Okay, as stated below, I said I was going to invest $550, well, I just did. Let's see how this goes for me. I am pretty excited, because if this goes well, the future is golden.

In case anyone doubts me, this is proof of my first loan on Lending Club:

(Click to enlarge)

I invested in two separate loans, or one can define it as two separate people. Each person had their monthly incomes verified. Each loan is for a duration of 36 months. The first loan is at an interest rate of: 15.21%. The second loan is at an interest rate of: 19.04%. I invested $375.00 in the 15.21% loan, and $175.00 in the 19.04% loan. I should make a total profit of $90.36 due to the interest. My goal is to give out $200-500 each month in loans until September 2011.

I have read that a lot of people build a large portfolio of $25 loans, and end up giving out nearly 100 loans. I would prefer to give out a few loans, but at larger dollar amounts. To me it just makes more sense to do that. After looking at each person's loan, and doing the math, I determined that neither person will default in payment. In fact each person is looking to consolidate their debt. That means they decided to take out a Lending Club P2P loan to pay off their current debt. Why would they take out an additional loan? To pay off their current loans that have higher interest rates. I can see this industry exploding in the next few years.

I also plan on taking all of my monthly payments, and reinvesting them into new separate loans. Every dollar I invest in P2P lending I am going to pretend never existed. The minimum I am going to invest in future loans will be: $200. I just do not think investing the minimum of $25 is worth it. I am going to do my own due diligence and pick the best candidates who will not default. I am also not investing in any loans below 12% interest. 12% or > is all I am interested in. So basically to sum it up: I will reinvest every single dollar I earn each month, I will only invest in loans of 12% or >, and I will also try to fund an additional $200-500 a month. Stay tuned.

If you sign up under my referral link and have an initial investment of $500 or more, you and I will each earn $50. If you invest exactly $500, the $50 you receive is a 10% bonus if you do the math. Not bad. Do your own due diligence when investing, I am not responsible for your investments, nor am I employed or paid for advertisement in any manner by Lending Club.

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