Peer to Peer Lending Sites

[Tom Juhn]

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

[Chris Calabrese]

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.