Passive Income

A few months ago, I followed my buddy John’s affiliate link over to Lending Club. If you have never checked out his blog you really should. Passive Family Income is the first site I read in the morning before heading off to work. It is good stuff.

Anyways…Lending Club was having a deal at the time. For every person that signed up, the referrer was SUPPOSED to get $25, while the new member’s account would be credited with $50 to begin their peer lending experience.

From Lending Club’s website:

Rather than spending money on advertising, we’d like to give that money to you, our members, for introducing your friends to Lending Club.

The last time I ask John about this, he still had not receive his income, but I did get receive $50. As such, I immediately set out to lend this money to someone who really needed it. My lending strategy, can be boiled down as follows:

• Credit Score Over 700
• Using Loan to Reduce Debt
• Zero Delinquencies in Past 2 Year

Note #1

Amount: $25
Weighted Average Rate: 9.63%
Principle Received: $5.17
Interest Received: $0.59
Outstanding Principle: $19.83
Status: Current

Note #2

Weighted Average Rate: 9.63%
Principle Received: $1.81
Interest Received: $0.59
Outstanding Principle: $23.19
Status: Current

So far, this little experiment is going rather well. In fact, I was thinking about investing a little more. I would love to hear about your experience with peer-to-peer lending.

If you get a few minutes, go check out Lending Club and let me know what you think.

Have you had good experiences with Peer Lending? What words of caution would you give me or someone else thinking about starting a peer lending portfolio?

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