From the BiggerPockets Blog

 BiggerPockets Blog »

Jump to Forum View All

Click a category below to view different forum categories.

BiggerPockets

General Info

BiggerPockets Q&A, Site Questions, & Announcements

1505 topics, 14365 posts — Last Post 04/16/14, 05:46AM

BiggerPockets Exclusive PRO Area

116 topics, 834 posts — Last Post 04/15/14, 11:19PM

New Member Introductions

10838 topics, 85188 posts — Last Post 04/16/14, 06:02AM

Real Estate Success Stories

391 topics, 6092 posts — Last Post 04/15/14, 11:38PM

General Real Estate

General Real Estate

Buying & Selling Real Estate

5897 topics, 46521 posts — Last Post 04/16/14, 05:49AM

Renters

640 topics, 5788 posts — Last Post 04/15/14, 06:49PM

Get Foreclosure Help - Help Stop Foreclosure Forum

316 topics, 2557 posts — Last Post 04/16/14, 03:58AM

Home Owner Association (HOA) Issues & Problems Forum

236 topics, 1602 posts — Last Post 04/13/14, 02:11PM

Do it Yourself

653 topics, 6252 posts — Last Post 04/16/14, 01:54AM

Reviews & Feedback

Real Estate Deal Analysis and Advice

3650 topics, 29289 posts — Last Post 04/16/14, 05:09AM

Real Estate Guru, Book & Course Reviews and Discussions

1129 topics, 11530 posts — Last Post 04/16/14, 04:37AM

Ask About A Real Estate Company

736 topics, 7286 posts — Last Post 04/15/14, 02:45PM

Real Estate Investing

Real Estate Strategies

Wholesaling

5580 topics, 43634 posts — Last Post 04/15/14, 09:15PM

Rehabbing and House Flipping

3317 topics, 30843 posts — Last Post 04/16/14, 05:05AM

Real Estate Development & New Home Construction

551 topics, 4678 posts — Last Post 04/14/14, 01:02AM

Innovative Strategies

698 topics, 5991 posts — Last Post 04/13/14, 06:35PM

Tax Liens, Notes, Paper, & Cash Flows Discussion

863 topics, 6640 posts — Last Post 04/15/14, 06:59PM

Rent to Own a.k.a. Lease Purchase, Lease Options

689 topics, 4848 posts — Last Post 04/16/14, 05:41AM

1031 Exchanges

142 topics, 1049 posts — Last Post 04/08/14, 08:22AM

Foreclosure Investing

General Foreclosure & Pre-Foreclosure Forums

1686 topics, 11281 posts — Last Post 04/15/14, 03:20AM

HUD, VA, and Tax Sales

414 topics, 3085 posts — Last Post 04/14/14, 06:29PM

REOs

1212 topics, 10563 posts — Last Post 04/15/14, 01:08PM

Short Sales

1533 topics, 13117 posts — Last Post 04/15/14, 07:10PM

Landlord & Tenant Forums

Landlord & Rental Property Questions

7184 topics, 70452 posts — Last Post 04/16/14, 05:42AM

Mobile Homes & Mobile Home Park Investing

636 topics, 5127 posts — Last Post 04/15/14, 09:59PM

Investor Basics

Starting Out

7670 topics, 60235 posts — Last Post 04/16/14, 05:30AM

Investor Psychology

430 topics, 6092 posts — Last Post 04/14/14, 06:53PM

General Real Estate Investing

4706 topics, 37127 posts — Last Post 04/16/14, 06:03AM

Real Estate Investor Marketing

1728 topics, 14070 posts — Last Post 04/16/14, 03:51AM

Commercial Real Estate

Commercial Real Estate Investing Forum

1409 topics, 8971 posts — Last Post 04/16/14, 05:58AM

Multi-Family and Apartment Investing

1100 topics, 9145 posts — Last Post 04/15/14, 10:32PM

The Business of Real Estate

Real Estate Technology and the Internet

Real Estate Technology, Social Media & Blogging

638 topics, 4883 posts — Last Post 04/15/14, 01:41PM

Business Basics

Goals, Business Plans & Entities

827 topics, 7526 posts — Last Post 04/15/14, 07:32PM

Real Estate Finance & Legal

Financial, Tax, and Legal

Tax, Legal Issues, Contracts, Self-Directed IRA

2779 topics, 19967 posts — Last Post 04/16/14, 05:14AM

Property Insurance

308 topics, 2036 posts — Last Post 04/14/14, 07:40AM

Personal Finance Discussion

327 topics, 2686 posts — Last Post 04/04/14, 02:51PM

Loans, Mortgages, Credit Lines

Private & Conventional Lending Discussion

2822 topics, 19657 posts — Last Post 04/16/14, 06:00AM

Creative Real Estate Financing

1206 topics, 8758 posts — Last Post 04/15/14, 02:21PM

Crowdfunding Real Estate

35 topics, 455 posts — Last Post 04/14/14, 02:14PM

Real Estate Professionals

Real Estate Professionals

Real Estate Agents

1204 topics, 7933 posts — Last Post 04/16/14, 05:47AM

Bankers, Lenders, and Mortgage Brokers

440 topics, 1917 posts — Last Post 04/15/14, 07:37AM

Contractors

261 topics, 1656 posts — Last Post 04/15/14, 07:17PM

Local Real Estate

Local Real Estate

Local Real Estate Networking & Recommendations

1979 topics, 11550 posts — Last Post 04/16/14, 05:50AM

Americans & International Real Estate

161 topics, 566 posts — Last Post 04/14/14, 11:19AM

Foreigners Buying in the USA

62 topics, 409 posts — Last Post 04/10/14, 06:27AM

