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WARNING: Why Peer To Peer Lending is a BAD INVESTMENT

Graham Stephan 283 views

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Yikes Defaulted loans are sold to collections for pennies on the dollar, resulting in minimal recovery for investors
Comment from : @Constitution1789

Thanks for the video! Excellent!
Comment from : @Gimp8000

Fast forward to now, they're recommended!! Thanks for the updated video
Comment from : @jamman7344

🤔 i was a member on peer too peer Im not gonna lie It seems that for a company that reports only 78 defaults 🤔 as a user ob the website It seems that defaults are frequent 🤔 now i do understand how luck of the draw may play a role But lets just say i was surprised too see so many of my (A ratings) being the ones who defaulted
Comment from : @vjiggy81

Thanks man Great vid
Comment from : @DuelistOfBeginning

I would like to see an upgraded video on your opinion of p2p, but this time utilizing prosper 's fine print We are now in a recession, so it would be interesting to know the stats
Comment from : @patriciablair2012

Good idea to find the way to fund many crooked borrowers 😂
Comment from : @nattaphonj956

Now Graham its time for 100k likes for you to invest 1k in lending club for us to view how it works
Comment from : @Phobrobian

If you wanna make money in lending, do it in old fashion like loan sharks and mafia’s Using a brokerage gives you a little bit more than high yield saving accounts I get Atleast 24 annually without fees I deal directly with borrowers I deal in cash only to avoid taxes
Comment from : @AkashSingh-nh1nq

In all fairness this study focusses on only one P2P Lending company I am with one that's based in Europe and it seems like withdrawals are pretty quick meaning your investment is iiquid It's a great way of having a good return on your cash whilst also being able to withdraw it quickly I think that as the next recession looms I'll start to withdraw my money from it
Comment from : @TheStubertos

If ya boy Graham says don't do it, don't do it It's that simple
Comment from : @DrengrMike

LendingCRAP
Comment from : @tsnstt

Is it a US centric perspective?
Comment from : @DrPreetiSahu

How about Quanloop? Seems much safer than what you described here Very similar, but safer Your money is frozen for 24h only You can withdraw any day
Comment from : @TherionTheGreat

Important to remember, that recession can hurt, as one is likely on the horizon!
Comment from : @ralphweber2522

Three years later still asking for likes
Comment from : @silentmajority3399

Seems this video hasn’t aged as well as hoped
Comment from : @funtimes7671

so this didn't age well
Comment from : @713daehkcarc

Stated income is standard practice for smaller personal loans even at large banks
Comment from : @will1319

so its better to be a borrower than a lended on these especially if you have something that makes over 30 a year
Comment from : @tayneilson

Thanks for taking the time to make this It looks like people in Europe have a different take on peer to peer lending but I appreciate seeing two sides of any argument
Comment from : @MissDanielsonMath

Thug to Peer lending sounds better! Smh 🤣
Comment from : @newbeginnings9457

Great analysis Minetrap
Comment from : @aparvkishnov4595

yes
Comment from : @oscarvazquez5366

anyone who says their least favorite english word is "fees", is my new best friend
Comment from : @JeanSchlemaan

so you say it is not financial advice, so please give us financial advice, it would be much more useful :)
Comment from : @Name-lt2tz

Thank you!
Comment from : @ajrobbins368

Graham said you’d have to sell the notes on the secondary market if you wanted to cash out early How would I just go buy those on the secondary market?
Comment from : @KilatSilat

But can u get a loan and invest with people at the same time
Comment from : @whitleyterrace6286

So if one were looking to borrow say $5000-10000 what do you all recommend would be the best option to go through??
Comment from : @hunterbates9539

Wowwwwwww I’m so glad i saw this video
Comment from : @irismarie6515

Thanks for breaking things down
Comment from : @irismarie6515

Can you make a update 2021? Because of the crisis they don't payout
Comment from : @theblockchainclub1

P2Pless to winmuch to loose
Comment from : @kvk8406

The last part of this video hits especially hard in 2021 lol Think ill hold off on investing in this
Comment from : @Ayplus

I came here interested in being a lender Now it seems the right move is to be the borrower
Comment from : @masu485

It’s 2021 Covid-19 now what’s your opinion on this video now Graham
Comment from : @milwaukeewisconsin3366

Let me borrow $200 from you i have a $9000 stated income!
Comment from : @dionprill7492

nice vid very helpful
Comment from : @dionprill7492

I just had to watch half the video to drop the idea great research !
Comment from : @itissrinivasan

Convinced
Comment from : @discoveringme941

STATED BORROWER INCOME?! I am extremely grateful for your research efforts Very informative Thank you for sharing!
Comment from : @chelseacoral4809

