How To Evaluate The Risks In Peer To Peer Loan Investments

Prosper.com and The Lending Club make it possible for individuals to invest in private, unsecured loans taken out by individual borrowers. An unsecured loan is, by its very nature risky. Prosper investing and Lending Club investing take some of the risk out of the equation by allowing the investor to choose loans and risk levels. The purpose of this article is to address the exact nature of those risks.

If a borrower stops making payments on a loan in which you are invested, the bank will take action. If the borrower actually defaults, the bank will pursue collection action. This might or might not result in you recovering some or all of your investment. The smart money says that your investment will not be recovered. Your job, if you have done it well, is to make sure that this default is a bump in the road rather than a disaster.

Avoiding a disaster begins with taking a close look at the loans and borrowers you can choose from. A borrower’s loan will have a letter grade issued by Prosper or The Lending Company. Prosper investments are graded A-E, and then HR for high risk. The Lending Club investments have over 25 subgrades, namely A1-G5. Different interest rates are attached to each grade, and they range from 7% all the way up to over 30%. So why not just invest in the high interest loans?

The reason why that is a bad idea is because the higher interest rate loans carry much higher risks. Prosper, whose loans creep into the high ranges more readily than The Lending Club’s, attracts more borrowers who present a risk of default. This is especially true given that Lending Club fees and Prosper fees, as well as a 1% commission charged to investors, are not included in the face amount you are getting from the loan. The borrower is actually paying more than what you are being paid.

The truth is, though, very few Prosper and Lending Club loans can truly be said to be low interest. There is some default risk no matter what the interest rate. The only sure way to protect oneself from default risk is to diversify the loan portfolio.

This means spreading your money across as many different loans as possible. Even a single loan at a relatively low rate can pose a risk. What if the borrower loses his job? He may default and you will have lost not only future interest, but your investment as well. This could be avoided by spreading the same money across many other loans. Recall that the minimum Lending Company investment or Prosper investment is only $25.00. Both Prosper investing and Lending Club investing can be made easy by investing in the pooled noted above

Unless you can truly afford to lose money, it is very important to diversify. The real world risk of default can be drastic. Even as few as 15% of loans going into default can drop the return on an investment you thought would pay 25%, to one that might only pay 7%. Both companies publish projected default rates for any grade of loan, which can reduce expected performance rates anywhere from 2% to 10%. Check these figures carefully and read the prospectus before investing.

Lending Club investing and Prosper investing are excellent vehicles for a potentially high rate of return. However, a Lending Club investment or a Prosper investment can carry significant risks, especially when the investor is chasing higher returns. Always check with an investment advisor before deciding.

Free Movies Online

What do you think when you hear the phrase “free movies online”? Is it suspicion of copyright infringement, shadowy looking download sites, or excitement over the tremendous viewing possibilities? While the checkered past of free movies online has some people cautious, let’s set the record straight about the right places to watch free movies online.

Some of the new players are Crackle, EPIX, Fancast, and SlashControl. Crackle is backed by Sony Pictures and has hundreds of free movies such as Ghostbusters, Godzilla, and St. Elmo’s Fire. EPIX is the new movie site from Paramount, MGM, and Lionsgate, and is the perfect place to watch Ironman, Raiders of the Lost Ark, and many more popular movies. Fancast is backed by the cable giant Comcast and has hundreds more movies, such as Chaplin, Captain America, and Naked Gun 2.5.

SlashControl was started by AOL TimeWarner, and has many more movies such as Sparticus, Ronin, and the classic western Hang ‘em High. Those sites join the other mainstays of free movies, including Hulu, Veoh, and Joost. Even YouTube has jumped on the bandwagon and legally hosts free movies online, such as classic Shirley Temple films like The Little Princess and Heidi.

Several TV sites also have films online, including American Movie Classics (AMC), Syfy, ABC Family, and TNT. If you have a Netflix subscription, the Watch Instantly feature comes free for the Owner account. Top films to watch online include Wall-E, Bolt, The Nightmare Before Christmas, as well as the extensive list of STARZ play. So, if you are going to watch a movie on a computer, here are a few quick tips:

1. Turn the screen saver and power save features to longer than the length of the movie.
2. If watching via an inexpensive wireless router, like the ones AT&T U-Verse hands out for free, make certain the router is well ventilated, as extended viewing could cause some minor over-heating, causing the router to reset, thus causing the movie to take an unexpected intermission.
3. Otherwise, sit back and enjoy.

Download Free Movie Online

With the advent of the internet, it has become easier and easier for people to download free movie online. Since most people nowadays have broadband connection and fast computers, it becomes feasible to stream or download free movie online.

There are a couple of ways to download free movie online but before I discuss the different ways, it is important to only download copyright free and piracy free online movies. There are many online movie download sites that allows you to download free movie online but are illegal and you could violate copyright and piracy laws.

Free Download Movie Sites

There are a couple of websites on the internet that allows you to download free movie online. An example is http://www.jonhs.net/freemovies/. It has a collection of copyright free movies in the public domain. There are plenty more free movie download sites such as ovguide.com, a free movie search engine.

You can do a search for free movies on Google in quotes and it will produce more results.

P2P Networks

Another alternative way to download free movie online is to make use of P2P networks. P2P make use of peer-to-peer technology to send and transfer large amount of data. A famous example was Napster although it is no longer a P2P network.

However there are still several P2P networks alive such as Limewire. However, there are several disadvantages. Firstly, most movies files on P2P networks are illegal or bootleg copies. Also, the movies files could be infected with spyware or viruses since the files are distributed freely. Your download speed may also vary depending on your location and the file you want to download.

Paid Online Movie Sites

Ok, this one is not free but in my opinion is the best way to download free dvd movie online. For these paid online movie sites, basically you only paid a one time membership fee and you are allowed access to their archives of movies, music, mp3 etc

The files you download are safer as they are free from spyware and viruses. Download speeds are faster and you won’t have to worry about copyright laws etc.

I highly recommend if you want to download free movie online, choose a paid online movie site.