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Four Peer-to-Peer Loan Investor Tips
Posted By Guest Contributor On 03/19/2009 @ 2:07 pm In Investing | 14 Comments
Scared off by stocks and real estate but seeking a higher return than a savings account? Consider testing social lending, where individuals loan money to each other. The returns can be quite attractive, but these loans are often quite risky as well.
While they are a bit more established in Europe, nearly a dozen social lending sites (also known as peer-to-peer or P2P loan networks) burst onto the scene in the U.S. over the past two years, aiming to match individual borrowers and lenders. After a period of both wild growth and often abysmal default rates, the S.E.C. cracked down, essentially forcing the companies to register their loans as public securities. This forced every network to unexpectedly pause new lending operations while they await S.E.C. approval to resume originating new loans. Thus, the spotlight that had been shining brightly on this market has dimmed considerably, with only two social lending marketplaces completing the registration process and resuming lending so far: Lending Club  and Pertuity Direct.
If you are ready to dip your toe into this market, here’s our advice for getting started:
Remember, P2P loans should be considered to be high-risk, and you could lose your entire investment. As with any investment, be sure to perform your own, thorough due diligence.
This guest post is by Social Lending Network , which offers news and strategies on social lending and P2P loans.
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 shows that 3.03%: https://www.lendingclub.com/info/statistics.action
 this borrower: https://www.lendingclub.com/browse/loanDetail.action?loan_id=382521
 Social Lending Network: http://www.sociallending.net/
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