Nomad
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Post by Nomad on Dec 31, 2019 18:42:45 GMT
Ten new loans scheduled in the next 3 weeks, all £600K or less, eight of them paying 8% and one each at 7.5% and 8.5%.
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rocky1
Member of DD Central
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Post by rocky1 on Jan 1, 2020 14:12:51 GMT
mainly first tranches for much larger amounts.with LY,FS,MT,out of the way now i really hope CPs DD etc is as good as we are being told and these borrowers progress reports and our securities are fully checked out by CP.i will probably still invest in some though after seeing the full details as and when they become available.be careful out there and only risk what you can afford to do without for a long time if any loans default in the future.
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Post by gravitykillz on Jan 1, 2020 15:25:32 GMT
I have not invested in cp since August. Got 3k in there. Just wish they had a secondary market.
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archie
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Post by archie on Jan 1, 2020 15:38:53 GMT
I have not invested in cp since August. Got 3k in there. Just wish they had a secondary market. One of the reasons I invest here is because they don't have a sm.
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Nomad
Member of DD Central
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Post by Nomad on Jan 6, 2020 6:37:29 GMT
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sd2
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Post by sd2 on Jan 21, 2020 10:53:12 GMT
Almost all loans used to pay 8% on CrowdProperty. I note that two of the last three loans paid 7.5% and, of the next seven loans in the pipeline, three are paying 7, 7.25% and 7.5%. These are substantive decreases percentagewise in returns and is very disappointing to see. I've always been a big supporter of CP and praised them endlessly here and elsewhere, but these reductions in earnings don't show much value for lenders. Unlike almost all other P2P platforms I lend through, these CP loans don't even pay lenders on an amortised or monthly interest basis, and so are much higher risk as the borrower only has to pay everything at the very end. Where interest is being paid the developers borrower more money and normally the extra is held by the platform. So if interest is 10% and they need a £100,000 they borrow £110,000. How do you gain from being paid interest in that scenario? You are only getting your own money back spread over length of the loan. If you lend for instance £1,100 £100 is the interest. I would rather keep the £100. Again you are not in any way benefiting. @crowdproperty Representative Representative of CrowdProperty *****Profile OptionsSend MessageFollowUsername: crowdpropertyrep Last Online: 5 hours ago Latest Status: Web Site: CrowdProperty Birthday: January 1 Gender: Other / Decline to State Location: Birmingham / London Posts: 134 Date Registered: Mar 2, 2016 at 9:10am Social Networks Facebook LinkedIn Twitter View this member's recent posts. View this member's recent threads. Signature - Up to 8% pa first charge secured returns - 100% payback track record - Property expertise at the heart of the business - Only property development / bridging platform member of the P2PFA - First and only Brismo Verified property development / bridging platform - Directly FCA authorised and regulated crowdproperty representative please confirm or otherwise?
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Post by Ace on Jan 21, 2020 11:00:47 GMT
Almost all loans used to pay 8% on CrowdProperty. I note that two of the last three loans paid 7.5% and, of the next seven loans in the pipeline, three are paying 7, 7.25% and 7.5%. These are substantive decreases percentagewise in returns and is very disappointing to see. I've always been a big supporter of CP and praised them endlessly here and elsewhere, but these reductions in earnings don't show much value for lenders. Unlike almost all other P2P platforms I lend through, these CP loans don't even pay lenders on an amortised or monthly interest basis, and so are much higher risk as the borrower only has to pay everything at the very end. Where interest is being paid the developers borrower more money and normally the extra is held by the platform. So if interest is 10% and they need a £100,000 they borrow £110,000. How do you gain from being paid interest in that scenario? You are only getting your own money back spread over length of the loan. If you lend for instance £1,100 £100 is the interest. I would rather keep the £100. Again you are not in any way benefiting. @crowdproperty Representative Representative of CrowdProperty *****Profile OptionsSend MessageFollowUsername: crowdpropertyrep Last Online: 5 hours ago Latest Status: Web Site: CrowdProperty Birthday: January 1 Gender: Other / Decline to State Location: Birmingham / London Posts: 134 Date Registered: Mar 2, 2016 at 9:10am Social Networks Facebook LinkedIn Twitter View this member's recent posts. View this member's recent threads. Signature - Up to 8% pa first charge secured returns - 100% payback track record - Property expertise at the heart of the business - Only property development / bridging platform member of the P2PFA - First and only Brismo Verified property development / bridging platform - Directly FCA authorised and regulated crowdproperty representative please confirm or otherwise? You gain because you are being paid interest on the full £1,100.
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sd2
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Post by sd2 on Jan 21, 2020 11:05:28 GMT
Almost all loans used to pay 8% on CrowdProperty. I note that two of the last three loans paid 7.5% and, of the next seven loans in the pipeline, three are paying 7, 7.25% and 7.5%. These are substantive decreases percentagewise in returns and is very disappointing to see. I've always been a big supporter of CP and praised them endlessly here and elsewhere, but these reductions in earnings don't show much value for lenders. Unlike almost all other P2P platforms I lend through, these CP loans don't even pay lenders on an amortised or monthly interest basis, and so are much higher risk as the borrower only has to pay everything at the very end. Slash? Odd definition of slash. You need to look at other platforms before you say that. Its called supply and demand I am sure you know what supply and demand is when it suits you. Be glad you are getting what you are. Down is only way interest are going. This platforms looks like an obvious place for institutional money.
