That's it. Money Matters. Welcome to the Listen Money Matters podcast. Educating you without personal finance, getting very personal way.
But not too personal. And now, here are your hosts Matt and Andrew. Hey, everybody. Welcome to Listen Money Matters.
My name is Matt. I'm here as always with Andrew. Andrew, how are you? I'm good.
I'm good. How are you, Matt? What's up, dude? No, much man.
It's been a while since you last talked. I know. Well, I want to do something new for the intro. It's just a new year.
2014. I figured, let's go a little bit like NPR. Let's go on, NPR and ask. Well, yeah.
So today we're going to talk about peer-to-peer lending. Yeah. Which is like a whole new friggin' thing to me. Like I'm at a loss, but a friend of mine texted me.
He calls and texts me. I was like, hey, do an episode on peer-to-peer lending. I'm peer-to-peer loans. And I was like, OK, I know Andrew.
I know a lot about that. So I have one, first of all, I guess. Well, I just want to ask you guys to see how you know about it. How do you find out how you know it?
Did you write a post on the website? No, no, yeah. I mean, I'm working on one now. But maybe he was just doing some searching on.
You know, he started a better account. And he's trying to get more into investing. So maybe he just kind of did some research through Google or something. And I asked a question about how to ask him.
But I don't expect it like necessarily. But yeah, I've heard about it through you. Because you told me, and you told my brother about it. My brother was like, you know, tell me more about it.
And turns out that in New Jersey for some reason, like we haven't achieved, I think. Yeah, so it's only legal in some states. I mean, it was the reason why it's not legal. It was because of loan sharking.
There were laws introduced to prevent it. And then companies like this came out in the easing legislation of what New Jersey still on the wrong side of the fence. Well, I guess because of the mob, right? Loan sharking in New Jersey.
The spry-to-the-fry-the-fry-the-fry. So you have to explain to me. So I feel like this is a secret investing strategy that most people don't know about. I'm not accurate.
Yeah, so I kind of think it is just because it's really not talked about. And it's like, it's new. It's new because the internet. It's absolutely new because the internet and these companies only exist for a few years now.
And it's not really what you would think of. When you think of investing, you think of stock markets, stuff like that. So it's really, because it's really new. And not many people know it's like a fucking gravy train right now.
All right, explain what peer-to-peer lending is. All right, so basic level. Because basic is you can make it. Sure.
So traditionally you want to buy something. They don't have enough money for. You go to a bank and you apply for a loan. And maybe it's a small business loan.
You're going to have a nice game shop. And banks like, nah, we don't like a small business shop. They don't like a large game shop. In auto loans, right?
You can go to the bank and get an auto loan, right? Auto loan or any kind of loan. Maybe you're doing home improvements. So you go on a bank, may or may not reject you.
And with peer-to-peer loans, you can go. And there's bound to be someone who is willing to invest in whatever it is you're trying to do. Like give you a loan. And the thing is, so you as someone looking for a loan, you might not go to a bank because it you can.
And banks also going to charge you more. So yeah, charge you more interest than you would if you go crowd sourcing. So and then on the other side, you need a loan for your ice cream shop, whatever. It's very lucrative for me to invest in you.
And I only have to put in like $25. So say you need like $5,000 in your loan. I just contribute a tiny amount. So like hundreds of people may want to give you money.
So I guess it's kind of like Kickstarter in a way. Yeah, it's like Kickstarter only when you take a loan. You have to pay people back. And if you're investing in it, you actually make money.
So beyond getting a t-shirt, like you wouldn't kickstarter. You get a lot of money and you buy your own t-shirt. Yeah. And for those of you who don't know what Kickstarter is, if you want to build an iPhone app and have a money, you could film a video about what you're going to build.
And if you get $25, you get this. And people, it's surprising people. Yeah. I've seen people.
So all right. So it's not peer to peer lending. It's more resource-based. Thanks.
