Topic: Lets make a deal - CLOSED (Read 2267 times)
What interest rate would you be looking for 20%
Ah, I understand your earlier post better now.
Low risk? Dont fool yourself. All loans on this forum are high risk. High risk should mean decent return. I personally am insulted with 10% but if you think its a good deal more power to you. I hope everything works out good for you.
I think the lending forum is awesome. I want to get involved somehow but i dont think high risk loans for small returns is for me. I might do it for people with good rep but thats about it.
So, low risk loans for high returns? Sounds good.
So, being part of a syndicate not a good idea? Coins sit gathering dust until used, then get return, and insured against loss?
I think the lending forum is awesome. I want to get involved somehow but i dont think high risk loans for small returns is for me. I might do it for people with good rep but thats about it.
Evolution in the lending market is progressing quite well. The newer lenders want to get in, but don't want to get burned and that is entirely fair. If you have been watching, IMSA, INAU, Burt, Dollar trader and myself have been lending and doing some syndication. There are a few others around too (sometimes I lose track of names and user IDs).
As a suggestion, if I knew how much people had available to loan, and a target rate (like 10%), then ideally they would share in the profits and have limited downside. This would normally be done via diversification, but could also be done via a maximum loss of say 20%.
That is, if Film put up 10 coins and it was part of a 100 coin loan that went bad, the most they would be out of pocket is 2 coins. I'd carry the loss based on any difference between the 10% and the lending rate (which I try to target at 15% currently). Yes, you miss out on the top rate, but you don't lose your shirt either.
As a suggestion, if I knew how much people had available to loan, and a target rate (like 10%), then ideally they would share in the profits and have limited downside. This would normally be done via diversification, but could also be done via a maximum loss of say 20%.
That is, if Film put up 10 coins and it was part of a 100 coin loan that went bad, the most they would be out of pocket is 2 coins. I'd carry the loss based on any difference between the 10% and the lending rate (which I try to target at 15% currently). Yes, you miss out on the top rate, but you don't lose your shirt either.
If you can find trustworthy people to work with 10% is better than nothing. I just have doubts the profits will outweigh the losses at that rate. If you make loans for 50 coins at 10% your looking at 5 coins profit. If you get burned just 1 time you will need 10 successful loans just to break even for that 1 loss. Thats a terrible deal. For some people their rep means everything to them. But for other people they will throw it away for a price. Its hard to pick the winners from the losers. For 10% i can find better things to do.
why would a know trustworthy forum member want to just ruin his credablity like that hed be labled scammer and such by forum mods
Greed. No consequences.
That's the whole point of a reputation though. The consequences are losing the reputation that you've spent months building by posting meaningful and insightful posts on the internet and talking to real people about real things. If I've built a lot of good relationships with people on the forum and IRC, losing those is the consequence of me fucking you (or anyone else) over. For someone with 10 posts on the forum asking for a loan, I agree there isn't much to lose. But if someone "established" borrows 10 btc from you, chances are they're not going to throw away the past months/years of built-up internet reputation (and the added identifiability for legal purposes that brings with it) over the equivalent of $60. If it's 10,000 btc, I'd start being more careful, but I'd hope the loan sizes that get thrown around on this forum would be way below most people's "fuck you" threshold.
I disagree. Especially when you factor in the risk and the loss. Even if somebody has good rep they can flip like a switch if given the opportunity to burn big.
It's worked very well for some of us. You must be careful, but I have yet to have a loan default, and I don't even ask for ID in 99% of cases. Now I lend most of my coins to pirateat40, but before that I was a fairly active small-time lender too, and made decent money on that.
why would a know trustworthy forum member want to just ruin his credablity like that hed be labled scammer and such by forum mods
Greed. No consequences.
Im starting to think lending might not be worth it. Most people only want to give you a 5 or 10% return. Tons of people want to scam you. And if somebody does burn you there is very little or nothing you can do about it.
If your interest rate is too high, the number of honest people interested will be almost 0. Think about it: someone doesn't have the money right now, but you expect them to have the money plus 20/30% a few weeks from now? That doesn't make sense. People who want loans typically don't have an easy way to make money, that's why they are asking for a loan in the first place. Select your customers and find out why they don't have the money and how are they going to be able to pay you back.
Then you must look up that person and see what he has to lose if he doesn't pay you back. For example, an -otc account with lots of ratings is worth a lot in my opinion. Most people will not risk that for a few bitcoins.
It's always risky, but if your fees are high you will only attract scammers.
why would a know trustworthy forum member want to just ruin his credablity like that hed be labled scammer and such by forum mods
I disagree. Especially when you factor in the risk and the loss. Even if somebody has good rep they can flip like a switch if given the opportunity to burn big.
Im starting to think lending might not be worth it. Most people only want to give you a 5 or 10% return. Tons of people want to scam you. And if somebody does burn you there is very little or nothing you can do about it.
10% monthly return is an awesome rate. Try and find that anywhere in today's society outside of bitcoin and you'll be looking for a long time unless you are a credit card company. If you're worried about scammers, use heatware and -otc. Obviously they can't be the sole decision factor, but those help to weed out a lot of the crap.
Im starting to think lending might not be worth it. Most people only want to give you a 5 or 10% return. Tons of people want to scam you. And if somebody does burn you there is very little or nothing you can do about it.
well as i already have a few bigger loans paid back already and also a few big purchase cleared on here i would ask why you dont recommend. sorry if its bc of my grammer im not an english professor.
I'm just messing with you, I really stated that mainly because that is a pretty big first loan.
well as i already have a few bigger loans paid back already and also a few big purchase cleared on here i would ask why you dont recommend. sorry if its bc of my grammer im not an english professor.
ok i am intrested in a loan i have already sent pms to BurtWagner znort and goat i am basically looking for a 360 btc loan for 4 months time or less this loan is to buy 7 gs of new hardware the reason i am asking for the loan for 4 months is i dont want to short myself and say i can payback alot sooner then i can i currently mine at 5.2 gh so it would take appromitly 4 months to pay back just on my own hasrate not including the new hasrate id be willing to pay 10-15 btc interest or 110-115 every 32 days if not more as long as everything goes smooth with the new hardware plz let me know if this is somehting you would be intrested in
lol
I wouldn't recommend this one for your first loan. Is there even a period anywhere in all of that?
ok i am intrested in a loan i have already sent pms to BurtWagner znort and goat i am basically looking for a 360 btc loan for 4 months time or less this loan is to buy 7 gs of new hardware the reason i am asking for the loan for 4 months is i dont want to short myself and say i can payback alot sooner then i can i currently mine at 5.2 gh so it would take appromitly 4 months to pay back just on my own hasrate not including the new hasrate id be willing to pay 10-15 btc interest or 110-115 every 32 days if not more as long as everything goes smooth with the new hardware plz let me know if this is somehting you would be intrested in
At some point you have to just jump in and make a loan when you see a post from someone that looks like they might pay you back - that is what everyone else did. Do what you can to protect yourself, make small loans to start, etc.
Good advice. :-) Jump to: