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Automatic Prosper

I have heard many people say that Using Prosper takes too much time — too much time to find listings; too much time to place bids; too much time to monitor and rebid as needed…  I don’t think this is true…  There are 2 Prosper features that when used in conjunction can allow you to Prosper automatically — I call it Automatic Prosper.

These features are scheduled transfers and standing orders… 

Scheduled Transfers to move money into Prosper on a regular schedule (http://www.rateladder.com/2007/04/15/using-prospers-new-scheduled-transfers-to-obtain-money-distribution/).  You can move as little as $25 per transfer and you can schedule transfers weekly or monthly.

Standing Orders place bids on listings matching your criteria.  I currently use 11 standing orders, but have used as many as 20 and as few as 1 in the past…  The key to standing orders is to define a subset of loans and price that subset appropriately…  I use ProProsper to help price a subset of loans…  Typically I define a subset by amount, DTI, and homeowner.  I think a realistic standing order needs to find at least 1-3 loans a day.  If you have larger amounts to invest it may need to find many many more.  Depending on your taste for non auto funding listings you will need to be realistic about your required interest rate…  Non auto funding listings are typically bid down to near the weighted average.

If you standing orders find more than enough loans to fill your monetary supply then your money is being invested as fast as fast as possible with very little effort…  Automatic Prosper.


April 25, 2007 | Filed Under Prosper.com, Strategy 

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Best of RateLadder 2nd Quarter 2007

← New Loan Funded — Paying - Bills — $15,000 at 15% — A Credit — DTI 13%

New Loan Funded — Financial Freedom / Credit Card Consolidation — $25,000 at 11.44% — AA Credit — DTI 37% →



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2 Responses to “Automatic Prosper”

  1. Andrew on April 25th, 2007

    This is what I do, too… $200 per month, and my standing order bids it out. In fact, I’ve gotten to the point where the income from regular monthly payments gives my standing order another $50 bid every few days. And I only have about $4k on the platform so far…

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