So like you have a loan. Many people come to contribute to you. And so it's kind of like that. So you could be on either end.
And it's lucrative on both sides. You save money. If you need a loan and you make a hell of a lot of money. If you invest in people and people and money.
So these are two sides too. All right. So which, which, I don't know my question here. So there's two sides to this.
Right. There's the, I guess the one here. The one here. The one there.
Okay. So you can be, you can be both. Yeah. Sure.
Okay. So if you wanted to invest in people, but also you need to take out $5,000 or two in Pre- Pre-P In-person. Okay. And I'm slightly confused.
I'll be honest. All right. So it's based. All right.
Let's take it from my point of view. I'm not going to be investors. I know. I know.
It's just even a possibility. You can buy it with out of box. Yeah. Okay.
So I just go on this website. I fill out information. Just like you would any other loan like you'd find out how much you bring in annually, which is credit score. I mean, you'll do the research on you.
You know, you're going to do it at a set of details. And what happens is you want this thousand dollars. You write what your purpose of the loan could be. And potential investors may ask you questions.
There's a lot of predetermined questions that you can fill out. And what happens is people browsing through the site, you're investing investors like me. Look. See.
You're loan for how much more you see invested and what your rate is. Maybe your interest rate is 10%. What your rate is. So let me call it the term interest rate based on your credit score.
If you have the link one sees how big your loan is and how long it turns is. So they have a minimum and they do all work. And they have like in the cool part is, and I know most of it on the investor side is invest. They have so much data on all of loans.
They feel like hundreds of thousands of loans since they opened. So like they know like the probability that you'll default and stuff like that's they bake it all into your interest rate. Okay. So as a, what do they call lenders?
I'll be like a lender. That's where you would make your money. Yes. Okay.
So you have to go into this every so often and look for different loans that you want to invest in or they're way on that. We kind of diversify through some sort of algorithm or whatever. So you can automatically do it. It requires a minimum.
I think it's like $10,000 to put in. If you want it automatically do it. But even then like I'm not so sure I would even want to do that. Like I kind of, I think that I can better pick loans than a computer game.
I don't know if that's true. So it's basically like a search engine full of different people in their loans and you go through and say there's a guy that wants to open up a business and he's $10,000 seed capital. And you're like, you know what? I'll give this dude a hundred bucks.
Right? Yeah. You can just say that. When does he get this one is this other guy who wants to open the business.
I guess one he reaches one of the people. Yeah. So once he reaches his goal and you know, lending club like certifies that his information is correct and everything. And because actually it happens maybe 10% of the time or maybe 20% on the best in something and lending club actually gave me money back because we're not just going for this guy.
He literally didn't mean his goal in his early days. I guess. Yeah. For whatever the reason is.
So you got to have a good, if you're borrowing, you better put together a killer proposal. It's not even a killer proposal. Just don't lie because you may have terrible credit. And like I would probably invest in you because the thing is like I just invest $25 per loan.
So I want him having like hundreds of loans. So if you default, it's really not that painful to me. I'm losing probably less than $25 because you paid me over the course of however many months. So like I think the strategy on lending club from the investor size is really touches many loans as possible.
The first five. Yeah. And yeah, I'm in my favorite question. No, I think you got it because I'm just.
It sounds like a lot of work. So it is. It's going to be $25 per loan. I'm sure you have a choice.
Oh yeah. So some of them like this is like a one. Like I like this one. So I'll put it in like 50 or 75 and I'm going to put it more in some.
If it has a $5,000 loan he's looking for it and you put it all of it. You could absolutely. Okay. So you know, like because you've tried to get loans like small business people because they don't have recurring income.
They really appealized. And there's some guys who have awesome credit and they've serious money. They're definitely ratios of low. They've never been to link when it seems like before I was born.
What they're interest rate is super high because they're a recurring income. So put a lot of money in it really pumps my return on because you're smart. Guys, just do their own thing. I'm like us.
I'm very smart. You are. I'm very smart. So I guess this one to get a loan.
