Information on Peer to Peer Lending

[James Park]

I am starting to read up on notes as I am looking into new investment channels. I've been doing some research on Lendingclub.com and Prosper which are two peer to peer lending sites. Have any of you used these two sites? What has your experience been? How safe is it to get a 8% return?

https://www.lendingclub.com/

Any notes expert here who have reached $100k passive income with their notes portfolio? How much capital is needed to reach this passive income level with notes?

[Doug Smith]

That is one way to invest in notes. There are quite a few people out there that are buying notes and are looking for investors or partners. I'm surprised that several of the BP commenters that usually play "Debbie Downer" on notes aren't chiming in. If you are going to lend directly on owner-occupied real estate, then you will have to have a license to do so. The Georgia Dept of Banking and Finance has also been pretty aggressive in going after note buyers and sellers. They interpret the Safe Act differently than most other States. They want note buyers and sellers on owner-occupied residential property to also be licensed. We tend to stay out of GA on our residential note buying or selling for that reason. We have a lot of success in other States, but GA regulators make it hard in that State. If, however, you are buying notes on commercial property or non-owner occupied property, then the GA Dept of Banking and Finance has specifically stated that you are good to go (queue the Debbie Downer commenters). Let me know if you have questions. I'm happy to help.