Comments on: Interview About Prosper With Michael from It’s Your Money http://www.bloggingawaydebt.com/2006/08/interview-about-prosper-with-michael-from-its-your-money/ Our Journey to a Debt-Free Life Sat, 21 Nov 2009 14:05:18 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: ProsperLenders.com http://www.bloggingawaydebt.com/2006/08/interview-about-prosper-with-michael-from-its-your-money/comment-page-1/#comment-290818 ProsperLenders.com Sun, 30 Dec 2007 15:37:44 +0000 http://www.bloggingawaydebt.com/2006/08/interview-about-prosper-with-michael-from-its-your-money/#comment-290818 @Final Fantasy: There's plenty of default rate information available to lenders, and plenty of other market statistics as well. In fact, at the end of October, Prosper implemented bidding guidance that's based on the historical performance of loans within the marketplace (rather than Experian's super-optimistic default projections). So, when lenders go to bid on a loan at x% these days, they may get a popup saying "Do you really want to bid at 5% under the historical estimated return for loans of similar credit characteristics?" - and they quickly click "Nope!" and move on... :) There's actual data supporting that statement, and all kinds of other fun stat/analysis stuff to look at too, at: <a href="http://www.prosperlenders.com" rel="nofollow">Prosper Lenders</a> BTW - do think it might still be a little early to go with your arbitrage idea. :) @Final Fantasy:

There’s plenty of default rate information available to lenders, and plenty of other market statistics as well. In fact, at the end of October, Prosper implemented bidding guidance that’s based on the historical performance of loans within the marketplace (rather than Experian’s super-optimistic default projections). So, when lenders go to bid on a loan at x% these days, they may get a popup saying “Do you really want to bid at 5% under the historical estimated return for loans of similar credit characteristics?” – and they quickly click “Nope!” and move on… :)

There’s actual data supporting that statement, and all kinds of other fun stat/analysis stuff to look at too, at: Prosper Lenders

BTW – do think it might still be a little early to go with your arbitrage idea. :)

]]> By: Final Fantasy http://www.bloggingawaydebt.com/2006/08/interview-about-prosper-with-michael-from-its-your-money/comment-page-1/#comment-3979 Final Fantasy Tue, 28 Nov 2006 01:04:34 +0000 http://www.bloggingawaydebt.com/2006/08/interview-about-prosper-with-michael-from-its-your-money/#comment-3979 Prosper is certainly an interesting idea. I imagine once there is a lot more loan completion and default rate information available to lenders, the picture will clear up quite a bit. As an investment it is important to remember how banks make money. They make money on the spread between their borrowing costs and lending income. I don't think it will be possible to earn much more than 10% after risks and fees, which makes it less attractive than the stock market. But what is attractive is borrowing cheaply, lets say 7 or 8% with your good credit score and then lending to worse credit scores at higher rates. You can profit from the spread between the two rates without investing your own money. Prosper is certainly an interesting idea. I imagine once there is a lot more loan completion and default rate information available to lenders, the picture will clear up quite a bit.
As an investment it is important to remember how banks make money. They make money on the spread between their borrowing costs and lending income. I don’t think it will be possible to earn much more than 10% after risks and fees, which makes it less attractive than the stock market. But what is attractive is borrowing cheaply, lets say 7 or 8% with your good credit score and then lending to worse credit scores at higher rates. You can profit from the spread between the two rates without investing your own money.

]]> By: Max Tower http://www.bloggingawaydebt.com/2006/08/interview-about-prosper-with-michael-from-its-your-money/comment-page-1/#comment-3978 Max Tower Tue, 28 Nov 2006 00:59:17 +0000 http://www.bloggingawaydebt.com/2006/08/interview-about-prosper-with-michael-from-its-your-money/#comment-3978 I thought this was a very good interview. I just found out about prosper.com and it seems like a really interesting idea. I am thinking about becoming a lender myself. I am hoping to acheive rates higher than I could in an ordinary bank account, but with all the risks enumerated here I am going to start small and see how it goes. Max I thought this was a very good interview. I just found out about prosper.com and it seems like a really interesting idea. I am thinking about becoming a lender myself. I am hoping to acheive rates higher than I could in an ordinary bank account, but with all the risks enumerated here I am going to start small and see how it goes.
Max

