Post: #1

I did a quick search and not found anything in the last 2 years about Peer-2-Peer Lending on this forum.

The two biggest sites from my brief research are:

http://www.prosper.com
http://www.lendingclub.com

Has anyone used either and got any feedback? I was thinking about putting some money in and giving it a spin

Post: #2

(04-08-2016 06:18 AM)Afarang Wrote:  I did a quick search and not found anything in the last 2 years about Peer-2-Peer Lending on this forum.

The two biggest sites from my brief research are:

http://www.prosper.com
http://www.lendingclub.com

Has anyone used either and got any feedback? I was thinking about putting some money in and giving it a spin

Have used both of them for 3-4 years now and they are one of my best sources for passive income. I have spent a lot of time to create some solid filters and getting around 11-12% return on both of these sites.
Just start investing a small sum first before throwing in some bigger dough and keep each loan amount small. I always do $25 per loan.

Post: #3

Agree with Buakaw… 11 to 12% returns are easily doable LendingClub. Also the advice to keep specific investments small ($25) is good since loans to go bad from time to time and even if LendingClub eventually collects, you don’t get anything. The $25 really limits your exposure. Note that the best borrowers tend to get their loans funded quickly so being a regular with your searches is a good thing. Remember that cash (or in this case, ‘not lending’) is always a valid position. Not an original statement on my part and more often heard in investing or trading circles, but one of the easy mistakes people make is to think that they should lend just because they have cash in their account. Stick to the parameters you have set for yourself.

Another recommendation I would share is to treat it like a business. Stick to your parameters, write them down, especially in the beginning as you get comfortable take notes on why you made a certain loan, and learn from your mistakes. Can you get higher returns? Yes, but those are much riskier borrowers. Finally, an easy way to boost returns though is to transact in a tax-advantaged manner through a self-directed IRA (either the $5500 per-year, or larger amounts through conversion of funds held elsewhere into such. Check out EnTrustCAMA for details on how to do this ( theentrustgroup (dot) com ).

Some other lending sites I have had success with are: Fundrise, Realty Mogul, and RealtyShares. While one can argue whether these constitute true ‘peer-to-peer lending sites,’ these are real estate and related project loans with typical minimums in the $5k to $10k and up. If you are not at least somewhat familiar with all of the different ways real estate deals can be done, start slow here. Register and request every due diligence presentation you can get your hands on to review. Some are better than others and again, repeat borrowers with successful projects under their belts are the best. It’s not uncommon to see returns approach 15% or greater; I keep these investments in a Single Member LLC for tax, privacy, and liability purposes. Especially if you are a newbie at this, I strongly recommend having an attorney review the docs since each loan / offering is different and you'll want a clear understanding of your risks.

Check out this thread for some good introductory info in the crowd-funding space for real estate: /thread-35275.html

A ‘bit off-topic here but relevant; A solid book you may wish to check out for tips on how to approach your investments (be they peer-to-peer lending, or otherwise) is ‘Come Into My Trading Room: A Complete Guide to Trading," by Dr. Alexander Elder. Biggest single mistake I see people make with investments of all types is that they fail to treat it like a business. Whether you are relying on these for current income, a future ‘location-independent-lifestyle,’ or eventual retirement, you owe it to yourself to give regular care and feeding to your money. You may be able to pick up a used copy or check it out from your local library. Good luck to you!

Post: #4

I signed up for Lending Club last year because of an RVF thread on it. Using the "RVF" criteria as I called it, I'm getting great interest returns with no charge-offs yet (knock on cash stacks)! Started with just $500 to test the waters and plan on jumping in big later this year with the profits from selling my home.

So far my interest rate is 17% on the initial $500. The first half of my shares are all Cs, the other 50% are D E F G super high interest because I'm greedy and curious. They did pass my RVF search filter but for some reason got a high interest rate.

Here is the other lending club thread:

/thread-15694.html

Also being quick is important if you want to get the best loans, they post at:
6am
10am
2pm
6pm
Pacific time.

(04-08-2016 09:31 AM)Buakaw Wrote:  Have used both of them for 3-4 years now and they are one of my best sources for passive income. I have spent a lot of time to create some solid filters and getting around 11-12% return on both of these sites.
Just start investing a small sum first before throwing in some bigger dough and keep each loan amount small. I always do $25 per loan.

How much money do you have in total and how much passive is it generating for you? I thought about using it as a PI source too but not sure if I'd ever have the capital needed for that.

Post: #5

(04-08-2016 11:18 AM)DJ-Matt Wrote:  Also being quick is important if you want to get the best loans, they post at:
6am
10am
2pm
6pm
Pacific time.

That is for LendingClub right?
Prosper post new loans twice per day: 9am PST and 6pm PST

(04-08-2016 11:18 AM)DJ-Matt Wrote:  How much money do you have in total and how much passive is it generating for you? I thought about using it as a PI source too but not sure if I'd ever have the capital needed for that.

Will send you a PM

Post: #6

I swear there's a Lending Club thread around here somewhere. Or maybe it was mixed in with another thread. It's been discussed, for sure.

Post: #7

I'm interested in trying this, starting with a small amount of money I can afford to lose.

What kind of bank account do you use for this? Tax-advantaged or after tax checking? Personal or business account?

Post: #8

(04-08-2016 12:11 PM)CleanSlate Wrote:  I'm interested in trying this, starting with a small amount of money I can afford to lose.

What kind of bank account do you use for this? Tax-advantaged or after tax checking? Personal or business account?

You need to create a P2P account on either LendingClub.com or Prosper.com. Then you can transfer money over to your P2P account from a checking or savings account and start investing.
I believe its taxed as regular interest income.

