Re: eBay for loans
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The money is in being a group leader. In the example you gave the borrower will pay 18% interest. The lenders recieve 17% and the remaining 1% goes to the group leader.
The problem I have with Prosper is you can't sell the loans you bought. They say they are working on that. A business model I have been thinking about involves becoming a group leader. Help people get loans by vetting them. Bid a portion of thier loan if they seem to be a decent risk. Turn around and sell the loan once there 3 months of good payment history. Continue to collect the group rewards interest off the loan even though you no longer own any of it.
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if they were to allow that, what would stop people from a) getting a loan b) not making payments for a while c) getting their friends to buy out the loans at a cheap rate. i'm sure it would be illegal and all, but is there really anything you can do about it?
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