Considering Stashing Portion of Reserves in P2P Lending

1 Reply


I'm getting closer to purchasing my first investment property. I absolutely hate the idea of having money sitting in a nearly worthless savings account or CD, though I understand some must be immediately available. 

I read a blog post on Financial Samauri blog ( the other day that made be consider using P2P lending rather than my go-to Vanguard index funds to store my reserves because the results are far more predictable than that market. Note the nearly 2% swing in the market today.   

I'm considering moving perhaps 75% of my reserves to a P2P lending company (probably Lending Club). Although this is a long-term commitment, they do have liquidation options should it be necessary. Has anyone done something like this or have any thoughts on the idea? Thanks!

As long as it is someone liquid I like the idea. When flash funding started my friends and family jumped in loaning transaction funding. It was definitely the way to go, each deal was $500 dollars. 2% fee and the money was out of our hands for only a day or two. We were doing 2 a week so getting a 200% return on our funds for the year. 

Now days I maintain a small savings account for emergency funds, when I get the statement each month I call myself an idiot and then think gee if I keep it there I can double my money in 72 years. I'm sure that account will be marked closed by May 1st.

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