Let's talk about peer-to-peer lending!!

The Something Awful Forums > Discussion > Ask/Tell > Business, Finance, and Careers > Let's talk about peer-to-peer lending!!

Uranium 235: Oct 12, 2004

cheese eats mouse posted:

Definitely going to not do too much heavy investing with this. I'll probably start with $250 into 3 year notes. I'm pretty conservative with my vetting as well. If they're revolving credit or debt to income ratio is too high I don't bite. Also, I use a rule that if I can't afford the monthly payment then they can't either.

I did see someone who worked at Wal-mart asking for a 30K loan. Yea right..

Just because they work for Wal-Mart doesn't mean they work in a retail store. I wouldn't bet on that unless they live in northwest Arkansas (Wal-Mart HQ), though.

# ¿ Dec 9, 2012 04:53

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Uranium 235: Oct 12, 2004

SubjectVerbObject posted:

Correct me if I am wrong, but the days of getting ~5% returns without any work are pretty much over. For comparison,Bankrate is telling me that 3 year CD rates are about 1.3%.

Well you can always just throw money in a stock market index fund. That takes almost no work. There's no way of knowing what return you'll get, but 5% isn't out of the question.

# ¿ Dec 10, 2012 17:49

Uranium 235: Oct 12, 2004

April posted:

I've been pondering the idea of "flipping" notes recently. If I could purchase decent B & C rated notes, then sell them immediately for a 3-4% markup (before any payments are made), and keep repeating, the compounding would be insane. The question is if people would buy them. I haven't messed with foliofn much, what do you guys think?

You should do it if you can find buyers, but it wouldn't be a good deal for them. They're taking on the same risk for substantially less reward. But like I said, you should definitely do it if you can find people to buy. You're dumping 100% of the risk on them and still earning 3-4%. That's a good deal for you.

# ¿ Apr 4, 2014 12:45

Uranium 235: Oct 12, 2004

April posted:

Well, they would still be "good" notes, in the sense that I'd filter them as carefully as I always do. And if they don't sell, I would just collect the payments.

It's just something I've been kicking around, I mean, if I can make 2% every couple of weeks, it's a pretty good investment. But I also like seeing all the payments come in. I'll probably wait & see if foliofn gets more developed.

Yeah even 1% in 1-2 weeks with zero risk to your investment is a good deal, but it's not going to be worth your time unless the volume of sales is high. Can you sell $10,000 worth of notes a week? How much time will it take for you to set everything up? If it only takes an hour, maybe it's worth your time--you'd earn $100/hr. If it takes more than 2-3 hours, it's probably not worth it.

The only way to know if this is a viable plan is to try it. If you can sell a high enough volume at a high enough interest rate with a short enough investment of time on your behalf, it could be worthwhile.

# ¿ Apr 4, 2014 17:48

The Something Awful Forums > Discussion > Ask/Tell > Business, Finance, and Careers > Let's talk about peer-to-peer lending!!