/how-i-overcame-my-fear-of-lending-money-on-prospercom/#comment-29703 DR - it has been a few years since you wrote this and I am wondering if your opinions on P2P lending have changed with more experience. Any feedback would be appreaciated. DR – it has been a few years since you wrote this and I am wondering if your opinions on P2P lending have changed with more experience. Any feedback would be appreaciated.

]]> By: P2P Lending – Still the New Kid on the Block? | UPSIDE of Money http://www.doughroller.net/p2p-lending/how-i-overcame-my-fear-of-lending-money-on-prospercom/comment-page-1/#comment-27387 P2P Lending – Still the New Kid on the Block? | UPSIDE of Money Tue, 04 Jan 2011 03:44:25 +0000 http://www.doughroller.net/2008/01/15/how-i-overcame-my-fear-of-lending-money-on-prospercom/#comment-27387 [...] has less than 5% of his portfolio in P2P). He discusses risks and concerns in his article, “How I Overcame My Fear of Lending Money on Prosper.com.” It all boils down to being able to properly assess risk, he believes, especially for [...] [...] has less than 5% of his portfolio in P2P). He discusses risks and concerns in his article, “How I Overcame My Fear of Lending Money on Prosper.com.” It all boils down to being able to properly assess risk, he believes, especially for [...]

]]> By: DR http://www.doughroller.net/p2p-lending/how-i-overcame-my-fear-of-lending-money-on-prospercom/comment-page-1/#comment-7548 DR Sun, 08 Jun 2008 19:20:42 +0000 http://www.doughroller.net/2008/01/15/how-i-overcame-my-fear-of-lending-money-on-prospercom/#comment-7548 djmike, thanks for the info. I too have yet to have a default, although I've not invested as much as you. djmike, thanks for the info. I too have yet to have a default, although I’ve not invested as much as you.

]]> By: djmike805 http://www.doughroller.net/p2p-lending/how-i-overcame-my-fear-of-lending-money-on-prospercom/comment-page-1/#comment-7535 djmike805 Fri, 06 Jun 2008 20:48:21 +0000 http://www.doughroller.net/2008/01/15/how-i-overcame-my-fear-of-lending-money-on-prospercom/#comment-7535 I have been a Prosper lender for over a year and have not had a single loan be late or become default. I have over $2000 invested in "AA" and "A" borrowers with maybe 1 or 2 "B" grade borrowers. For those who have had loans default or become late I guarantee if you only make loans to the top 2 credit grade borrowers you will see the defaults and late payments nearly vanish. I have only two bits of advise: 1. No more than $50 to any borrower. 2. No loans under "A" credit rating, period. Feel free to email me if anyone can prove this method wrong... And feel free to visit www.lendingstats.com and look at my portfolio: djmike805 I have been a Prosper lender for over a year and have not had a single loan be late or become default. I have over $2000 invested in “AA” and “A” borrowers with maybe 1 or 2 “B” grade borrowers. For those who have had loans default or become late I guarantee if you only make loans to the top 2 credit grade borrowers you will see the defaults and late payments nearly vanish. I have only two bits of advise:
1. No more than $50 to any borrower.
2. No loans under “A” credit rating, period.
Feel free to email me if anyone can prove this method wrong…
And feel free to visit http://www.lendingstats.com and look at my portfolio: djmike805

]]> By: Jake http://www.doughroller.net/p2p-lending/how-i-overcame-my-fear-of-lending-money-on-prospercom/comment-page-1/#comment-7526 Jake Thu, 05 Jun 2008 20:03:19 +0000 http://www.doughroller.net/2008/01/15/how-i-overcame-my-fear-of-lending-money-on-prospercom/#comment-7526 I think P2P lending is an excellent idea even though I have yet to take the plunge. The free credit score is nice though, but I'm not likely to jump in just yet. Call me crazy. I think P2P lending is an excellent idea even though I have yet to take the plunge. The free credit score is nice though, but I’m not likely to jump in just yet. Call me crazy.

