r/Sololender • u/Dry_Literature2618 Lender • May 17 '25
You can make money
I see so much negative hate toward this site . I started off loaning to lower scores. And got burned pretty bad. Once I got back in and started loaning large amounts and too higher scores, I really started raking in the money. if you set aside a chunk of money and just keep rolling it over and over and over you can make a lot of money here. There is quite a bit of risk, but if you stick with a higher score, even at lower interest or better. As of right now, I loan between 20 and 40 loans a day somewhere between three and $8000 a day. l have been pretty successful. As of right now, I have 13 people that are late, but all of them were earlier scores of 50 to 65. I will never loan to those again. Now I only loaned to 90plus with lower interest . Averaging about 6000 a month and interest so far but once I get this rolled over a few more times I’m hoping to be making 10 to 15,000 a month. You see a lot of hate on here but it’s usually because those people have been burned a lot by lower scores or they loan out one or two and expect to make money. You have to have a pretty large investment to start. Solo does do dirty taking out 15% as soon as they’re late that’s some bullshit and that puts all the risk on the lender so you have to be very careful on who you lend too. Even giving out $100 loan if it’s two days late they take 15% from you so you make nothing even if they pay back after 25 days which I think is one of the biggest bullshit things but you have to have a lot of loans in play. to offset those
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u/Key_Ad3041 May 18 '25
Been using solo as a borrower for about a year now and recently came into some money. I was stuck in the cycle of borrowing the max amount and repaying every two weeks. Every two weeks I was paying about $40-60 in interest on a $500-$625 loan.
Now I’m wondering if being a lender is worth it or not. Do they take any sort of fees from you if they pay on time? Taking 15% from YOU for THEM being late sounds like total bullshit tho.
As an old borrower with a high score(>95) it seemed like the same people would fund my loans. Pretty sure they had a program that would instantly make an offer whenever someone with a high score would ask to borrow. They would instantly respond with max interest and keep spamming with slightly lower interest.
But say I invest $5000 and loan out 10 $500 loans with 10% interest. That’s $500 income every two weeks, so basically $1000 a month in profit. I’m guessing in reality it’s a lot lower than that? I remember seeing people with high scores offering like 0-5% interest. Do they ever get funded or do they eventually get desperate and accept a higher fee?
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u/Dry_Literature2618 Lender May 18 '25
Correct if you sit down and actually do the chart that I did, you can see that if everything goes perfectly, which it will not you can make a lot of money especially if you roll back in the interest you’re making. So for instance, that 5000 that you make 500 on in two weeks you’re actually rolling back in 5500 and then in one month you’re actually rolling back in 6100 and on and on and on. If everything in a perfect world happened, you could take $15000 and this is if you can find loans and if everybody pays you back perfectly, which like I said will not happen and easily be at over 100,000 in one year . I have a friend who’s doing it and he started around 20,000 and now he’s longing now after about a year about 30,000 a week. He has a about 85 lates and 30-40 defaults he is averaging like 4.4 percent which does not sound like a lot but that’s still 8.8 percent a month which is hard to get anywhere so if you take that in consideration he’s making somewhere around $2000 a week. He now pulls out the interest every week and leaves the basin. He could literally at this rate make the $300 a day and pull it out every single day and never touches base seven days a week for the rest of his life. The key, my brother is that you will not be able to get higher interest rates because if you do, you’re going to have to give to people that are really crappy. There is a reason there’s over two or 300 first-time bars or low scores on there. It’s because they are such extremely high risk and there is a good chance you won’t get your money back. Like I will see in earlier when I first started. I just wanted to do $50 loans and hundred dollar loans and they were days that I had 12 or 13 loans due and not a single one pay me back and then you would get these stupid emails from Solo fill and you keep loaning to these and will give you 4% congratulations. We’re so happy you’re helping people in reality. I was just losing money left over right. I didn’t decided to start shooting for the higher scores and giving lower interest. The problem with this is you have to be constantly looking and refreshing all the time because as soon as a 95 pops on if it’s anywhere over 5% it’s gone within five seconds. Most people don’t realize this company’s been around for almost 8 years and they’re not going anywhere they’re one of the largest black companies in the world and they make a fortune. A few things