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BWillie
03-20-2010, 11:54 PM
Has anybody tried this as a way to invest money? http://www.lendingclub.com

Apparently it is a peer-to-peer loan system. In this day in age where banks aren't giving anybody a loan, maybe it could take off. They say the average investor gets 9.65% return on their money. I think you even have control of what kind of loans or types of people are allowed to take loans w/ the money you invest.

I saw it a couple years ago on like 60 minutes, and remembered about it and looked it up. Some people have complaints about it, and some people rave that it's the best way to invest money right now.

I have 20K laying around earning pretty much no money, and I'd like to put it in a relatively liquid investment. Not sure if this is for me or not.

Nightfyre
03-21-2010, 12:01 AM
My advice: Don't lend money unless you know what you are doing.

JD10367
03-21-2010, 12:05 AM
Neither a borrower nor a lender be. Or some shit like that.

We have lending clubs up here in the northeast. We just call it the Mafia.

I'll keep my money in the bank, earning shit interest, where at least the phrase "member FDIC" holds some weight (until the country goes under, that is).

Kyle DeLexus
03-21-2010, 12:10 AM
We talked about a couple of these sites in one of my business classes. There is a lot of risk associated with for profit sites. According to my professor the site he showed us had a pretty high non-payment rate. Also on these sites, borrowers are able to shop lenders so lenders have to bid to give the loan. The low risk loans end up not giving much return on your investment.

Granted, I didn't look at this site so I'm not sure how it operates.

Nightfyre
03-21-2010, 12:12 AM
Its awesome. you take the default risk and they keep the fees! I didn't specify who it was awesome for, however.

JD10367
03-21-2010, 12:17 AM
A fool and his money are soon parted.

There's a sucker born every minute.

If something seems too good to be true, it probably is.











Did I forget any?

Slainte
03-21-2010, 12:32 AM
I have 20K laying around earning pretty much no money

What's wrong with a nice Roth IRA?...

BWillie
03-21-2010, 12:35 AM
What's wrong with a nice Roth IRA?...

Don't know much about it. I saw another askmen.com message board w/ a guy raving about lending club, but also see a ton of people who think it's a scam. Thought it sounded too good to be true, just seeing if anybody has any first hand experiences w/ it.

Slainte
03-21-2010, 12:47 AM
Don't know much about it.

Information is so easy to find on the internet these days...

BWillie
03-21-2010, 12:49 AM
Information is so easy to find on the internet these days...

No sh*t really?

HMc
03-21-2010, 01:11 AM
i don't think it gives you a disproportionate potential reward against the risk you are taking or anything like that, but it might provide an avenue for investment at particular return levels that you can't easily access elsewhere.

I havent looked into it but i'd assume that if there's a reasonable volume of money genuinely being borrowed through it that the lender is just as protected as if they were lending money to any other non-financial institution borrower. ie there's a contract and you may or may not hold a charge over some collateral (depending on the terms that you negotiate).

HMc
03-21-2010, 01:14 AM
around these parts you can get 5.85 % with no min balance and no risk at the moment.

ForeverChiefs58
03-21-2010, 01:15 AM
I need a loan for a million dollars. I don't really want to do anything with it, I just want to be able to say I have a million dollars.

Hog Farmer
03-21-2010, 01:51 AM
If you got 20K lying around you might look at buying (uso) , United States Oil supply, it's in the 35-40 $ range right now, when gas was 4.00 a gallon it was over 100$, we put 50k in just waiting for the shit to come down in Iran.

runnercyclist
03-21-2010, 05:23 AM
Has anybody tried this as a way to invest money? http://www.lendingclub.com

Apparently it is a peer-to-peer loan system. In this day in age where banks aren't giving anybody a loan, maybe it could take off. They say the average investor gets 9.65% return on their money. I think you even have control of what kind of loans or types of people are allowed to take loans w/ the money you invest.

I saw it a couple years ago on like 60 minutes, and remembered about it and looked it up. Some people have complaints about it, and some people rave that it's the best way to invest money right now.

I have 20K laying around earning pretty much no money, and I'd like to put it in a relatively liquid investment. Not sure if this is for me or not.

"Oh, nevermind, I decided to bet it on the Jayhawks last night - problem solved" - BWillie007

bevischief
03-21-2010, 06:38 AM
Never lend more than you are willing to lose.

mikeyis4dcats.
03-21-2010, 09:56 AM
this is probably the third incarnation of this idea I've seen over the last 5 years. Another forum I frequent had a bunch of members that decided to go in and do a syndicate and lend and it didn't work out great....lots of deadbeats.

BWillie
03-21-2010, 01:44 PM
this is probably the third incarnation of this idea I've seen over the last 5 years. Another forum I frequent had a bunch of members that decided to go in and do a syndicate and lend and it didn't work out great....lots of deadbeats.

I'm going to dabble in it. After the research I've done, from people that have actually done it, most have a positive outlook on it. And the people that broke even or lost a little money put their eggs all in one basket and didn't spread their money across a ton of loans. I guess lending club only takes people w/ above average credit, and unlike some of these other lending clubs it isn't the subprime market. Just going to put a little bit in there, see what happens. I'll keep you posted especially when I have no money and I'm standing on the corner w/ a sign asking for change.