Prosper.com

This post is not trading related. But it is investment related.

I came across this website a few years ago when it was fairly new: www.prosper.com. It is a peer to peer lending site. It was fairly new at the time and to be honest I did not have any extra money to give out any loans.

Plus I wanted to see it develop for a few years before I put any of my own money at risk. There are a few ways for you to invest, Either direct to candidates that you screen or in a predefined portfolio.

Prosper provides you with all kinds of data on the borrowers and on default rates. But the newest and best feature is they have created an open market where you can sell your loans in the open market if you want to get out of them early.

I plan to start with a small $1,000-$2,500 investment and put it in the conservative portfolio that has about a 1.34% default rate which would give an expected return of about 5.7%.

I just thought I would share in case you guys were interested.