How to sell prosper notes
Prosper Invest Review - Worth it or not?!
0:00 / 0:00
Timecodes:
[Music]
hey guys it's Cameron here with the
money venture calm today I'm gonna show
you quick intro to the prosper and vest
app and prosper is basically investing
and will a loan company that lets both
people that need loans can go and get a
loan on prosper calm and those that want
to invest they can be the ones that
contribute the funds to finance those
loans and so as an investor you can go
and select among a bunch of different
loans that are out there from that
people need you can invest as little as
$25 and really almost as much as you
want into any note that is available and
you can select the criteria of the type
of credit profile you know employment
status that you want and make sure you
invest in notes that you think that are
going to be paid back to you so this is
my prosper account my total let's see
this is the home page my total account
value is two thousand eight hundred and
twenty one dollars the payments that I
received two thousand eight hundred
dollars and that's because some notes
have been paid off already that's why
that's a little bit higher and then the
annualized returns of five percent and
my impact where I've invested in notes
across the United States were people are
living etc so I will clicking this top
one to view my account value it's broken
down into the amount I have invested the
available cash and any pending notes
that I have currently I have just over
two thousand four hundred invested in
just over one hundred twenty six notes I
started out doing that just twenty five
bucks per note when I set it up on
automatic investing so I would select
criteria of the type of loan that I
wanted to invest in and prosper would
automatically search those search notes
that met that criteria and invest twenty
five dollars every week for me on
automatic I then upped it to fifty
dollars now I just kind of do it on my
own I feel like if it notes manually so
I currently I now have three hundred
seventy-six dollars available to in cash
to invest in different notes
and the very bottom you can see the
total transfers I've made the total
withdraws I've made to equal my total
account value so we can look over under
this payments received section I'll
click on that and it breaks it down
principal interest and losses as you can
see I've of the total amount that I've
lent I've received about just over two
thousand bucks
paid back to me in principle eight
hundred thirty one dollars in interest
and then five hundred and sixty-four in
losses and what that means is there's
there's a lot of loans that may be
charged off or default whatever the
reason might be and so I've ended up
losing five hundred sixty four dollars
of the total interest so my total net
gain is two hundred and sixty-seven
dollars and if you take that compared to
the total account value of $2,800 and
obviously you know it hasn't always been
20 hundred dollars it started out at you
know a few hundred bucks and grew from
there's i deposited more money to invest
the overall return really isn't that
great something that I'm not
particularly excited about obviously
it's only given me about a five percent
return and so if you're looking for a
place to get higher returns prosper
probably isn't the greatest choice just
because the nature of the type of
investment generally is a little bit
more conservative and can even you can
even have negative return it's pretty
easy if you know if you invest in really
aggressive notes so if we look at my
annualized return we can take it even
further and if we click on learn more
here it breaks it down to the seasoned
annualized net returns which are the
return on notes that are over ten months
old and so the longer the older the note
is statistically the lower the return in
the long run and so either way 3% of 5%
neither of those are very exciting but
you know if you if you want something
that's easy and automatic then it's not
a bad choice your money's still grown
for the most part if you make sure that
you don't do just if you make sure you
you diversify the notes that you invest
in down here you can turn on auto invest
you can select the different criteria
criteria for each notes that you want to
invest in
and then you can have free current
transfer set up and prosper we'll invest
those transfers there for you
automatically
so if I'll show you quickly how to make
an investment or make a purchase or even
set it up on automatic here in just a
second let's see we'll go to account
value and this green button that says
invest now we click that and we can see
we can select two options we can either
select a new target which I go through
and I narrow down the different criteria
of each note that I want to invest in so
we'll start there as you read a quick
disclaimer and then we can go and either
select one of the pre-made portfolio
allocations of the different types of
notes again these notes double-a all the
way down to HR or prosperous rating for
the type of note that they are so double
a's are obviously people that have the
best income the best credit and HR is
the worst and so it's a bit different
than a credit score but it's pretty
similar it's prospers unique way of
rating the loans and you can see the
credit scores of the people that you
invest in as well or you can design your
own mix it here at the very bottom so
you can choose one of these three or
design your own so I'll click design
your own you can then go into and click
each note
so we'll say see notes we'll click on
that one on the top and I can select the
percentage that I want to have my
portfolio made up of see notes so you
know or it's that's it probably about 30
percent right now so I can go bigger
than that and and say I kept at it you
know 50 60 % it'll say 55 percent that
would make it so that if I turned on
auto invest prosper would then start
seeking out see notes specifically to
build my positions in the total amount
of see notes that I have until it met
about 55 percent of my portfolio and it
would do the same for all the other
selections of investments there you know
when I when I manually build my own
portfolio allocation so that's kind of
how that works if we go back to see
invest manually I can go and use the
cash that I have available and select
notes individually so again I've got
three hundred seventy-six and cash
available
I can filter the notes down into
different prosper ratings or even terms
they offer three and five-year term
notes or I can just scroll through and
see which ones might meet the criteria
that I'm looking for so you know this
top one is a B note that's a 15% yield
or 15% return and then - prospers fee
which is one percent that they'll take
from me every time that you invest in a
note I thought keep on percent of the
returns for their fee of processing the
transaction and we'll click into that B
note and we can see the mount historical
returns of this type of note the purpose
of the loan which is a large pearl arj
purchase it's a three-year term and we
can go through and just see all the
criteria about this particular note and
in the very top we can click on borrower
and we can see them further about the
borrower I normally they'll have a
prosper score one through eleven and
that kind of depends on the stage that
the loan is in so that event is
eventually will turn out you know this
one might be like a seven or eight
prosper score I I bet you can see their
FICO score their employment status what
their occupation is their state their
income and any other type of criteria
kind of helps you narrow down if it's
something that you feel like you want to
invest in and add to your portfolio or
not and then you can go in and
essentially invest as little as 25 bucks
into any note and build your portfolio
over time so it's kind of how prosper
works again it's it's a good investment
if you want to set things up on
autopilot you want something
conservative one something that's maybe
not the stock market or not real estate
or whatever it is you just want to
diversify it does let you you know see
that you're you're impacting and helping
other people you can see I've helped 172
people that can 92 debt consolidation
tune vacations taxes different reasons
for their different reasons for for each
loan and what it is that they're using
the money for and see how you're able to
help but again if you're more of an
aggressive investor like me that likes
to see you know at least the average
return of the stock market you know 7 to
9 percent 7 to 9 percent and you're
probably best going elsewhere
I personally like the stock market
long-term investing picking good
companies that have a good foundation
that have a good vision for the future
which you can see you know I pick stocks
in some of my other videos but prosper
isn't a bad thing to start out with
there isn't a bad thing to add your
portfolio I'd recommend it if you're
just wanting to diversify a little bit
but if you're wanting for a higher
return it's probably not your best bet
other options from prosper companies
like Lending Club is probably the most
popular it's very similar but it works a
little bit different and how they source
notes and how they rate different notes
that you want to invest in etc so anyway
this has been a quick overview of
prosper I'll show you kind of what the
app looks like here the prosper app
[Music]
anyway and if you like it you know you
can you can begin investing I'll include
a link here at the bottom that will take
you to their website to start if you
want otherwise take a look at my other
videos on investing in the stock market
and how to pick good stocks and get a
good return thanks for watching it's
Cameron from the money venture comm if
you found this video helpful please give
us a thumbs up located just below the
video
don't forget to subscribe to our YouTube
channel by clicking the subscribe button
below to be the first ones notified
about our latest content
[Music]
you
[Music]