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sd2
Member of DD Central
Posts: 621
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Post by sd2 on Jan 21, 2020 11:29:46 GMT
Where interest is being paid the developers borrower more money and normally the extra is held by the platform. So if interest is 10% and they need a £100,000 they borrow £110,000. How do you gain from being paid interest in that scenario? You are only getting your own money back spread over length of the loan. If you lend for instance £1,100 £100 is the interest. I would rather keep the £100. Again you are not in any way benefiting. @crowdproperty Representative Representative of CrowdProperty *****Profile OptionsSend MessageFollowUsername: crowdpropertyrep Last Online: 5 hours ago Latest Status: Web Site: CrowdProperty Birthday: January 1 Gender: Other / Decline to State Location: Birmingham / London Posts: 134 Date Registered: Mar 2, 2016 at 9:10am Social Networks Facebook LinkedIn Twitter View this member's recent posts. View this member's recent threads. Signature - Up to 8% pa first charge secured returns - 100% payback track record - Property expertise at the heart of the business - Only property development / bridging platform member of the P2PFA - First and only Brismo Verified property development / bridging platform - Directly FCA authorised and regulated crowdproperty representative please confirm or otherwise? You gain because you are being paid interest on the full £1,100. It's your own money. You are being paid your own money.
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Post by Ace on Jan 21, 2020 12:05:27 GMT
You gain because you are being paid interest on the full £1,100. It's your own money. You are being paid your own money. Perhaps I'm missing your point, but, the whole £1100 is your own money that you're lending and you will be paid interest on that whole amount.
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Post by Ace on Jul 2, 2020 12:34:23 GMT
7.8 does seem to be the new 8.0!
Three of the last 4 loans have been at 7.8%.
5 of the next 6 in the pipeline are at 7.8% or lower (4 at 7.8 and 1 at 7.5).
I've had to abandon my strategy of skipping loans at less that 8% in order to keep my funds employed. Having been with them for 17 months now I get a steady return of capital and interest that needs to be redeployed. I guess I'm happy enough at 7.8 on a platform that continues to prove its competency. In truth I expected them to lower rates more than they have in light of their current vast oversupply of funds.
My spreadsheets don't give me a realistic XIRR for platforms like this that mostly pay interest at the end of loans (they currently show an XIRR of 2.25%) as they don't take account of accrued interest. It will obviously become more realistic as I move through several loan cycles, and it is now rising due to loan completions. I'd be interested in hearing from anyone who has an accurate XIRR that does take accrued interest into account. My fag-packet calculations show that I'll likely end up with an XIRR of around 6.5 to 7% after allowing for cash drag between loans and allowing for a very rare loss on a loan. Though 7% is looking a bit optimistic with the currently lower average rates.
Sorry if that sounded a bit moany. It wasn't meant to, merely a statement of facts. CP are firmly ensconced in my top 5 favourite platforms.
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p2pfan
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Full-Time Investor
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Post by p2pfan on Jul 12, 2020 15:05:57 GMT
7.8 does seem to be the new 8.0! Three of the last 4 loans have been at 7.8%. 5 of the next 6 in the pipeline are at 7.8% or lower (4 at 7.8 and 1 at 7.5). I've had to abandon my strategy of skipping loans at less that 8% in order to keep my funds employed. Having been with them for 17 months now I get a steady return of capital and interest that needs to be redeployed. I guess I'm happy enough at 7.8 on a platform that continues to prove its competency. In truth I expected them to lower rates more than they have in light of their current vast oversupply of funds. My spreadsheets don't give me a realistic XIRR for platforms like this that mostly pay interest at the end of loans (they currently show an XIRR of 2.25%) as they don't take account of accrued interest. It will obviously become more realistic as I move through several loan cycles, and it is now rising due to loan completions. I'd be interested in hearing from anyone who has an accurate XIRR that does take accrued interest into account. My fag-packet calculations show that I'll likely end up with an XIRR of around 6.5 to 7% after allowing for cash drag between loans and allowing for a very rare loss on a loan. Though 7% is looking a bit optimistic with the currently lower average rates. Sorry if that sounded a bit moany. It wasn't meant to, merely a statement of facts. CP are firmly ensconced in my top 5 favourite platforms. Yes, it does seem like 7.8% is the new 8%. Almost all the loans these days seem to be paying 7.8%. Disappointing? Yes. There's also likely to be a cash drag etc. so the overall XIRR is, indeed, lower. But, as somebody said above, we have to accept the fact that interest rates have gone down across the board.
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Post by gravitykillz on Jul 13, 2020 5:12:29 GMT
I have 3 overdue loans paying 10% now so it's not all bad!
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Nomad
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Post by Nomad on Aug 1, 2020 11:48:39 GMT
Most upcoming loans are now at 7.8% or 8%.
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