The loan is from lending club. Right. So package our money up. And then when they pay back every month, it goes to lending club and then club will give us our share.
I understand. Okay. So I'm going to take it out of the bar where side and then he pays back every month. Like I never personally never taken out of bank loan.
I'm only taking out an auto loan through like, why just to go out through Honda and like more. You know, I get like a second bank loan. But like I never go back and said I need $5,000 to get. I don't know a couple of TVs for this party I'm having.
I've never done that. Or I've never taken a loan to pay off much credit card or something. So there are like a lot of stats on the loans I give out and the vast majority like more than 50%. I'm pretty sure it's one of the 50 ton of loans are actually credit card refinancing.
So people who have tons of credit card debt. And these are things that compound every month. Yeah. That's 20% plus.
I'm not going to interest too simple interest and even lower rate like just like really just consolidate your credit card debt into a lending club loan. It's significantly reduced the time to pay off like it's a brilliant move. Now what happens if a borrower doesn't pay his loan back like this. This money club sent out like a guy to break any caps.
So I don't know like they're necessarily breaking any caps. But they have the whole process and they actually have like anything is all of their data from their hundreds of thousands of loans they've given out is open and available for you to look through. If you were interested and you could see that's a great record on getting the link with people to come out of delinquency. Like they're better than like the average.
Like our company just call you a lot and like her son and mother. So I mean what does happen people don't pay. This sounds like one long commercial for lending club. Well so you know like I believe in them and actually it's pretty awesome they exist.
But like the idea of it like so it cause or anything is a good idea to me. So I agree. And I think the the mics like me like we're not getting anything from these guys I just invest and I'm kind of fanatical because the thing is like the returns from the investor side are awesome. Like I'm upwards of 20% return in the annualized for the year.
Like there's nothing that I know of that can even come close to to that. All right. Here's what we're going to do. Let's get some hard numbers now.
The other numbers are going to share. Yeah. So I'm just going to talk about investing in the stock market with a bunch of different organizations better than one of them which is basically buying like a giant like a bunch of like cycle funds and whatever. And those returns are like roughly 8% on the stock market right.
It depends. It mirrors pretty closely the market. So like so far this year if you're following the better. My return like 10 something percent.
Oh it's also a stellar year for the market and that's 10% anyway. 10% for the like five and a half months that I've been doing. So what I'm saying that 10% number is an annual number. My annual number would be actually high.
Because I'm only going to fill that half a year. Okay. So and and and and and and compare this if you have a like a savings account right. I have a savings account with ally and I make 0.9% annual interest.
I have a great comparison. Please please. So when you invest in the stock market the market goes up the market is down goes down whatever. At the end of the day you do not have more money until you sell your stock right.
Right. Because it's in the equities. So it requires you to sell at a high point to make money sure loans on the other hand like your mortgage or whatever is paid monthly. So every month a piece of your principal comes to your lender and a piece of interest comes.
So I've invested roughly $2,000 in lending club and every month I get money like that I could withdraw and take and whatever. Some of it is a piece of what I initially invested and a bigger portion is actually interest. I understand now. That's interesting.
It's great for me because I'm actually making money off this and I'm taking this money and you put it back into your love. So it's feeding on itself. Huh. And you can but all right but your money is tied up until it's paid back.
Correct. But I mean it's slowly paid back. So it's not like you put in a thousand dollars and you wait three years to get it over the course of three years. You're slowly getting it back and then your last payment will be like 30 cents.
All right. But if you put in $10,000 in a money club once you like hand all the money out to all the loans you can't say I want to withdraw my $10,000 now. So that's my money. You've done.
At a slight penalty there's like a market where people can buy and sell existing loans. So like an interesting thing is like say you and this will be strategy for you. So like you have loans and whenever the loan becomes delinquent you can go to this market and sell your loan. Oh, it's like like like how all the banks do now.
