I have spent several hours in the past week looking at the top investors on Prosper. One of the truly great things about Prosper from an investor perspective is that you can see the returns of your fellow investors. Now, most likely you won’t know who is behind these investments but you can learn plenty of details about how they invest.
This is all thanks to third party sites like Lendstats and Ericscc that take advantage of the way Prosper records the information on their database. For my analysis I looked at the top 50 lenders on Prosper who have invested in at least 200 loans and who have an average loan age of at least 9 months. I am also only looking at loans on Prosper 2.0 (those loans that originated after the SEC imposed quiet period that ended in July 2009). Here a link to this query on Lendstats. Ericscc also has a tool to analyze top Prosper lenders but I used the Lendstats tool for my analysis here.
High Yielding Returns Here
The ROI for the top 50 lenders according to Lendstats range from 22.4% down to 13.7% on the low end. Every investor here is earning above average returns and some are doing extremely well. One useful feature in Lendstats is it shows the criteria (on average) these investors are using when selecting which loans to invest in. This is what I have found most interesting. [Read more…]