Real Estate News & Commentary

Disappointment with Prosper.com

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Shaun gives us another update about his dealings with Prosper.com, and expresses his disappointment with the lending website. I’ve noticed now that they have added a new feature called “Community Payment” which I’m not sure I like. The concept is simple: if a member of a group is behind on payments, other group members can [...] View the full article: Disappointment with Prosper.com on The BiggerPockets Blog. This content is Copyright © 2017 BiggerPockets, Inc. All Rights Reserved.

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Joshua Dorkin is a serial entrepreneur, investor, podcaster, publisher, educator, and co-author of How to Invest in Real Estate. He started BiggerPockets to help democratize the real estate investing landscape for himself and others, aiming to make it accessible for everyone, regardless of income or education. Today, BiggerPockets is the premier real estate investing website online with over one million members and reaching over 70 million people with the message of financial freedom through real estate investing. Joshua, along with his wife and three daughters, make their home in Denver, Colorado, and spend any time they can traveling, exploring, and adventuring. Read more about Joshua’s story in 5280 and Inc.com.

    Grant
    Replied over 13 years ago
    I’m not sure I really like that idea either. Also I like your notion that it takes away the financial responsibility of the borrower. If they want to keep this feature, I suggest they make it public how many times a borrow has been bailed out by someone else. That way, if “billy” is looking to borrow $500, but he has a record of having his buddy make his payment, lenders may be able to calculate the risk accordingly. -Grant TheCornerOfficeBlog.com Reply Report comment
    Grant
    Replied over 13 years ago
    I’m not sure I really like that idea either. Also I like your notion that it takes away the financial responsibility of the borrower. If they want to keep this feature, I suggest they make it public how many times a borrow has been bailed out by someone else. That way, if “billy” is looking to borrow $500, but he has a record of having his buddy make his payment, lenders may be able to calculate the risk accordingly. -Grant TheCornerOfficeBlog.com
    Joshua Dorkin
    Replied over 13 years ago
    Great idea Grant. Keeping track of the bailouts would be a great feature that would minimize the risk to future lenders IMO.
    PF
    Replied over 13 years ago
    I do not see why this new feature becomes a disappointment. If anything, this decrease lenders’ risk and therefore is beneficial to the community building.
    PF
    Replied over 13 years ago
    I do not see why this new feature becomes a disappointment. If anything, this decrease lenders’ risk and therefore is beneficial to the community building.
    Joshua Dorkin
    Replied over 13 years ago
    It certainly will reduce risk. I think the problem is that people can keep defaulting on loans and get bailed out each time. It does seem to decrease the risk to lenders, though. Reply Report comment
    Joshua Dorkin
    Replied over 13 years ago
    It certainly will reduce risk. I think the problem is that people can keep defaulting on loans and get bailed out each time. It does seem to decrease the risk to lenders, though.
    Grant
    Replied over 13 years ago
    I see your point, PF. Maybe they could use it more like a co-signer on a loan. If John Doe borrows $500 from you, and he has Jane Doe cosign the loan, if John can’t pay and Jane Does, it doesn’t affect John’s borrowing capability as both John and Jane are on the hook for the $. I just think it should affect someone’s borrowing power if they have a history of being bailed out by someone. -Grant TheCornerOfficeBlog.com Reply Report comment
    Grant
    Replied over 13 years ago
    I see your point, PF. Maybe they could use it more like a co-signer on a loan. If John Doe borrows $500 from you, and he has Jane Doe cosign the loan, if John can’t pay and Jane Does, it doesn’t affect John’s borrowing capability as both John and Jane are on the hook for the $. I just think it should affect someone’s borrowing power if they have a history of being bailed out by someone. -Grant TheCornerOfficeBlog.com
    John
    Replied over 11 years ago
    Maybe Prosper should be given a second chance. They have improved their loan balance system a lot over the last couple of years.
    david
    Replied about 5 years ago
    Great idea that will unfortunately get abused.