You’d think I’d be happy about this, but I now live in DC, so all I can do is transfer my money out of it.
But if you live in any of the states that can still make investments in Prosper, by all means, do it. (California, Colorado, Delaware, Georgia, Hawaii, Illinois, Minnesota, Montana, Nevada, New York, South Carolina, South Dakota, Utah, Washington, Wisconsin and Wyoming) I find it fascinating that the only state with a exchange market that does not allow Prosper investment is Pennsylvania. One of the major changes post-quiet period is that institutional investors are being courted.
I have been able to make a pretty good return on the ~$250 I put into it. I’ve made 8 loans. 1 was paid off early. Only 1 loan charged off. One loan has a spotty payment record (sometimes late, sometimes not), and 5 that are moving along swimmingly. One of them is a Grade E loan and it’s almost complete. It’s got about 6 more payments, and if the borrower stopped making payments today, that would be ok because I’ve already made 10+% on it.
Based on LendingStats, my estimated ROI is 3.14%, which is not very good. But that takes my sometimes late loan (which is current right now) and tags it as permanently late and does some estimation of what I can expect to receive. But my Experian ROI is over 11%. The Experian ROI is based on default rates supplied by Prosper about all of its loans vs an analysis just on the loans I have.
I am not holding my breath for DC to approve Prosper anytime soon, so I am going to let my money languish in a regular online savings account for now. (BTW, LendingClub doesn’t like me either because I live in DC and Kiva doesn’t interest me for charitable giving right now.)
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