Canadian Real Estate

64 topics, 422 posts — Last Post 04/14/14, 05:41PM

Marketplace

Real Estate Marketplace

Real Estate Marketplace

14978 topics, 53844 posts — Last Post 04/16/14, 12:22AM

Real Estate Events and Happenings

162 topics, 2400 posts — Last Post 04/16/14, 05:59AM

Off-Topic

Off Topic

Off-Topic

2902 topics, 32394 posts — Last Post 04/15/14, 06:04PM

Housing News & Real Estate Market

913 topics, 8332 posts — Last Post 04/16/14, 02:30AM

BiggerPockets Real Estate Investing Summit

97 topics, 1751 posts — Last Post 04/10/14, 02:27PM

BiggerPockets Resources

Forums » Private & Conventional Lending Discussion » Peer to Peer Lending Sites

Peer to Peer Lending Sites

13 posts by 11 users

Signup

· Chicago, Illinois


I was looking into Peer to Peer lending. Has anyone tried this sites? What was your experience?



Property Manager · Henderson, Nevada


Hi Tom,

There is a current conversation on this topic at http://www.biggerpockets.com/forums/50/topics/65276-money36-may-revolutionize-hard-money-lending


Phillip Dwyer, Windermere Anthem Hills
Telephone: 702-212-1912
Website: http://www.vegasdigs.com
Phillip Dwyer Property Manager


Note Investor · Pasadena, California


My brother-in-law did this for a while until he started partnering with me on buying promissory notes.

Looking back, he now laughs at the notion. For the same return, he has a lot less risk in buying notes that are collateralized by real property.

In P2P lending, the default rate is about 7.5%, which is a number I would not be happy with.


Loc R., Individual/Private Note Buyer
E-Mail: [email protected]
Telephone: 626-590-6828
I buy individual notes - all states, shapes & sizes.


· Beverly Hills, California


Tom - I recently checked out Money360 as well based on finding the post Phillip mentioned above.

So far I have been very impressed. This is the first and only Peer to Peer real estate lending website that I am aware of. The site is very clean and straight forward. I registered a week or so ago and have already been matched with over a dozen borrowers that meet my "lender preferences". The borrowers I have been matched with are typically requesting over 10% rates and a have seen a few opportunities in the 12-14% range.

Like you, I am very intrigued with the Peer to Peer model. I see this being the future of lending in real estate.



Hard Money Lender · Tempe, Arizona


"Like you, I am very intrigued with the Peer to Peer model. I see this being the future of lending in real estate."

@Lloyd Dixon, come on LLoyd, it may be a niche area, but the future of lending?



· Beverly Hills, California


Don - I am personally a believer in the future of peer to peer lending. Banking as we currently know it is a broken system. Private individuals and investors aren't being offered attractive rates from banks and borrowers are unable to get financing when they need it most. I have been shocked to see people I know that have loans maturing with equity or own properties free and clear that can't get financing through a bank for one reason or another. With consumer credit so tight, there is a need for something more and peer to peer lending responds to that need for both borrowers and investors.

The internet and social networks enable peer to peer interaction on an unprecedented scale. People are able to connect with each other and put together deals that make sense without the middle man and peer to peer companies, like Lending Club, are flourishing because they can offer loans when banks can't and can even offer better loans than banks in some instances.

There is definitely a niche right now as many people today are in situations where they don't meet the strict criteria that banks require BUT I personally see peer to peer lending as more than just solving a niche area. The current economic constraints are accelerating the growth of peer to peer companies and I don't think it is hard to imagine that companies like Lending Club and Money360 will be among the most important financial services innovations in the near future. I'm not saying these site will entirely replace the traditional banking system but the model has a bright future.



Rehabber · Mt. Pleasant, South Carolina


I have been a lender on Prosper for a little over 2 years. I have a small amount of money there, but have a decent sample size with over 80 loans between $50-100. I've had 3 loans charged off, but still returned 14.75% over that time period. I tend to be pretty selective on the loans that I buy, and I think that I can maintain that type of return.