Thanks for the video Think I’m gonna pass on that investment
Comment from : @ko_medic

This is quite different in in indonesia In here all financing have TKB90’s parameter, which means the of borrower that paid before 90 days after due date And the average score in these fintechs in indonesia is averagely >98 This is mostly why Indonesians pays respects with loans
Comment from : @ruthagood

Thanks for bursting my Lending Club bubble, you mean person I’m so disappointed with all this bad news it made me cry 😭
Comment from : @rcchristianson1899

Sta away from fastinvest and grupeer
Comment from : @leonvanlint

You're the man Graham I have smashed that like button
Comment from : @professionalcommenter5

Borrowed and paid 2 loans from Lending Club Opened an IRA about 6 years ago They are closing out in Florida I'm waiting it out at 62 I've had 121 loans charged off Most people still pay their loans I'll be out in about 2 years Moving the funds to a TD Ameritrade Ira so taxes aren't an issue
Comment from : @danamills8556

I'm a tree
Comment from : @andreasveide

Nice euphorbia
Comment from : @TS50ER

'If one borrower doesn't pay you back its not a big deal' - i heard that in 2007 🤣😂
Comment from : @ffriend258

I tend to agree with Graham on this one My experience has been that one bad borrower can damage the overall performance of your whole loan portfolio I invested $7500 in a professionally run peer-to-peer lending platform At first, things went very well, but in late 2019 a single fraudulent borrower destroyed my loan portfolio's returns My best advice is to buy shares in a well-run bank instead Right now my peer-to-peer lending has delivered only 157 per annum overall
Comment from : @DiggerDog1962

I am so thankful to realexpeditetools,com They sent me a transfer of $28,000 just yesterday
Comment from : @niklasschroder9204

watching this in end of 2020 and risks pointed out seems too real to become a reality Smashed the like button👍🏼 Great video
Comment from : @vishantpatel6990

Longtime viewer here Thanks for your reading Would you please cover how newer apps like Dave can be profitable for the owner?
Comment from : @Kataliako

แหล่งเงินกู้ยุคใหม่ นายหน้า
Comment from : @พงศ์สวรรค์วิศรุตานันท์

merci mec super vidéo super clair et pertinent I really appreciated
Comment from : @julienleroux4707

Did this guy just say Ownage Pranks? I haven’t heard that name in years
Comment from : @josephan6953

Dude, rely on data, not on your feelings
Comment from : @alexshyshkov8585

It's seems weird to me, like a ponzi scheme worrying
Comment from : @elisemarcus5996

Europe is much safer for the P2P platforms, the conditions are much better (no charges from platforms whatsoever for the investor and a buy-back guarantee, that is if the lender does not declare bankruptcy) I invest with Estateguru, Iuvogroup, Crowdestor and Mintos, and it has been going great so far We do not have credit scores in Europe and the banks do not give out loans as easily as in the US On the other hand, folks in the US have a better time with investing in Index Funds In Europe, it is easier to buy ETFs because Index Fund platforms are not as accessible
Comment from : @kleops888

My name is literally Phi (FEE)
Comment from : @FatherPhi

Lending $25 to 40 people is the formula to that website
Comment from : @TekkLuthor

Wow
Comment from : @eddiemontgomery7088

P2P has ponzi tendencybrbrBasically it is Billionaire Boys Club as a startup You can choose p2p lending for consumptive users, or companies Companies tend to delay payment, and consumptive users have high default riskbrbrWhat is contradictory, people who uses consumptive p2p lending, turn out to be just find As its more liquid than the company borrowersbrbrHow the hell the consumptive borrowers can pay along with the interest? In like 15 days?brbrWas it the p2p company who paid for your return? To bait you to invest big?brbrIf they have cash issues, p2p eventually will use cash gained from new investors to pay old investorsbrbrCorrect or wrong? I just want to know
Comment from : @MixSonaProductions

This is more a review of lendingclub rather than p2p as a investment It seems like lendingclub is a really shitty p2p company brbrThe big risk as i see it rather if the company that has the plattform goes under Sure you own the loans still, but you will still need someone to collect the debt for you, and under what terms will they do that? so in that case i count with making a fairly big lose (20-60) But the upside is that as long as that do not happen you get a steady return on your money without the volatility as the stock market has
Comment from : @heww3960

Mind blowing 🤯brThanks
Comment from : @danielventura3469

Thanks for this I just saw an ad on instagram for peer to peer lending
Comment from : @nisaac86

