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Post by picanto on Dec 22, 2017 23:38:22 GMT
Would you still continue to invest money into Lendy if/when the day comes were investors lose money and Lendy can no longer claim their major selling point "No investor is yet to lose any money to date." With the update today of PBL081 selling for £1 million less than the loan value and many other loans in dangerous water of investors not receiving their full capital return, it's looking a very real possibility that some investors will lose money in the near future. When I started investing in Lendy, I was fully aware of the real possibility that I could lose some money on some loans but overall fairly confident that I will make more money than I lost so personally I will still be happy to invest if I lose some money on a small numbers of loans. However, I feel that Lendy's reputation will be so badly damaged if this happens that a lot of people will try and jump ship as soon as they can. What are your thoughts?
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fasty
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Post by fasty on Dec 22, 2017 23:42:13 GMT
IMHO, anyone expecting to invest in P2P at (say) 12% without any defaults is being incredibly naïve.
Lendy might be damaged if they fail to manage the (inevitable) defaults properly, but that's another matter.
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elliotn
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Post by elliotn on Dec 23, 2017 1:52:14 GMT
PBL056 has already returned a shortfall in capital, the remainder is being chased from the borrower as they will with PBL081 which could take year/s. There are some biggies on the horizon ie IoW, Exeter, Fife looks protracted although a seasonal miracle may happen in Gloucestershire. The loan book/IP will have value even if Ly did not continue in its current iteration. I am continuing to invest with modest, diversified, hold to term amounts.
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rocky1
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Post by rocky1 on Dec 23, 2017 6:45:28 GMT
good morning i think that any future investments should be looked at as holding to term as nothing on lendy appears to be paid on time anyway. but ithink that we should know the term end dates of each loan and have the choice to reinvest in any further tranches as it is with some other platforms.i have only just started posting on forum but please read my last three posts and help me to under stand why i no longer have trust in anything that lendy say or do. they are taking massive risks with our money and getting well paid for their incompetance. i for one will not be investing and have not invested for last two months until istart to see some of my hard earned money coming back with interest and bonus being paid.
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mary
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Post by mary on Dec 23, 2017 7:29:05 GMT
I too am now only buying loans that I think have a reasonable chance of success, and will hold to completion.
Unfortunately, this means a more concentrated portfolio and that I have passed on 95% of new issues in the last three months, here and other platforms. New loan quality had dropped substantially I think, and it seems that the previously ever rising property market has turned in the South and this usually spreads everywhere else at some point.
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webwizard
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Post by webwizard on Dec 23, 2017 7:50:45 GMT
The universal complaint on these threads is one of poor or no communication from Lendy. Furthermore, sometimes the updates are a string of neutral statements without depth and then suddenly a suspension.
The only leverage we all have as investors is to not invest if we think the information is lacking and improve our own DD. I am therefore indebted to all the members of these forums that have made effort and provided information.
If Lendy cannot sell all the loans because of investor hesitance, this might be the only force for change to drive improvement in information and communication.
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Post by skint4achange on Dec 23, 2017 9:09:19 GMT
good morning i think that any future investments should be looked at as holding to term as nothing on lendy appears to be paid on time anyway. but ithink that we should know the term end dates of each loan and have the choice to reinvest in any further tranches as it is with some other platforms.i have only just started posting on forum but please read my last three posts and help me to under stand why i no longer have trust in anything that lendy say or do. they are taking massive risks with our money and getting well paid for their incompetance. i for one will not be investing and have not invested for last two months until istart to see some of my hard earned money coming back with interest and bonus being paid. I am not sure what you mean with some of your comments?
You say that you want to know the end date of the loan? This is clearly stated in the loan particulars. It is common practice for these loans to be extended for one reason or another. If you want to insist that the date is set in stone, then you will see more of the loan book in the default area.
You also want a choice to reinvest in further tranches? Are you referring to the fact that you would like the whole loan paid out in one go to the developer without a brick being laid? Or do you mean that you would like to see your part of the loan repaid before more tranches are added?
IMHO, Lendy (And all other P2P platforms) really do not care that much if individual investors withdraw their investments. There are more than enough funds coming in now from IFISA managers to cover most loans. If you look at the investor history on the better loans there are huge chunks being swallowed up all the time. That just means they have to sell the lemons. Step up the individual investor! There are still enough gullible people on their list of investors to sell (Most) of their lemons to.
