The ActiveRain Stuff You Won't Find Anywhere Else on the Web

Peer To Peer Lending, Borrowing and Investing

Have you heard of Prosper.com?  This is a new way for consumers and investors who want to borrow money and invest money to connect online.  Peer to peer private lending? Though it seems to me this might be a bit risky to say the least, especially for the investor, the fact remains that there are over 1,150,000 members and $264,000,000 in personal loans funded already. If that doesn't grab your attention, some of the creative ways this is being used will for sure.

Could this be an alternate solution for a lack of funds for new first time buyers needing some down-payment assistance?  Might this help someone lower some debt with high interest payments on credit cards or other loans?  According to the site, they have lower rates than most banks and other commercial lending sites.  What are your thoughts? 

I'm not going to lie, I'm intrigued but will have to research this further before I can give you my honest opinion...but in the meantime, you might want to be aware that this is available and do some research of your own. I'm just the piano player here so if you like it, you got it here from me, and if you don't, then go over to Bob Stewart's Blog and vent there!  lol~

 

     

"Learn More. Get More. Do More. Be More."

Comment balloon 29 commentsBrad Andersohn • October 18 2011 07:17PM

Comments

ABC WORLD News did a piece on Prospect.com and this subject over 4 years ago....  www.youtube.com/watch?v=gRrdpbVSBGI - the site is still up and running today so it must be working fairly well, at least for some.  (feeling a little behind the times and embarrased just discovering this now..  haha~)

Posted by Brad Andersohn, ActiveBrad - 707.646.1876 (Executive Director of Education at eXp Realty) almost 8 years ago

I'm heading over to check this out.  You definitely got this little ol' Stager's (alias; rehabber's) attention! 

Posted by Laura S. Baker, Realtor (920) 728-4118, First Weber Inc (First Weber Inc) almost 8 years ago
Laura - I can see numerous creative ways this can be useful, I just need to take a little more time to investigate. Let me know what you think after you have the chance to explore a bit. Thanks for commenting and please disregard the wise crack about venting to Bob Stewart, it's the last thing he probably needs right now.
Posted by Brad Andersohn, ActiveBrad - 707.646.1876 (Executive Director of Education at eXp Realty) almost 8 years ago

thanks for the heads up on this - indeed this has some really interesting possibilities and you are not the only one you hadn't heard of this until now.  

Posted by Miriam Bernstein, CRS almost 8 years ago

They say that every challenge brings opportunities. This looks like some smart people asked themselves..."where is the opportunity." I am sure there are some risks involved and seeing how all of that is handles should be interesting...Thanks for the heads up!

Posted by Joeann Fossland, Master Certified Coach to Motivated Agents (Advantage Solutions Group) almost 8 years ago

You betcha Brad, and no worries about Bob.  I'm not much on venting any how!  The only time I did a blog post where I vented even the slightest was when my husband decided to let me know the new date for the world coming to an end is on my birthday!  :)

Posted by Laura S. Baker, Realtor (920) 728-4118, First Weber Inc (First Weber Inc) almost 8 years ago

Brad,  Thanks for telling us about this -- it sounds interesting and I have missed it in the past as well.  I'll definitely be looking into it and if you hear any more please keep us informed.

Posted by Gary Coles (International Referrals), Latin America Real Estate (Venture Realty International) almost 8 years ago

Got to check this....just wondering only 6.59% for unsecured loans..(or once we fill in the info, it might jump at 17.99% --) interesting concept, though.

Posted by Praful Thakkar, Andover, MA: Andover Luxury Homes For Sale (LAER Realty Partners) almost 8 years ago

It does sound intriguing Brad. I will have to check into it and watch for others' responses.

Posted by Tom Arstingstall, General Contractor, Dry Rot, Water Damage Sacramento, El Dorado County - (916) 765-5366, General Contractor, Dry Rot and Water Damage (Dry Rot and Water Damage www.tromlerconstruction.com Mobile - 916-765-5366) almost 8 years ago

I'm seeing MORE OWNER FINANCING riders on properties so I suspect that SELF-financing of real estate deals may be coming off the shelf for the next few years.

Posted by Wallace S. Gibson, CPM, LandlordWhisperer (Gibson Management Group, Ltd.) almost 8 years ago

Miriam - thanks, nice to know I'm not alone!  lol~

Hi Joann - there are definitely risks, but after further review, it looks like risks many are willing to take.

Laura - that would be one heck of a birthday present and party no?  :-O

 

Posted by Brad Andersohn, ActiveBrad - 707.646.1876 (Executive Director of Education at eXp Realty) almost 8 years ago

Interesting way to get financing. With technology these days, anything is possible. Thanks for sharing this.

Posted by Mike Yeo (3:16 team REALTY) almost 8 years ago

I will go check the it out. In Florida we have a link on the Florida Realtor page to a called Weemba

http://www.weemba.com/LandingPage/FloridaRealtor?utm_source=florida_realtor&utm_medium=banner468x60&utm_campaign=florida_realtor

I have never used it but I thought it was an interesting idea. 

Posted by Elizabeth Birmingham (EB Realty) almost 8 years ago

Gary - thanks for commenting. I figure if there are that many members and that much money has been funded, there must be a boat load of success stories that have come from this site.  Hopefully, there will be many more.

