Author Topic: Do prosper changes, change your investing strategy?  (Read 4222 times)

Bilgefisher

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Do prosper changes, change your investing strategy?
« on: October 20, 2011, 04:38:54 PM »
For instance, with prosper lowering their repeat borrower interest rates, have you lowered your minimum interest rate to lend?

There are many other examples.  Say when prosper increased the interest rate overall on borrowers.  Did anything change for you?

Peter

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Re: Do prosper changes, change your investing strategy?
« Reply #1 on: October 20, 2011, 05:13:12 PM »
Good questions Jason. Despite the reduced rates on repeat borrowers I am sticking with my strategy for now. I look at every repeat borrower loan over 20% and invest $100 in those with 0-1 delinquencies, 0-1 inquiries, 0-1 payments of <31 days late, 0 payments of >30 days late. If they have more delinquencies or more inquiries I often still invest but at a reduced amount. The one change I am considering, though, is upping my $100 to $200 in my favorite loans because there simply are not enough of these loans.

This year Prosper has changed rates four times I believe and I imagine that pace will continue. It has sometimes been up and sometimes down. So, I try not to change strategy based on interest rate changes.
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Bilgefisher

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Re: Do prosper changes, change your investing strategy?
« Reply #2 on: October 21, 2011, 09:10:19 AM »
My cutoff is 25%.  Very few loans have come in above that mark and those that do have varied reasons for not being good.  I do see many decent loans coming in at 24.75%.  I may have to start investing in those.  24.75% is far better than idle cash.

chasingbread

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Re: Do prosper changes, change your investing strategy?
« Reply #3 on: October 23, 2011, 10:07:09 AM »
I initially had a high 30% cutoff, but over the past 18 months or so it has slowly come down to 20% and up. If you do not have a lot of funds to invest, you can afford waiting along for 24.75% and up. I am sure they will continue to go down overtime, but hopefully the quality of borrowers will go up as well.

Peter

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Re: Do prosper changes, change your investing strategy?
« Reply #4 on: October 23, 2011, 05:07:07 PM »
I am also at 20% and up with most of the focus on repeat borrowers. I am finding 4-5 loans every day to invest in and right now I am doing $50-$100 per loan. If the loan meets all my criteria it gets $100 - if it misses on one or two then it gets $50.
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