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agent69
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Post by agent69 on Dec 23, 2017 9:18:05 GMT
The universal complaint on these threads is one of poor or no communication from Lendy. I think there are more complaints over the optimistic nature of many of the asset valuations
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r1200gs
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Post by r1200gs on Dec 23, 2017 10:06:45 GMT
It is simply not possible for Lendy to continue to claim that no investor has ever lost a penny. It is only a matter of time before that claim has to be dropped.
However, what matters is the big picture. I don't pretend to be any sort of investing genius here but I understand that losses will occur and only the big picture matters. If my losses result in a net return of 10 percent instead of 12/13/14 percent then I'm a happy man and well ahead of the folk who feel their money is safe in the bank.
I cannot understand how anyone could be investing in P2P without understanding this, and yet I come across them.
Edit: I have significantly reduced my investments in Lendy and have concentrated the remains in what I consider to be very safe loans.
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Post by powertool on Dec 23, 2017 10:24:36 GMT
Short answer, yes. If there was no risk then the rates would be lower. The main risk for this platform and its investors is if property prices start to fall. But for me personally that wouldn't be bad as I don't own my own property.
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puddleduck
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Post by puddleduck on Dec 23, 2017 10:35:43 GMT
The universal complaint on these threads is one of poor or no communication from Lendy. I think there are more complaints over the optimistic nature of many of the asset valuations The bottom line is that if someone wants to borrow 750,000 then the asset is going to be 'valued' at 1m. So they keep the LTV at or below 75%... Recently a friend of mine was going through probate for a house that was willed to them - essentially to avoid the inheritance tax, it was valued 3 or 4 times until the 'right' answer was given. Long term, I think the only way to do this, is to use independant valuers who work for neither borrower or lender. You might then see a bit more reality.
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sqh
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Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
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Post by sqh on Dec 23, 2017 10:49:51 GMT
When I started investing in P2P (3yrs ago) I didn't expect to suffer big losses on property backed loans unless the property market fell. The property market hasn't fallen, but some defaults have been catastrophic. In my opinion Lendy have been naive and inexperienced, but they never professed to being experienced, so I don't hold a grudge against them. On the other hand, AC did profess to being experienced but still managed some shockers.
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Post by baronhardup on Dec 23, 2017 11:22:25 GMT
Would you still continue to invest in Lendy....
Not on your Nelly!!! There are loans on this platform that remain unredeemed even after 18 months!!
I have invested in several P2P platforms. Some have been great, most are OK, but of them all, SS / Ly have been appalling. I feel that SS had no proper Due Diligence processes and loans were made on a very speculative basis. Probably, they used some computer algo for the basis of their decisions and never met the borrower face to face or looked them in the eye!
My trust in Lendy is now zero and I am pulling my money out as and when, if ever, it becomes available.
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blata
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Post by blata on Dec 23, 2017 12:04:49 GMT
Its a hard question to answer for me I am now more active in DD for each loan.
In the few years I have invested Lendy have expanded massively , I personally think they were initially very very naive to say the least. Chasing expansion without thought to the investor. Then reality struck and a lot of behind the scenes activity has taken place. The loans now appear to be slightly better.
Up to now even accounting for losses (At worst no capital repayment) I am better off then I would have been if I had put my hard earned money in to a savings account.
Not saying it wont get worse but generally I am happy.
If people want to remove their funding that is up to them.
In the heady days you could use Lendy/Saving Stream almost like a high interest bank account and possibly that is why funders are unhappy.
I have also withdrawn a lot of funds and invest only in what I think will give me good returns, however I want to stay to the end of each loan as I do not need the capital I have invested.
Have a great Christmas and in the New Year things can only get better. (I hope)
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MONEY
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Post by MONEY on Dec 23, 2017 12:09:04 GMT
The property market hasn't fallen, but some defaults have been catastrophic. In my opinion Lendy have been naive and inexperienced, but they never professed to being experienced ... - according to Lendy's (then Saving Stream) reassuring response in March 2014, when the platform's first bridging proposal appeared.
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