Prosper creates a unique investment opportunity for individuals. It offers normal people a potential for excellent returns and the ability to help others.
I enjoy taking the time and hand picking the loans I bid on. Of my twenty-one Prosper loans, none of my borrowers have let me down yet. I also enjoy creating projections for my returns. Prosper is something that has become a new and favorite hobby of mine.
According to Eric's Credit Community, my Average Interest Rate is 33.27%. My Experian Estimated Return on Investment is 25.14%, and my EricsCC Estimated ROI is 33.03%.
(Revised: Tom from Prosper Lending had a terrific comment to the fact that I have only been on Prosper for 3 months, and that my current returns are not a good reflection of the returns that most investors see over time. I absolutely agree with him. Three months is not a long time at all. I was just beginning to get my feet wet, and I realize I have been lucky so far.
I had been focusing my investments in riskier, higher return loans. My strategy was to build my portfolio like this to the point where any single loan was less than 2% of my overall portfolio, at which time I was going to begin scaling back on riskier loans for lower risk, lower return loans.
This is all the more reason I'm frustrated with the restriction. As of now I am not able to push my portfolio to the point I wanted. My loans are greater than 2% of my total portfolio. On average, they're more like 4.75%.
Plus, I lose the ability to compound my returns. It was more about where this was going than where I am.
Of all the risks I considered when deciding to lend on Prosper, the risk of PA regulation barring me from investing was honestly not one of them.)
So, looking into the future, I am, or rather WAS, excited about the role Prosper Lending was going to play in my overall investment portfolio.
But, HERE'S THE PROBLEM:
This morning I woke up to find an email in my inbox from Prosper that knocked me off my chair, made me spill my coffee, spiked my blood pressure through the roof, and had me beating my steering wheel with open palm strikes the whole way to work.
The email basically told me that PA residents are no longer allowed to Lend on Prosper.
I feel robbed! -and needless to say, I'm furious. I'm not exactly sure how or where to direct my anger at this point.
So, for starters I created this blog on which to vent. I'm hoping other PA Lenders might stumble upon it. Please feel free to vent as well. Please! -share your thoughts, anger, or knowledge on this.
I will be doing everything I can to understand the Pennsylvania state regulations that are robbing me and other Pennsylvanians of this unique investment opportunity and I will be posting anything I learn here.
In the back of my mind I keep thinking that maybe this is some sort of spoof, and maybe it is. If so, it is the first Prosper Spoof I've ever received. I've emailed Prosper customer support to see if this is the case.
I really hope it is. If so, I owe my steering wheel an apology.
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