Building Wealth through Peer Lending, an Interview with David Shipman

Author and expert in online loans, David Shipman reveals his secrets to investing in peer loans. 

David spent ten years in consumer lending before the distaste of selling families into high-interest loans and associated insurance products left him unsatisfied. 

He now works, through the church setting, helping people with various life problems including financial problems. He is a seasoned investor.

How did you get into investing in online loans?

I actually stumbled into peer lending. I was reading an article where the individual made a passing remark at peer lending and the rates that could be earned. 

It peeked my interest as I had never heard of peer lending prior to this point. I did a little research and it intrigued me. After reviewing the more prominent sites I put a little money into LendingClub and have continually added to it thereafter. 

What was the biggest mistake you made when first starting out?

As with any investment junkie “the game” is always interesting. How much can I make and how fast can I do it. I violated what I already knew from underwriting loans in order to get the highest rate of return. 

I subsequently had a few notes charged off. However, I did spread my money across as many notes as possible so the effect overall was not that bad. However, I quickly realized that proper underwriting is key. 

What has surprised you most about peer lending?

While I pay attention to my own underwriting I am subject to the underwriting and verification of the information that is being provided. To me, Peer Lending is a very reliable source of higher than normal interest. 

I am sure there are more now, but I have been satisfied with the process and platform of Lending Club and have stuck with them. Therefore, I am not very informed of anyone else at this time. 

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