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 Post subject: Peer 2 Peer Lending
PostPosted: Fri Sep 27, 2013 2:51 pm 
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What you guys think? I've been considering messing with it:

https://www.lendingclub.com/

Not sure if it's really worth the extra risk considering returns are similar to stocks, but with the market looking pretty high right now, it's an interesting option.


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 Post subject: Re: Peer 2 Peer Lending
PostPosted: Fri Sep 27, 2013 7:50 pm 
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Interesting, but pretty risky. You could easily lose 100% of what you put in. That's true of stocks too, but if you invest in Microsoft or IBM or Goldman Sachs, there is a pretty small chance of it going to zero.

Worth looking at as a way to diversify investments, though. Certainly pays better than a savings account or CD right now...

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 Post subject: Re: Peer 2 Peer Lending
PostPosted: Sat Sep 28, 2013 12:20 am 
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Grieve wrote:
Interesting, but pretty risky. You could easily lose 100% of what you put in. That's true of stocks too, but if you invest in Microsoft or IBM or Goldman Sachs, there is a pretty small chance of it going to zero.
Or Enron. ;)

That seems all risk to me... I didn't read too much into it, but are you investing in basically one loan.

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 Post subject: Re: Peer 2 Peer Lending
PostPosted: Sat Sep 28, 2013 6:14 pm 
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Nah, you can diversify the heck out of it. You buy shares basically that represent a certain amount of money each and you can spread it around to whatever loan risks you want. They have different classes of loans, with high risk, high returns, and low risk/low return. The site basically states it is very important to keep diversified. So you could go 50% Class A (the safest) 25% Class B, then the rest on high risk stuff.


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 Post subject: Re: Peer 2 Peer Lending
PostPosted: Sat Sep 28, 2013 6:34 pm 
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Its interesting. I have given loans to some local business at higher rates that have done well. On one case it was a significant loan for 8 percent from an established business that was growing to other locations. They took loans from 4 individuals to expand.

It was a good deal, controlled with legal contacts.

Seemed less risky to me.

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 Post subject: Re: Peer 2 Peer Lending
PostPosted: Sat Sep 28, 2013 10:08 pm 
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What I meant was, if you put 100k in A, 100k in B, 100k in C, and 1 C loan comes in for 100k and defaults, would all of your money possibly be in that C loan, or do they take 10,000 different people and pull 1% of their money to make that 1 C loan so if it defaults on only lose whatever your portion of that C loan?

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 Post subject: Re: Peer 2 Peer Lending
PostPosted: Sun Sep 29, 2013 6:54 pm 
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You would diversify the C loan among a wide variety of people. You wouldnt want to dump all 100k into 1 loan, that is extremely risky. You'd spread it out over as many loans as possible so if one defaults you have a bunch of others to compensate.


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 Post subject: Re: Peer 2 Peer Lending
PostPosted: Sun Sep 29, 2013 7:38 pm 
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Breand wrote:
You would diversify the C loan among a wide variety of people. You wouldnt want to dump all 100k into 1 loan, that is extremely risky. You'd spread it out over as many loans as possible so if one defaults you have a bunch of others to compensate.

Ya I didn't know if you could diversify within the group as well

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