]]> By: Lexchoice Financial Articles http://www.doughroller.net/p2p-lending/how-i-overcame-my-fear-of-lending-money-on-prospercom/comment-page-1/#comment-6894 Lexchoice Financial Articles Mon, 31 Mar 2008 19:32:10 +0000 http://www.doughroller.net/2008/01/15/how-i-overcame-my-fear-of-lending-money-on-prospercom/#comment-6894 I think I'm going to give p2p lending a shot. I will start with a small amount and see how it goes. Thanks for the information. I think I’m going to give p2p lending a shot. I will start with a small amount and see how it goes. Thanks for the information.

]]> By: Richnpoor http://www.doughroller.net/p2p-lending/how-i-overcame-my-fear-of-lending-money-on-prospercom/comment-page-1/#comment-6463 Richnpoor Thu, 28 Feb 2008 12:21:17 +0000 http://www.doughroller.net/2008/01/15/how-i-overcame-my-fear-of-lending-money-on-prospercom/#comment-6463 I was considering the comments you made about the level of risk you have in some of your other investments. Personally I currently have about 20% of assets in a precious metals fund. Originally it was only about 7 % and within a month i was staring at a 15% loss( I have a remarkable gift for investing just prior to a correction), Reexamined my analysis several times was sure gold was bullish and committed another 5% of assets to a losing position. It came roaring back and Im up 8% (a 23% swing). I recently put about 2% in a BRIC fund...not the most conservative investment by far. International funds, small cap funds my broker says Im not risk tolerant Im risk immune. I moved 80 % of assets into ultra short term bonds just prior to the big correction that started middle of October (um...yeah I was timing the market and got it right). But I gotten plenty of trades wrong in my life. Despite this apparent risk tolerance a $250 unsecured personal loan just gives me the jitters. My portolio moves more than that on most days, so its not a huge sum. Maybe its the fact that 10 years ago I stopped lending money to family. If I have it and it wont negatively impact my family I give the money as a gift, if I get it back im pleasently surprised (more often I dont, but it doesnt bother me the way it used to). I like some level of distance in my investment, I dont want social interaction. I invest to make money and I prefer to base my decisions on fundamentals, technical analysis, not on how much someone's "story" appeals to me. Im not a complete risk it all on one roll of dice guy as I may seem, the money I kept in the market during the correction was in a Utility fund (yeah like your grandmother owns) I just 'went long the market' with a small % of my portfolio and I put that in a very conservative Dividend/Income fund and I only put in a small percentage. The charts seem o indicate we had a 'Panic Bottom' around jan 22nd volume spiked to the downside and the dow has crossed above its 20 dma and its 50dma in the past few days. Bernake seems determine to cut rates to 0 if neccessary (inflation will come but the market will party til it gets here) Anyone who's in this market in spite of the subprime mess (and its not done yet) who buys when fannie mae loses 4 billion is risk tolerant but I still wouldnt lend my sister $300 and expect it back ;-)~ I was considering the comments you made about the level of risk you have in some of your other investments.
Personally I currently have about 20% of assets in a precious metals fund. Originally it was only about 7 % and within a month i was staring at a 15% loss( I have a remarkable gift for investing just prior to a correction), Reexamined my analysis several times was sure gold was bullish and committed another 5% of assets to a losing position. It came roaring back and Im up 8% (a 23% swing).
I recently put about 2% in a BRIC fund…not the most conservative investment by far. International funds, small cap funds my broker says Im not risk tolerant Im risk immune. I moved 80 % of assets into ultra short term bonds just prior to the big correction that started middle of October (um…yeah I was timing the market and got it right). But I gotten plenty of trades wrong in my life.
Despite this apparent risk tolerance a $250 unsecured personal loan just gives me the jitters. My portolio moves more than that on most days, so its not a huge sum.
Maybe its the fact that 10 years ago I stopped lending money to family. If I have it and it wont negatively impact my family I give the money as a gift, if I get it back im pleasently surprised (more often I dont, but it doesnt bother me the way it used to). I like some level of distance in my investment, I dont want social interaction. I invest to make money and I prefer to base my decisions on fundamentals, technical analysis, not on how much someone’s “story” appeals to me.
Im not a complete risk it all on one roll of dice guy as I may seem, the money I kept in the market during the correction was in a Utility fund (yeah like your grandmother owns) I just ‘went long the market’ with a small % of my portfolio and I put that in a very conservative Dividend/Income fund and I only put in a small percentage. The charts seem o indicate we had a ‘Panic Bottom’ around jan 22nd volume spiked to the downside and the dow has crossed above its 20 dma and its 50dma in the past few days. Bernake seems determine to cut rates to 0 if neccessary (inflation will come but the market will party til it gets here)
Anyone who’s in this market in spite of the subprime mess (and its not done yet) who buys when fannie mae loses 4 billion is risk tolerant but I still wouldnt lend my sister $300 and expect it back
;-) ~

