P2P Loan Status – August (2008)

In an ongoing effort to increase monthly cash flow, I am participating in Prosper as both a lender and a borrower. I lend money to fellow borrowers to help them get out of debt and also to generate a form of passive income. I also borrow money from Prosper at a low rate in order to invest in higher yielding income streams to generate positive cash flow. I use both accounts (borrower & lender) as part of a larger portfolio of tools to generate passive income which will put my family and I one step closer to financial freedom.

Today I would like to provide the monthly status on my Prosper loan that I took out earlier this year. For a history of activity, please check out the following post – Loan Status – July (2008). When I last posted the status of my investments using this $1,000 Prosper loan, I had accumulated the following assets -

• Stock – I purchased 46 shares of HTE (Harvest Energy Trust).
• Cash Generated – As a result of selling Covered Call Options against my HTE (Harvest Energy Trust) position, I have generated $40.20 in positive cash flow. It is important to note that selling a Covered Call Option contract requires 100 shares. I have combined my $1,000 Prosper loan with additional funds to meet the 100 share requirement.
• Remaining Cash – I had $14.55 remaining in leftover cash after making the purchase of HTE (Harvest Energy Trust).
• Dividend Shares – I received .535 shares of HTE (Harvest Energy Trust) stock through dividend DRIP payments. The total number of shares owned as of July was 46.535.

Current Status
This past week I have received an additional monthly dividend payment for July which was reinvested back into the stock using DRIP -

• July Dividend Payment – I received approximately .632 shares of HTE (Harvest Energy Trust) as a result of the July (2008) DRIP payment. This brings the total number of shares owned up to 47.167.

As of yesterday (August 19, 2008), I estimate that value of the assets listed above at -

• Shares – 47.167 @ $20.13 per shares = ~$949.47
• Cash – $54.75
• GRAND TOTAL – ~$1,000.22

It is nice to report that I bounced back after a 17% drop last month in value and reported an increase of .8%. While the percentage is small, I will take it considering the drop in oil prices. The total payments required over the course of the 3 year loan are $1,095.07, so I am now ($90.85) behind. I will continue to reinvest all monthly dividends back into my total shares which will help me increase the value of this loan. Any jump in oil prices should quickly push me back over this amount.

Tagged as: Prosper