Sunday, February 3, 2008

Prospering By Being Clever

So, I am looking to start investing in Prosper, once I get a couple more paychecks behind me.

In reviewing some of the listings tonight, I found one I thought was particularly clever: there is a guy with a good credit rating, who is requesting money so he can invest in Prosper.

His loan is for 8%, but if he turns that around and starts investing in the 10-24% listings, he makes money. He's using other people's money to make him money.

It's a clever, smart idea.

1 comment:

Lazy Man and Money said...

That arbitrage trick has been tried dozens of times on Prosper. It never works. If you lend money at 20+% a good number won't pay you back.