More on P2P

There are a few more things about peer to peer (P2P) lending that are of interest. There is a secondary market where you can buy and sell notes. There are links on the Lending Club and Prosper web site to Folio Investing where existing notes can be traded. I have bought and sold notes from both platforms. It’s pretty easy. I will be analyzing this later.

There are some residency restrictions with P2P. While Indiana residents currently can’t make loans, this will soon change because Lending Club recently went public. This apparently lowers their barrier in all states. When I inquired about their schedule, they suggested Indiana residents open an account now, and will be notified when they can start making loans. I believe Indiana residents might be able buy notes now, but am not certain. It might be worth a try.