Anyone else invest in loans?

[clay]

Anyone else on BS use a lending group to invest in loans? I personally use Lending Club and I'm netting some REALLY good returns right now. With banks locking people out and people trying to rebuild/repair their credit scores, many people are turning to these groups to get financed privately. My ROI on my December statement was 13.48%. Sure beats my 401(k).

 

[Sugarbug]

I heard about these new groups lending money privately. Seems interesting, but I'm in no position to invest

 

[whitsend]

I dabbled a little in Prosper when it first came out.
Over all I made 0.09% return. (no that is not a typo)

 

[madwabbit]

a little bit. I invest in real estate during a recession, and land during a depression. The markets WILL come back.

 

[cajun_64]

How long have you been in it?
Are you in the tax deffered or taxable accounts?
Do they have a default ratio on loans?

 

[clay]

I've been in about a year, a little over. According to Lending Club, their overall default rate since 2007 is less than 3%. I've yet to have a bad loan. I am taxable on my earnings.

 

[CEHollier]

Indirectly I do. First Heritage financial leases a suite from us. They charge around 30% on the money they lend. At present market anything over 4% is too high for me.

 

[Frogman]

I've never tried loans, directly, though I do have a lot mutual funds that may. If you are making 13% in this economy, why change?

 

[meplatgroup]

I dabbled a little in Prosper when it first came out.
Over all I made 0.09% return. (no that is not a typo)

You did better than a guy I know who runs a major online gun store. He invested in Prosper for about six months and his ROI was -18%. Yes negative.

Be careful.