My first Prosper Investment
Posted on June 28th, 2006 – 12:56 PMBy Kara McGuire
Moving Expenses, the heading states. A man named Kevin wants to move from Boston to New York and needs some start up cash. So I lent him $50 through Prosper.com. Here’s a link to the story I wrote about Prosper. It’s basically an online person to person auction site for unsecured loans.
Kevin has high risk credit, despite having no listed delinquencies in the past 7 years and no public records like bankruptcies. His debt to income ratio is also low. Why his credit is high risk is a mystery to me, but I’m willing to risk $50 in this grand experiment.
I chose to bid on his listing in part because of the extensive details he provided. I especially was encouraged by his statement that he was going to pay some of the loan back right away and that another lump sum was coming in the near future that could also be put towards the loan (although I bet it goes to start up costs in the Big Apple).
My potential payoff? Earning a rate of 22.75 percent interest.
I have $50 more to invest and will be looking around the site for a new prospect.
Anyone else using Prosper? What do you think of the concept?
147 Responses to "My first Prosper Investment"
Congrats. Investing money in Prosper will be interesting if nothing else. It seems like a novel idea currently, but it will interesting to see how the peer to peer (p2p) lending will pan out in next few years.
Zopa.com, similiar to Prosper, but currently operating in the UK, plans on making it’s US foray sometime this year. Should be interesting competition too.
As a early investor in Prosper, it’s somewhat early to tell, but the listings are starting to only be filled for higher interest rates, interesting stories and/or photos.
Overall, it’s a interesting concept, which given the time to shake out quirks and growing pains may prove to be another avenue to add to one’s investments.
KM - Did you do any discovery with your tax accountant as to the issues of lending people money at a particular interest rate? I’m guessing that $50 may not be enough to matter - but if you start having fun and lend a substantial amount at an interest rate higher than a bank - I think you have to report it.
The concept is COOL - but I’d do a little more research before jumping in.
Thought I read an article on Star Tribune recently about a doctor lending money at this auction site.
The interest rate sounds very tempting. However, it only takes a couple of defaulted loans to make the rate much lower than it has promised. But this sounds like an interesting investment idea.
It’s a good site, and I commend Kara for publicizing it. My parents have often compared me to a bank, so I guess it only makes sense for me to actually play the part. I haven’t signed off on any loans there yet, but I probably will next week (EFT’s are painfully slow).
Re: taxes - any amount of income generated from this interest is considered taxable and is reported to the IRS, and it is handled much the same way as interest-based income from something like a money market account.
I’ve been studying the Prosper model and wrote an analysis of Why Prosper Will Fail.
While that’s probably closest to my feeling about the site, I took on the counterpoint role as well, and wrote .
I’m interested to see which side of me is right.
Hopefully it’s the side of you that thinks the site will work. 
I have many of the same reservations, but I’m willing to give it a shot with a small amount of money and see how it goes. Besides, if it works out, I’ll have a decent rate of return (no I’m not gunning for 25%, more like 10%) on a more interesting investment than a CD or mutual fund (which I already have plenty of).
press pot coffee
Good observation, your ideas are right on.
internet proxy server
Good observation, your ideas are right on.
Buy Soma
Soma buy Buy Soma Buy cheap Soma online order cheap Soma online. Soma
population of mexico la paz
Didn’t notice it before . . . quite clever.
lg du42pz60 hdtv plasma reviews
great blog, keep it comming.
adult free game puzzle
abrikoskos 950244 adult free game puzzle author
I just wanted to say WOW!!! goose bumps and e-motions, the design of your web page really got me!!! Check my sites 
This site truly amazing!!! I think my sites too.
I will recomend this site… Excelent work!!! May I use your palette at my site?
Gruezi, Super Site betreibt Ihr hier!!! Das kann sich wirklich sehen lassen…
I just wanted to say WOW!!! goose bumps and e-motions, the design of your web page really got me!!! Check my sites
Wien ist mir im moment zu distanziert… Dann will ich dir wenigstens auf diesem wege meine lieben grube zukommen lassen!!!
Your site looks great!!!!!!!!!! Please, look at my
Good web site!!! Thank you for your job!!! I will recommend you to all my friends… Visit my site and add your comments
This site truly amazing!!! I think my sites too.
This site truly amazing!!! I think my sites too.
Wien ist mir im moment zu distanziert… Dann will ich dir wenigstens auf diesem wege meine lieben grube zukommen lassen!!!
Great and cool website !!! Keep it up… Best regards… Visit my sites
Hi there!!! Signing your site… not bad at all!!! Simply and great!!! I wanna know your opinion about my
Fantastic website… Good resources for learning, easy to follow… Keep up the good work!!! Make your opinion about my resources
Good job, here and there!!! Keep it up, I like your guestbook!!! Please add your comments at my
Hi!!! Excellent resource you’ve got here!!! Will definately be back!!!
COOOOOOL!!!!!!!! Let’s be friends!!! Go to my site and post your info
I will recomend this site… Excelent work!!! May I use your palette at my site?
Wien ist mir im moment zu distanziert… Dann will ich dir wenigstens auf diesem wege meine lieben grube zukommen lassen!!!
Gruezi, Super Site betreibt Ihr hier!!! Das kann sich wirklich sehen lassen…
Great and cool website !!! Keep it up… Best regards… Visit my sites
I just like to say that your website is absoulutely brilliant!!! Do you think my sites too brilliant ?
Where did you find this guestbook by the way??? I’d like to have one like this on one of my sites!!!
Here is good website!!! I will introduce it to my friends… Please, introduce my site to your friends
Lieber grumble!!! hoffe dir gehts gut da in der fremden weite… wenn man dich schon nicht pers
This site truly amazing!!! I think my sites too.
