Well another month down… Nothing major happened that would effect my IRR/ROI (like a debt sale.)  It was a fairly uneventful month for my Prosper p2p lending account, but it was a good month…  My ROI/IRR is higher on 4/5 of my tracking indices (it will be 5/6 when the statements are available and I update Quicken.) And my EricsCC ROI is within 4 basis points of last month’s value.

When going through my late loans this morning to build these statistics I noticed 2 things.  One it is now very easy to tell which loans are in bankruptcy vs which loans are in collections.  (3 of my 29 1+ late or worse loans are in bankruptcy.)  The second is a more positive development many (more than I have ever seen before) of my late loans have collections payment pending.  In fact, 1 of my 4+ month late loans has a collection payment pending, 3 out of 7 of my 2 month late loans have a payment, and 2 out of 3 of my 1 month late loans have a payment.  Maybe things are looking up in the collections area?  Time will tell.

Anyway, here is a chart of my updated IRR and ROI values…

• RateLadder IRR/ROI Update April 2008 — (2.6%) to 14.37%

• RateLadder IRR/ROI 6/08 Update — 0.57% to 16.64%

• Update of IRR/ROI Values July 2008

• RateLadder IRR/ROI 3/08 Update — (2.11%) to 13.06%

• RateLadder IRR/ROI Update — (1.07%) to 14.18%

• SPF 25 and Higher Sunscreen Sun Care Skin Care Store

• 19.2 volt Higher Cordless Drills Power Tools Tools Home Improvement

• Dishwashers Major Appliances

• Refrigerators Freezers Major Appliances

• Washers Dryers Major Appliances

This month had a major event that I think will make it hard for the various ROI sites to even track accruately anymore… The “New Agency Test” aka Prosper is suing borrowers.

For me (I opted into the pool) I had my 6 loans immidiately defaulted at $0 value.  Over time as the loan pool progresses I hope recover at least the JDB price of ~10% and hopefully much more…  How will the 3rd party sites track this event?  On any given loan there will be lenders that opted in and lenders that opted out.

Regardless I was expecting a drop this month…

• RateLadder IRR/ROI Update April 2008 — (2.6%) to 14.37%

• RateLadder IRR/ROI 6/08 Update — 0.57% to 16.64%

• In Defense of Living Off Dividends

• Update of IRR/ROI Values July 2008

• RateLadder IRR/ROI 5/08 Update — (1.35%) to 15.3%

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• Pool Cleaners Pool Parts Maintenance Pools Spas Yard, Garden Outdoor Living

• Pool Filters Pool Parts Maintenance Pools Spas Yard, Garden Outdoor Living

• Pool Liners Pool Parts Maintenance Pools Spas Yard, Garden Outdoor Living

• Pool Pumps Pool Parts Maintenance Pools Spas Yard, Garden Outdoor Living

I am continuing tracking all of my IRR and ROI calculations in one place.

My Prosper current account value is $11,765.47 across 194 active loans which is an average of $60.65 per loan.

I am tracking annualized IRR for model, average and default (permanent tracking page), quicken ROI, Eric’s CC ROI, and Lending Stats ROI.

Each of these tools uses a different calculation and therefore each has a slightly different meaning and value… As we are still very early into the 3 year loans, it is worth watching all the various values. Since each value behaves differently to lates, default, debt sales, and bankruptcy you need to track the numbers over time to get a better understanding of the market.

While I am watching the predictive ROI and IRR calculations carefully (Eric’s CC, Lending Stats, Model IRR, and Average IRR), at the end of the day the the final value of the Quicken ROI and the Default IRR will be the correct answer.

So without further ado.

Here is the graph:

Here is the data:

• RateLadder IRR/ROI Update April 2008 — (2.6%) to 14.37%

• RateLadder IRR/ROI 6/08 Update — 0.57% to 16.64%

• Update of IRR/ROI Values July 2008

• RateLadder IRR/ROI 3/08 Update — (2.11%) to 13.06%

• RateLadder IRR/ROI 5/08 Update — (1.35%) to 15.3%

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• Grand Champions Model Horses Horse Animals Collectibles

In my Friday post, I encouraged everyone to think for themselves when it comes to estimated return guidance. It is after all only an estimate. Today, I would like to pimp a listing I have bid on that I feel demonstrates a great return loan, but it is a fairly risky bucket.

There are 2 things about this loan that Prosper is not counting or discounting.

The first is that this person has 0 current DQ. The bucket says 0-1. All the rest of the extended credit is VERY clean as well.

The second is that this is only a $7,500 loan; whereas the bucket extends all the way to $25K.

This is an autofund loan and therefore you will not receive anything lower than the current rate.

Here is how Prosper break it down…

19% Rate
(11.23%) estimated loss
(0.84%) adjustment
(1%) servicing fee
———–
5.93% estimated return

To be sure a 5.93% return is good, but I am not lending on Prosper to receive a 6% return. However, I still bid on this listing. I bid because I think the estimated loss for this loan is less that the average loss of the bucket into which it was placed. Therefore, the estimated ROI will be greater than 5.93%.

What do you think?

Welcome to the 5th installment of Pimp my Listing. I have placed a $50 bid at 19%.

This is a C Credit Homeowner with super clean extended credit. Requesting a loan of $7,500 at 19%.

$25 Bonus For New Lenders
How to Use Prosper Listing Widget for MySpace, Blog, Website, or Other

Purpose of loan:
This loan will pay off high interest home improvement credit cards

My financial situation:
We are a good candidate for this loan because we are hard workers and always work very diligently at paying off our debts on or before time. We are working part time jobs as well so we can be debt free except for our house payment in 4 years. This is our goal and we will not stop until we make it. We are a good family and always very grateful and appreciative of everything that comes our way. We always do what we can to give back what has been given to us whether it is just time we have volunteered or in this case a loan to be paid back. We would like to thank you in advance for your help.

