I've transfered about $500 to prosper and set up an automatic lending profile.
I'm going to focus on borrowers with A or AA credit initially with a few select B grades.
Overall I've found about $450 worth of loans to big on and am waiting for the results.
Prosper is interesting as you big the minimum interest rate you're willing to pay and the system starts high and carries your bid down if necessary. I wonder how many bids will come in above my minimum versus at my minimum (or how many I lost).
One thought is that I really would like a larger deal flow. There doesn't seem to be enough volume, but then again I've only been following it for a few days.
At the moment my average interest rate is about 12.25%. Not bad for almost entirely A or AA credit.
One consideration is that my money will be tied up for up to 3 years, however, I have a feeling some borrowers will pay down early (at no penalty).
Due to the lack of liquidity I don't feel comfortable putting too much into this. Also to manage risk, I'll be diversifying my portfolio by making many small loans. I expect the first year will be more of an experiment, however, I also think the first year is probably the most inefficient and ripe with opportunity.