Comments on: Using P2P Lending to Protect Against Short-Term Cash Needs https://www.writeyourownreality.com/lending-club/using-p2p-lending-protect-short-term-cash-needs/ Aggressively pursuing a dream is the only way to write your own reality. Documenting my path of turning dreams into investments and success! Mon, 30 Nov 2015 00:02:06 +0000 hourly 1 By: writing2reality https://www.writeyourownreality.com/lending-club/using-p2p-lending-protect-short-term-cash-needs/#comment-68162 Mon, 16 Feb 2015 16:05:22 +0000 http://www.writeyourownreality.com/?p=2776#comment-68162 The $3,000 is not profit, but is instead cash flow that includes both interest income and return of capital. The intention is to reduce the need for a large savings account by leveraging the higher interest rates and ability to ‘cash out’ over a three year period.

I hope that answers your question Felix.

]]> By: Felix Money @ MyMoneyfesto.com https://www.writeyourownreality.com/lending-club/using-p2p-lending-protect-short-term-cash-needs/#comment-68128 Mon, 16 Feb 2015 05:10:49 +0000 http://www.writeyourownreality.com/?p=2776#comment-68128 So for a $100,000 investment, you would get a $3,000 or so profit a month? I thought it was a year. If it’s $3,000/month, that would be awesome. I saw a lot of finance bloggers invest in P2P lending, it’s something that I definitely need to look into.

]]> By: Dividend Growth Journey https://www.writeyourownreality.com/lending-club/using-p2p-lending-protect-short-term-cash-needs/#comment-68008 Fri, 13 Feb 2015 16:01:10 +0000 http://www.writeyourownreality.com/?p=2776#comment-68008 Thanks W2R. I will definitely get in touch with you when I need more information on P2P

]]> By: writing2reality https://www.writeyourownreality.com/lending-club/using-p2p-lending-protect-short-term-cash-needs/#comment-68005 Fri, 13 Feb 2015 14:54:58 +0000 http://www.writeyourownreality.com/?p=2776#comment-68005 Thank you DGJ! There are some pros and cons to any investment, and completing your due diligence is extremely important. While everyone has their own investment strategy, P2P lending is absolutely an important part of my overall investment picture.

Feel free to reach out to me if you have any questions about P2P lending.

]]> By: writing2reality https://www.writeyourownreality.com/lending-club/using-p2p-lending-protect-short-term-cash-needs/#comment-68004 Fri, 13 Feb 2015 14:52:07 +0000 http://www.writeyourownreality.com/?p=2776#comment-68004 You’ve definitely hit the nail on the head with the potential for losing principal. A well diversified investor shouldn’t be overly impacted, however, the risk is always present. One more reason to invest in a minimum of 200 or more notes to help spread out the impact of any defaulted loans.

Thanks for adding your thoughts RRQ!

]]> By: writing2reality https://www.writeyourownreality.com/lending-club/using-p2p-lending-protect-short-term-cash-needs/#comment-68003 Fri, 13 Feb 2015 14:50:12 +0000 http://www.writeyourownreality.com/?p=2776#comment-68003 Rat Race Quitter highlighted the biggest one, and that is the risk of losing some principal. However, if you mitigate your risk through diversification and some simple filtering, you should be more than able to see some very positive returns.

Let me know what other questions you might have DivGuy!

]]> By: writing2reality https://www.writeyourownreality.com/lending-club/using-p2p-lending-protect-short-term-cash-needs/#comment-68002 Fri, 13 Feb 2015 14:48:27 +0000 http://www.writeyourownreality.com/?p=2776#comment-68002 The automated ‘Quick Invest’ in Prosper is fairly simple. Simon over at Lending Memo has laid out exactly the process to set this up. If you’re investing in A and B loans, you shouldn’t have too much of an issue finding notes. If you’re only investing $500, absolutely stick with just $25 notes. You want to get to the 100-200 note range as quickly as possible to minimize the impact that one note defaulting can bring.

Let me know what other questions you might have.

]]> By: Dividend Growth Journey https://www.writeyourownreality.com/lending-club/using-p2p-lending-protect-short-term-cash-needs/#comment-68001 Fri, 13 Feb 2015 14:14:21 +0000 http://www.writeyourownreality.com/?p=2776#comment-68001 Great post and good information. I have been looking to start P2P lending for a while now (of course with small capital), but haven’t had a chance to do the research needed. Need to spend some time looking around the community and information like this.
Thanks.

]]> By: Rat Race Quitter https://www.writeyourownreality.com/lending-club/using-p2p-lending-protect-short-term-cash-needs/#comment-67996 Fri, 13 Feb 2015 12:05:31 +0000 http://www.writeyourownreality.com/?p=2776#comment-67996 There are risks, DivGuy, yes. As a P2P investor myself I can tell you that you do run the risk of someone NOT paying back the money you lent them.

But all investing carries risk. You just have to diversify yourself enough so that you spread that risk out.

]]> By: DivGuy https://www.writeyourownreality.com/lending-club/using-p2p-lending-protect-short-term-cash-needs/#comment-67907 Thu, 12 Feb 2015 15:58:20 +0000 http://www.writeyourownreality.com/?p=2776#comment-67907 Any risks one should be aware of? It is nice to consider this as an emergency fund yes or to use the interests gained to invest in some dividends! ;-)

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