My Prospering on Prosper update

[Slug]

I continue to lend. I only lend out once I accumulate interest and payments of $50 from the existing loans. This way I always have my $1000 initial investment in mind. I do not intend to add $ unless one of my friends decides to take on a loan. Besides I have some student loans that I need to take a big bite out of...

[Slug]

Well, the time has come. I now have the $50 from interest and payments from my existing loans. Now where do I put it? Well, I'm giving my $50 to this luck lady. Here's hoping her home on wheels makes her very happy.

Why this loan and not one of the countless others? ....Yeah, you know it....I posted it in my blog :-)

[gekkoplus]

A math question..

How much will I need to loan out in order to get at least $50 monthly interest which I can reinvest every month without a wait? I am assuming a 12-15% overall return.

How much will my annual rate of return be if I start reinvesting my interest as mentioned above right from 1st month?

[kork13]

A math question..

How much will I need to loan out in order to get at least $50 monthly interest which I can reinvest every month without a wait? I am assuming a 12-15% overall return.

How much will my annual rate of return be if I start reinvesting my interest as mentioned above right from 1st month?

hehehe I love crunching numbers

by my calc's, starting $5000 with a steady 12% annual interest will allow you to withdraw $50/mo from your balance, and still hold steady at your initial $5k. At 15%, your starting balance needs to be $4000.

[Slug]

hehehe I love crunching numbers

by my calc's, starting $5000 with a steady 12% annual interest will allow you to withdraw $50/mo from your balance, and still hold steady at your initial $5k. At 15%, your starting balance needs to be $4000.

This will work in general. In reality, it's less predictable due to people paying off early, late payers, and the dreaded defaulters.

[Slug]

Speaking of early payoffs...

I got a couple giving me the opportunity to bid on this one.

I'm in at 19.47%.

A couple of other good ones listed on my blog...

[Slug]

Please note, I am absolutely pimping this loan. This is not to my benefit. I will lose interest if you bid this down. I am putting it out there for your benefit and my friend's benefit.

Today I bid $500 @ 1% on this loan. This is a safe place to put your $, and you should get a good return. To me, because I know him, it's as riskless as a CD. Plus, I know where to find him if he's ever late :-)

Ask me anything you want, and I'll be happy to answer if I can.

The answer to the most obvious question is yes, he's an idiot with regard to credit card use. I'm slowly breaking him of the habit, and he is truly dedicated to gettting out of CC debt.

And, yes I've talked to him about transferring the balances to a 0% card and every other trick I know. The CC companies are in conservative mode right now so it's basically no dice on that.

I will be bidding whatever is left in my account on day 6 from incoming payments in order to maximize my position in this loan. Also, note that I have no more than $50 in any of the other loans in my portfolio.

[Slug]

Just a note that anyone who piggybacked with me on the loan mentioned in the previous post has been making 20% on their cash. That's a pretty solid return considering where the market has gone since last July. It won't last since my buddy just got a full-time faculty position starting this summer. I would expect him to accelerate payments as his cashflow improves.

Anyway, I'm reviving this thread because Prosper, which has not been accepting new money since October, is opening for business again on Tuesday.

See this WSJ article for more details.