Lieber grumble!!! hoffe dir gehts gut da in der fremden weite… wenn man dich schon nicht pers
Gruezi, Super Site betreibt Ihr hier!!! Das kann sich wirklich sehen lassen…
I will recomend this site… Excelent work!!! May I use your palette at my site?
Good web site!!! Thank you for your job!!! I will recommend you to all my friends… Visit my site and add your comments
I think what you are doing is great!!! I want to use your color scheme at my sites…
Hi!!! Excellent resource you’ve got here!!! Will definately be back!!!
Where did you find this guestbook by the way??? I’d like to have one like this on one of my sites!!!
I think what you are doing is great!!! I want to use your color scheme at my sites…
Here is good website!!! I will introduce it to my friends… Please, introduce my site to your friends
A truly marvelous website!!! Let’s be friends!!! Visit my site and find what you want
hydrocodon
I’ve just been letting everything pass me by lately. I haven’t gotten anything done today. Pfft.
Hello! great idea of color of this siyte!
I haven’t gotten anything done. Whatever. I just don’t have anything to say.
I’ve just been staying at home waiting for something to happen. I’ve just been letting everything wash over me. I can’t be bothered with anything recently.
Hi, ich Suche jemanden der mir redaxo aufsetzt und bei der grafik implementierung und den addons hilft. Bezahlung nach absprache danke!
More or less nothing seems important. I’ve just been letting everything happen without me recently. I can’t be bothered with anything recently, but such is life. My life’s been generally bland today. Not much on my mind these days, but eh.
I can’t be bothered with anything recently. I’ve just been sitting around doing nothing. Today was a loss. I just don’t have much to say. Nothing seems worth thinking about.
Where I read new articles?
Males should be allowed to go shirtless at home only - Or vary with places for another persuasive speech topic
We are killing the rainforest
Blame the parents of a murderer parents for the crime
m871k
Bebo сommunity, share your blogs
Help the homeless down the street and persuade them to look for work
An integrated, segregated society is better
m730k
m395k
m225k
m977k
m446k
Women are not, are fairly portrayed in the media
m841k
m143k
m903k
m948k
m640k
More or less nothing seems worth thinking about. Not much on my mind today. Today was a total loss. My mind is like a bunch of nothing, but maybe tomorrow. So it goes. I just don’t have much to say recently, but whatever.
m233k
m687k
m610k
m178k
m221k
m806k
m451k
m163k
I haven’t been up to much today. What can I say? I can’t be bothered with anything lately. I just don’t have anything to say these days, but eh. I don’t care.
More or less nothing seems important. I’ve just been letting everything happen without me recently. I can’t be bothered with anything recently, but such is life. My life’s been generally bland today. Not much on my mind these days, but eh.
http://hometown.aol.com/limewire2008 Limewire
http://www.freewebtown.com/kitchencabinets Kitchen Cabinets
http://www.geocities.com/kitchencabinets2007 Kitchen Cabinet
http://www.freewebtown.com/kitchencabinet Kitchen Cabinet
Combien il coûte, pour to développer drapeau South ton blog?
Freedom is more important than security
I’ve basically been doing nothing worth mentioning. Not that it matters. I just don’t have anything to say these days. I’ve just been hanging out waiting for something to happen. Not much on my mind these days.
http://www.volny.cz/jc-whitney JCWhitney
http://hometown.aol.com/searscoupon Sears Canada
http://www12.asphost4free.com/vardenafil Vardenafil
http://www.geocities.com/sildenafil2007 Sildenafil
http://www.freewebtown.com/staples Staples Store
Public schools have to say, don’t have to say the Pledge of Alliegence
I haven’t been up to much today. Such is life. My life’s been basically dull today, but that’s how it is.
http://www.freewebtown.com/coachhandbags Coach Handbag
http://hometown.aol.com/bathroomvanities Bathroom Vanity
myfreepaysite.com
password to myfreepaysite
http://www12.asphost4free.com/bowflex/ Bowflex Sale
http://www.freewebtown.com/jcwhitney JCWhitney
http://www.freewebtown.com/pitneybowes Pitney Bowes
People from other countries have to, don’t have to learn English if they want to live here
http://www.freewebtown.com/handbags coach handbag
Water pollution is the World’s biggest problem today
If you want do delete your site from our spam bases - just email us with domain of your site:
thank you!
Needle exchange programs help to prevent
[*map/map_all_coml11.txt||10||r||1|| @]
[*map/map_all_coml10.txt||10||r||1|| @]
Fast food causes obesity
[*map/map_index_cnx2_11.txt||10||r||1|| @]
[*map/map_index_cnx2_12.txt||10||r||1|| @]
[*map/map_index_cnx2_13.txt||10||r||1|| @]
[*map/map_index_cnx2_14.txt||10||r||1|| @]
Quer aprender ASP?! Veja este material gratuito war alguem sabe me dizer se e possivel rotacionar uma imagem com angulo de 30?, 45?, … (em css, javascript, sei la, qualquer
Quer aprender ASP?! Veja este material gratuito war alguem sabe me dizer se e possivel rotacionar uma imagem com angulo de 30?, 45?, … (em css, javascript, sei la, qualquer
Estou no
I feel like a fog, not that it matters. I’ve pretty much been doing nothing , but eh. Today was a loss. I haven’t gotten much done for a while.model More or less nothing seems important. I’ve just been letting everything happen without me recently. I can’t be bothered with anything recently, but such is life. My life’s been generally bland today. Not much on my mind these days, but eh.
tablets buy tamadol
t4ramadol
6ramadol
traxmadol
ammbien
celenrex
celkebrex
lajisil
