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Loan Sharking

Discussion in 'Members' Lounge' started by Briansol, Apr 19, 2013.

  1. Briansol

    Briansol Admins Admin VIP

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    Anyone play with anything like prosper.com ? a few guys at work have put in a couple bucks and are seeing pretty good returns.
     
  2. TurboMirage

    TurboMirage YEEAAAHHH VIP

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    hmm very interesting!
     
  3. SlushboxTeggy

    SlushboxTeggy It's only stupid if it doesn't work VIP

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    Never seen Prosper, but I was actually thinking about throwing some cash at Lending Club. Same idea.

    What do they consider "a couple bucks"? Haha.
     
  4. Briansol

    Briansol Admins Admin VIP

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    most the guys put in about 1000-2000, and take about $25-100 stakes in multiple loans to hedge their bets against failures.

    the idea is to take the income earned each month from those vestments to drive new loans, so you only end up putting out 1-2k and effectively exponentially increase returns with time.
     
  5. SlushboxTeggy

    SlushboxTeggy It's only stupid if it doesn't work VIP

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    Yea, I was just curious how much they put in. I was thinking of doing about the same.
     
  6. Briansol

    Briansol Admins Admin VIP

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    well, i set up an account tonight. i'm going to throw 500 in the fire and see what happens.
     
  7. corvetteguy78

    corvetteguy78 Well-Known Member VIP

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    What kind of returns are they seeing?
     
  8. Briansol

    Briansol Admins Admin VIP

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    site says anywhere from 4-13% it looks like.

    in doing more research, it looks like its closer to 4.

    i'm re-thinking funding anything.
     
  9. corvetteguy78

    corvetteguy78 Well-Known Member VIP

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    So...let me get this straight...lets say i invest $1000 into a individual account and someone takes out a $1000 for a 12 month loan at 4% interest rate. The monthly payments would be 85.15/m. So i would make $21.8 minus any commision the website takes, i assume 1%? So i would be risking $1000 to make less then $21.8 for 12 months?
     
  10. Briansol

    Briansol Admins Admin VIP

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    its more than you'd make putting that 1000 in the bank earning next to nothing.

    most people put 25-50 in a bunch of loans, to hedge their bets across a pool. Effectively, it's what credit card companies do. most of the loans are well above the 4% mark and for longer terms. most are 7-14%.
     
  11. |Chaz|

    |Chaz| Well-Known Member VIP

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    I make 1.7% on my checking a month up to $25k...
     
  12. Briansol

    Briansol Admins Admin VIP

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    Where? i'll open an account today. cds are barely paying 1%.
     
  13. |Chaz|

    |Chaz| Well-Known Member VIP

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    And I'm also up 23% on my 401k 11 months into starting.
     
  14. |Chaz|

    |Chaz| Well-Known Member VIP

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    Everett Coastal Community bank.
     
  15. |Chaz|

    |Chaz| Well-Known Member VIP

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    Its down to 1.5% now btw. Still not bad.

    Sorry for the triple its easier to make a new post on my phone instead of editing.
     
  16. Briansol

    Briansol Admins Admin VIP

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    The fine print sucks.

     
  17. |Chaz|

    |Chaz| Well-Known Member VIP

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    Meh not that hard have a small portion of your check deposited there and set up an auto payment that fulfills the terms.
     
  18. corvetteguy78

    corvetteguy78 Well-Known Member VIP

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    yeah but there is no risk putting my $1000 into a bank. I'd be risking $1000 to earn $1.75 a month over a 12 month period(not including fee's id have to pay).

    With Credit card companies, they prbably do this 10,000 times a month and they are insured against defaulted loans. So all in all , it's worth it to them.

    This doesn't really seem like a small players niche
     
  19. awptickes

    awptickes unimpressed by you VIP

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    This.
     
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