P2P Lending / NFT Lending Forum

The Financial Times reported on this issue.  They quoted my posts from the first page of this thread in their article.

https://www.ft.com/content/91d9bc96-30f0-11e7-9555-23ef563ecf9a" class="bbc_link" target="_blank">https://www.ft.com/content/91d9bc96-30f0-11e7-9555-23ef563ecf9a

Right  https://forum.lendacademy.com/Smileys/default/rolleyes.gif" alt="::)" title="Roll Eyes" class="smiley" /> I'm sure they just recently discovered this as it's been discussed around here for months.

Important Account Update
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I got a strange e-mail today.  Here are the basics of the body.  The Investor number is my correct Prosper ID number.  Do you guys think this is simply a virus file and Prosper account IDs got hacked or do you think this is legitimate?  The e-mail did seem to come from [email protected]

Hello,
My name is XXXX XXXXX and I work for Deloitte & Touche LLP. PROSPER MARKETPLACE, INC. has identified you as the appropriate contact to respond to an audit confirmation request.
Please review the information in the attached zip file and respond by completing any included requests. See below for the confirmation request(s) included in this email:
Investor #XXXXXXX-Notes Confirmation

When complete, please sign and return the confirmation request(s) by following the instructions therein. If you have any questions, or need any assistance, please reply to this email ([email protected]).
Thank you,
XXXX XXXXXX
Deloitte & Touche LLP

I wanted to take a look at how I was doing on loans that are paid early.  I moved all of my loans that were paid off early to a new portfolio and it appears that I received $8799 of payments on an investment of $8350.   Assuming no fees that would be a return of 5.3% of course I can't ignore fees.  Is there any simple way for me to determine the amount I lost to fees on this?  I realize the fees will be different if they were paid off a month into the loan vs. a month before the final payment but perhaps there is something quick and dirty I can do to get an approximation.

Thanks.

https://forum.lendacademy.com/index.php?topic=3219.msg28947#msg88888888Quote"> from: DaveSch on May 20, 2015, 12:43:01 PM

Just started looking at peercube.com.  It says there were 26 new loans offered at noon today on Prosper.  Is there a quick and easy way to see what those 26 loans were?  All the links seem to just direct to the site but I don't see on the site how to check the loans that were listed.  Thanks.

As the title states one of my loans on Prosper was part of a $25k loan which originated on 4/2.  The borrower didn't make any payments and now it says that collection activity has been suspended due to a bankruptcy filing by the borrower.  Wouldn't this be viewed as fraud by any bankruptcy judge?  Clearly the borrower knew that they were going to be filing for bankruptcy when taking out the loan.  The loan purpose is Debt Consolidation. 

I fully recognize the risks when making P2P loans but as I see instances such as these it really leaves a sour taste that individuals are taking advantage of the bankruptcy system and you would think that this type of activity needs to be discouraged at the court levels.  My guess is that the borrower either took out this $25k and went on an elaborate vacation or somehow laundered the money so that they will have access to it after the bankruptcy proceedings conclude.

https://forum.lendacademy.com/index.php?topic=3190.msg28648#msg88888888Quote"> from: brycemason on April 28, 2015, 09:05:26 AM

Here is what I don't quite understand regarding the tax issues and I'll admit I'm new to P2P investing.  Most of the information I've read (including this site and these boards) recommend not investing more than 10% of your portfolio in P2P.  I also see that a normal default level on these loans is between 5-8%.  So assuming you follow some of the generally accepted practices you are going to be investing 80-90% of your money outside of P2P and likely in something like the stock and bond market.  Even if you are very tax efficient in those investments with the S&P dividend yield around 1.8% you will likely recognize at least 1% in dividends and capital gains to use to offset your P2P losses.

Hypothetical $1mm total portfolio
$100k - P2P -> 8% default rate so $8k tax losses
$900k - Stocks, bonds and cash -> 1% yield so $9k tax gains
Net - $1k net cap gains

So realistically unless you are investing the majority of your portfolio in P2P which is certainly risky for such a new vehicle you will likely generate enough capital gains to offset your P2P losses.  It also wouldn't make sense to invest the majority of your portfolio in stocks and bonds in a tax deferred account but your P2P in a taxable account so let's ignore that.  For me I'm already taking advantage of most tax favorable opportunities available and am trying to understand the tax impact of my P2P investments within the context of my overall portfolio.

Am I missing something with my above analysis?  Thanks.