10% return non RE investment

[Jeff N.]

Would appreciate some feedback on anyone that has invested or researched lendingclub.com

I have done some preliminary research the past few months on my side and it appears to be creditable.

Another question I have is how do notes I purchase appear to another lender. For example, if I purchase 10K of performing notes, does the full 10K count as an asset when applying for credit for an RE investment or is it treated as an income in respect to payments received?

[Loc R.]

The most important thing I learned when I started lending money was the concept of collateral.

Collateral essentially is what guarantees that you'll get your money back, and in a nutshell, that's the key to the lending game is: ensuring that you'll get the principal back.

All it takes is for one unsecured loan to go bad, and you'll never do it again.

You can make 10% with the insurance of taking back a house, OR you can make 10% with no insurance, and just the borrower's word of mouth. I'll take being insured 100 out of 100 times.