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Prosper Ground Floor

(Original Entry from HOD-Wordpress - 2006-10-22 4:02:21 am)

Category - Prosper.com, Denning Mindset

Well, I just found out some interesting news tonight. It seems as though the site called Prosper.com has only been publicly announced since February 2006 even though there has been a buzz about it in several media sources and by word of mouth for a year or so previous to that. I have been a member since April 2006. This means that I signed up two months after the public announcement. I know that this does not seem like anything significant yet, but wait because there is more.

I am now 4 1/2 months into this endeavor with an average of two loan purchases per month being acquired. As an active Loan Purchaser under the name ByteLoans, I have now been actively acquiring loans at $50 per eBay-style won loan except one which was a partially won bid for a little over $18. I now have 10 loans to date and an active principal worth of about $489. For those who are interested in the critical numbers, this means that after 4 1/2 months I am now making $0.21 per day while sitting on my tuckuss with an active average return of over 18%. Payments (Prin. and Int.) are currently about $15-18 per month now counting the 10th loan just added (monthly payments which will increase with every stacked loan on an approximately bi-weekly basis) being rolled into future loans. In other words, with each loan I can roll other loan payments into purchasing them while using less and less of my own funds with each new loan and eventually without using any of my own funds. Every time I buy another piece of a loan (like $50 of a $3000) for the 10%-28% range I like to play in, that also means an increase in strictly profit of about 4-5 cents per day every two weeks (or every time I add another loan).

The longer view is that in another 6 months, this thing should be well into the autonomous stage. What this signifies is that I will have to put nothing else into it on a planned bi-weekly bases as capital because it will feed itself on a bi-weekly basis. After that point, the next goal is to get the initial investment out using leftover payment funds from stacked loans that are not used for the next loan acquisition (which should take less time than the build), and then start acquiring loans for $100, $150, and so forth. There are also side plans of letting it take over personal subscriptions (like web hosting) and living bills and the like while using multiple money market accounts to hold immediate funds in short term reserve where they can still work. After that, anything is permissible.

Here is where it gets really exciting for me. I am on the ground floor. To date, this thing has had press out the kazoo. In fact, they just had a favorable spot in Reader’s Digest for the November 2006 issue. Most of the press has been good to excellent, some of it has been filled with questions only time can answer, and none of it really has been bad. For me, this is everything as it serves as vendication to me for those who would not believe me when I said it was a winning plan. And I am, for the first time, literally on the ground floor of a major business emersion event.

Listed below is just the start of many reasons why I think you should get the investment bug (or get it again) and join me either directly, or even with your own account.

  1. All my loans to this date are current; because, this is a community based person to person loan system with an importance set upon personal reputations after the gruelling validations and verifications just to become a part of this forum have been passed.
  2. Of all the loans I will acquire, and based on the stats available to all on prosper.com under “performance” listings, I expect to get profits of at least 90% and closer to 98% or 100% over all ranges of credit grading and loans currently outstanding and being paid which are reported in the last year of operation in this proudly transparent online business forum.
  3. The loan performance I currently have is better in real life than the spreadsheets I spent 2 months developing as part of the research I did before I even signed up to be a part of prosper.com (and I low-balled the estimates).
  4. My personal loan search criteria include those with verified bank accounts, verified homeowners if possible, and definitely part of groups because I want the peer pressure on them.
  5. Because every person has a different credit rating, with every newly acquired loan comes another person attached as the first level of “loan portfolio diversification.” I also diverisify by the credit rating (good rating and low interest one time, not so good rating and better interest the next) as the second level of loan portfolio diversification. The third level depends on the loan cause. This three-tier approach gives me the broadest returns-security possible.
  6. As I mentioned before, this is a community based and reputation conscious lending forum.
  7. There is much more information to list here, but I can provide hard links, examples, and other information if anyone is really interested in the “why it will work” because they still won’t believe me.

So, as you can see, there is great performance here along with good reasons. There is tons more information and particulars that I could go into here, but what I really want is for the rest of you all to believe in me and what I am doing, and please pray for success. A success here will mean success for the House of Denning in the long run. Help building it will mean success sooner. So, if the prosperity outlook gets a hold of you and you get the bigger vision of what is going on here, feel free to contact me on how to help build the ByteLoans account, as this is scheduled to be a growth fund for the House of Denning. If you want to strike out on your own, you will find it hard to beat the returns. Go for it! But if you believe in what can be done here or you really don’t want anyone else in your personal credit business, consider teaming up with me as administrative personnel.

If anyone knows the way to lay out a Foundation let me know. There is a much larger vision here than just making money for this little Austin family. I would love to talk individually with you all, but I just don’t have the time. So be looking for updates here as this is the best way for me to keep everyone informed with the same information in a timely manner.

The vision “ByteLoans - Building the House of Denning Foundation” will soon be listed in an upcoming blog entry.

–ByteMark