keitha
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2024, hopefully the year I get out of P2P
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Post by keitha on Oct 10, 2019 11:54:15 GMT
Best way to finish to high Spec, several hundred pounds of dynamite, a bulldozer and lots of tipper trucks, then build a proper house.
mind you I once worked on a project where 2 weeks after foundations laid, Architect and woman who commissioned the building turned up on site with new set of plans that moved most external walls and every internal wall, and neither could understand why the cost would be going up.
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adrian77
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Post by adrian77 on Oct 10, 2019 12:20:18 GMT
yep blow it up - should be good fun and good for the local environment! There is now another Daily Mail etc update which I have pasted in DD - bunker
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adrian77
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Post by adrian77 on Oct 10, 2019 12:26:00 GMT
well I hope the chap who floated FC and walked away with £16m is proud to look back on how his company threw money at a hair-brained scheme (which those of us in this business said would be a disaster) and has left a lovely wife and 2 daughters very distressed if not homeless.
Do I think FS are bothered - answers on a digital postcard...
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tjtl
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Post by tjtl on Oct 10, 2019 12:40:56 GMT
well I hope the chap who floated FC and walked away with £16m is proud to look back on how his company threw money at a hair-brained scheme (which those of us in this business said would be a disaster) and has left a lovely wife and 2 daughters very distressed if not homeless. Do I think FS are bothered - answers on a digital postcard... Adrian's post is spot on. Spiv banking damages both the lenders (so all of those who were lending to this absurdity) and the borrowers (the family, including the Father who may have been hair-brained, may have had a face lift, but has seen his life destroyed by this)- the only people who came out of this ahead were the then owners of FC who could use this loan as a further sign of their "entrepreneurial spirit" to get an incredible valuation on the dog of an IPO. I saw the programme last night, and apart from feeling a slight discomfort at the "entertainment value" of watching a family's personal tragedy it did just re-emphasise that FC cannot have done any basic due diligence. When it comes to those they lend to, or those whose cash they use, They.Just.Don't.Care.
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Post by takeshi on Oct 10, 2019 13:03:29 GMT
I just watched the programme which I recorded. Interestingly at the end of the programme (recorded Sept this year) he said another funder was on the scene who wanted to get it finished to a high spec. Does anybody know if that funding materialised or not? My guess is there's no new funder - just another delusion, example of over optimism. Even if you were to find an eccentric billionaire who likes lighthouses - the obvious move is to pick the site up for a pittance after bankruptcy proceedings - NOT write a cheque for the current developer.
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adrian77
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Post by adrian77 on Oct 10, 2019 16:36:38 GMT
absolutely - also, as I said, I don't think FC actually gave we investors a true picture as to what was the situation. I have absolutely no memory whatsoever of this other development nor the private investors. I guess this is all irrelevant now as it is over to the black box?
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baboonery
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Post by baboonery on Oct 10, 2019 17:40:29 GMT
Agree about the other development but, whilst watching the programme, I had assumed that he was using the term ‘private investors’ to refer to the FC p2p lenders. In hindsight, however, I acknowledge that I did not follow the timeline too closely and am very happy to be corrected! Edit: Apologies, my fat fingered reply managed to delete the quote from adrian77 I was referring to reading “I have absolutely no memory whatsoever of this other development nor the private investors.”
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adrian77
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Post by adrian77 on Oct 10, 2019 18:58:49 GMT
I don't think it did - there is another LLP which may have been used to fund this and the other house - it is not clear to me. I think the programme glided over p2p although it did mention higher interest charges. Being in this business and having personal experience of 2 of the properties in this series I think the costs given are frequently a joke but to be fair to the producers they have shown one where things have gone horribly wrong - believe me property development is a very tough game and I think such programmes such as "Homes under the Hammer" give a false impression. As I said sorry for the family.
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keitha
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Post by keitha on Oct 10, 2019 20:45:45 GMT
I don't think it did - there is another LLP which may have been used to fund this and the other house - it is not clear to me. I think the programme glided over p2p although it did mention higher interest charges. Being in this business and having personal experience of 2 of the properties in this series I think the costs given are frequently a joke but to be fair to the producers they have shown one where things have gone horribly wrong - believe me property development is a very tough game and I think such programmes such as "Homes under the Hammer" give a false impression. As I said sorry for the family. Funny you should mention Homes under the hammer, 3 years ago I started attending lots of property auctions in this area. for Homes filming people got dressed up, I saw people bidding on property they had no intention of winning, and one stupid <removed> whose partner usually kept her in check once bought 3 properties one evening at about 80K each when his normal budget was about £40K because cameras were on her, We never saw her again and the properties came back in next auction and sold for about £30K. People get carried away with this program and it never makes it clear that you will pay taxes solicitors etc if you sell it's not all profit as they make out.
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upperdeane
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Post by upperdeane on Oct 11, 2019 9:13:26 GMT
I've read the recent comments and am still not clear about the source of funding. Does anybody know how much FC loaned him for this project?
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adrian77
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Post by adrian77 on Oct 11, 2019 10:05:44 GMT
From memory it was about £2.4m? As I said there seems to have private funding which went to the other adjacent house and I think towards this one as well - the plan was to sell the other house at a huge profit to go towards the mega one but that went for a Burton. I recall he said in the programme he was £4m in debt - well if we take interest at 10% (generous) that is over £1K per day... how FC can claim 40% recovery is beyond me - if anybody does buy this one they are likely to make an extremely low offer as not only is there masses of work to do but also it is clearly a distressed sale.
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upperdeane
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Post by upperdeane on Oct 11, 2019 14:30:45 GMT
From memory it was about £2.4m? As I said there seems to have private funding which went to the other adjacent house and I think towards this one as well - the plan was to sell the other house at a huge profit to go towards the mega one but that went for a Burton. I recall he said in the programme he was £4m in debt - well if we take interest at 10% (generous) that is over £1K per day... how FC can claim 40% recovery is beyond me - if anybody does buy this one they are likely to make an extremely low offer as not only is there masses of work to do but also it is clearly a distressed sale. Thanks for the info. It will be interesting to see how it turns out at some point in the future.
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easylender
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Post by easylender on Oct 12, 2019 8:27:51 GMT
I had the chance to fund this when it came up on Funding Circle several years ago. I chose not to because (a) it was pig ugly and (b) there was no convincing exit strategy. It's nice to get some decisions right. Paying attention to the exit strategy has saved me from some of the most notorious loans in P2P today.
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r1200gs
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Post by r1200gs on Oct 12, 2019 10:33:53 GMT
This is currently making news on the home page of Yahoo!
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Post by dan1 on Oct 12, 2019 10:52:11 GMT
This is currently making news on the home page of Yahoo! I've seen this property in the news recently but hadn't linked it to this loan so, thank you! Tbh I barely pay attention to this thread.
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