from their website, in a bold box, illustrating how the concept works, typically:
"borrowers pay 13%.... minus defaults 4%... minus fees 1% = 8% to lenders/investors"
4% sounds low and resonable until you realize that that is a percentage of a percentage, backwards.....4% loss of revenue is 30% of the business....that's a scary number...to me anyways....
I'm glad it's working for you....now that you have essentially become a loans officer...to safeguard your capital
the whole concept is intriguing....sort of downloading the loans officer function/expense to the capital providers.....but like I said I don't want to be a lender (or a landlord either BTW) anymore.....so it's not for me
an unleveraged stock investor who would have just "sat on his hands" in the fall
of 2008.....would be ahead by a good margin today