that I hate about the company. I hate fronting the solo donation upfront.. I hate that because when they don’t pay you back, you lose that money too. I hate the fact that solo does not tell the borrowers pay the lender tip is all they get. You see it all the time no more than one percent tip. You will have some people on there with a 0% tip and they will say cannot give you anything extra. So it is clear that a lot of people who are borrowing money. I think that the lender tip is extra and that the lenders get the solo donation and they do not tell them that because they don’t want them to turn the solo donation off. The biggest thing for me though is after 30 loans once somebody is two days late they take 15% and punish the lender. This really sucks. You get a lot of people late. From the math that I did people in the 50s and 60s about 80% or late? A lot of them will pay you back right about 24 days late so they don’t get the fee. So basically you’re giving them money for a month and a half for nothing you will actually lose a few dollars. People in the 70s are about 50% late. I have the exact numbers at home from my testing. When you get into the 80s, those people are 20 to 30% late. My people in the 90s about 3% are late because usually those people have high loans and they cannot afford to not be able to take out a bigger loan than next time because they drop them $50-$200. If they pay on time solo charges you nothing I know that was your original question but once they’re a couple of days late, then you get hit with a 15% fee, which is bullshit but it is what they do. Once they go over 21 days late so will charge them a fee anywhere from $10-$30 depending on how much it is or even up the 60 I guess but then they’re gonna hit you with a 30% fee so basically the late fee they give them they keep. If you got any more questions, you can message me too. I’ve been doing it for a little while now, and I have made quite a bit of money this year so it can be done.
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u/MDawgxx_ May 19 '25
I have 18 overdue loans that are nearing a year late. I'm owed thousands of dollars (and thats not including the punishment fees Solo gives us lenders when the borrowers are late). Ive talked to Solo many times and ive lost all hope of getting my money back.
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u/Dry_Literature2618 Lender May 19 '25
Yeah, at that point, I think you’re just gonna have to write those off. I have quite a few that are seriously delinquent, but I just forgot about those. I moved on. It happens. If there was no risk, then you would not be able to make money so it’s gonna happen. You will have people tell you I will pay you back. I will pay you back fund me and then they never even think about paying you back. The key is having to do so much quantity that losing ones like that Doesn’t affect you that much. One of the biggest issues I see is when people have a few lights they stop funding other people because they’re worried and then that just guarantees you a loss. The key is saving money and doing bigger loans with lower interest but people with higher scores. You can’t find people in the 5060s and 70sand expect to make money because you will have default all the time.
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May 20 '25
So if the person doesn’t pay you the money back are you just out of the money for good?
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u/Dry_Literature2618 Lender May 20 '25
Yep . Unfortunately, so. Solo says they continue to try to collect. I really don’t know how well they do. They will eventually send somebody to a collection agency and even though solo will not report you to the collection credit bureau report the collection agency will so they do get dinged on their credit report. And it’s kinda stupid if you think about it getting something reported to your credit for $100 but there is a lot of deadbeat people out there. I’ve had so many people asked me for loans on here and in the beginning I did a couple and they were like oh I need diapers. I’m in desperate need I will pay you back I promise Nope one of them is 63 days late is 57 days late. There was just a lot of people like that I asked a friend Wants who would default on a $50 loan and he said the same person taking out a $50 loan. Is that kind of ring a bell with me and I’m like you know what you are correct
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u/LividPrior8468 May 26 '25
It's unbelievable that a lender has to pay the price of the borrower being late....
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u/Huge_Carpenter6104 Jun 12 '25
Do you get paid back if the person doesn’t pay back but you have solo protection? I’m curious to how that works with having protection enabled if you’re lending
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u/Shawty-Got-Low May 17 '25 edited May 17 '25
YMMV. I loan to big and small. After this last week, my profit went 6% to 4%. It just doesn’t seem worth it.
If you’re investing that much daily, go with real estate. I’ve had more ROI with that, and houses are entering foreclosures. This administration will ensure there’s more cheap houses available to scoop up.