I funded my first prosper loan on February 27, 2007. I thought it was amazing that I would be able to act as a bank lending money to a person for a rate higher than I could get from a CD, bond or dividend. I still think it is an amazing alternative investment, but that doesn’t matter since my employer doesn’t allow me to participate in prosper loans or any person to person lending. Well, my last note finally is done and paid out so I can shut the account, however, before I do just that I figured I would share my account details and returns.
My Prosper Lending History
I funded a total of 44 notes. About one-third of the notes were funded before prosper went into a quiet period to obtain S.E.C. approval to allow investors to sell and buy already funded notes. This period was before my personal finance blog so nothing is documented, but I don’t remember having a specific strategy. My returns for that period evidence my lack of strategy and discipline. When prosper came out of the dark period I was excited to get back into person to person lending with a whole new intentional plan.
After I got intentional (marked in red) I only had one charge off. My strategy was to take borrowers who were current, but were looking to consolidate at a lower rate. My thought process was that I didn’t need to be a pig and chase crazy returns; just get a few extra percentage gain from those already paying their bills but looking to pay less interest. Notwithstanding my strategy, I was told to stop investing in April of 2010 and the account just sat dormant for the past couple years.
My Prosper Return Summary
I am not sure why, but prosper provides different return calculations for different periods (seasoned vs non-seasoned) :
It seems that the most important number is the total return of 4.32% which takes into account my entire history with Prosper. I would absolutely invest again if I were allowed to.
What are your prosper returns?