As a borrower, the rates are definitely high, but probably appropriate for the risk of an anonymous unsecured loan.

I love the peer-to-peer model, and I hope that laws change where it can be used for mortgage lending. I guess it's already happening in a few states.



· Winslow, Maine


I've been on both LC and prosper a few years. right now my return says 8.5% which I'm not thrilled with but it's rising now that I'm investing in higher risk / higher return notes. I've been happy with it. it's fairly steady if you diversify and study the various websites that crunch the data. I did just find money360 though I'm abit nervous with the minimums (25k per loan??) I may be mistaken but I think that's about right. LC and prosper allow $25 per loan



· Pittsburgh, Pennsylvania


I recently put an ad on money360 looking for a lender on a buy and hold property. After my information was submitted I never heard anything. So, I didnt have any luck with it.

As a side bar, I had to enter my information three times which was very frustrating. Every time I tried to submit it, the spaces would be blank and everything I entered would disappear. Not sure if it was their glitch or mine, but just a heads up for anyone else who intends to use that site.

I hope this helps.



Real Estate Investor · Holly Springs, North Carolina


Originally posted by Kenneth E.:
As a side bar, I had to enter my information three times which was very frustrating. Every time I tried to submit it, the spaces would be blank and everything I entered would disappear. Not sure if it was their glitch or mine, but just a heads up for anyone else who intends to use that site.

Kenneth, it isn't your glitch. The site needs some work to be useful. Even their simple "Your Matched Loan Requests" page doesn't match my lending preferences. If you change lending preferences, your list remains unchanged. Example: I have the "Owner Occupied" lending preference set to "No". Yet, I get owner occupied matches. Same issue with "Requested Loan Size" and "Loan To Value".



· Pittsburgh, Pennsylvania


@Chris Martin @Chris Martin Thanks for the info. That is somewhat of a turnoff considering the idea behind that site seems very promising.

This discussion just gave me an idea. I think I am going to identify a multi-family property nearby that is listed on the MLS and post the particulars on a few of the peer to peer lending websites and then review them all in one post here on BP. I am open to comments, suggestions, etc. if anyone wants to chime in to see what options are out there…Though I have already tried two of them:

Money360.com: Already posted on there for a reasonably priced property and requested 75% loan to value (recommended by the site) and got no hits at all.

Lendingclub.com: I requested a business loan for $18k. I was tentatively ‘approved’ for $18k at around 12% though I didn’t pursue it. Once you do pursue the loan you are approved for then it is posted on their site and investors can review your request, credit, etc. and offer to contribute an amount towards your loan. Once enough investors have agreed to contribute and their money collectively equals the $18k you requested then the loan is green-lit. I have a coworker who lends through this site so I know it is legit (for his lending purposes, anyway). He tested the waters by agreeing to lend $2,500 altogether, but broken up into smaller chunks of several hundred dollars that he lends on different loans. His $2,500 is currently yielding a return of 26%. This is because he is lending on risky loans to people who are in credit card debt and are being charged 29% by the credit card companies—so they are more than happy to accept my coworkers loan at 26%.

Be on the lookout for my other post on reviewing these peer-to-peer lending sites.



SFR Investor · Milwaukee, Wisconsin


I have been both a borrower and a lender on both sites. I wasn't happy with Prosper before their restructuring because I lost money ($130 lost out of $200 test money). Lending Club I have not lost any money on the lending side.

Lending Club is better for the borrower due to lower rates.


Website: http://www.coreprop.biz/
"If it makes dollars, it makes sense."


Real Estate Investor · Manteno, Illinois


Ha. I can't even qualify for a loan on peer to peer site and I think its strictly because I'm an investor. :-)

Here is the info they spit back to me.
I have a credit score of 771 out of a possible 850 and I'm
sure the remaining score differential is because I have too many
inquiries. And now I just added another one to boot. :-)

-Scores range from 300 to 850
-Your credit score: 771
-
-Key factors that adversely affected your credit score
-Too many inquiries last 12 months
-Too many accounts with balances
-Length of time revolving accounts have been established

So the moral of this story is if you're buying a bunch of houses, you probably aren't going to qualify. I've got 8 mortgages in my name plus 2 2nd mortgages so I see why they would show up as a lot of accounts with balances but still. 771 should be golden! And counting mortgage inquiries AGAINST an investor is just pure nonsense.

Oh well, back to the drawing board.
I didn't really believe in these sites anyway. They seem like
a waste of time and effort. But now I've confirmed it - at least
for me. Or at least until I sell all my homes with conventional
mortgages and stop buying any more for the next two years
so my inquiries drop off. :-)





Sign up