nyneil
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Post by nyneil on Oct 12, 2018 20:08:35 GMT
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bod
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Post by bod on Oct 12, 2018 20:25:38 GMT
Agree. Great result
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Post by MoneyThing on Oct 12, 2018 20:48:01 GMT
Hi MoneyThing On the initial recovery statement, please can you advise what is covered in the line 'contribution to costs'? Evening ptr120, You will note costs with respect to Bailey Partnership & Sub-Contractors for works which were carried out on behalf of the purchasers. This cost was recharged to the purchasers which forms the 'contribution to costs'. Regards, Ed
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dovap
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Post by dovap on Oct 12, 2018 22:27:06 GMT
aye one of the best losses so far high five
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Post by queenvictoria on Oct 13, 2018 6:39:46 GMT
Well done Sophie, Ed et al. Except for Plym and Boll, which we know will take quite some time longer, and the scraps left over from ones like this that have a small % of recovery still to work through it does look like the default slate is heading towards being pretty clean.
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SteveT
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Post by SteveT on Oct 13, 2018 8:58:58 GMT
Well done Sophie, Ed et al. Except for Plym and Boll, which we know will take quite some time longer, and the scraps left over from ones like this that have a small % of recovery still to work through it does look like the default slate is heading towards being pretty clean. Yup, well done MoneyThing, one of the better (and swifter) initial loan recoveries so far. Continued focus on recovering the remaining capital and, critically, the outstanding accrued interest from Defaulted loans will have a substantial effect on total MT platform returns. My total "Outstanding Interest" (from the "My Repaid Loans" page) is now well into 4 figures and now slightly exceeds my outstanding capital.
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GeorgeT
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Post by GeorgeT on Oct 13, 2018 12:05:21 GMT
A high risk loan paying a mighty 12% defaulted.
There was an almost unbelievable,over 96%, capital recovery.
Accrued outstanding interest on top?!
Would you like a cherry on your interest and a balloon as well 😐
I do think that in the case of loans that have defaulted investors should adopt realistic expectations. To me, an outcome where you get more than 75% of your capital back is a very good result in itself. 50% to 75% I would regard as par for the course.
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withnell
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Post by withnell on Oct 13, 2018 12:12:24 GMT
A high risk loan paying a mighty 12% defaulted. There was an almost unbelievable,over 96%, capital recovery. Accrued outstanding interest on top?! Would you like a cherry on your interest and a balloon as well 😐 I do think that in the case of loans that have defaulted investors should adopt realistic expectations. To me, an outcome where you get more than 75% of your capital back is a very good result in itself. 50% to 75% I would regard as par for the course. If I was lending 100% asset value, then yes I'd be happy with 70% capital recovery - but I lend on a valuation of c.60-70% of asset value, so a 60-70% asset recovery results in 100% capital recovery for me
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Oct 13, 2018 12:25:45 GMT
Thanks for your warm encouragement of the Valuations LTV ConScam GeorgeT. With wise words like yours it cannot but happily continue unabated.
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hazellend
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Post by hazellend on Oct 13, 2018 13:29:30 GMT
Thanks for your warm encouragement of the Valuations LTV ConScam GeorgeT. With wise words like yours it cannot but happily continue unabated. There is a difference between a sale at below market value and a false valuation
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Oct 13, 2018 13:42:56 GMT
I was, of course, speaking about haircuts in general, not referring to this particular loan. And I wasn't aware of the difference, thank you hazellend.
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carolus
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Post by carolus on Oct 13, 2018 14:21:05 GMT
A high risk loan paying a mighty 12% defaulted. There was an almost unbelievable,over 96%, capital recovery. Accrued outstanding interest on top?! Would you like a cherry on your interest and a balloon as well 😐 I do think that in the case of loans that have defaulted investors should adopt realistic expectations. To me, an outcome where you get more than 75% of your capital back is a very good result in itself. 50% to 75% I would regard as par for the course. If I was lending 100% asset value, then yes I'd be happy with 70% capital recovery - but I lend on a valuation of c.60-70% of asset value, so a 60-70% asset recovery results in 100% capital recovery for me So did you believe this to be risk free?
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GeorgeT
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Post by GeorgeT on Oct 13, 2018 17:28:11 GMT
To expect a 100% capital recovery in the event of default must be akin to lending your money on the belief that you are not entering into a high risk contract. Does this not pose the question as to why you would be offered 12% interest if you weren't putting your capital at quite significant risk.
If I had been an investor in this particular loan, which unfortunately I was not, then today I would be dancing around my house in celebration at having got a 96% recovery on my capital in addition to the 12% interest I earned up until the time the loan defaulted.
This whole issue of valuation and loan to value ratio is all a bit of a red herring because every single time a loan defaults and the asset has to be sold, it is a completely different asset to the one that was valued at some point in the past (sometimes on a future hypothetical basis) - for all sorts of reasons.
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Carter
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Post by Carter on Oct 13, 2018 17:49:52 GMT
I can't recall coming across someone who considered it a misfortune not to be in a defaulted loan before. It takes allsorts I guess.
But seriously, the recovery was good but all reasonable efforts should be made to reclaim all monies owed and I'll be interested to see how much progress can be made on this loan and the hotel loan too.
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madpierre
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Post by madpierre on Oct 13, 2018 17:56:35 GMT
This whole issue of valuation and loan to value ratio is all a bit of a red herring because every single time a loan defaults and the asset has to be sold, it is a completely different asset to the one that was valued at some point in the past (sometimes on a future hypothetical basis) - for all sorts of reasons. And that is precisely how an asset should be valued, because that's what it's worth in case of default. Unfortunately the initial premise appears to be "value as if all will go to plan"
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