Agree with Buakaw… 11 to 12% returns are easily doable LendingClub. Also the advice to keep specific investments small ($25) is good since loans to go bad from time to time and even if LendingClub eventually collects, you don’t get anything. The $25 really limits your exposure. Note that the best borrowers tend to get their loans funded quickly so being a regular with your searches is a good thing. Remember that cash (or in this case, ‘not lending’) is always a valid position. Not an original statement on my part and more often heard in investing or trading circles, but one of the easy mistakes people make is to think that they should lend just because they have cash in their account. Stick to the parameters you have set for yourself.
Another recommendation I would share is to treat it like a business. Stick to your parameters, write them down, especially in the beginning as you get comfortable take notes on why you made a certain loan, and learn from your mistakes. Can you get higher returns? Yes, but those are much riskier borrowers. Finally, an easy way to boost returns though is to transact in a tax-advantaged manner through a self-directed IRA (either the $5500 per-year, or larger amounts through conversion of funds held elsewhere into such. Check out EnTrustCAMA for details on how to do this ( theentrustgroup (dot) com ).
Some other lending sites I have had success with are: Fundrise, Realty Mogul, and RealtyShares. While one can argue whether these constitute true ‘peer-to-peer lending sites,’ these are real estate and related project loans with typical minimums in the $5k to $10k and up. If you are not at least somewhat familiar with all of the different ways real estate deals can be done, start slow here. Register and request every due diligence presentation you can get your hands on to review. Some are better than others and again, repeat borrowers with successful projects under their belts are the best. It’s not uncommon to see returns approach 15% or greater; I keep these investments in a Single Member LLC for tax, privacy, and liability purposes. Especially if you are a newbie at this, I strongly recommend having an attorney review the docs since each loan / offering is different and you'll want a clear understanding of your risks.
Check out this thread for some good introductory info in the crowd-funding space for real estate:
thread-35275.html
A ‘bit off-topic here but relevant; A solid book you may wish to check out for tips on how to approach your investments (be they peer-to-peer lending, or otherwise) is ‘Come Into My Trading Room: A Complete Guide to Trading," by Dr. Alexander Elder. Biggest single mistake I see people make with investments of all types is that they fail to treat it like a business. Whether you are relying on these for current income, a future ‘location-independent-lifestyle,’ or eventual retirement, you owe it to yourself to give regular care and feeding to your money. You may be able to pick up a used copy or check it out from your local library. Good luck to you!
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