Originally Posted by Derslickmeister
That is my main issue with this as well. Big Money has moved in and secured all the low risk, higher retun loans. All the little folks (like us) are likely to get are the scraps and the ones they won't touch IMHO.
Peer to Peer Lending is an interesting topic. If you go back and look at the other threads on the subject there sure are a lot of opinions however i think its like anything else. A lot of folks set on the sidelines and talk smack. If you are limping into ER with a small margin I don't think I would even try it. However if its only a few percent of your portfolio and you have more than you will ever need probably not a big deal.
No doubt some notes are offered to "Big Money" however right now there seems plenty to go around. It was not that way a few months ago. There are plenty of examples of people that are doing very well and of course others that aren't making it. I suspect is has to do with the level of research and knowledge over time. I think the quality of notes I am buying now are better than what I was buying a few months ago. I chalk that up to having a better grasp of what I am purchasing and my ability to take the emotion out of the purchases. I could have just given them x amount and have them pick the notes. Having seem some of the notes automatically selected in others portfolios there are several notes that I would have never picked. I made the decision that I was going to ramp on a certain timeline and scale knowing that in the short run I ran the risk of greater losses do to lack of diversification. I also recognize that as notes become more seasoned defaults rise. So there is a certain level of churning that probably needs to occur to weed the garden. I hope at some point they implement an option on their trading platform that will allow you to sell your entire portfolio at one time. It would be another quick exit strategy.