Originally Posted by
BJ1
There are two distinct issues at play here. One is whether P2P lending is an emotional or logical process. If the former, then don't be involved. If the latter then are the net returns generated consistent with Harmoney's projections - and what I see in this forum is that most participants are doing better than the platform and therefore better than Harmoney projects. The wholesale lenders are taking on the higher risk rubbishy stuff which is why their RAR is so far below retail (and lately dropping every time it is recalculated - perhaps a function of a shortage of D & E grade loans?).
The second issue is whether the default recovery process is being adequately handled. How would we know, because there is no information provided as to why defaults have occurred, what is being done, or anything. How come loans to homeowners don't result in recoveries (which seems to be the case applying the percentages of these borrowers I see)? We may not be secured but surely the legal process should result in a recovery?
But overall, why get out of a good return investment with good spread of risk just because it is time consuming to keep fully invested - the alternatives aren't that great. For those investors around $40k in, try taking larger chunks than 4 notes - your risk spread will allow double that easily.
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