Comments on: Update On Prosper http://livingoffdividends.com/2006/10/04/update-on-prosper/ Join me on my journey to achieve financial independence through dividends, passive income and investments Tue, 13 Dec 2011 07:31:37 -0800 http://wordpress.org/?v=2.8.1 hourly 1 By: Lazy Man and Money http://livingoffdividends.com/2006/10/04/update-on-prosper/comment-page-1/#comment-362 Lazy Man and Money Fri, 06 Oct 2006 03:22:00 +0000 http://www.livingoffdividends.com/2006/10/04/update-on-prosper/#comment-362 Goog point on the arbitrage game Empty Spaces. I don't have the stomach for those kinds of risks, so I didn't even think it too far.<br/><br/>However, my theory with the arbitrage is that if you did something like a Heloc (and could make the payments on a worst case scenario!) then you aren't risking a lot.<br/><br/>Like MakingOurWay says, diversify your loans and you should be ok (well that's what LTCM thought I guess). I try to lend $50 at most to any one person. I know it's tough to get top returns with a lot of money that way, but even something like a risk-adjusted 12% that is well diversified is decent. Goog point on the arbitrage game Empty Spaces. I don’t have the stomach for those kinds of risks, so I didn’t even think it too far.

However, my theory with the arbitrage is that if you did something like a Heloc (and could make the payments on a worst case scenario!) then you aren’t risking a lot.

Like MakingOurWay says, diversify your loans and you should be ok (well that’s what LTCM thought I guess). I try to lend $50 at most to any one person. I know it’s tough to get top returns with a lot of money that way, but even something like a risk-adjusted 12% that is well diversified is decent.

]]> By: makingourway http://livingoffdividends.com/2006/10/04/update-on-prosper/comment-page-1/#comment-361 makingourway Thu, 05 Oct 2006 14:51:00 +0000 http://www.livingoffdividends.com/2006/10/04/update-on-prosper/#comment-361 empty,<br/><br/>Funny, I too was thinking of a prosper update, but I'll let it marinate a while.<br/><br/>Most of my lending is to B grade credit risks and higher.<br/><br/>I'm finding it a highly competitive lending space and a bit frustrating.<br/><br/>My average loan is about 15.5% or so - risk adjusted, it would come down a bit - but not that much.<br/><br/>I do recommend, if you lend, on building a well diversified loan portfolio (not too much to any one borrowe).<br/><br/>One of my first borrowers to default had an A credit rating!<br/><br/>Actually, he's my only defaulter >90. I do have one that's occassionally late but am hoping she'll catch up.<br/><br/>Regards,<br/>makingourway empty,

Funny, I too was thinking of a prosper update, but I’ll let it marinate a while.

Most of my lending is to B grade credit risks and higher.

I’m finding it a highly competitive lending space and a bit frustrating.

My average loan is about 15.5% or so – risk adjusted, it would come down a bit – but not that much.

I do recommend, if you lend, on building a well diversified loan portfolio (not too much to any one borrowe).

One of my first borrowers to default had an A credit rating!

Actually, he’s my only defaulter >90. I do have one that’s occassionally late but am hoping she’ll catch up.

Regards,
makingourway

]]> By: Empty Spaces Inc. http://livingoffdividends.com/2006/10/04/update-on-prosper/comment-page-1/#comment-360 Empty Spaces Inc. Thu, 05 Oct 2006 06:03:00 +0000 http://www.livingoffdividends.com/2006/10/04/update-on-prosper/#comment-360 the only problem with this sort of arbitrage is you become overleveraged.<br/><br/>If the people you lend money out to default, you're now stuck with the payments from the people you've borrowed from.<br/><br/>reminds me of the geniuses at LTCM. not exactly a game I want to play! the only problem with this sort of arbitrage is you become overleveraged.

If the people you lend money out to default, you’re now stuck with the payments from the people you’ve borrowed from.

reminds me of the geniuses at LTCM. not exactly a game I want to play!

]]> By: Lazy Man and Money http://livingoffdividends.com/2006/10/04/update-on-prosper/comment-page-1/#comment-359 Lazy Man and Money Thu, 05 Oct 2006 05:38:00 +0000 http://www.livingoffdividends.com/2006/10/04/update-on-prosper/#comment-359 You beat me to the punch. I was just about to write an update on my Prosper lending. I've been lending for a bit now, most to C and below credit levels and my return should be about 17% (risk-adjusted!) according to Ericscc.com. I think he has some flaws in his methodology, but I think it returns at least 12%, but more probably around 16%.<br/><br/>I think it's very smart to lend out money. Heck, you might even want to play an arbitrage game with your good credit - if you have it. You beat me to the punch. I was just about to write an update on my Prosper lending. I’ve been lending for a bit now, most to C and below credit levels and my return should be about 17% (risk-adjusted!) according to Ericscc.com. I think he has some flaws in his methodology, but I think it returns at least 12%, but more probably around 16%.

I think it’s very smart to lend out money. Heck, you might even want to play an arbitrage game with your good credit – if you have it.

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