I had such high hopes for the new Prosper forums, which is why it makes me a little sad to find myself agreeing with the general sentiment (but not the harsh rhetoric) of both Prosperous Land (Prosper’s New Forums Not So Hot) and zcommodore (new forums basically worthless). (Edit: ProsperousLand took a thoughtful and well written approach in his second criticism. I recommend this one if you want to read just 1: My Take On Prosper’s New Forums)
As both these links provide the gory details of the criticism I will take this post as a means of telling you which forum you should be using to discuss p2p lending including Prosper.
If you want to discuss Prosper or P2P Lending I would not currently do so at the Prosper Forum. P2P No Bank has an independent forum for all p2p lending sites including Prosper. The forum is monitored by representatives of both Lending Club and GlobeFunder and they are both very responsive. The software being used is a proven opensource forum platform called SMF (simple machine forums). It is fast, I could go on and on.
Fell free to decide for yourself, other than the Prosper Developer forum, I will be at the P2P No Bank Forum.
Another forum you may consider looking into is the Pro$pers.org forum… it can be a bit of a challenge to keep a well reasoned discussion on topic, but there are quite a few of the old forumers here.
Related PostsOnline Stores
After reaching the 10K milestone I stopped adding fund to my Prosper account unless the funds were generated in advertising/donations. Today, my account value peaked over the 11K threshold ($11,079.42). I am very happy with my progress to date.
To be sure, I wish I had avoided certain extended credit that I bid on in my 1st year, but in general I am holding up pretty well…
To date I have had $841 in paid interest and $107 in defaulted principal.
I have a number of loans that will likely be sold in the December debt sale… I currently have in $383 principal that is eligible for the December debt sale. Using a 90% loss rate that would mean I will have ~$345 in additional defaulted debt after December’s sale. That amount plus the loss of accrued interest might bring my account value below 11K. I am hoping that I will be able to maintain the 11K threshold through that sale, but I will continue to only add funds as they are generated via advertising…
Related PostsOnline Stores
I believe in index funds and not timing the market. Most of my investments are in low cost market tracking index finds. Sure I have some play money in individual investments… I own Oracle (ORCL) (100 shares for sentimental reasons as my former employer); I own Haier Electronics (via OTC: HRELF) (11,000 shares as a play money bet that a title sponsor of Beijing Olympics will receive a significant lift); and I own Etrade (ETFC) my bank and brokerage which I like very much… (1500 shares bought very recently at an average price of $4.94.)
My p2p lending style is very similar. I believe in indexing into to the credit grades for which I have faith in the ROI. Sure I will take some fliers on stories or people I know, but in general I want all loans which will yield X% (X being the risk free rate of ~5% plus a risk premium for that credit grade) estimated ROI. What I want from LC is an easy automatic way to index the market with specific extended credit.
Lending Club has a tool called LendingMatch. If you are going to invest at least $500 you can use LendingMatch to quickly build a diversified portfolio of loans… In my opinion this tool has 2 current significant shortcomings which if addressed would make this a near perfect vehicle for ongoing continuous hands-free lending at LendingClub.
- Inability to add extended credit filters
- LendingMatch is a one shot deal
How to address…
The 1st shortcoming seems the easiest and one that needs to be addressed for manual bidding as well. Add extended filters on search and LendingMatch.
The 2nd shorting coming I will admit is a little tricky… I would like to set up a continuous LendingMatch portfolio (with an extended credit filter) based on a risk level… Which means that as money is paid from existing loans or as I add money to the platform the LendingMatch portfolio would look at my current portfolio and determine which credit grades of loans could be added, find loans that meet both the LendingMatch risk diversification and the extended credit filter, and bid on those listing automatically. It is tricky because there would need to be some leeway in the algorithm.
Which credit grade should “next” in a currently perfectly risk balanced portfolio? Any! Which credit grade should “next” in a currently unbalanced risk portfolio? Any! At the end of the day however, the portfolio should have an average daily risk balance of the risk level of the portfolio, plus or minus some acceptable tolerance with the goal of getting money invested as quickly as possible.
That would be AWESOME!
Questions, Comments, and/or Screams of Anguish?
- Loan Credit Distribution is an Important Part of Diversification at ProsperEveryone has heard that you should diversify your investment portfolio.Â This includes both types (for example stocks, bonds, cash, loans) and kinds ( for example Mid-cap, International, Tech, Municipal, and Credit Grades.)Â Diversifying your portfolio in Prosper is similar to your larger portfolio.Â First you must ask and truthfully answer……
- What Kinds of Prosper Loans Should a Newbie Lender Invest One of the things I am most proud of in my lender experience on Prosper was my initial fear.Â I feared losing the money I was lending.Â As a result, I thought I was being extremely cautious as to which loans I invested.Â My Portfolio is very much AA-C (I……
- Lend $5000 on Lending Club Get $250 or MoreLendingClub is running a promotion where lenders that lend at least $5000 by February 3rd, 2008 will receive a 5% bonus on the amount that they lend ($5000 * 5% = $250)… The more you lend the more your bonus… For example, $7,500 * 5% = $375. Plus by signing……
- Hey, Brother, Can You Spare A Dime?There are many ways to secure loans these days, but due to the sub-prime mortgage crisis, banks and other financial institutions have been much tighter on their guidelines to lend.Â It seems you need an almost perfect credit score these days to get a low interest rate.Â Now that this……
- New Loan Funded — Financial Freedom / Credit Card Consolidation — $25,000 at 11.44% — AA Credit — DTI 37%A new loan funded (Financial Freedom / Credit Card ConsolidationÂ â $25,000 at 11.44%).Â I participated via my standing orderÂ RL Overlooked.Â The borrower hadÂ AA credit, a 37% DTI.Â As a reminder my standing orders (and manual bids)Â only find loans with 0 current delinquencies, 10 or less delinquencies in the last 7……