]]> By: DR http://www.doughroller.net/p2p-lending/how-i-overcame-my-fear-of-lending-money-on-prospercom/comment-page-1/#comment-4450 DR Wed, 30 Jan 2008 01:25:40 +0000 http://www.doughroller.net/2008/01/15/how-i-overcame-my-fear-of-lending-money-on-prospercom/#comment-4450 c-had & ira01, thanks for your perspective. It's interesting to see that some do really well with P2P lending, and others do not. I do think we need to be careful about drawing conclusions based on a relatively small data set. That said, it's important to remember that P2P lending involves unsecured consumer credit. This shouldn't be compared to corporate bonds or other less risky debt instruments. Unsecured consumer debt carries with it a lot of risk, both of default and interest rate risk (although at a 3 year term, the interest rate risk is manageable). c-had, I take your approach to investing with the vast majority of my portfolio. I have enjoyed lending on Prosper and Lending Club, but it will always represent a very small percentage of my investments. c-had & ira01, thanks for your perspective. It’s interesting to see that some do really well with P2P lending, and others do not. I do think we need to be careful about drawing conclusions based on a relatively small data set. That said, it’s important to remember that P2P lending involves unsecured consumer credit. This shouldn’t be compared to corporate bonds or other less risky debt instruments. Unsecured consumer debt carries with it a lot of risk, both of default and interest rate risk (although at a 3 year term, the interest rate risk is manageable). c-had, I take your approach to investing with the vast majority of my portfolio. I have enjoyed lending on Prosper and Lending Club, but it will always represent a very small percentage of my investments.

]]> By: c-had http://www.doughroller.net/p2p-lending/how-i-overcame-my-fear-of-lending-money-on-prospercom/comment-page-1/#comment-4425 c-had Tue, 29 Jan 2008 20:48:04 +0000 http://www.doughroller.net/2008/01/15/how-i-overcame-my-fear-of-lending-money-on-prospercom/#comment-4425 Great post ira01. I remember getting all excited when I first starting lending at prosper in late 2006. That was until the defaults started... 2 of my 5 loans defaulted, one was even a "B" Credit rating. My 3 remaining loans look like they might break me even if the borrowers continue to pay, but hey, I didn't sign up to break even. I would recommend prosper if you want a hobby and don't mind making a poor return or worse, losing money. Most people that stay on prosper get really into the stats and "game". I have decided to just invest following more of the Scott Burns philosophy, diverse funds with low fees. Invest and forget about it. I will not be lending on prosper again. Great post ira01. I remember getting all excited when I first starting lending at prosper in late 2006. That was until the defaults started… 2 of my 5 loans defaulted, one was even a “B” Credit rating. My 3 remaining loans look like they might break me even if the borrowers continue to pay, but hey, I didn’t sign up to break even.

I would recommend prosper if you want a hobby and don’t mind making a poor return or worse, losing money. Most people that stay on prosper get really into the stats and “game”.

I have decided to just invest following more of the Scott Burns philosophy, diverse funds with low fees. Invest and forget about it. I will not be lending on prosper again.

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