Social LENDING...

So I was browsing around the net today and came across a video, and then this article on CNNMoney.com:

Social Networking for dollars

This is a very interesting concept - one that I wish I would've thought of myself. But it appears that there are at least a few websites - Zopa, Prosper, and GlobeFunder that are focus on the idea of social lending.

I guess the gist is this: You know those 'friends' you have on myspace or facebook? Well bottom line is some have more money than you or (if you're Daddy Warbucks) some could use a buck or two from you. These sites allow you to borrow from your 'friend' who always shows pics of all the exotic places that she visits while at the same time your friend gets to earn interest on those loans. Or if you happen to have an extra $500-$25K laying around it offers a way of gaining a better interest rate than that worthless savings account you have - only with a lot more risk involved.

I just browsed the sites briefly and it seems as if Zapo only offers a 5.1% return if your a lender but, the borrowers can be charged about anything they are willing to pay above that amount.

Prosper offers rates in the 9, 10 & 11% ranges as far as a return if you're an investor.

It appears that GlobeFunder is still in the 'beta' version now so to speak and they are accepting members but not making any loans as of yet. But the homepage design appears pretty nice.

I'll have to do a little bit more research but, if they can make the loan payback a little bit more immediate and the risk factor a little less risky - I might have a great new investment avenue.