A blogger (The Property Pundit) emailed me and asked for a listing review and so I ask my readers. Please review this listing. Would you bid? Why or Why Not? How can the listing be improved? A credit grade and clean extended credit.
Purpose of loan:
I have been a lender on Prosper since August 2006. I took out a loan in June 2007 to reinvest in Prosper and have a stellar repayment history. I have made a total of 25 Prosper loans at an average rate of 16.95% and have only had one default. For those of you who have been lending for more than a year, you know that’s a good ratio.
I’m asking for another loan because I have a credit card that I’d like to pay off. My American Express card has a 17.48% interest rate and a balance of around $17,000. I’d like to pay it off with a better rate through Prosper.
I have a J.D. from George Mason School of Law and a B.S. in Political Science from Illinois State University and am a current member of the Illinois Bar.
I am a partner in a consulting firm. I perform marketing activities for a market research firm as well as some project management work. Before that, I was a fundraiser for five years for a major Washington, D.C. non-profit and was responsible for raising more than $4 million annually. I am also a member of the Army Reserves and spent 2005 deployed to Iraq. I make about $500/mo performing my monthly Army Reserve drill.
The income from these activities is supplemented by nine apartment rental units that I own. If you bid on my previous listing, you’ll note that I only had four units then. I have purchased five additional rental units and now make about $1,000/mo net profit from rents from them.
It’s not included in this information, but my wife also brings home $3,000/mo from her job. The expenses below are our combined expenses. Not counted is her monthly spending on shoes… if you know what I mean.
Credit Profile Explanation:
Previous delinquencies were from a student loan I wasn’t aware of during my initial military training. I paid it off when I became aware of it being late. I’ve never been late on any other bills. My revolving credit balance is showing up fairly high because of my credit card debt and a line of credit that I have on one of my apartment buildings. A portion is also from a nine month 0% balance transfer rate that I have been using for investments. I am currently paying off the short term debts which have interest rates more than 8%, but am looking for some help here to pay off the high interest American Express bill.
For potential lenders who are looking to make a good return with very low risk, I offer you a great listing. Since I am paying off a current bill, I will be using this to decrease my monthly expenses. I do have available assets for all of my expenses and debts and have significant equity in my real estate units as well as other investments. I’m just trying to consolidate here.
Total Monthly Income: $11,500
Monthly Occupation Income: $5,000
Monthly Real Estate Income: $6,500
Monthly expenses: $9,300
Car expenses: $100
Phone, cable, internet: $100
Food, entertainment: $500
Clothing, household expenses: $500
Credit cards: $500 (min. payments, $400 of which will be eliminated with this loan)
Real estate expenses: $5,500
Student loans: $450
As you can see, I’m on top of my finances. I believe in Prosper and through low risk investing I’ve been able to do well. If you have any questions, don’t hesitate to contact me. I look forward to paying interest to you!
The bid page shows credit grade tranche has an estimated loss of -8.06% and a -0.5% adjustment and -1% servicing fee. The adjustment and servicing fee are fixed, but I think the estimated loss is slightly high because the credit grade tranche is for 2+ inquires (the listing has exactly 2).
So gentle reader… the borrower has asked for your review. Let him have it.