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[Mtnchick]

....put an ABSURD amount of money into P------r and is the type to try something like this. We had a long (3+ hour) convo about the mistakes P-----r made from day one and continue to makes. Needless to say, we will not see his username. He loves the idea though. We agreed that we would start out own P2P company when we got $40mi in VC

[yankeefan]

...first get $40 million

....

[Caladia]

...first get $40 million

....

3.  Profit!

[mhs505]

Ok, I am starting a rumor ... Mtnchick and BFS were seen in Vegas hooking up ... http://www.prospers.org/forum/whos_going_to_vegas-t5467.0.html

[Mtnchick]

Ok, I am starting a rumor ... Mtnchick and BFS were seen in Vegas hooking up ... http://www.prospers.org/forum/whos_going_to_vegas-t5467.0.html

In his dreams

[HollowOak]

....put an ABSURD amount of money into P------r and is the type to try something like this. We had a long (3+ hour) convo about the mistakes P-----r made from day one and continue to makes. Needless to say, we will not see his username. He loves the idea though. We agreed that we would start out own P2P company when we got $40mi in VC

I haven't commented earlier on this thread. In the interests of your friend, you might want to allow him/her more leeway to make a decision on Prosper.

Excluding the business continuity risk inherent in Prosper (which your friend will have to make a judgment call on), I do think that a prudent investment strategy on Prosper, coupled with advice from someone who has learned the ropes and gradual investment over a long timeframe might actually yield good results.

"Good" being defined as in the region of 9%-11% ROI after accounting for defaults etc.

Take that compared to a Zopa risk-free investment at 5.1% and there is something to be said for Prosper.

Absolutely do not invest here based on the strength of people's story, make it a numbers game. Diversify broadly. Investigate how to structure your "business" (perhaps by getting Prosper to issue an account based on EIN/TIN so that you can write off the defaults against income as opposed to capital gains losses.

If I could be convinced that Prosper has long-term viability (which could take a few years), I might very well go that route and make Prosper a sizable portion of my asset base.  It won't happen in the next few years though, and it won't happen unless I can write off the defaults against current earnings - I don't want to be in the position that Pensioner finds himself, with enough defaults to cover his capital losses for the next 20 years.

[Mtnchick]

....put an ABSURD amount of money into P------r and is the type to try something like this. We had a long (3+ hour) convo about the mistakes P-----r made from day one and continue to makes. Needless to say, we will not see his username. He loves the idea though. We agreed that we would start out own P2P company when we got $40mi in VC

I haven't commented earlier on this thread. In the interests of your friend, you might want to allow him/her more leeway to make a decision on Prosper.

Excluding the business continuity risk inherent in Prosper (which your friend will have to make a judgment call on), I do think that a prudent investment strategy on Prosper, coupled with advice from someone who has learned the ropes and gradual investment over a long timeframe might actually yield good results.

"Good" being defined as in the region of 9%-11% ROI after accounting for defaults etc.

Take that compared to a Zopa risk-free investment at 5.1% and there is something to be said for Prosper.

Absolutely do not invest here based on the strength of people's story, make it a numbers game. Diversify broadly. Investigate how to structure your "business" (perhaps by getting Prosper to issue an account based on EIN/TIN so that you can write off the defaults against income as opposed to capital gains losses.

If I could be convinced that Prosper has long-term viability (which could take a few years), I might very well go that route and make Prosper a sizable portion of my asset base.  It won't happen in the next few years though, and it won't happen unless I can write off the defaults against current earnings - I don't want to be in the position that Pensioner finds himself, with enough defaults to cover his capital losses for the next 20 years.

He actually looked at P-----r before I did. We were both told about it from the same person. He looked through everything much harder and longer than I did, ergo why I'm stuck for 3 years and he is not

I can honestly say that NO ONE I've talked to about P-----r who has done well financially thinks it's a company that knows what it's doing. Honestly, NO ONE. And these are people who have done very well in business and investing.   

[ira01]

....put an ABSURD amount of money into P------r and is the type to try something like this. We had a long (3+ hour) convo about the mistakes P-----r made from day one and continue to makes. Needless to say, we will not see his username. He loves the idea though. We agreed that we would start out own P2P company when we got $40mi in VC

I haven't commented earlier on this thread. In the interests of your friend, you might want to allow him/her more leeway to make a decision on Prosper.

