--- title: Top 3 Peer-to-Peer Lending Tips Prime Meridian’s Don Davis Shared with The Lending Mag description: "The Lending Mag recently interviewed  30 experts in the peer-to-peer lending space to give their top three investing tips.  Prime Meridian’s Don Davis, one of the experts interviewed, shared his thoughts  to the question: “If you could only give a novice peer-to-peer lender 3 tips for successful investing, what 3 tips would you give?”  Do ... Read More" --- [![Prime Meridian Capital Management](https://www.pmifunds.com/hubfs/Branding/pmifunds-logo.svg)](https://www.pmifunds.com/) [![Prime Meridian Capital Management](https://www.pmifunds.com/hubfs/Branding/pmifunds-white-logo.svg)](https://www.pmifunds.com/) - About Us - [About Us](https://www.pmifunds.com/about) - [Recognition & Awards](https://www.pmifunds.com/awards-recognition) - [Team](https://www.pmifunds.com/team) - Our Strategies - [Investment Strategies](https://www.pmifunds.com/strategies) - [Special Opportunities Fund](https://www.pmifunds.com/special-opportunities-fund) - [Income Fund](https://www.pmifunds.com/income-fund) - [Non-Performing Loan Fund](https://www.pmifunds.com/npl-fund) - Insights - [Insights](https://www.pmifunds.com/insights) - [Events](https://www.pmifunds.com/events) - [Videos & Podcasts](https://www.pmifunds.com/video-podcast-resources) - [Contact Us](https://www.pmifunds.com/contact) [Contact Us](https://www.pmifunds.com/contact) # Top 3 Peer-to-Peer Lending Tips Prime Meridian’s Don Davis Shared with The Lending Mag March 6, 2015 The Lending Mag recently interviewed  30 experts in the peer-to-peer lending space to give their top three investing tips.  Prime Meridian’s Don Davis, one of the experts interviewed, shared his thoughts  to the question: ##### **“If you could only give a novice peer-to-peer lender 3 tips for successful investing, what 3 tips would you give?”** 1.  Do your homework. Not all platforms are alike, and not all credit grades are alike. An A rated loan is not necessarily better than a B or C rated loan, and an A rated loan on one platform is not necessarily the same as an A rated loan on another platform. Thoroughly research the data and understand what you are investing in. 2. Diversify and Reinvest. Invest in hundreds or more loans of various grades, and reinvest the cash flow. In the 70s, watching your bank account grow with compound interest was amazing. Today watching you bank account grow with compound interest is like walking the streets looking for pennies. It just doesn’t add up. With P2P lending, however, it does. 3. Consider a fund. If you are accredited, consider a professionally managed fund with an established track record managed by a team that has experience managing money through multiple cycles. A fund has many advantages including instant diversification in a large pool of loans, possibly with older higher interest rate vintages. A fund may also provide greater access and liquidity, and save you a ton of time vs managing the entire process on your own. After all, time is money. To read the full article and other’s tips, visit [thelendingmag.com](http://thelendingmag.com/peer-to-peer-lending/) [Return to Insights](https://www.pmifunds.com/insights/) ## Subscribe today to receive our latest News & Insights! Receive our latest stories delivered monthly directly to your inbox. [Subscribe](https://www.pmifunds.com/insights/top-3-peer-peer-lending-tips-don-davis-shared-tlm#popup-00) ## Subscribe Now **Please fill in the required fields below.** ![Prime Meridian Capital Management](https://www.pmifunds.com/hubfs/branding/pmifunds-gray-logo.svg) 2121 N. California Blvd, Walnut Creek, CA 94596 - [About Us](https://www.pmifunds.com/about) - [Our Team](https://www.pmifunds.com/team) - [Recognition & Awards](https://www.pmifunds.com/awards-recognition) - [Investment Strategies](https://www.pmifunds.com/strategies) - [Income Strategy](https://www.pmifunds.com/income-fund) - [Special Opportunities Fund](https://www.pmifunds.com/special-opportunities-fund) - [Non-Performing Loan](https://www.pmifunds.com/npl-fund) - [Insights](https://www.pmifunds.com/blog) - [Press Releases](https://www.pmifunds.com/blog) - [Contact Us](https://www.pmifunds.com/contact) © 2026 Prime Meridian Capital Management - [Privacy Policy](https://www.pmifunds.com/hubfs/Resources/pmcm-privacy-policy.pdf) - [Japan Regulatory Disclosures](https://www.pmifunds.com/japan-regulatory-disclosures) This material is being provided for information and discussion purposes only and any discussion of any funds is qualified in its entirety by the information included in the confidential offering documents and supplements (collectively, the “Memorandum”) of Prime Meridian Income Fund, LP, Prime Meridian Special Opportunities Fund, LP, and Prime Meridian NPL, LLC (the “Funds”) described herein, and is not intended to be, nor should it be construed or used as investment, tax or legal advice or an offer to sell, or a solicitation of an offer to buy, an interest in the funds, or any other security. Any offer or solicitation of an investment in the funds may be made only by delivery of the Memorandum. Before making any investment in the funds, you should thoroughly review the Memorandum with your professional advisor(s) to determine whether an investment in a Fund is suitable for you in light of your investment objectives and financial situation. The Memorandum contains important information concerning risk factors, including a more comprehensive description of the risks and other material aspects of an investment in the funds, and should be read carefully before any decision to invest is made. The funds are only open to investors fitting the definition of an “accredited investor” as that term is defined under Rule 501 of Regulation D of The Securities Act of 1933. An investment in the funds, like all investments, contains risk including the risk of total loss, and may not be appropriate for all investors. Any performance information shown on this website is presented net of all expenses, including management fees, performance fees and other expenses including portfolio-related expenses. Returns assume the reinvestment of all capital (including distributions where applicable) on a monthly basis. The performance data represents composite fund returns, and individual investor returns may vary higher or lower from the composite return due to timing of an investment and actual fees being charged. Past performance is not indicative of future returns. Any awards or other rankings listed on this site are not indicative of future performance.  These awards or any other rankings and/or recognition by unaffiliated rating services and/or publications should not be construed as a guarantee that an investor should or will experience a certain level of results or satisfaction if they invest with Firm, nor should it be construed as a current or past endorsement by any of our investors. Firm did not pay a fee to participate in these awards or ranking surveys. In addition, any projections contained on this website (including targeted returns, opinions, estimated fees, predictions or expectations about any future event) are based on a variety of estimates and assumptions by Prime Meridian Capital Management, including, among others, estimates and assumptions regarding future operating results, the value of assets and market conditions at the time of investment and disposition, interest rates, and other realization events. Performance estimates and underlying assumptions are inherently uncertain and are subject to numerous business, industry, market, regulatory, geo-political, competitive and financial risks that are outside PMCM’s control. There can be no assurance that the assumptions made in connection with any projections will prove accurate, and actual results may differ materially, including the possibility that an investor may lose some or all of any invested capital. ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Prime Meridian Team", "url" : "https://www.pmifunds.com/insights/author/prime-meridian-team" }, "dateModified" : "2024-07-19T18:26:58.353Z", "datePublished" : "2015-03-06T05:00:00.000Z", "headline" : "Top 3 Peer-to-Peer Lending Tips Prime Meridian’s Don Davis Shared with The Lending Mag", "mainEntityOfPage" : { "@id" : "https://www.pmifunds.com/insights/top-3-peer-peer-lending-tips-don-davis-shared-tlm", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://www.pmifunds.com/hubfs/Branding/pmifunds-logo.svg" }, "name" : "Prime Meridian Capital Management" } } ```