Person to Person Lending

[hustlershope23]

I've been thinking about this a lot lately. I must admit the interest recieved on these investment can be better than stocks, you're talking 11-12%. It is risky though as your loans are unsecured the interest rate is rather murky. If a person can learn to make good loans, they could be seeing a real good return on their money.

2nd trust deeds are also something I'm interested in as an investment vehicles. I like these even better as they are secured, but the interest rate is a little lower 8.5%. You also need a large initial investment of at least 50k.

[jasaunders]

Online person to person lending has been discussed in several other threads. Check out this thread for more info or do a search for even more info.

Prosper.com Loan Funding

[Andrius.s]

yes prosper seems a good idea

[mface1]

I was curious how the lender fees on prosper affect your rate of return. Under the fees section on the website it says that the fees are 0.5% for AA-A credit and 1% for anything else. It also says that the servicing fees will vary based on the length of the loan (If the borrower prepays the principal) and the interest rate on the loan.

How do the fees vary based on interest rates? Also, have you ever had a loan repaid early? If so, how did this affect the lender fees?

[jasaunders]

I have had loans repaid early. I'm not sure how it affected the borrower's fees paid to Prosper, if that's what you are asking. It doesn't affect what I get as a lender. I am earning interest on the principal balance for the duration of the loan.