eBay for loans - Page 3

KUJustin · #21 12-27-2006, 08:29 PM

Pancho, certainly the exorbitant rates the borrowers are paying mean there's some opportunity here.

I feel like someone who's spent a lot of time working in the loan dept for a financial institution could really kill in this field. Also, I would think someone with experience would be able to give us some good default estimates for 3 years out based on the numbers for these first 7-10 months.

KUJustin · #22 12-27-2006, 09:45 PM

I'm obsessed with this site, btw.

Also, my transunion credit score (to my knowledge) is 610. This would be a D, barely. But Prosper, who uses Experian, rates me a B. Go figure.

edit: Experian has me at 638, still a would-be D. I wonder what kind of formula prosper is using.

adanthar · #23 12-27-2006, 10:09 PM

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The problem I have with Prosper is you can't sell the loans you bought.

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I was really interested in this until I got to that part. This looks like a really good, and profitable, idea, but I don't want to impair my cashflow to that extent. It's a shame, because I have 50K+ I can put in this.

BradleyT · #24 12-27-2006, 10:43 PM

Interesting - hadn't seen this page before - https://www.prosper.com/public/legal..._licenses.aspx

Does that mean if you're in PA your loan can't be more than 6%??

adanthar · #25 12-27-2006, 11:07 PM

The way I understand that, Prosper is the lender - you're just the loan repurchaser - so they police that themselves by not allowing higher loans to people in those states.

If I'm wrong, lots of people are getting fined though [img]/images/graemlins/confused.gif[/img]

Nick-Zack · #26 12-28-2006, 09:20 PM

[ QUOTE ]
Interesting - hadn't seen this page before - https://www.prosper.com/public/legal..._licenses.aspx

Does that mean if you're in PA your loan can't be more than 6%??

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Yea I tried setting up a loan but since I am in Ohio 8% is the cap. That makes it basically unfundable for anyone in my state that isn't an A (I am C).

Sifmole · #27 12-30-2006, 10:06 PM

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I check out the site from time to time. It isn't worth my time to be a lender. The amount of work involved to diversify and hope to get a decent return isn't worth it.

The site has an ongoing problem with scams and borrower info that has not been properly verified. Maybe down the road it can be a better investment method. For now, I would avoid it as a lender.

As a borrower, it appears to be a good deal. There are lots of lenders giving money to some questionable offers. For example if the loan fills she will have a $903.81 monthly payment for 3 years. A $900 per month payment on top of other expenses would be difficult to maintain for most people.

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Also, if you follow your example listing to its group, the second listing in the group has the same picture posted as one of its pictures.

Recliner · #28 12-31-2006, 02:36 PM

Also, people who are interested need to look at this.

I've tried prosper and have had a loan go bad. No payment ever. The link above shows what the agencies are able to collect and it isn't good. If someone decides to pay you should expect to eat the entire amount you loaned. They are able to collect about 10% and sell off another 6%.

prohornblower · #29 01-02-2007, 07:09 PM

[ QUOTE ]
There are lots of lenders giving money to some questionable offers. For example if the loan fills she will have a $903.81 monthly payment for 3 years. A $900 per month payment on top of other expenses would be difficult to maintain for most people.

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FYI, this loan didn't fill. It only got 44%. Does each loan only have 7 days to fill? I guess this lady just needs to shoot for like a 12K loan instead of 25K? Maybe she'll get it filled.

stinkypete · #30 01-02-2007, 07:46 PM

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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?