So I had this idea for sometime, thought of it back when I was in college. I didn't know there was an actual application of it. www.prosper.com is the idea. A website that links private lenders with borrows.
So here's the bull. I register, I have a ~$100-$300 month of beyond disposable income that I would like to try and grow in investment over paying down low interest debt that I have. CA has speical rules for participating in this. CA is ok with me buying loto tickets. CA is ok with my gambling at an indian casino. But CA is NOT ok with me lending to fellow citizen that are trying to build buisness because I do not meet their requirments.
The state of California has financial suitability requirements.
1. Financial Suitability Requirements:
To purchase a Note from Prosper, you must meet one or more of the following suitability requirements. For purposes of these requirements, you and your spouse are considered a single person.
- (i) You must have had an annual gross income* of at least $85,000 during the last tax year; (ii) you must have a good faith belief that your annual gross income* for the current tax year will be at least $85,000; and (iii) the total amount of Notes you purchase cannot exceed 10% of your net worth**; or
- (i) Your net worth** must be at least $200,000; and (ii) the total amount of Notes you purchase cannot exceed 10% or your net worth**; or
- (i) Your net investment*** in Notes cannot exceed $2,500; and (ii) the total amount of Notes you purchase cannot exceed 10% or your net worth**.
My net work is beyond negative, I won't be at 200k for a very long time. Even when I own my house, my cars and a toy or two my networth wont be 200k. A bum has more networth than me on paper. But still, these requirments are rediculus. I can put 16k/year in my 401k and watch the market eat it alive but I can't invest $1,000-$3,000 a year in trying to grow my networth another and in my opininon a more sound way.
What a joke.