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Peer 2 Peer Lending?





coolclay
Has anyone on Frihost tried peer lending (Lending Club or Prosper). I've studied up on the 2, and have read everything I could on them and think I am going to try out Lending Club with 2 grand that I have in stocks now which aren't doing me any good.

It's a really great philosophy but unfortunately just like most high stakes investing has it downfalls. As long as I diversify my lending, and analyze those individuals looking for loans well, it has the makings of a great investment opportunity.
hunnyhiteshseth
But beware of money swindlers out there, I think there is no legal recourse in such cases if you have not done any documentation towards that.
standready
I have not heard anything positive about this. Good luck to you.
deanhills
Depending on what funds you are needing, I'd be careful with a club like that. Sounds almost like one of those Pyramid types of schemes? If you need funds, I'd much rather look for a sponsor who has plenty of references and is interested in the project that you want to start. For example if you want to start a scuba diving school and tour club, check out millionaires who love to scuba dive, and pitch a project to them, like buying a boat and doing International Scuba Diving trips, and then expanding it into a fleet. Or maybe you want to specialize in a scuba diving school for children, but having side kicks to it that would generate interest from wealthy scuba divers.
coolclay
Deanhills, I am not looking for funds, I am investing/providing funds. But if I was your suggestions would be spot on!

Lending Club has a solid background, and a proven track record. I am not so much worried about individuals defaulting because as long as I place my investments in reliable individuals and diversifying, the probability of returns over 5% are extremely high in the 80% range. My biggest concern was that of the company dissolving, but they are registered with the SEC, and are backed up with $21M cash. Also in the event of bankruptcy my loans would be managed and collected upon for me by a third party.

I feel safer putting some of my money in an investment of this type than on the stock market.
Cliffer
i'd like to set up a badminton club,who can invest it?
coolclay
So far with my investments at Lending Club I have profited 8.5% interest calculating out to $2,500.
It's recognized by the FEC and is completely legitimate.

Lending club essentially makes you the bank, and helps investors earn a good return and gives borrowers a much better rate than they would receive at the bank. I encourage anyone to give it a shot if you live in a place which has approved Lending Club like most states in the US.
playfungames
This is the first time that I've heard about anything like this. Peer to peer lending, sounds like a great idea but I bet that it is not free from risks of losing your money.
coolclay
As with anything there are always risks. However through proper diversification the risks of losing money are extremely low. The vast majority of investors earn at least 5% interest, and you have easy liquidity in case you need the cash.

Any situation that would cause large numbers of defaults across the nation would cause an increase of risk. So if we had a massive depression I would foresee by returns to drop and my defaults would increase. I am willing to take that chance with a portion of my investments. I also have a solid holding of precious metals, and valuable coins which would hold their value well through a depression.

Diversification in all investments is key.
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