Author Topic: Borrow-to-Lend  (Read 27735 times)

Peter

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Re: Borrow-to-Lend
« Reply #60 on: January 13, 2013, 11:34:02 AM »
or you could lend it to me so I can refi ! Since I started looking for funding, I have had many inquiries but it is scary on my end receiving the loan and what information I give out as I know it is scary on the other end for the person giving out the $. I agree that it just doesn't scale until either you take money out of a house or you just do it for long enough. I am willing to take a private loan not through LC or Prosper though with full documentation for the right person and the right loan terms though. Anyone.....

I am going to echo hippo387. I am happy for potential borrowers to promote their listing for their Lending Club or Prosper loan in the appropriate place but this is not a forum for soliciting money outside of p2p lending. Please stop these requests now.
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See my returns here: http://www.lendacademy.com/returns

jwilliams

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Re: Borrow-to-Lend
« Reply #61 on: January 13, 2013, 11:51:39 AM »
Hey Peter, Why don't you change the title on your home page then? The title is general p2p lending not specifically related to LC and Prosper. Your words not mine. Why doesn't anyone ask me questions since the title Borrow to Lend is what I have been doing since 2000. Are people on here just looking for some feel good advice on investing $25 at a time in non verified notes? I think so instead of having a real discussion on general p2p lending not related to LC and Prosper or borrow to lend. Response Peter?

jwilliams

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Re: Borrow-to-Lend
« Reply #62 on: January 13, 2013, 12:00:33 PM »
Is the definition of peer to peer lending peer to peer lending through a company?

Zach

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Re: Borrow-to-Lend
« Reply #63 on: January 13, 2013, 12:13:59 PM »
Is the definition of peer to peer lending peer to peer lending through a company?

That is certainly not the definition, but this forum and website is provided as a resource for investors/borrowers who use the LC or Prosper platforms.

You have to admit that it seems kind of crazy to try and solicit a loan through an online discussion forum (especially for tens of thousands of dollars) from complete strangers. LC and Prosper provide a secured marketplace for collections, privacy, credit review, and diversification - that would be the most significant differences - the origination fee and investor service fee are part of the program for investors/borrowers and you have to accept that or look elsewhere for funding.

jwilliams

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Re: Borrow-to-Lend
« Reply #64 on: January 13, 2013, 12:30:41 PM »
Go back to the Home page and tell me what the general topic of this section is. I agree with you, I am an investor on prosper so I know how it works. The general topic says specifically not LC and Prosper. It is not crazy because I can provide more documentation than is required on either LC or prosper. Go back and read my posts on this topic. I am the real deal. I am an investor that is in a credit crunch because I gave a friend a loan. There was also an article in the last week,  forget the source, titled Monet or Gold bars? I believe. Google it. It is about lenders using other forms of collateral to give out loans. Also it is not crazy because I could walk someone through my properties, my job, my paycheck, my credit, etc. anything they want. More than is needed to secure a loan on either prosper or LC. Also since it is a private loan, the returns are tax free and hidden from Uncle sam vs taxed as ordinary income (unless your account is an IRA)

investforfreedom

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Re: Borrow-to-Lend
« Reply #65 on: January 13, 2013, 03:02:41 PM »
Go back to the Home page and tell me what the general topic of this section is. I agree with you, I am an investor on prosper so I know how it works. The general topic says specifically not LC and Prosper. It is not crazy because I can provide more documentation than is required on either LC or prosper. Go back and read my posts on this topic. I am the real deal. I am an investor that is in a credit crunch because I gave a friend a loan. There was also an article in the last week,  forget the source, titled Monet or Gold bars? I believe. Google it. It is about lenders using other forms of collateral to give out loans. Also it is not crazy because I could walk someone through my properties, my job, my paycheck, my credit, etc. anything they want. More than is needed to secure a loan on either prosper or LC. Also since it is a private loan, the returns are tax free and hidden from Uncle sam vs taxed as ordinary income (unless your account is an IRA)

You can play with semantics and nitpick all you want.  But the consensus here is that this is not a venue for soliciting loans directly from forum participants.  Look, Peter is already going the extra mile and asking nothing in return by providing a forum like this.  If you don't like the way the forum is run, feel free to go. 

jwilliams

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Re: Borrow-to-Lend
« Reply #66 on: January 13, 2013, 04:04:49 PM »
Ok, Ill talk about my favorite beer instead

Keltset

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Re: Borrow-to-Lend
« Reply #67 on: January 13, 2013, 04:50:05 PM »
Also since it is a private loan, the returns are tax free and hidden from Uncle sam vs taxed as ordinary income (unless your account is an IRA)

Are you suggesting that a reasonable rated loan's return shouldn't be considered for taxes? I'm not sure where this is coming from. The amounts you are discussing are over $10,000 for the loan amount. Just because you "can get away" with hiding something doesn't make it legit.
« Last Edit: January 13, 2013, 04:53:42 PM by Keltset »

jwilliams

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Re: Borrow-to-Lend
« Reply #68 on: January 13, 2013, 07:22:59 PM »
I don't know why you would want to pay more taxes than you have to ever period. We could argue back and forth all day but basically I do what all of the big corporations do when I itemize so I end up paying little or no taxes after deductions but I have to talk about something else and I don't know what because Peter is going to ban me for talking about a private loan. My point is that if you loan a friend 100 and ask for 150 back the 50 being interest, do you report that as income to Uncle Sam ? I don't, that's it.

Keltset

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Re: Borrow-to-Lend
« Reply #69 on: January 13, 2013, 08:11:46 PM »
I don't know why you would want to pay more taxes than you have to ever period. We could argue back and forth all day but basically I do what all of the big corporations do when I itemize so I end up paying little or no taxes after deductions but I have to talk about something else and I don't know what because Peter is going to ban me for talking about a private loan. My point is that if you loan a friend 100 and ask for 150 back the 50 being interest, do you report that as income to Uncle Sam ? I don't, that's it.

http://www.irs.gov/publications/p550/ch01.html#d0e256

Sorry, it's not about paying more taxes than you have to- It's about paying the amount of taxes owed under the law. "hidden from Uncle sam vs taxed as ordinary income" specifically implies the encouragement of tax evasion.

Randawl

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Re: Borrow-to-Lend
« Reply #70 on: January 14, 2013, 12:28:54 AM »
I do this - the biggest point for me is - unless you're borrowing against your home or some large asset, is it just doesn't scale much.  I took out a $20k P loan at %6.5 and I lend it back out on P - it's just not that much money in the grand scheme of things, and a minority of my P account value.  I don't really see a way I could borrow several times that much at that rate, so it's capped for me at a fairly small amount of leverage.

I took the loan early 2012, and I'll be doing what I can to work it into my taxes this year.  The loan documentation makes it very clear that the purpose of the loan is for investing in other loans - I guess I'll see what the IRS thinks in a few months.  If I can't deduct the interest, I might work on paying it off early as it will make it significantly less lucrative.

It's all about the spread!  If you have the ability to maintain consistent results, given enough time your base principle will be churning out more interest than you know what to do with.  Admittedly, the addage of "you have to have money to make money" rings true, but only to the effect that it advances you further along the time spectrum of wealth's starting point. 

Have any of you ever read the book The Richest Man in Babylon?