Sticking to Private Money for Real Estate

[hittjw]

Was using Prosper to loan private money for business expansion. This was something very profitable for me in the 1990's, however, I got hit this time with a 74% loss in 2009. Actually 2008 was strong with a 14% gain, however, my 2009 stock investments pulled a solid 11% return. Why am I sharing this here?

Understand that selling is a full contact sport. When you stop doing it, you stop earning. That's why it's important to have investments and other passive income sources supporting your selling efforts. I reinvest at least 20% of my take home into stocks, bonds, assets, private money, and other things that grow without my full time involvement.

I gave Prosper a try because it looked like a good platform for consistent returns. It is, but it needs to be actively managed. Prosper had a second drawback that I didn't consider is the plight of small businesses in a down economy. Many of my loans charged off in borrows doing bankrupt.

Lending private money is still a good idea, however, I'll stick to money secured by real estate. What was I thinking.

Sincerely,

Justin

[hittjw]

You can see how bad I did at Prosper Lending Stats, my returns here are based on loss of principle where most status sites only say I lost 9%. They must be using some difference calculator that doesn't consider charge offs.

Best,

Justin