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Posted: Thu Jul 19, 2012 7:08 pm
by altoid
Posted: Mon Jul 23, 2012 7:28 pm
by epoch707
Try 12% through peer-to-peer lending at lending club. If you don't know what I am talking about, here is a resource that may help out:
http://www.patientcashflow.com/2012/07/ ... r-lending/
Posted: Mon Jul 23, 2012 8:10 pm
by 44deagle
Just finished my lending club experience. I put in $3,000 a few years back. Just did a bunch of $25 loans in all the categories. After everything was said and done I got 2% return on my money. Some people take out loans and only make 1 or 2 payments on them before defaulting. IMO it's not worth the risk.
Posted: Mon Jul 23, 2012 8:50 pm
by epoch707
I see, what if you were doing it wrong? I guess what I am trying to say, it takes a lot of skill/education to determine which loans to invest in to maximize yeild. Also, there is an optimal may to diversify. I am still learing, but I wouldn't count this one out if you are willing to work at it...
Posted: Mon Jul 23, 2012 9:10 pm
by tzxn3
Lending Club seems like a game of chance. The fact is, you can't know whether the intentions of the people you are lending money to are good or not. Combine that with the fact that the site attracts the sort of people who are unable to get credit by other means, and you're likely to find that the interest you're earning is just barely covering your losses from defaults.
Posted: Mon Jul 23, 2012 9:23 pm
by 44deagle
epoch - I hope it works out better for you than it did for me.
Just to give you one example I had one loan that was graded B. Everything looked good in the summary. This was a $20,000 loan and the guy made 1 payment before ultimately defaulting... lol