Monthly net income: $
I could not find an area to add my spouses income so I will show it here as well.
My Net = 3375.00
My Spouse = 2450.00
Total = 5825.00

Monthly expenses: $
Housing: $ 1550.00
Insurance: $ 143.00
Car expenses: $ 1305.00 includes car payments
Utilities: $ 335.00
Phone, cable, internet: $ 140.00
Food, entertainment: $ 400.00 Clothing, household expenses $ 300.00
Credit cards and other loans: $ 1000.00
Other expenses: $ 100.00 dance and sports for child

• New Loan Funded #5989 — $2850 in 45 loans

• New Loan Funded #6205 — $50 @ 19.1%

• Rateladder Referral Listing: Debt Consolidation

• Blogger Wants a Prosper Listing Review

• MortgageFit — World’s Largest Mortgage Community

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• Tools Home Improvement

Today LazyMan addressed a comment by a reader that stated the Big winner was Prosper, the runner up was the borrower, and the loser was the lender…  While I fully support Lazy’s post and views I wanted to add more…

Please use the performance tool to check your strategy for yourself.  My numbers are from memory. 

The entire Prosper Market has an ROI of ~3%.
This includes a large pool of HR and NC (north of 40%) that are no longer allowed on Prosper.  Removing that pool and the ROI jumps to ~6-7%.  My personal strategy has been to focus on only the most qualified borrowers at above market rates (+1.5% at least)…  I figure the most qualified borrowers must reduce the default rate 2-4% at least and on top of that my 1.5% market premium…
I plan on making 10%+ in the long run.  My goal is 12%+.  My stretch goal is 14%+.
I feel like a winner.

My guess is the reader picked a lot of HR loans to start with enamored with the rates.  29% interest with a 30% default rate is no good.

• LazyMan RSS Feeds Prosper Listings Widget

• LazyMan Autofund

• LazyMan 24H

• Prosper Goes Crunchie

• RateLadder Is New Prosper Blog Editor-in-Chief

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March 07 review of my 2007 RateLadder.com Goals. 

• Jan07 Review of 2007 Goals and Progress Report

• Feb07 Review of 2007 Goals and Progress Report

• Analyze a Loan Using Crystal Report and Data Export

• 2007 Propser.com Financial Expectations and Goals

• Late Loan #2 is Late Again (2nd month in a row.)

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• 1980-Last Year Calendars Paper Collectibles

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Febuary 07 review of my 2007 RateLadder.com Goals.  I have changed my ROI goal to an IRR goal.

• Jan07 Review of 2007 Goals and Progress Report

• Mar07 Review of 2007 Goals and Progress Report

• Analyze a Loan Using Crystal Report and Data Export

• 2007 Propser.com Financial Expectations and Goals

• Late Loan #2 is Late Again (2nd month in a row.)

• Current Year, Next Year Calendars Paper Collectibles

• New Year Holiday, Seasonal Collectibles

• New Year Holidays Postcards Collectibles

• 1980-Last Year Calendars Paper Collectibles

• Ornaments by Year Hallmark Decorative Collectible Brands Decorative Collectibles Collectibles

I have made through my first full month.  To celebrate I will be reviewing my 2007 RateLadder.com Goals.

	Jan	Yearly Status
2007 Year Ending Account Value	$3,615.98	On track, but expectation not yet met
Return on Investment (ROI)	15.75%	Stretch Goal Exceeded (15.75% is cumulative average and I have 0 defaults)
New Reinvestment Loans	10	On track, but expectation not yet met
Number of Defaults	0	Goal obtained if year ended today
Per Month New Money Added	$150	Stretch Goal for Jan Met
New Money Source	100% Savings	Expectation Met
Google PageRank	0 or N/A	Google is still deciding how to handle.
Average Unique Visitors Per Day	64.77	Goal Exceeded, Stretch Goal Not Met

• Mar07 Review of 2007 Goals and Progress Report

• Feb07 Review of 2007 Goals and Progress Report

• Analyze a Loan Using Crystal Report and Data Export

• 2007 Propser.com Financial Expectations and Goals

• Late Loan #2 is Late Again (2nd month in a row.)

• Track Lighting Lighting Fixtures Home Lighting

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• Flexible Track Lighting Lighting Fixtures Home Lighting

• Current Year, Next Year Calendars Paper Collectibles

• Plate Number Coils United States Stamps

Happy New Year.  I hope your 2007 is prosperous and that all of your stretch goals come true.

• Jan07 Review of 2007 Goals and Progress Report

• Mar07 Review of 2007 Goals and Progress Report

• Feb07 Review of 2007 Goals and Progress Report

• Best of RateLadder My 1st 3 Months

• Financial Web Advertisment on RateLadder

• Current Year, Next Year Calendars Paper Collectibles

• Scar Stretch Mark Reducers Bath Body Store

• New Year Holiday, Seasonal Collectibles

• New Year Holidays Postcards Collectibles

• 1980-Last Year Calendars Paper Collectibles

• Listings, Unique Bidders, Loans, Average Interest Rate, and Total Amount Lent

• Prosper.com Lender Game — Retireme99 Initial Update — 10.16% to 14.88%

• Why My Emergency Fund is Not in Prosper.com Loans

• Best of RateLadder My 1st 3 Months

• All RateLadder.com Loan Basic Information

• New Balance Womens Shoes

• Cash Registers Banks, Registers Vending Collectibles

• Current Year, Next Year Calendars Paper Collectibles

• Tokens Transit Exonumia Coins Paper Money

• Plate Number Coils United States Stamps