Prosper Website

Prosper Marketplace, Inc. is a peer to peer lending website I have been using since 2007.  For those of you who do not know what peer to peer lending is, then let me tell you.  Peer to peer lending is the loaning of money from one person to another eliminating the middle man of sorts.  On the prosper website you are given the oportunity to invest in such loans using small amounts of cash.  You may give out loans as small as $25.00.  These small loans will be combined to fund larger loans.  The beauty of supplying small loans is that you can spread out your money to many individual borrowers.  For example if you had $2500 to invest and you only gave out $25 loans then you would be able to fund 100 loans and reduce your risk of loss by spreading out your funds.

Since 2007 I have been able to see between 7 and 8 percent returns on these loans.  that includes the loss of a few default loans.  I stick with low to moderate risk investments and try not to take too many high risk loans.   The high risk loans provide greater return, but also carry higher risk.

If you are looking for some great investment opportunities I would check out prosper.  See what they have to offer.  Invest in a few loans to see how it works for you.