huxs
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Post by huxs on Nov 30, 2018 10:12:51 GMT
So this mornings 325K loan gets swallowed up within 2mins (or maybe less) by 38 lenders, leaving I am guessing a lot of lenders missing out. Can you start putting bid limits on loans otherwise my diversification of loans ends up being skewed towards the less popular loans as the popular ones are swallowed up too quickly.
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alibaba
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Post by alibaba on Nov 30, 2018 10:24:26 GMT
+1
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Post by CrowdProperty Representative on Nov 30, 2018 12:11:49 GMT
Hi both,
Thanks for getting in touch.
Our project this morning was a loan amount of £325K which raised in 2 minutes 24 seconds. We appreciate this is a quick raise. However we must be careful not to equate project ‘popularity’ with speed of raise.
This loan is towards the smaller end of the spectrum of projects we offer, and will naturally fund faster as less money needs to be raised. Every project launched on our platform must pass the same rigorous due diligence checks, meet the same exacting standards in accordance with our terms and must be approved by our board of directors, who are all property experts. All meet the same objective standards and thus are all offered at 8%. Therefore, speed of raise will be dependent on a number of different factors (and often this will be related to loan amount).
We have launched 4 projects this month – 50% of these have taken over 24 hours to fund, giving our lenders opportunity to invest and diversify.
Currently we do not have a plan to introduce a maximum pledge amount; this would be very rare for the sector. Our reason for this is we have worked incredibly hard on loan origination in recent months. We have a strong pipeline of projects leading up to the end of the year, and taking us into Q1 of 2019. By increasing origination and offering different loan amounts, types and terms, we are giving lenders ample opportunity to invest and diversify within CrowdProperty.
It may also be worth mentioning we are constantly working on developing new lender products. Our focus currently on that’s side of the business is to develop a CrowdProperty AutoInvest tool, which we will have more information about in future and hope to introduce in 2019. This would automatically diversify funds, and therefore hopefully addresses part of the issue you have raised.
We very much appreciate your feedback, and always aim to be as fair and transparent as possible. We will continue to monitor the situation.
Many Thanks,
Sarah
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jj
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Post by jj on Nov 30, 2018 16:54:30 GMT
I think a point has been missed here.
A lender has done their own DD, they have spent time watching the webinar, etc. Then they miss out due to some superior bot. Hard to take I reckon.
I can't see why a ridiculous limit of say 10% i.e. £32,500 for an hour can not help more people get a share. Your harder to fill loans will not be affected.
P.s. Not interest & never will be interest in "AutoInvest".
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djg
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Post by djg on Dec 2, 2018 19:13:08 GMT
Well, I've yet to invest with CrowdProperty, but I have to say I'm not in favour of bid limits. Being heavily invested in P2P secured loans, I'm not interested in lending small amounts. If I miss out when applying for a particular loan, so be it, I'll wait for the next opportunity. If that means I never do get to invest with CrowdProperty, so be it, again.
But since there do seem to be too many lenders chasing too few loans, wouldn't a better way of restoring the balance be to reduce interest rates for lower risk loans? These are the ones that I, and presumably a lot of other people, go for. There aren't enough of them around, in my opinion, so I'd like to see lower rates to encourage the flow of low-risk borrowers. All of my current loans are low risk and most are earning less than 8%, and I'm happy with that.
But anyway, I'm pleased to hear that there's a strong pipeline of new loans on the way. And, like jj, I'm not interested in auto-invest.
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Post by CrowdProperty Representative on Dec 4, 2018 14:43:17 GMT
Thanks for your comments jj and djg, We appreciate the feedback and are always working to improve. As mentioned, currently we do not have plans to introduce a 'bid limit'. It's on our consideration list, however, alternatively to combat the problem we're working tirelessly on origination to ensure projects are being launched more frequently, and a range of types, terms and loan amounts are offered. We're launching a project tomorrow (04/12/18) at 10am - information for this project is already available. Our webinar as usual is at 7pm this evening, and a shortened version of the webinar will be added to the project page tomorrow morning. You can find a link to this project here: www.crowdproperty.com/projects/610-st-lawrence-care-home-crediton. With regards to offering different lender rates, it's important to mention again that all projects launched on our platform are first charge secured. Our rates for borrowers are extremely competitive and we provide an excellent service, meaning we attract high-quality projects whilst ensuring our borrowers come back to us time and again. Therefore, on the CrowdProperty platform, you'll always see projects with First Charge Security and a highly competitive 8% per annum interest. Many Thanks, Sarah
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huxs
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Post by huxs on Dec 11, 2018 10:09:02 GMT
Grrrr, yet again low LTV and goes before my browser can refresh.
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Post by CrowdProperty Representative on Dec 11, 2018 11:37:27 GMT
Hi huxs,
Sorry to hear you missed out on the loan this morning. We appreciate the frustration this causes and we are working tirelessly on our loan origination to create a strong pipeline of projects for lenders to invest.