]]> By: Tina http://www.bloggingawaydebt.com/2006/08/interview-about-prosper-with-michael-from-its-your-money/comment-page-1/#comment-3298 Tina Sat, 11 Nov 2006 09:14:57 +0000 http://www.bloggingawaydebt.com/2006/08/interview-about-prosper-with-michael-from-its-your-money/#comment-3298 Hi, I just found this blog and thought I could share my thoughts, if that's ok. I've provided a link to my group, the Two Millionaires, who just started. They specialize in getting the higher risk borrowers a second chance. My group leaders are very strict and have VERY HIGH standards. They do not automatically accept all requests to join the group. They also review everybody's listings before they can be posted. The reason is, they want to give the high risk borrowers a second chance, so they demand a lot from us, especially dedication. They also want lenders to be confident in our group, knowing that they can take a chance, and trust that the payments will be made on time. With this group, you will get a higher rate of return because most of the loans are at a high apr. I wanted to say, I almost gave up on getting loans through a bank. I made a small mistake and now I am paying for it. I listed my loan, my history and my dedication and my loan was fully funded in 2 days with an HR rating. If you are looking at lending to get a good rate of return, with responsible people, I would have you look into our group on Prosper. Thank you for your time!!!! here is the link to our listings.... <a href="https://www.prosper.com/secure/lend/listing_advanced_search_results.aspx?af=0&gc=&gm=0&gr=0%2c1%2c2%2c3%2c4%2c5&hw=0&ibid=0&lq=&maxAmt=25000&maxDTI=1000000&maxFund=1&minA=0.00&minAA=0.00&minAmt=0&minB=0.00&minC=0.00&minD=0.00&minDTI=0&minE=0.00&minFund=0&minHR=0.00&minNC=0.00&sf=10&sh=0&sn=Mayans2%2cMayans&tg=0&vb=0" rel="nofollow">Two Millionaires</a> Hi,
I just found this blog and thought I could share my thoughts, if that’s ok. I’ve provided a link to my group, the Two Millionaires, who just started. They specialize in getting the higher risk borrowers a second chance. My group leaders are very strict and have VERY HIGH standards.

They do not automatically accept all requests to join the group. They also review everybody’s listings before they can be posted. The reason is, they want to give the high risk borrowers a second chance, so they demand a lot from us, especially dedication. They also want lenders to be confident in our group, knowing that they can take a chance, and trust that the payments will be made on time.

With this group, you will get a higher rate of return because most of the loans are at a high apr. I wanted to say, I almost gave up on getting loans through a bank. I made a small mistake and now I am paying for it. I listed my loan, my history and my dedication and my loan was fully funded in 2 days with an HR rating.

If you are looking at lending to get a good rate of return, with responsible people, I would have you look into our group on Prosper. Thank you for your time!!!! here is the link to our listings…. Two Millionaires

]]> By: Prosper’s Prospects » Blog Archive » ThoughtfulConsideration.com - "Live better - Get your think on." http://www.bloggingawaydebt.com/2006/08/interview-about-prosper-with-michael-from-its-your-money/comment-page-1/#comment-2315 Prosper’s Prospects » Blog Archive » ThoughtfulConsideration.com - "Live better - Get your think on." Sun, 22 Oct 2006 03:17:40 +0000 http://www.bloggingawaydebt.com/2006/08/interview-about-prosper-with-michael-from-its-your-money/#comment-2315 [...] http://www.bloggingawaydebt.com/2006/08/interview-about-prosper-with-michael-from-its-your-money/ — interview with Michael from http://www.mdmproofing.com/iym/ talking about lending on Prosper [...] [...] http://www.bloggingawaydebt.com/2006/08/interview-about-prosper-with-michael-from-its-your-money/ — interview with Michael from http://www.mdmproofing.com/iym/ talking about lending on Prosper [...]

]]> By: My Money News » Blog Archive » Interviewed About Prosper http://www.bloggingawaydebt.com/2006/08/interview-about-prosper-with-michael-from-its-your-money/comment-page-1/#comment-1514 My Money News » Blog Archive » Interviewed About Prosper Thu, 05 Oct 2006 20:40:20 +0000 http://www.bloggingawaydebt.com/2006/08/interview-about-prosper-with-michael-from-its-your-money/#comment-1514 [...] Blogging Away Debt: My Prosper Interview [...] [...] Blogging Away Debt: My Prosper Interview [...]

]]> By: Dan http://www.bloggingawaydebt.com/2006/08/interview-about-prosper-with-michael-from-its-your-money/comment-page-1/#comment-1433 Dan Mon, 02 Oct 2006 17:57:54 +0000 http://www.bloggingawaydebt.com/2006/08/interview-about-prosper-with-michael-from-its-your-money/#comment-1433 2 out of 8 loans late may sound crazy, as Poster #5 above says, but remember: 1) Michael did say most of his loans are from before the expanded data was offered. 2) "Late" doesn't equal "default". It's possible one or both of Michael's lates have caught up by now. Personally, out of 74 total loans, 6 paid early, 2 are 1 month late, and 1 appears to be headed for default at 3+ months late. From what I've read on the message boards, around 4%-6% late/default is the more common experience among most lenders. (FYI, I have loans in all grades and average a "C" grade.) 2 out of 8 loans late may sound crazy, as Poster #5 above says, but remember:

1) Michael did say most of his loans are from before the expanded data was offered.