Thank you Graham, you saved my investment money!! I'm just imagining like this huge, "Armageddon" sized fist racing down from the sky and DEMOLISHING the like button for you always!
Comment from : @TheRealJayGutta

Too detailed Is there one more like button?
Comment from : @nikhilsawant4116

these people couldn't even get a loan from a bank, they dont deserve a 15 interest rate the only interest rates that would make the loans actually worth it are in the shark territory
Comment from : @mamenewesh7993

Curious how this peer to peer is going during the pandemic I wonder how many more people started defaulting on these
Comment from : @EvVieNiamhNyx

Graham, Great video as of 08/17/2020 LC stock is crashing and burning Thanks for your hard work and research As a Loan officer for 30 years stated income is extremely risky I would not place MY money in it
Comment from : @safensecure67

3:05 rly? I thought ur least favorite word is “taxes”?
Comment from : @JSTPPodcast

Graham!! "Driverloan investors club" popped up It sounds better than Lending Tree and Prosper Could you please review it and make a video?
Comment from : @randymattoon1965

I borrowed 24k from lending club with 36 payments of 984 a month, I am 2 months away from paying them offwooohooo
Comment from : @steel65712

Lending club for investors is a scam from my experience it was a joke! I listened to them and followed their direction I even had the Bots do the work for me as they suggested WHAT A JOKE!!!! 25 DOESNT EVEN COVER I INFLATION!!!!! I’ll make a video one day on what they did to me DONT INVEST BUT RATHER RUN RUN RUN 🏃‍♀️ 🏃🏃‍♀️ 🏃 🏃‍♀️ 🏃 🏃‍♀️ 🏃 🏃‍♀️ 🏃‍♀️ 🏃 🏃‍♀️ 🏃 🏃‍♀️ 🏃 🏃‍♀️ 🏃 🏃‍♀️ 🏃 🏃‍♀️ 🏃 🏃‍♀️ 🏃 🏃‍♀️ 🏃 🏃 🏃‍♀️ 🏃 🏃‍♀️ 🏃 🏃‍♀️ 🏃 🏃‍♀️ 🏃 🏃‍♀️ 🏃 🏃‍♀️ 🏃 🏃‍♀️ 🏃 🏃‍♀️ 🏃 🏃‍♀️ 🏃 🏃‍♀️ 🏃 🏃‍♀️ 🏃 🏃‍♀️ 🏃 🏃‍♀️ 🏃 🏃‍♀️ 🏃 🏃‍♀️ 🏃 🏃‍♀️ 🏃 🏃‍♀️ 🏃 🏃‍♀️ 🏃 🏃‍♀️ 🏃 🏃‍♀️ 🏃 🏃‍♀️ 🏃 🏃‍♀️ 🏃 🏃‍♀️ 🏃 🏃‍♀️ 🏃 🏃‍♀️ 🏃 🏃‍♀️ 🏃 🏃‍♀️ 🏃 🏃‍♀️ 🏃
Comment from : @tsnstt

You just saved my ass, you legend Thanks for doing the research, appreciate it, liked and subscribed!
Comment from : @roydopaishi

But what can you recommend as an alternative to P2P Lending?
Comment from : @coactor20

Has anyone tried Driver Loan Investors Club? No fees, guarantees your investments, and terms as short as 3 months with a 15 return
Comment from : @hazemeld

Normally i really like your video's but this video is really not good because you're generalising alot, on just a few p2p platforms that a doing p2p lending i a certain way I get the point you trynna make probably is you dont like this kind of investment strategi compared to others, understable brquestion being: i have a hard time finding out wether this type of investing is kind of as balanced as stock market investing?
Comment from : @mathiasskovhansen3338

The tax issue is actually a little worse than Graham indicates in the video Not only do you have to pay ordinary income tax rates on the interest you receive, you get only capital loss treatment on the charge-off's you endure when one of your loans defaults This means that losses offset favorably tax capital gains rather than the highly taxed ordinary interest income the investment provides If you're already burning off the $3,000 per year limit on capital losses that can be applied against other income your charge off losses will only help your tax liability years in the future
Comment from : @mikebarnes2294

Just got scammed on Grupeer, hes right
Comment from : @alexserediuc8074

Oh, thanks I’m hella not investing in any platform like this! 🤣 not worth it you can and will earn 📈🏦day trading and even index fund investing for the long term than this piece of 💩 Keep the chump change for the chumps and the higher wages for those who want it earn it work for it and expect it! 💪🏽
Comment from : @god-la-7wins-verdad-942

This guy is good he does all the “heavy lifting”, & (that’s why he’s rich) kudos! Moral of the story thorough diligent focused work pays off!
Comment from : @god-la-7wins-verdad-942