Excluding the business continuity risk inherent in Prosper (which your friend will have to make a judgment call on), I do think that a prudent investment strategy on Prosper, coupled with advice from someone who has learned the ropes and gradual investment over a long timeframe might actually yield good results.

"Good" being defined as in the region of 9%-11% ROI after accounting for defaults etc.

I think that is highly unlikely.  As of today, there are 8,283 Prosper lenders with >20 loans and an average loan age >6 months.  Only 1,178 have a LS projected ROI >9%, which is only 14% of them.  And for someone making a substantial investment in Prosper, the results are even worse.  Adding >$10K to the criteria gives 1,624 lenders, with only 116 with projected ROI's >9% -- that is a mere 7%.  Making the portfolio cut-off $25K again provides even worse results -- 539 lenders, with only 35 having projected ROI's >9% -- 6%. 

These numbers certainly include some of the older lenders, who did not have the benefit of all the information available today.  That suggests newer lenders might do better.  OTOH, 6 month average loan age is not very much, and includes a number of relatively new lenders (who did have the benefit of all the extended credit data available now, the collective wisdom of the community, and pretty much everything except the bidding guidance) -- yet whose portfolios are probably not old enough to see the full extent of lates and defaults yet.  Moreover, macroeconomic conditions are probably worse now and getting more so, suggesting that more borrowers will likely default in the future as the effects of the housing bubble and a possible recession filter through. 

[112233]

....put an ABSURD amount of money into P------r and is the type to try something like this. We had a long (3+ hour) convo about the mistakes P-----r made from day one and continue to makes. Needless to say, we will not see his username. He loves the idea though. We agreed that we would start out own P2P company when we got $40mi in VC

I haven't commented earlier on this thread. In the interests of your friend, you might want to allow him/her more leeway to make a decision on Prosper.

Excluding the business continuity risk inherent in Prosper (which your friend will have to make a judgment call on), I do think that a prudent investment strategy on Prosper, coupled with advice from someone who has learned the ropes and gradual investment over a long timeframe might actually yield good results.

"Good" being defined as in the region of 9%-11% ROI after accounting for defaults etc.

Take that compared to a Zopa risk-free investment at 5.1% and there is something to be said for Prosper.

Absolutely do not invest here based on the strength of people's story, make it a numbers game. Diversify broadly. Investigate how to structure your "business" (perhaps by getting Prosper to issue an account based on EIN/TIN so that you can write off the defaults against income as opposed to capital gains losses.

If I could be convinced that Prosper has long-term viability (which could take a few years), I might very well go that route and make Prosper a sizable portion of my asset base.  It won't happen in the next few years though, and it won't happen unless I can write off the defaults against current earnings - I don't want to be in the position that Pensioner finds himself, with enough defaults to cover his capital losses for the next 20 years.

are you reconsidering the conclusion you came to after the new forums debacle?

[HollowOak]

are you reconsidering the conclusion you came to after the new forums debacle?

No. I am out, until I'm in again I cannot predict what will be.

I do not foresee myself investing additional funds in Prosper in the next 31 months.

By that time so much might have changed that things will be different. Chris Larson might make announcements at PD08 that will change my assessment. Prosper might reverse some of the things they have done.

With the current situation, I will not invest in Prosper again. That is not to say that others will or should feel as strongly as I did about the actions that I am protesting.

While I am not willing (as some have done) to burn my bridges with Prosper, I do not consider them an ethical company at this point in time. Time will have to give its verdict.

[Mtnchick]

While I am not willing (as some have done) to burn my bridges with Prosper, I do not consider them an ethical company at this point in time. Time will have to give its verdict.

HO, you know they read this board. You just said they aren't an ethical company. You don't think that's burning bridges? 

[HollowOak]

While I am not willing (as some have done) to burn my bridges with Prosper, I do not consider them an ethical company at this point in time. Time will have to give its verdict.

HO, you know they read this board. You just said they aren't an ethical company. You don't think that's burning bridges? 

Anyone, including Prosper, can change. One day I'll write a blog post on what Prosper has done that I deem unethical and how they can correct it.

Public apologies, retractions of those letters banning us from prosper.com are amongst the actions they can take.