Recently heard about this and my Son-in-law is trying it in a small way. This site connects lenders and borrowers. You bid on rates and can just lend a small amount if you want. They do credit checks and assign collection agencies. Supposedly a smallish default rate - NOW, anyway - so you just need a few good loans to pay off at 8% - 20%, or so, to make money. Doubt if I will do it, tho. I'm suspicious of everybody and everything! Forbes sez Hoenig from Cap Pig is into it. Don't know if that is good or bad... Might be a way for you to diversify, but don't get mad at me if it all comes crashing down! http://prosper.com/ Article: http://biz.yahoo.com/fo/070223/c100d49a632ce8d6f0a758f2dc190126.html?.v=1&.pf=loans
Yea, I heard about it too. I am going to join and see how it goes. I do not need their collection agencies. If all else fails, I'll just call my good ole cousin veto to do collections. I've been told he has a near 100% collection rate.
I have breakfast with a couple of bounty hunters most mornings, not making this up. After hearing some of their stories I told them if they are ever collecting from me, not a problem, I'll cut them a check.