What makes a successful lender?

cosmoliu · Joined: 20 Jul 2008 Posts: 1 Location: CA

Having read through the postings here, and clicking on the top lenders listed at the upper right of lendingstats.com's home page, I am struck by the wide range of ROIs. One would think that spreading out one's amount to lend over a reasonably diversified portfolio, ROIs would be clustered in the 8-18% range, or so. One would also think that the top lenders at the upper right of lendingstats.com's page, all of whom have more than a quarter million dollars in play, would have gotten quite good at this, but muleShoe's -20% ROI really sticks out like a sore thumb. You could blame his strong concentration in "D" grade borrowers as an obvious explanation, but other poorly performing lenders have what would seem to be a healthy mix of borrower grades. One lender with almost all "A" and "B" borrowers had a 40% default statistic. It also seems very interesting that most of the top lenders jumped in with very heavy activity when they first got involved, but have had little or no participation in 2008. Did they just loan out all they had, or did they get fed up?

So: what makes a successful lender who stays involved and satisfied with his activity in p2p lending?
_________________
Norman

Spider5 · Joined: 22 Nov 2007 Posts: 5