Exactly. So the thing is it say you have like $20 left in your principal and you originally put you individually invested $25. Right. So you may find out it's back.
You sold $20 on the table and the loan goes to the link. You could potentially lose all of that $20 it's still there or you could sell to some dude who's interested in high risk investments. And you were like $17 and he makes the $3 but you've reduced all your risk. So you can lose everything.
So there's strategies where people invest in super risky loans. Yeah. Yeah. I returns and whenever they go to link with they just sell them off for a loss.
Right. So it actually keeps their returns pretty high higher than what a lending club would have in their metrics because most people keep them until they tank. This is what all freaking banks do when everyone's defaulting their mortgages. There's something where some of them are like some offshore fucking mortgage company's like oh, buy it.
Yeah. Whatever. I'll make money on it somehow and that's why people are that well. Okay.
Isn't that why we're in this financial message because of that. Well, so really. Okay. That can be an entire episode.
But if I put into like one sentence I think the reason we're in this is because I took, I mean as a bank I took a super risky loan and I sold it to you telling you that it was like an A rated perfect vessel. So if you were buying shit they didn't understand I was riskier and it's way more complicated than that. Sure. Well, I think instead of basically like instead of banks these big big mother fucking banks buying and selling your loans.
These are putting it in the hands of like a bunch of individual people with actual money. Yeah. Instead of banks who really don't have actual money. I don't know.
The interesting thing is you put your money in the bank. The bank pays you nothing percent interest but there's still taking your money and they're glenning the people and they're making the interest. Right. So instead of the bank being wanted to take the money.
It's really your money that you're investing anyways or getting none of it. So instead you just take it out of the bank and you do it yourself and then you make the gravy train money the banks are making. Actually, now that I'm thinking about it a little bit more and now that you're clarifying it for me. You're actually like being like an angel investor.
It's like you are, like as you can do this. If you have a guy down the street from you is building an iPhone app. It's going to revolutionize the sound of farting. It's like the greatest farting app that's ever been done.
You're like, dude, yes, I will give you $5,000 to make that app because I'm going to join in with you and recoup some of that money. Right. Yeah. And then that farting app fails and whatever.
Because you're just investing in a farting app. But basically like doing that like, you know, yeah. I said you can invest in hundreds of farting apps at small $5 increments. Right.
So it's crowdsourced angel investing. Yeah. And that is actually another slide too. There's a slight thing where you have to be an accredited investor.
Right. And an accredited investor is like over $1,000 a year. Yeah. So like, I'm not just pulled up a random loan that I lent to some guy.
Yeah. So it's a consolidation loan. Right. The term is for 60 months.
You see the name? No, I don't see his name. I see where he works and like the location where he works is like it's all anonymized information, but it's all the financial stuff that I'll get everything you need to know. Yeah.
So the loan pays out at 17.1% interest. So fucking rocking. And so far he's made two payments to me. And I only invested $25, but he's told a loan that was for $20,000.
So obviously a lot more investors than me in this. But over $25 a year he's made two payments. Each were $0.62. 27 cents are principal and 35 cents are interest.
So like I'm getting more in interest per payment than principal. And over the course of the loan, I'll make roughly 17.1%. Well, no, exactly 17.1%. If you guys are the full.
Wow. And so what happens is like I have like, how long do you have to pay off that loan? So 60 months. Okay.
So that's $12.24. It's like one of the last years. So in 60 months, how much would you make off that $25? I'll see 25 times 0.1.
So I will make $4.25. Oh, that's fine. Yeah. And I think that's not annually.
Yeah. So yeah. So over the course of the loan, I'm going to make, yeah. Sorry.
I actually think that might be yearly. But I'll have to look into that. I'm sorry. I don't know because.
All right. But even if it's $4, let's round out the five. Actually, I think it's yearly. I think it's yearly.
So every year, so I put $25 in every year. I'll make $4.25 for the extra years. Until it's just $20. Yeah.
