adrian77
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Post by adrian77 on Sept 7, 2019 10:12:36 GMT
simple - as a general rule those under 6 months late - maybe you aren't worried by this one... the most worrying are the art loans not because I am in 8 of them but because some lenders have very large sums and I just can't see how they are going to be recovered
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littleoldlady
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Running down all platforms due to age
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Post by littleoldlady on Sept 7, 2019 10:34:25 GMT
The only loans I am not worried about are those I'm not in. Correction: even those i worry about on behalf of fellow investors.
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ashtondav
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Post by ashtondav on Sept 7, 2019 15:29:46 GMT
I divided my lending capital into 1% chunks neatly 100 loans. Sadly of course I tricked myself into all the artwork and other duplicated borrowers. 50 of the loans are paid up and the other 50? I reckon 20 might pay back something. But I don’t worry as it was 5% of my p2p and that in turn is 10% of my portfolio. Now if FC goes t1ts up, that would be a problem. And there are some very angry boys and girls on that forum trying to sell toxic 2017-2018 loans made under pressure of IPO volumes...
FS - Shocking company and shocking investment.
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09dolphin
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Post by 09dolphin on Sept 7, 2019 19:05:27 GMT
I'm sure Contrarian needs this information as Contrarian is tracking my investments. I have an "investment" of £900 in this Zombie loan and I'd like to think I will have a return of about 5%. or to put it another way I will have a loss of 95%. I look forward to Contrairians comments.
I really would like to be proved wrong
It would also be good if Contrarian details the investments he/she has. Personally I suspect Contrarian has no investments whatsoever and just enjoys making challenging comments. Come on Contrarian and prove me wrong.
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arby
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Post by arby on Sept 8, 2019 7:43:00 GMT
I'm sure Contrarian needs this information as Contrarian is tracking my investments. I have an "investment" of £900 in this Zombie loan and I'd like to think I will have a return of about 5%. or to put it another way I will have a loss of 95%. I look forward to Contrairians comments. I really would like to be proved wrong It would also be good if Contrarian details the investments he/she has. Personally I suspect Contrarian has no investments whatsoever and just enjoys making challenging comments. Come on Contrarian and prove me wrong. What would you consider as proof of their investment? If you're asking for that, are you also willing to say how much you invested, how much has been returned already and from the outstanding, what your assumed return is to help give a picture of your final result?
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hendragon
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Post by hendragon on Sept 10, 2019 15:51:54 GMT
On the 13/8 FS stated that their solicitors were chasing for the July payment. I woder if they managed to catch the repayment or have run out of puff?
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Post by mrclondon on Sept 10, 2019 16:23:02 GMT
I think a little bit more patience may be rewarded ....
The hotel reopened on 24th August at between £100 & £200 pn depending on room size and sea views etc., and has attracted very positive reviews in the 2 weeks since. (Links on DDC for those with access).
There are no charges at all against the new company(s) operating the hotel, so they are probably funding everythng from savings etc. and hence cash flow to fund the stage payments agreed with FS will have been non existent until very recently.
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hendragon
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Post by hendragon on Sept 10, 2019 17:44:59 GMT
nice update mrclondon. Perhaps you might consider working for FS to improve the quality of their update
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rocky1
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Post by rocky1 on Sept 10, 2019 18:12:46 GMT
agree with above but can mrclondon speak english and hindi and i think his salary would have to be sorted out.keep up the good work you really must be a thorn in the side of these p2p platforms.
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adrian77
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Post by adrian77 on Sept 10, 2019 20:02:34 GMT
Glad to see the hotel has re-opened but how many hotels make money in their first 3 years of trading (genuine question) ? So the new buyer has got the hotel up and running without paying for all of it - well he clearly is not stupid! He seems to be running a very efficient operation I would guess opening an hotel is very expensive - new carpets, kitchen equipment, staff etc as mentioned the Edward features (including wi-fi!) have been restored so where does that leave the delayed July payment...interesting as I have no idea how this one is going to end up!
Looks to me that if this chap makes a go of this one (and I hope he does) then he purchased the hotel for a song.
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adrian77
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Post by adrian77 on Sept 18, 2019 19:33:38 GMT
well it looks like July payment has been further delayed as the lender is short of funds and looking to borrow via a SPV - so it may be September or later before the next repayment. Well I am sure that would please lenders in this loan! I am not convinced the chap needs to set-up a SVP to refinance but what happens if he can't get refinance? I guess FS would re-sell the hotel which may be good news as the lender has invested in it? On the plus side for an hotel which is up and running and seems to have been bought for a bargain bucket price I would hope refinance should not be too difficult. Interesting one!
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adrian77
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Post by adrian77 on Sept 20, 2019 14:08:21 GMT
As part of my mega 40 - I have had another look at this one. I think I am right in thinking this one had a first charge of £420K and a second charge of £100K which went for a Burton. I would be grateful if somebody could validate my logic as I try to be fair.
I am not saying FS have done the wrong thing here (as if!) as they did actually get shot of it but it looks to me as if this lender has only repaid £41,388.91 + £15,999.89 + £15,999.79 + 9,465.92 = £82,854.51 since March 2019. Given the realised sale price was £358,213 then this chap still owes FS £358,213-£82,855 = £275,358 or to put another way have FS given him a free loan for over a quarter of a million? Wish FS would do the same for me.