Posted by Brad Andersohn, ActiveBrad - 707.646.1876 (Executive Director of Education at eXp Realty) almost 8 years ago

Prayful - I wondered the same but after you look into this deeper, it comes down to people wanting to help people. Hmm.. what a concept, one I happen to be very passionate about myself.  Maybe that's why this site appealed to me so much. :-)

Posted by Brad Andersohn, ActiveBrad - 707.646.1876 (Executive Director of Education at eXp Realty) almost 8 years ago

Interesting Brad, a private lending format. I would wonder with lack of regulation when things go astray all you can do is sue.

Posted by Gary Woltal, Assoc. Broker Realtor SFR Dallas Ft. Worth (Keller Williams Realty) almost 8 years ago

Hey Tom - I heard it started with someone borrowing 5 bucks, not sure that's true but it reminds me of ebay accept with money.  BTW - you and I are strangers, we only know of each other from our online presence.  From what we do know of each other, would you loan me $500 dollars at say 7% interest over the year for a new computer so I could continue blogging and sharing information with others? 

I think that is how the prosper site tries to be perceived but my research is far from complete.  :-)

PS.  Don't need the loan, but if you're handing out cash....   I'll take it!  lol~

Posted by Brad Andersohn, ActiveBrad - 707.646.1876 (Executive Director of Education at eXp Realty) almost 8 years ago

Very interesting.  With every downfall an opportunity rises.  With this economy and all of the displaced homeowners, (creative) financing has to come from somewhere.  I'll check it out and see what criteria/scores they are seeking of borrowers.  Thanks for sharing!

Posted by Jan Green, HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN (Value Added Service, 602-620-2699) almost 8 years ago

I just received this response below from one of my AR Blog email subscribers, thanks Stevie:

Hey Brad –

Prosper (and there are a handful of others like Kiva etc.) is very cool indeed. 2006 Nobel Prize winner Mahammad Yunus is the recognized father of “lender to the poor” ,and it is his ideas that most of these micro institutions try to follow.

I have had limited experience with the concept at this point, and only through Prosper, but it is indeed a new wave of sorts, that could offer the solutions you speak of, and one of a few that I have pitched to clients that can’t quite get there in today’s new lending environment.

Good Call Brad -as always – Thanks!

Peace,

Stevie Bear

Posted by Brad Andersohn, ActiveBrad - 707.646.1876 (Executive Director of Education at eXp Realty) almost 8 years ago

I, too, feel like I was really out of the loop on this one.  I need to check this out.  I work with Investment properties and the Banks are sure not making it easy on Investors these days.  thanks for the info, Brad!

Posted by Mike Cathell, Real Estate Investing for Real People (Real Estate Services of SWFL, LLC) almost 8 years ago

Hi Brad!
In a day when banks won't loan and investors are nervous nellies, this might be a great solution.  I have heard of it in a smaller scale, but why not?
Paula Swayne

Posted by Paula Swayne, Realtor-Land Park, East Sac & Curtis Park -Dunniga (Dunnigan, Realtors, Sacramento (916) 425-9715) almost 8 years ago

Brad:  I hadn't heard about this either so thanks for posting.  Sounds like one way for anti-big-bank folks to make a statement, too.

 

Posted by Kirsten Lindquist, Realtor - Sonoma Wine Country (Pacific Union International) almost 8 years ago
Sounds interesting all right. Many of our clients are investors and the limiting factor for all of them is how much money they can get a hold of.
Posted by Mark Delgado, Benicia and Vallejo, Property Management, rental h (houses for rent, Solano County & Glen Cove) almost 8 years ago

Brad,  Interesting times we are in with the marriage of financing and the internet.  Thanks for posting, its on my to do list.  

Posted by Joe Sosky, Commercial Real Estate Broker - (360) 816-9652 (KW Commercial) almost 8 years ago

What in interesting idea and it is a lot like Owner Financing where people are selling homes without banks being involved.

Posted by Knipe Realty (Knipe Realty NW) almost 8 years ago

Always something new to learn in the Rain, My Goodness. I hope this works so well that it starts a movement. I'll be watching for more news on this. Thx, Brad.

Posted by Elva Branson-Lee, CDPE - Atlanta Real Estate & Short Sale Agent (Solid Source Realty GA) almost 8 years ago

Just checking back on further information.  I haven't found anything negative yet.

And hey, the world didn't end!  What do you know? 

Posted by Laura S. Baker, Realtor (920) 728-4118, First Weber Inc (First Weber Inc) over 7 years ago

Hey Brad Private money can work..not sure if this is the right product. When I bought my first home, the banks would not give me a mortgage even thought I had 30% down payment because I was too young. The Real Estate Company I bought the House through had a mortgage dept and they gave me the mortgage at Bank rates.

Thanks for sharing this!

Posted by Fred Carver Personal Real Estate Corporation, Accredited Real Estate Consultant (RE/MAX Camosun Victoria BC Real Estate) over 7 years ago

It looks like after 4 years, the site is still going strong and funding tons of loans.  This may have been one of those ideas and sites that was just way ahead of their time, but since they hung in there, many are discovering the opportunities and potential so it is finally paying off for everyone.  I think this is really a fantastic idea and the risks may just be worth the rewards for those taking advantage of it.  :-)

Posted by Brad Andersohn, ActiveBrad - 707.646.1876 (Executive Director of Education at eXp Realty) over 7 years ago

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