And then what happens is you just do it many times with many $25. And I put a lot of money into people with a 20 plus percent interest rate. Yeah. By anybody who wants to invest in a guy who has a 2% interest rate.
No, it's interesting. So when you put your money into a 20% guy, right before you commit your purchase, lending club will tell you that the interest rate is 20%. But we estimate that you'll get 12.3%. And what they're doing is they're with their numbers.
They're saying, well, if you take a loan, if it's a loan, if it's not going to get it all. Not even that. They don't need to fault. You may only wind up getting this much because then the rest goes so averaging out based on all their data throughout their entire lifetime.
Yeah. Yeah. And it winds up like I mean, do they so much data? I'm sure they're pretty close to correct almost every time.
Just a lot of large numbers and shows. So my net annualized return is 20% and it may go down. But I think when I'm going to make at least 13% or something like that. So I'm higher now and may drop over the course of the term as people whatever.
But I only make 12% that's way better than I would do in the market. OK. Let's sum this up by giving us your actual investing numbers. Can you do that?
Yeah. What's done with this whole thing? OK. So right now my net annualized return is like a hares breath above 20%.
And it also by the way, when you say net annualized return, that means like if there were any defaults and whatever, like what my return is when it's all calculated at the end. So, and it's also like a bunch of loans and different rates paying at different times in a month. So how much money did you put in? So I roughly $2,000 in there.
Exactly. I think I like $2,000 like $68. OK. That's how much you did.
That's how much you did. So I put a thousand dollars in. I had it in for like three or so months saw like how badly I was crushing it. And I put another thousand in and I might make this more like a better thing.
I just keep putting money on it every month. OK. So you have roughly $2,000 in there. How long have you had it in there for?
Since the beginning of August. So I'm always talking about it. Yeah. So about six months.
So five and a half or something. And how much have you made in interest? So I've made and so I made about the $68. But the thing is, when I was when I was only at $1,000, and so it was only at $2,000.
So I had a better like comparison for you. So they tell you like how much you make. I want you to expect per month. And it was like we just told us up.
It was 23 months. Thank you, late. 6. I'm waiting.
OK. So I have $2,000 in principle in there. And every month I get paid $56.68. Wait.
So I have $2,000 and a bunch of loans. Oh, I'm sorry. OK. So I'm going to sit there every month and make $56.68.
And if I pretty much only invest in loans with a term of 60 months, because it's a higher rate. So I multiply that by 60. At the end of the road, I put in $2,000. I am hoping to end up with $3,400.
Wow, dude. That's a lot of money. Yeah. Holy fuck.
That's like $1,400 you made. I mean, hopefully. By doing close to nothing. Yeah.
Basically. And that's, I mean, imagine if you do that on a grand scale. You're not $2,000, but even $10,000. That's a huge return.
Yeah. It's also doing nothing for basically doing all the close to $1,000. And you could think that while you invest in stock market, you're helping like Apple make better iPhones or something, but not even because I was not getting the money. This is people who are refining their loans, trying to start a business.
So you're helping out real people. You know, and there's somewhere out here behind you too. Dude, that's pretty cool. Yeah.
But you're never going to be able to, like, I guess what you could do essentially is put $2,000 in, invest in $1,000 for 60 months. Right. I did it 60 months. He paid the whole own back.
He never defaulted it. And you had $3,400. You could withdraw in. There you go.
That would just be super risky. No, I get that. I guess in Lenin Club, there are like two numbers. There's a number of principal number of interest paid.
Yeah. So it happens every time they get a payment. So every month, like at that like $56, whatever. I could withdraw that and take that into my own account.
That's my money. Yeah. I choose to read and that's that. But you know, I understand.
The only money that's locked in is loans. And through Lenin Club, you can trade it to other people for a slight loss. But this is what you need your money. You can get it back more likely I think you'd sell if it's like looking to tech.
All right. Who do you think this is for? Like, this is not something I would do. I mean, if you want to invest, I would say betterment because it's better.
