
Keep It simple stupid
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I would recommend peer to peer lending. It's a relatively new concept that can enable a substantial return on investment if you properly identify risk factors. ROI can easily be maintained around 10%, with little to no correlation to the stock market. Follow the links below to see for yourself, and get more information. Basically you loan money to people like a bank does. Not convinced? Banks and underwriters are in business because they make money from loans, and lots of it, and these are some of the wealthiest people in the world.
As a lender, it works kind of like e-bay. You identify listings (borrowers), and view their financial information. You see their credit score, income, current debt load, etc., and use this information to decide if you want to bid on the loan. When bidding, you simply enter the lowest possible interest rate your willing to give to that individual and bidding proceeds until the loan is fully funded (or not). Loans are always over a 3 year period, and they provide all of the loan servicing and collection services having that cost built into the borrower’s service fee.
The nice thing about it is you can perform detailed historical analysis of all loans serviced through the system, using factors such as credit grade, employment history and income, along with other information that a bank uses when you get a conventional loan. This allows you to identify only the best loans, and see the expected ROI associated with your criteria.
Also, it’s a great way to borrow money. If you’re looking to fund a business startup or other venture this is a good place to start and get a competitive rate.
This is a really cool concept that I would definitely recommend that you at least research further through their website. Use their historical performance tool to see the results for yourself.
Performance analysis tool is here: http://www.prosper.com/lend/performance.aspx?referrer=lender1980x
General information here:
http://www.prosper.com/join/lender1980x |