Thank you so much for this information and responding in a timely manner. Do you know if Prosper offers the same option? I will look into doing the Foliofn account, as I am looking to get started right away.
OK, I’m all signed up. Do you have any strategies I could utilize in purchasing notes? I’m trying to educate myself as much as possible before diving in here. Don’t want to take any huge hits if I can help it. I know this may be trial error for me. Have you ever purchased notes before? I appreciate any help you can give to a newcomer.
Set the criteria on which you want to invest; time horizon, loan categories and so forth. Check out this post on the best lending club investing strategies for different types of investors.
Stick with shorter-term loans in safer categories that have not missed a payment before going into riskier peer loan investing.
Set your p2p account to automatically invest in new loans each month and let it go on its own
Thank you for that interview! So say you are debt free and I give you 10k. How are you going to invest it! I’m asking you this because I’m debt free and looking for a way to invest 10k. P2P seems like the best way to get more bang for my $. Thanks again!
Congrats on getting to debt free Dustin. How you invest depends on your age and retirement goals. I put together a series of articles on how your investments change as you age at
That said, I would put about $2,500 in peer lending investing on Lending Club. That will allow you to invest in 100 loans with $25 each for instant diversification and cash flow.
I got into p2p lending a little over a year ago and with my strategy I have had zero defaults and I’m maintaining an 11% annual return. We will see how things go when I hit that 3 year mark.
A few of my strategies that seem to work for me as follows: 1. I never issue a note that has more than read more 36 months to mature. 2: I only issue notes for debt consolidation. 3: Credit scores mean little to me if it is above 680 because I look at how much money the borrower makes more than any other criteria, if they make less than 20% per month of the monthly payment it’s a no-go. 4: I cherry-pick all of my notes. 5: They must have a mortgage, no renters. 6: They must have at least 3 years with their current employer.
I have a few other strategies, but those are my main focus points. If you are maintaining at least an 8% return or higher you are doing well IMHO.
Excellent criteria for p2p investing Adam. A lot of peer loan investors have been reporting slightly lower returns over the past year so your 11% is excellent. Thanks for the comment.
Lending Club is offering a cash bonus for new retirement accounts now
Should I only invest out of an IRA account? What are your thoughts on using money from checking or savings account?
Hi Joe, You can put money in your p2p investing account with money from anywhere; checking, savings or another IRA account. The important point is that your peer lending investments be an IRA account or some other tax-advantaged account like a Roth or SEP. This will make the income you receive from investing in loans tax-free until much later.
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