And the returns are solid. And you can get your money any time really quickly. That's the stock itself. Yeah.
And it's not market style. It's easy to understand. Like, this is for people who have extra money and want some aggressive returns. And I think if you put in it, look, you go to Vegas and you spend $200 and you go there, expect them to lose it.
All right. This is much better than Vegas. There's numbers of back it up like stats. But I think you should put money in that you don't expect to get back.
And I think it'll be very pleasantly surprised with the return. Okay. I like it. I don't know if I'm going to do it personally.
But it does seem like you got to be in doing sort of. Yeah. But it's a lot of different loans and pick the ones. Yeah.
It is work. So returns are solid. But here's the effort. Yeah.
You're in that shit, right? I'm one of the lazy guy who is going to start by the minute this year and just let it sit there and whatever. You better start this year, man. Well, I know I'm procrastinating.
I mean, it's only the, what is it, the fifth. I'm just, yeah, I still have time. I still have time. I still have time.
I will do it though. I will announce when I do it. But, uh, boom. All right.
Well, here's the deal. So I'm pre-god damn sure that people are going to have questions about this. So I'm coming out with a post on our website about hopefully in the next one to two weeks. Okay.
That'll be all the details of my account like my loans, like how I broke it down, how I pick the loan. It's going to be super detailed. It's going to be like showing everything. If you can't wait until then, when you can send us Facebook questions or something.
But yeah. Or we even, you know what they can do. They can post questions on, as comments on this podcast episode post. There you go.
Yeah. That's a good idea. So this will be episode 15. Yes.
So you've got to listen about matters.com slash 15. One five. This is, I'll do a quick write up with a post of what we just talked about. So you can do that.
And we also have comments on it that post. So leave comments. Ask questions. Because I'm sure there's people with questions.
And everyone happy I will not be happy to help you. I'm happy to help you. I'll be happy to help you. I'll be happy to help you.
I'll be happy to help you. I know. I mean, I do want to, I can't wait to read the article. Because that's going to be, I need to see visuals on this.
Give me P-feed. There will be pie charge graphs. Yeah. I need to see.
I'm not even pull up landing clock computers. I'm not signing up. But I don't like how I'm like, fuck it. I don't like.
Oh, no. So yes. I'll give you a comment. Leave a comment.
Ask a question where we do. And also, please, we'll say in the very episode to help us out by leaving us a review on iTunes. Positive if you don't mind, we're not leaving a good one but that sucks. But yeah, leave us a review on iTunes.
Go on stage. If you have Android app, download stage, run your phone. Leave us a review there. Or just click the amount of storage.
Think we deserve it. Super helpful. And it's a new year. It's a new year.
We hope that we're going to continue doing this. And it's been fun. To say that we say in the very podcast. But I think maybe we'll actually leave reviews.
We need to buy episode 30. Please do. Yeah. We're happy.
25? Yeah, 25. So we'll do like an adversary party. We're like a big yeah, we can talk about beer The beer is going there.
That's true. So you I don't think you're gonna be on the non I'm pretty much done drinking for a while at the New Year's Good Lord. So no, we mentioned talking to me. We should hold off as I drink my beer very.
What are you doing? I'm not just curious originally Okay, it's called the just beer project. Oh, yeah, that before Yeah, cool. It's a C.
All right, so Andrew. Thank you and for all your information and we hope that everyone out there It dries the landing glove if you want to invest in something and you got the extra cash to do some fun, you know investing with so that's a good I'm a Florida bean you're posting. Yeah, we'll go from there cool. All right, buddy You sound beamed down I'm just explode it with knowledge that I'm probably never used, but I should If you have money you want to invest you want to press returns like give it a series look it's pretty awesome Yeah, maybe one piece can sell your fucking credit card debt with landing club because you will just just by the act of doing it You'll save so much money.