Our project this morning was a loan amount of £265K, the loan fully funded in 1 minute 38 with 41 lenders. We are launching another project on Friday (14/12/18) and a project next Thursday (20/12/18). This is for a greater loan amount and we therefore expect this to take longer to fund, hopefully allowing for more lenders to successfully invest.
We appreciate your concern, and that this may cause difficulty for some lenders, however as mentioned previously, we have a strong pipeline of projects in the coming months and are therefore hopeful increased investment opportunity will resolve the issue.
As always, we appreciate the feedback and apologise for the frustration caused.
Kind regards,
Lucy
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jonno
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Post by jonno on Dec 11, 2018 14:15:39 GMT
Hi huxs, Sorry to hear you missed out on the loan this morning. We appreciate the frustration this causes and we are working tirelessly on our loan origination to create a strong pipeline of projects for lenders to invest. Our project this morning was a loan amount of £265K, the loan fully funded in 1 minute 38 with 41 lenders. We are launching another project on Friday (14/12/18) and a project next Thursday (20/12/18). This is for a greater loan amount and we therefore expect this to take longer to fund, hopefully allowing for more lenders to successfully invest. We appreciate your concern, and that this may cause difficulty for some lenders, however as mentioned previously, we have a strong pipeline of projects in the coming months and are therefore hopeful increased investment opportunity will resolve the issue. As always, we appreciate the feedback and apologise for the frustration caused. Kind regards, Lucy Sorry Lucy, but you're missing the point here. Increased loan origination is good but does not adequately address this issue. You assume that the chance to invest in all your offerings is all important so the more you offer the better. But not all your offers are the same (even though they pay the same rate) and it is the inability to invest in your lower LTV loans that is becoming increasingly frustrating. A realistic (NOT LOW) investment limit would significantly help to keep more of your investors on board. You may need these investors down the line.
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littleoldlady
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Post by littleoldlady on Dec 11, 2018 15:11:54 GMT
Maybe you should change your name from Crowdproperty to Botproperty.
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Post by CrowdProperty Representative on Dec 11, 2018 16:40:26 GMT
Hi huxs, jonno and littleoldlady,
Just to reiterate, we see this as a problem and take it very seriously. We do not want our platform to be a battle akin to buying Ed Sheeran tickets. We're proud of delivering good product and are working to balance the marketplace such that those who wish to participate can and don't need to be online at 10am on launch days in order to do so. Releasing project information ahead of the project launch (which is very important) has meant that interested people do login to the platform at 10am, which is exaggerating the speed of funding.
On this project, a bid limit of say 10% of the project amount (which is mentioned in this thread) would have suppressed just 1 of the pledges this morning, actually not releasing that much extra capacity for others. There were many disappointed people, which we clearly do not like and bid limits will not solve this.
More projects enable broader diversification, typically resulting in lower pledge amounts per project and therefore more capacity. This is the dominant strategy of lenders on the platform, although we do see that some of the many metrics that indicate a good project do drive increased interest... and our lenders have the right to pledge what they like to projects they like and it is first come first served. We feel that this is fair. We theoretically could have reduced the return offered on this one but insist that we pass on the maximum we can to lenders.
Please bear with us as we bring more expertly due-diligenced projects to the platform - part of the constraint here is our exacting standards that result in just 10-15% of applications making it onto the platform... and we won't change our criteria. All projects are high quality by our high standards and all are first charge secured.
Mike Bristow CEO & Co-Founder
PS - In terms of bots, we've built numerous mechanisms in our tech to ensure that real people are pledging... it's just that those people are online at 10am and pledge quickly (it's 3 clicks to pledge).
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littleoldlady
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Post by littleoldlady on Dec 11, 2018 17:30:26 GMT
How about giving some priority to lenders who have transferred in ISA cash waiting to be invested? Unlike others, they have no choice but to see the cash lying idle indefinitely.
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jcb208
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Post by jcb208 on Dec 11, 2018 20:05:57 GMT
I am also not able to be at a computer at 10.00am when projects are launched I get very few except the large ones .I like to diversify across all loans, but the good ones go in minutes ,got used to it now and move on else where
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Post by CrowdProperty Representative on Dec 12, 2018 8:20:17 GMT
Hi jcb208
We recognise that for some 10am is a problem and there will be challenges whichever consistent time we go with. These aren't solutions for everyone but the pledge process from a smartphone is similarly straightforward and as previously mentioned, we are working on autoinvest functionality.
It is also worth me mentioning that the pipeline for January, from the week commencing 7th January, is very strong - the fruit from our hard work on the origination side will start to become more evident then, so please bear with us as we bring more of our great product to you as quickly as possible.
Kind regards,
Lucy
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elliotn
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Post by elliotn on Dec 12, 2018 12:04:16 GMT
How about giving some priority to lenders who have transferred in ISA cash waiting to be invested? Unlike others, they have no choice but to see the cash lying idle indefinitely. Could be discriminatory against tax payers with cash waiting to be invested (who if fully invested elsewhere may face similar choice restrictions). Non-tax payers presumably have a choice to switch platforms to avoid having cash lay idle forever.
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