Re: Prosper.com person-to-person lending
You can diversify extremely well there. A thousand bucks could technically go to 20 different borrowers. I like the idea as it lowers the borrowing cost for debtors, and gives you a possible higher return than you would get elsewhere. Of course it has its risks. Don't underestimate the risk of pre-payment as well. What doesn't have risk though?
I have a friend who's making (this is for four months so far) an average of 21% on his money. Will it all get paid back? Wouldn't we like to know!
|