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the issue there is that you're looking at people with huge lump sums who spread their money around as much as possible. if you just throw your money around equ
by noodle 17y ago
the issue there is that you're looking at people with huge lump sums who spread their money around as much as possible. if you just throw your money around equally at everyone, you'll probably not come out in the black.
if you invest in a more targetted, calculated way, you'll be more likely to come out with a good return. there are plenty of accounts with 10%+ estimated ROI on that list. take a look at how they invest, there are some trends.
disclaimer: i've not invested any money in prosper, but i was considering trying it out right before they shut their doors. i've done some homework on it.
- microtherion 17y agoThe top 10 I mentioned had a wide variability of strategies, and I can assure you that they all thought they had a plan. If you only look at lenders with a sufficiently large (20 loans) and aged (365 days) portfolio to make an evaluation plausible, only 167 lenders of more than 19000 lenders in that category had an estimated ROI of >10%. Of the 1161 lenders with more than $10K invested and a portfolio older than 365 days, exactly 3 had an estimated ROI of >10%. The http://prospers.org http://prospers.org discussion boards are full of guys who've done their homework. The test is how their loans fared, and generally they haven't fared well. disclaimer, which I should have stated above: I've invested $1K a few years ago, and am more or less breaking even at the moment.
- noodle 17y agofair enough. my information is not up to date, and if you have money in and have more recent experience, i'm sure you're more right than i am.
- jacquesm 17y agoSince you are someone investing there, and investing normally being something that you do carefully, how come everybody is falling over each other to park their money there ? You'd think they had a very positive track record wrt to ROI, but I only find evidence to the contrary. It's almost as if lenders are lining up and they have a hard time finding people to borrow to, in 'the real world' you'd expect it the other way around.
- microtherion 17y agoThe stats I have seen would indicate that lender interest peaked around May 2008, and e.g. %age of listings funded decreased May-Sep: http://www.ericscc.com/stats/prosper-listing-volume http://www.ericscc.com/stats/prosper-listing-volume Unfortunately, I have no good historical stats on interest rate paid by borrowers, which would probably be the best metric for lender/borrower interest.