The advice of the founder was to make a hundred $100 loans, rather than one $10,000 loan. Spread the risk, keeps you from getting burned. Done that way I guess the average return is pretty high. Someone wanting to borrow $10,000 gets 100 people to loan to them. Perhaps a bit of a hassle, but then again I think most people consider it entertainment as much as an income source- although some have invested millions through them.
I have been using prosper for about a year. I tried to create a post to share it with everyone here at the creativeinvestor, but I was too new...therefore I was unable to post links.
The limit is $25,000 and it is not available in all states. However,I think it has a lot of potential benefits for Real Estate investors. I am still starting out in Real Estate Investing, but this is how Prosper can benefit Real Estate Investors....
Say you want to do a lease option or owner financing (if you intend to sell the note later, then a down payment will make your note more attractive to a potential note buyer), and you want your potential buyer to have a down payment of 3-5%. You can send your potential buyer to Prosper, and have them join your group (mine is the same as my id), and offer to get their loan started by funding a portion of their loan.
If their loan gets funded...
Your buyer has the money for a down payment. And, eventhough you loaned them money through Prosper, you will get it back when they give you the down payment.
You will get a referal fee through Prospers Affiliate Program, currently running until December...but they may extend it...again.
You will get a bonus (a small percentage) because they funded the loan through your Prosper Group.
You earn interest on the money you lend them.
So, you get paid in four different ways: When the house is sold, as an affiliate, as a group leader, and interest on money you lend. [ Edited by cash4housesandnotes on Date 11/03/2007 ]
The advice of the founder was to make a hundred $100 loans, rather than one $10,000 loan. Spread the risk, keeps you from getting burned. Done that way I guess the average return is pretty high. Someone wanting to borrow $10,000 gets 100 people to loan to them. Perhaps a bit of a hassle, but then again I think most people consider it entertainment as much as an income source- although some have invested millions through them.
Chris
thanks chris, good to know!!
I have been using prosper for about a year. I tried to create a post to share it with everyone here at the creativeinvestor, but I was too new...therefore I was unable to post links.
The limit is $25,000 and it is not available in all states. However,I think it has a lot of potential benefits for Real Estate investors. I am still starting out in Real Estate Investing, but this is how Prosper can benefit Real Estate Investors....
Say you want to do a lease option or owner financing (if you intend to sell the note later, then a down payment will make your note more attractive to a potential note buyer), and you want your potential buyer to have a down payment of 3-5%. You can send your potential buyer to Prosper, and have them join your group (mine is the same as my id), and offer to get their loan started by funding a portion of their loan.
If their loan gets funded...
Your buyer has the money for a down payment. And, eventhough you loaned them money through Prosper, you will get it back when they give you the down payment.
You will get a referal fee through Prospers Affiliate Program, currently running until December...but they may extend it...again.
You will get a bonus (a small percentage) because they funded the loan through your Prosper Group.
You earn interest on the money you lend them.
So, you get paid in four different ways: When the house is sold, as an affiliate, as a group leader, and interest on money you lend. [ Edited by cash4housesandnotes on Date 11/03/2007 ]
you can get a degree in real estate?
Yes sir