Oh, I do we should have talked about that more We have done it now. We could preemptively end and then re-ended No, I mean basically just you know we talked about the borrower side of of house. Yeah, dude It's huge because it's cheaper than any low from bank guaranteed if you don't lie to get alone and It's like your mortgage is compound interest. That's why like it's it's front loaded with interest payments that principal like it's It's stacked against you.
It stacks to the bank wins. Right. You know, this is a more even keel load and you will save a lot of me So that's interesting yeah getting alone. It's all you have a bunch of credit You're like 10 credit cards and like eight don't have a 22% interest rate.
It would be who you've been take out alone And then you have like maybe a 10% interest rate across the board and then you're paying that you're paying one payment every month You're never gonna be a link because you don't have 10 the worry about you just have one payment all your credit card to pay off And therefore you're not you know, I'm not just gonna go and credit that all your credit card to pay off and you can just pay back this this one loan It's super simple so I'll give you a simple like number comparisons You understand the power of compound interest versus normal because I'm doing research for my own mortgage like it's coming More to check and they'll be like a post and stuff. I told you that but not get tell them but so say you have $60,000 an mortgage rate of 3.25% over 30 years, right? It's gonna or I think I think I did calculate 29% so 29 years I'm a year in so I'm gonna be exactly you want to pay like $150,000 or something like that tonight You know, I told them the numbers exactly basically this is more exactly like this mortgage has more attack $60,000 over 29 years you could save $90,000 worth of cost in your loan because the difference if you just compared compound interest versus civil interest so on a loan of $60,000 3.25% interest simple versus so If you like your credit card debt is compound interest every month Whatever your balance is you again get 20 something percent hit on you So it is really fucking you every month But if you converted just the same interest rate to simple interest you would save so much money with simple interest Like I get compounders a month. So say you owe $5,000 And then after a year you pay you know $100 so your next interest will be on $4,900 instead of on the 4,000 or like You know, it's only on the remainder.
Yeah, and it's not every month. It's like amortize over a year So if you're interested in five percent, you know if you're mortgage is not five percent of your monthly But more is a bad example if you took a living club low now for five percent a year It's not five percent of your month. It's less every month. You know, yeah So depending on what you owe what's left of the loan that yeah, so just the act of putting compound interest loans like credit card debt into Lenny Club for the same rate ridiculous You'll never pay as high rate on any club as compared to your credit cards You'll save tons of cash.
We've articles about this like definitely for donkeys and all these other posts But so if you have debt like you should be really looking to this any type of loan or definitely or letting club over their bank loan I mean you need bank loans. I'm saying on a call equity like yeah, I mean Not that I would say you get alone to play to default, but if you got home equity loan any defaults It was your home right if you had a line of clothing default you just got a shitty Grow Wow, we got space get at that number credit card credit number. That's great. It's right.
Yeah, it's right. Yeah It just hurt your credit. It's like you lose your right. Okay.
Yeah, there's no collateral. I guess yeah All right, cool. All right now I'm done being over the head with yeah I'm gonna do that motherfucker. I'm gonna have to revisit this another time and maybe break it down Like I would like to do an episode on compound interest versus simple interest.
I know that was a thing I know there's a different in the type of anyway So the landing club article come out from the investor side. Maybe I will see if if maybe I'll take a loan out personally Just to show that side of it. I don't know how how Whenever the word is when it's charitable I'm feeling is you know What everyone maybe I can maybe I do that and turn into a profit maybe I'll borrow a landing club and invest that money some crazy shit So we'll do something there and we'll talk about complex versus simple. Okay compound versus simple right.
Yeah, okay That is it. Just one right down the show. He doesn't need to talk about that at some point. Do you know doing now?
Excellent all right. Well guys thank you for keeping talking. Yeah Thank you for listening Andrew thanks for being on and I'll see you Yeah, trust me right about this Thanks for listening. If you enjoyed the show We'd like to hear more subscribe to the listen one matters podcast and leave positive if you want to do the word for Information visit listen money matters dot com.
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