Loans for Loan Officers

From: Ameen Kamadia

I read about a website in an issue of Fast Company magazine that I think you all need to be aware of. Prosper.com is a person to person lending community. It is a website where ordinary people lend money to other ordinary people in small amounts.

Anyone can post a listing asking for a loan up to $25,000 with a three year term. They use a reverse auction system for interest rates. The borrower will list the maximum interest rate they are willing to pay. Based on the information provided by the borrower and some basic credit information provided by the website, lenders make bids based on an amount and a rate they would be willing to lend. The website handles all the money and payments.

This is great for borrowers because it costs less in interest than credit cards, there are no co-signers needed, no collateral is asked for, and the process can take just a few days.

I signed up as a lender a couple weeks ago and have already lent about $3,500. My average rate of return should be a little above 13%. That is, if the borrowers do not default. If they do, there is a collection company that steps in and handles the account.

This site can help you in several ways:
1. If you have borrowers or people in your sphere of influence who need a loan, you can send them here and be a hero.
2. If you have prospects who do not qualify because their ratios are out of whack, a loan to consolidate their debt might do the trick.
3. If you have a couple who does not have enough for the down payment, you can get one of them to borrow some money here, and use the other's credit to qualify for the mortgage.
4. If you have some extra money lying around and would like to make a little interest and help people at the same time, you can. I feel that since we deal with risk assessment every day, we as loan officers, would make better choices about which listings to bid on than the average lender.
5. If you need a little cash to start a marketing campaign or even make ends meet, you can get the money here. I have seen several new realtors get funded and there is no reason you cannot do the same.

I have formed a group on Prosper. The group's name is called Treasure Train, and I would be honored to have you as a group member. Groups are a way to create community on the site as well as verify information. Borrowers who are in groups usually get a cheaper rate than those who are not. They also have a group leader who can help them get funded by giving advice on how to post their listing and what to say in the listing. Group Leaders also can verify the numbers on a listing, such as income and debt. Lenders are much more likely to believe a group leader than a borrower. If you are going to borrow money here, join a group and get the leader to help you by vetting your documents and giving you tips on how to list.

 Join my group on Prosper, people-to-people lending

Prosper.com has generated a lot of favorable press recently. Even though the site started in 2006, there has already been several million dollars lent through it. More and more people are joining everyday. As a lender, I am noticing that I could probably get a better rate of return elsewhere with less risk and more liquidity. But here, you get a sense of helping people who are going through some tough times get back on their feet.

Happy Originating!


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