Post: #9

I hear people rave about peer to peer lending, I'm still undecided been doing it about a year. My accountant told me nobody ever makes money doing it but I hear many good stories. Honestly my personal experience I started off playing it safe but honestly all my defaults have come from B rating borrowers and all my D, E F have all made payments on time.

Another twist on the peer to peer lending there's a subreddit, don't remember the name off the top of my head but it's microlending. I would expect people to get burned left and right but I've talked to some people who claim to make decent money on there and are rarely burned.

Post: #10

I like this Whole Thread. Time to Get My P2P Account Rolling!

Post: #11

I'm in

Post: #12

I've been at this for about 6 months now. Started small and put in $75 a month using the quick invest feature, it also automatically keeps buying notes with the extra cash. So far it says my returns are around 11%, but the portfolio is still young. I invest $25 per note.

For me it's just another automated account to save and make some cash with on the side.

Post: #13

(04-08-2016 11:32 AM)Buakaw Wrote:  

(04-08-2016 11:18 AM)DJ-Matt Wrote:  Also being quick is important if you want to get the best loans, they post at:
6am
10am
2pm
6pm
Pacific time.

That is for LendingClub right?
Prosper post new loans twice per day: 9am PST and 6pm PST

(04-08-2016 11:18 AM)DJ-Matt Wrote:  How much money do you have in total and how much passive is it generating for you? I thought about using it as a PI source too but not sure if I'd ever have the capital needed for that.

Will send you a PM

Bukaw, PM me as well. I'm interested in your take on this as a passive income source. I could invest more, just wanted to start small.

Post: #14

I'm going to invest a few thousand in Lending Club to try it out. Reading RVF topics now.

Post: #15

Bumping this thread.

Anyone use lendstats.com?

I'm interested in doing an analysis of this data using some type of script to generate through several combinations and find the filters with the greatest return. Right now I'm at ~11%.

Post: #16

(05-10-2016 07:21 PM)Neo Wrote:  Bumping this thread.

Anyone use lendstats.com?

I'm interested in doing an analysis of this data using some type of script to generate through several combinations and find the filters with the greatest return. Right now I'm at ~11%.

If I may ask, how long have you been investing?

Post: #17

Any of these work for overseas people? Address in Thailand or Australia?

Post: #18

I'm also curious about P2P lending websites for non-US people. In my case en EU resident.

It seems like all the good ones you need to either live in the US, or at least have a US passport and pay your taxes in the US.

I also think there are a couple of reputable ones in the UK, but those are for British people only.

I've googled around, and the only ones available for residents of ANY country seem to be based in Estonia and similar countries... but the info I could find is very scarce. Anyone has any info? I would really like to try this, diversification never hurts.

Post: #19

(05-10-2016 07:58 PM)samsamsam Wrote:  

(05-10-2016 07:21 PM)Neo Wrote:  Bumping this thread.

Anyone use lendstats.com?

I'm interested in doing an analysis of this data using some type of script to generate through several combinations and find the filters with the greatest return. Right now I'm at ~11%.

If I may ask, how long have you been investing?

I bought my first note in August/September I believe I'll have to check my account. So I'm just about reaching the 10 month mark. Right now I'm diversified in over 100 notes, no defaults yet. I'm expecting some in the next year. I can share my filters if people would like that info, I'm only doing debt consolidation loans at the moment.

Post: #20

Stallion, what about Twino / Mintos?

Post: #21

(05-11-2016 11:41 PM)EarnStackEnjoy Wrote:  Stallion, what about Twino / Mintos?

They both look solid, do you have personal experience with them?

I like how Twino let's you select loans for 1-3 months, 4-11 months or 12+ months, looks quite flexible.

Mintos seems more focused on long term loans? like 1-5 years?

I'll investigate a bit more.

Post: #22

How liquid are the positions? If you buy 100 loan shares at $25 a pop can you sell them at the drop of a hat?

Also, do borrowers face the same penalties for defaulting on p2p loans as they would with banks and CC companies?

Post: #23

Fast Eddie, if I remember right some of them have a secondary market.

Post: #24

(05-12-2016 01:08 PM)Fast Eddie Wrote:  How liquid are the positions? If you buy 100 loan shares at $25 a pop can you sell them at the drop of a hat?

Also, do borrowers face the same penalties for defaulting on p2p loans as they would with banks and CC companies?

There are options on the website to sell, but I've never done it. I don't look at the liquidity aspect of it, I just started as a way to see if I could make some other passive income with little to no work. I'm just letting the interest ride in addition to adding some cash each month. When there's $25 or more it automatically invests in notes according to my preset filters.

While there are risks(default) etc., I think there are advantages to this if it works out. Again as I mentioned my portfolio is young and time will tell, a bunch of loans could go belly up. One advantage is the amount of work once you have the filters set you can just sit back and it will auto invest.

The other advantage is I don't see much correlation to other asset classes, so it's a non-traditional way of diversification.

In terms of what happens when they stop paying. First, prosper has an in house collection agency, then they transfer to a 3rd party and the borrowers credit score takes a hit. After a certain period of time the borrowers are disqualified from taking another prosper loan.

I'm not sure what percentage of the accounts that become delinquent are recovered.

Post: #25

Just popped my cherry.

10.75% - B rating. Debt consolidation.

Nod to Neo for the assist.

Unless there are some big bucks at play, this is just for mental masturbation.

I might look into the secondary market and see which notes might be good to gamble on to recover. Or to just lose the rest of my cash

Edit: 2nd Note - $25 C class 15.31%