This looks a substantial property and as I said before I really do wonder if the receivers got the best price for it - maybe the valuation was too high at £700K but £358K does seem cheap to me? Granted I don't know the area nor the original condition but most FS valuations are highly accurate!
However what interests me is 1) how much did the renovation cost ? 2) how was this funded i.e. cash or borrowing? 3) what is the current value of the property? - Surely closer to or higher than the £700K original valuation? I note there is ground rent of not much under £19K which I think will reduce the end value (property is a long leasehold)
If any renovation plus FS loan is under 75% of the end valuation then hopefully refinance will not be a problem and I will give this chap 10/10 for business acumen as he has bought a cheap hotel and (if my logic is correct) he has been helped with a free FS loan! I can understand why he is going for a SPV. But what happens if refinancing is not forthcoming - well our legal friends would love that as I guess this will be a complicated one to sort-out as the buyer will not want to lose the added value to the property! Or maybe FS would recover some of this added-value and the final recovery will be a lot better than originally envisaged. Interesting one to follow as I have no idea how this one is going to end-up - I thank you.
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bugs4me
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Post by bugs4me on Sept 20, 2019 15:01:22 GMT
As part of my mega 40 - I have had another look at this one. I think I am right in thinking this one had a first charge of £420K and a second charge of £100K which went for a Burton. I would be grateful if somebody could validate my logic as I try to be fair. I am not saying FS have done the wrong thing here (as if!) as they did actually get shot of it but it looks to me as if this lender has only repaid £41,388.91 + £15,999.89 + £15,999.79 + £9,465.92 = £82,854.51 since March 2019. Given the realised sale price was £358,213 then this chap still owes FS £358,213-£82,855 = £275,358 or to put another way have FS given him a free loan for over a quarter of a million? Wish FS would do the same for me. This looks a substantial property and as I said before I really do wonder if the receivers got the best price for it - maybe the valuation was too high at £700K but £358K does seem cheap to me? Granted I don't know the area nor the original condition but most FS valuations are highly accurate! However what interests me is 1) how much did the renovation cost ? 2) how was this funded i.e. cash or borrowing? 3) what is the current value of the property? - Surely closer to or higher than the £700K original valuation? I note there is ground rent of not much under £19K which I think will reduce the end value (property is a long leasehold) If any renovation plus FS loan is under 75% of the end valuation then hopefully refinance will not be a problem and I will give this chap 10/10 for business acumen as he has bought a cheap hotel and (if my logic is correct) he has been helped with a free FS loan! I can understand why he is going for a SPV. But what happens if refinancing is not forthcoming - well our legal friends would love that as I guess this will be a complicated one to sort-out as the buyer will not want to lose the added value to the property! Or maybe FS would recover some of this added-value and the final recovery will be a lot better than originally envisaged. Interesting one to follow as I have no idea how this one is going to end-up - I thank you. Your summary is largely accurate but this one really is the shaggy dog in the P2P world. Apart from the initial valuation with vacate possession being 700k there was an update for the second charge - since defaulted - 100% loss - that the property on the 10th June 2016 had been revalued at £1.1m!!
Update 10th Sept 2018 - The most recent interested party has now provided proof of funds and confirmed intention to exchange, within 7-10 days, with a deposit payable, followed by completion within 30 days - (my bold) who I assume is the current occupier.
Whilst I'm inclined to post all the FS updates regarding this loan is tempting, they are far too numerous and no doubt would breach forum rules. This is frankly a classic case of inaction on the part of the platform - a loan totally mismanaged and absolute proof in my eyes that repayment by the borrower, any borrower is optional. When there is a failure to repay then let's kick the can down the road as there's always tomorrow.
This is my final zombie loan with FS and any further funds received will be a bonus. Mentally I've written it off along with the management and staff at FS - they are not fit for purpose in my view.
Edit - '....or to put another way have FS given him a free loan for over a quarter of a million? Wish FS would do the same for me....'
Apologies if this comes across as semantics but it's the lenders who FS have arbitrarily decided will fund the free loan that's hoping or assuming it will ever be paid. Now if it was FS doing the loan from their own funds well.....
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adrian77
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Post by adrian77 on Sept 20, 2019 16:25:05 GMT
fair point : I should have said FS have given him a free loan with OUR money. I did not realise this one is not that far off being 4 years late!
I am bracing myself for "there has been a delay - hopefully in 2020 - blah blah" The hotel does not have 100% occupancy at the moment as there are several available rooms - not sure what the cash burn is for new hotels and I hate to think ! OK this hotel may be busy for the next 3 months or so but what is going to happen when we hit early 2020?
Also if this chap has any personal wealth then by setting up a SPV he will keep it regardless of how this one goes...as would most of us I would be interested to hear from anybody who has stayed here.
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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 15, 2019 11:25:30 GMT
Not read this full thread, too busy, so apologies if my comment is out of whack.
Why do I get the distinct impression that whilst setting up an SPV will be (allegedly) beneficial and financially advantageous to the Borrower, it will additionally prove beneficial and financially advantageous to FS, and that in due course Lenders will discover to their cost that this "engineering" has been hugely non-beneficial and financially disadvantageous to us.
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