10,000 to invest

[lemarquis]

Yes, I've been a peer to peer lender with Prosper for two years now. Net return as of today was 15%. It was closer to 20% before a couple of charge-offs I had a few months back. The charge-offs and late payments seem to have petered out though, looks to me like it will be smooth sailing ahead. Still, 15% is much better than most other investment avenues. Prosper isn't accepting lenders or borrowers at the moment because they're going through registration with the SEC. LC and Pertuity are already registered and up and running. Plus these two are much safer for investors because they have minimum credit requirements for borrowers. Of course that means lower returns for the lender though.

Also: loan terms depend on the state the borrower lives in. So, the amount of time the money is tied up depends on their state's laws - usually 3 to 5 years though.

[jeffmem]

Thanks for your further update.

Are you buying through the site you gave me or thourgh a broker account? What would be the difference, any? They have a stock/mutual fund also.

Who is prosper? I can still sign up through the account you sent me, in the process now.

[lemarquis]

Ok, I think there is a bit of confusion here, sorry. The link in my previous post was an article that introduces social lending and provides information on two companies that you can do this through - Lending Club and Pertuity Direct. Please don't confuse these with equities or funds - you don't trade these instruments with them. When you invest your money in social lending you are "loaning" your money to borrowers, just as a bank does and you earn interest on these loans. The social lending sites are the networks through which you lend your money to people, they are the central clearing house not a broker.

Prosper is another peer to peer lending network that works just like the other two mentioned above. I mentioned them because they are the network that I have had experience with. However, they are not accepting new lenders at the moment.

In closing, please be aware - you are not "buying" stocks, funds, or any other money instrument when you get involved in social lending. Instead, you are "loaning" your money to creditworthy borrowers and earning interest. In other words, you can now be called Mr. Banker. I hope this clears up any confusion.

[jeffmem]

lemarquis, thank you for your further explanation, have you tried either of the two you mentioned? Lending Club and Pertuity Direct? Have you ever heard of this one? Social Finance Through The National Retail Fund

What I was trying to get more information on is that I know that what you have introduced is different than investing in a stock. However, what I was asking you was that, I have found a stock or mutual fund for the national retail fund, are you familiar with this? It is trading around 17 now.

Let me know if you have heard of either of the above two things and let me know what you think. Thanks!