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It's early Monday morning and I just set my first standing order on prosper.com. Here's what how I set it:
(1) amount to lend: $50
(2) maximum per loan: $50
(3) risk adjusted interest rate: 14%
(4) collection agency: AllianceOne
(5) include only those that have automatic funding feature set
(6) include only those with verified bank account
(7) only include those that are group members
(8) only support the following groups: DocProsper's Credit Community; Professors and Univeristy Grads; Ourtopia; Due Diligence; Yale Alumni; Fanafi Financial; Utopia Loans
(9) I'll add my group (Feng Shui Financing) as soon as it's activated within the next two weeks.
I'm doing this for the following reasons:
(1) I believe that as the available money for lending grows, so to will the list of those using the standing order bidding system.
(2) As this list of standing order bidding system users grows, the number of loans fully funded within 5 minutes or less will grow substantially.
(3) Many of these ultra-quick funded loans represent a superior risk vs. reward situation for lenders.
Monday, July 03, 2006
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Additional constraints set include:
(1) zero current delinquent accounts
(2) 1 public record in last 10 years
(3) No more than 6 inquiries in last 6 months
(4) 20% max debt-to-income ratio
(5) Loans equal to or less than $5,000
I chose $3,000 since I feel that only those loans less than ($2.5k) can be fully funded in 5 minutes or less based on perceived prosper community utilization rates for auto bidding.
I wanted to keep a $500 buffer over the $2.5k just in case i'm wrong.
I feel that I'm on prosper.com frequently enough to allow me to find those loans greater than $3k that meet my criteria before they get fully funded.
I think this auto bid will be tripped within the next 7 days.
I might expand my funds available for autobid from $50 to a higher amount if I enjoy my preliminary results.
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