2) “Late” doesn’t equal “default”. It’s possible one or both of Michael’s lates have caught up by now.

Personally, out of 74 total loans, 6 paid early, 2 are 1 month late, and 1 appears to be headed for default at 3+ months late. From what I’ve read on the message boards, around 4%-6% late/default is the more common experience among most lenders. (FYI, I have loans in all grades and average a “C” grade.)

]]> By: Personal Loan 4 You http://www.bloggingawaydebt.com/2006/08/interview-about-prosper-with-michael-from-its-your-money/comment-page-1/#comment-856 Personal Loan 4 You Sun, 20 Aug 2006 10:50:05 +0000 http://www.bloggingawaydebt.com/2006/08/interview-about-prosper-with-michael-from-its-your-money/#comment-856 Why your late % is so high? It seems Prosper average is less than 5%. Are you focusing on subprime loans? Why your late % is so high? It seems Prosper average is less than 5%. Are you focusing on subprime loans?

]]> By: Prosper.com: A 6-month Review on InvestorGeeks http://www.bloggingawaydebt.com/2006/08/interview-about-prosper-with-michael-from-its-your-money/comment-page-1/#comment-774 Prosper.com: A 6-month Review on InvestorGeeks Tue, 15 Aug 2006 13:19:54 +0000 http://www.bloggingawaydebt.com/2006/08/interview-about-prosper-with-michael-from-its-your-money/#comment-774 [...] Tricia at BloggingAwayDebt has a whole category in her blog about borrowing from Prosper. You’ll also want to see Tricia’s recent interview with a Prosper lender who gave some honest and mixed reviews of the lending process. [...] [...] Tricia at BloggingAwayDebt has a whole category in her blog about borrowing from Prosper. You’ll also want to see Tricia’s recent interview with a Prosper lender who gave some honest and mixed reviews of the lending process. [...]

]]> By: Tricia http://www.bloggingawaydebt.com/2006/08/interview-about-prosper-with-michael-from-its-your-money/comment-page-1/#comment-723 Tricia Fri, 11 Aug 2006 00:26:08 +0000 http://www.bloggingawaydebt.com/2006/08/interview-about-prosper-with-michael-from-its-your-money/#comment-723 Andrew - probably one of the best places to go if you are thinking of lending on Prosper is to take a peek at the Lendor forum at the Prosper discussion boards <a href="prosper.spreebb.com/" rel="nofollow">prosper.spreebb.com/</a>. They discuss many things in there and you can get to peek at some of the things Lenders are discussing. I'm glad you enjoyed the interview :) Andrew – probably one of the best places to go if you are thinking of lending on Prosper is to take a peek at the Lendor forum at the Prosper discussion boards prosper.spreebb.com/. They discuss many things in there and you can get to peek at some of the things Lenders are discussing. I’m glad you enjoyed the interview :)

]]> By: Andrew http://www.bloggingawaydebt.com/2006/08/interview-about-prosper-with-michael-from-its-your-money/comment-page-1/#comment-722 Andrew Thu, 10 Aug 2006 23:49:20 +0000 http://www.bloggingawaydebt.com/2006/08/interview-about-prosper-with-michael-from-its-your-money/#comment-722 This was a fascinating interview. I had been wanting to know more about Prosper and whether it was a good idea to get involved on the lender side. Having two loans paid early and four out of six current loans paid on time is a great deal. Assuming both or at least one of the late loans eventually pays off the loan that sounds like a positive experience. Thansk for the info. This was a fascinating interview. I had been wanting to know more about Prosper and whether it was a good idea to get involved on the lender side. Having two loans paid early and four out of six current loans paid on time is a great deal. Assuming both or at least one of the late loans eventually pays off the loan that sounds like a positive experience. Thansk for the info.

]]> By: Get Rich Slowly » Carnival of Personal Finance #60 http://www.bloggingawaydebt.com/2006/08/interview-about-prosper-with-michael-from-its-your-money/comment-page-1/#comment-635 Get Rich Slowly » Carnival of Personal Finance #60 Mon, 07 Aug 2006 12:56:53 +0000 http://www.bloggingawaydebt.com/2006/08/interview-about-prosper-with-michael-from-its-your-money/#comment-635 [...] Banking Have you considered using Prosper, the “online marketplace for people-to-people lending”? Then you may be interested in this interview at Blogging Away Debt in which Tricia interviews another blogger about Prosper. You can learn a bit about how the service works, and read some first-hand experience with it. [...] [...] Banking Have you considered using Prosper, the “online marketplace for people-to-people lending”? Then you may be interested in this interview at Blogging Away Debt in which Tricia interviews another blogger about Prosper. You can learn a bit about how the service works, and read some first-hand experience with it. [...]

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