April 11, 2007

Prosper.com Update

I posted last month about how we were gambling with some play money in Prosper.com. We currently have $100 spread over two $50 loans and an average return of 12.21%. Both borrowers are current with their payments.

Loan 1: https://www.prosper.com/lend/listing.aspx?listingID=109590

Loan 2: https://www.prosper.com/lend/listing.aspx?listingID=112548

That all sounds pretty good, but one drawback of the system is that you do NOT earn interest on money in your prosper account (where the borrower’s payments are deposited) and CANNOT withdraw less than $25 at a time. So, unless we choose to invest more money in Prosper so that we can make another loan (also a $25 minimum), our money is stuck in a non-interest bearing account. Add to that the risk eliment of a borrower defaulting and I’m starting to think it is not really worth it.

2 comments:

Zachary said...

The interest on the loan should more than make up for the lack of interest on the account, as long as nobody defaults!

1MansMoney said...

Zachary,

I haven't crunched the numbers, but you’re probably right. It was just disappointing to find out about the minimum withdrawal requirement after the fact.

-1MansMoney