Re: eBay for loans
I have been using this site for about 6 months now, mainly as a test. I put in 1k and started making loans. So far I am getting about a 16% return, but I haven't had any loans go more than 30 days past due yet. I expect that my actual return will be closer to 10% as statistically some of my loans should default.
The hard part is trying to pick out the ones who will default less than their credit rating suggests. This has gotten trickier in the past couple months though. Over time as more lenders come in you get lenders that don't know what they are doing and they then overbid for loans and price them below your minimum. Right now I have maximum diversification. ~22 loans at $50 each. 2 of them have been problematic, ie have gone 15 days late more than once, but so far that just improves the return if they don't default as you get penalties.
I keep track of everything in an excel sheet that I plugged in all the formulas to factor in the default rate, etc. If people want to check it out PM me. I might put it up on my forum project website so people could download it.
Pancho
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