Peer To Peer Lending Archives

Hank Coleman Discusses Peer to Peer Lending Investments on Fox Business

I recently had the privilege of being on the Gerri Willis Show on Fox Business and discuss the value of peer-to-peer lending through services like Lending Club. Here is the TV segment which was filmed on September 3rd, 2013. Transcript of Hank Coleman Talking About Investing in Peer to Peer Lending GERRI WILLIS: It’s a trend shaking up the financial world – it’s peer-to-peer lending. Talk about alternative investing. More investors chasing higher yields, offering loans to folks turned down by traditional banks. But is this risky investment a smart one? Joining me now, Hank Coleman. He’s a financial adviser for Coleman Financial and the publisher of MoneyQandA.com. He has invested in over 140 of these kinds of loans so far. … Read more

Review Of Peer-To-Peer Lending Site – Prosper

by Hank Coleman

Prosper is a Peer to Peer lending website similar to Lending Club that connects individuals who want to lend money to others who are looking to borrow money. It is appealing to both borrowers and lenders because it offers great rates for borrowers and great returns for investors. As an investor, Prosper allows you to skip the bank and deal directly with borrowers putting more money in your pocket. And, as a borrower, you can typically save several percentage points on your loan than what you would have received otherwise from a traditional lender. Investing With Prosper Prosper allows you to invest an amount of money, with which you can loan out to other individuals. The minimum amount to loan … Read more

Dissecting My Twelve Loans That Defaulted On Lending Club

by Hank Coleman

Lending Club Passive Income With Automated Investing

Last week I made a horrible confession. I am a greedy investor, or more importantly, I WAS a greedy investor when it came to my Lending Club account and investing in peer to peer lending loans. But, I have learned the errors of my ways. I love Lending Club and the idea of earning a great rate of return by investing directly in peer to peer loans of people who need funding and may not otherwise receive it.

So, I’m not giving up on investing in peer to peer lending through Lending Club. I’m trying to be a better loan picker and evaluator. So, here are a few areas that my Lending Club default loans have in common. Maybe by understanding a little more about why these may have defaulted, I can avoid making similar mistakes going forward in the future with new peer to peer loans.

Traits Of My Defaulted Peer To Peer Lending Loans

36 Month Maturities

Every single one of the 12 loans that I have that defaulted have a 36 month length of maturity. This is a little hard to gauge because I started investing in some of these peer to peer loans before Lending Club started offering five year loans.

How I Got Greedy and Lost My Shirt with Peer To Peer Lending Loans

by Hank Coleman

I completely messed up investing in peer to peer loans through Lending Club by being greedy. Jim Cramer is famous for saying that both bulls and bears can make money, but pigs get slaughtered. What he means is that it is one thing to make money or make a living with your investments. But, to try and make a killing on them, you will often be crushed by those very same investments. I’m ashamed to say that I got greedy with my Lending Club investments and tried to push the envelope, and I got burnt. Keep reading to see what happened and what I’m doing now with the new loans I’m investing in now through Lending Club. Peer To Peer Loans … Read more

Top 3 Easy Places to Find Money in a Pinch When Times Are Tough

by Hank Coleman

Surveys have shown that most Americans, 60% to 70%, live paycheck to paycheck. There will always be hiccups in your personal finances, and those tough times are often multiplied if you do not have a written monthly budget. But, how do you find money to pay your bills on short notice if you are in a pinch? Going to a payday lender should be one of your last resorts because of the enormous amount of interest you will ultimately pay on such a short-term loan. Payday lenders provide a horrible service that preys on struggling people and allows you to roll short-term loans over with interest continuing to build and build. But, you do have other options if you need … Read more