Peer-to-Peer Lending

Financing, Hard Money Lenders, Private Money
1

What do you guys think about Prosper.com? How could we as RE investors benefit from it?

My personal opinion is that there is not much use for this in REI’ing because currently the loans have to be paid off in 3 years which makes the payments really high. Hopefully this will change. Although if you need some quick cash for repairs this would be pretty useful.

If anyone wants to check it out, I started a REI group you can join. The rewards are 100% shared which means that if people in the group have a good track record then they will get discounts off their interest rates. The group leader does not benefit so their is no conflict of interest.

http://www.prosper.com/public/groups/group_home.aspx?group_short_name=reiclub

2

I like the idea but the biggest drawback I see is that $25,000 is the max loan you can get (unless I read it wrong). It would be great to have something like this for REI’s with a bigger max loan available and interest only payment options.

3

I’ve been watching prosper.com for a while now. It seems that 90% of the time when people are requesting funds for real estate thier loans are not funded.

It would be nice if thier was a section just for real estate loans secured by a mortgage.

I love the idea behind prosper, but I think it still has a way to go as it seems to cater to the “…whoa is me, help me out.” set.