In my previous articles on P2P lending, The Basics of Peer-to-Peer Investing and Peer to Peer Investing – Facts and Figures, I discuss getting started in P2P lending and some of the basic facts and figures pertaining to notes on Lending Club, a P2P platform.
After keeping a small (~$750) portfolio on Lending Club for about 18 months I’ve discovered some of the downsides of only having a small amounts invested on these platforms. Below I detail why I decided to cash out and end my P2P investing career for the time being. Continue reading
Investing in Social Lending
Peer-to-Peer investing (commonly P2P) is the practice of investing money in notes of loans for borrowers who are requesting a loan without going through a traditional financial intermediary and who are unknown to the investor. This type of investing typically takes place online through online platforms, among which Lending Club and Prosper are the industry leaders. Personally, I have only had experience using Lending Club and I love the platform. However, this article is not intended to review either platform so here are some reviews that may help you determine which platform best suits your needs,
Peer to Peer Investing – Facts and Figures
When I first began my career in peer to peer investing I longed to answer the question “what is a good note mix?” This led me to delve into the years of statistical data compiled (and available to everyone) on LendingClub, fill out a few spreadsheets, and create the following results.
The savvy investor can use the following results to help determine the optimal risk and reward of their peer to peer investing portfolio. The results highlight the likelihood of a charge-off, returns, adjusted returns, and things of that nature. Coupling these