It’s been written by almost every platform that one critical components of being an investor in a marketplace lending platform and a peer-to-peer platform is investment diversification.
And the third thing I would encourage investors is to look at the IRA account. The tax deferred account, as a vehicle when investing in these loans given the high interest and the ability in tax deferred accounts to defer the interest in the IRA account.
I normally recommend investors aim for between 150 and 200 loans in their portfolio but you could go up to 250 loans if you are able to find them within your loan criteria.
The Lending Club IPO looks to raise about five hundred million going public
We’re very excited and happy for Lending Club and their pending IPO, and we hope it’s a very successful event.
We are now roughly 42% of Lending Club’s size, if you look at the third quarter information posted by both firms to the SEC website. And we think there is plenty of opportunity for both firms, as shown by the growth.
How about the future of the industry? Where do you see peer loans in, let’s say, three years?
There are initiatives happening today where banks are introducing their borrowers to us, the peer-to-peer marketplace lending platform. At the same time, as we are able to help their borrowers get a loan.