How Do I Do This?
Getting started is easy. Just visit the website of one or all of the peer-to-peer lenders and open an account online. It takes just 5–10 minutes. You’ll be asked to link a bank account in order to transfer funds back and forth, but you can opt to simply send a check.
Qualified Investors Only?
Unfortunately, some states do not allow peer-to-peer lending. You can invest if you are you a resident of: California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Kentucky, Louisiana, Maine, Minnesota, Mississippi, Missouri, Montana, Nevada, New Hampshire, New Jersey, New York, North Dakota, Rhode Island, South Dakota, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming. This issue seems to be in flux, so check with the P2P websites to confirm the latest rules on who may invest.
Depending where you live, there may be some net worth and income requirements. For example, in most states, investors must have either (1) gross annual income of $70,000 and have a net worth of $70,000, or (2) a net worth of $250,000 regardless of income. In some states, there are no restrictions.
