Alternative investments have been around for a long time. They’re the things that don’t qualify as “traditional” investments. Examples include:
– Peer-to-peer lending (P2P)
– Real estate
– Real estate Notes (the niche Faller Financial is in)
– Collectibles
– Gold
– Non-fungible tokens (NFT)
And there are many more. In this series, I’m weighing in a little on some of the more popular alternative investments.
DISCLAIMER: I’m familiar enough to be dangerous with many of these asset classes so I’ll do more commenting and referring than anything. Hopefully, some of it is helpful.
Peer-to-peer lending
This is an interesting investment option, and one I’m more familiar with (as a private lender).
Peer-to-peer lending has been around forever—as long as people have and small businesses have needed to borrow money. But technology has enabled just about anyone with capital to become a lender, for all kinds of things: home construction projects, business start-ups, big weddings, and more. Here are some of the more popular services out there right now:
1. Peerform
2. Upstart
3. Prosper
4. Funding Circle
5. Payoff
6. LendingClub
Each offers pros and cons so refer to the following articles for more scoop—on these services and P2P lending in general:
– Best Peer-to-Peer Lending
– What is peer-to-peer lending?
– Peer-to-peer lending
– Should You Invest In Peer-To-Peer Loans?
– Best Peer-to-Peer Lending Websites for Investors
The one piece of advice I would offer on P2P lending: Stay involved. This isn’t an investment to make and then walk away from, passively letting the returns roll in. It’s important to be active, to keep track of how the loans are performing. Watch ’em like a hawk.
