The peer-to-peer marketplace involves the act of lending money to other people (or businesses) in exchange for receiving interest on your money. Basically, you’re acting as a bank and giving out a loan on which you are back paid back your principal (original amount) plus interest by the borrower.
Also, you’ve probably heard your friends or colleagues chatter about peer-to-peer lending sites (like Lending Club) or real estate crowdfunding sites (like Fundrise).
Here’s my take on these sites, including their EXACT pros and cons from a cash flow and tax perspective.
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