jj
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Jolly Jammy
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Post by jj on Dec 9, 2019 23:00:39 GMT
I've started this thread as I expect this loan to be discussed quite often in its life.
To be honest I don't know what CP is thinking putting this loan out. I understand since Lendy, FS, TC, MT, etc have stopped taken on these kind of loans there is an endless supply !
This is a very uncrowdproperty loan & I don't like it. If They are planning to go the route that all the other platforms have gone down and expect a different result, well that's just crazy talk.
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Post by gravitykillz on Dec 10, 2019 19:01:33 GMT
I've started this thread as I expect this loan to be discussed quite often in its life.
To be honest I don't know what CP is thinking putting this loan out. I understand since Lendy, FS, TC, MT, etc have stopped taken on these kind of loans there is an endless supply !
This is a very uncrowdproperty loan & I don't like it. If They are planning to go the route that all the other platforms have gone down and expect a different result, well that's just crazy talk.
You are being a bit vague. Why is it bad ? But thanks for the heads up will avoid it just in case.
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rocky1
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Post by rocky1 on Dec 10, 2019 19:24:24 GMT
i think he means 7+million pound loan with 13/14 tranches of £3/4 hundred k per month.repayment+interest at end of term[hopefully]and coming from the sale of units.maybe a good one for institutional or HNW.
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littleoldlady
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Running down all platforms due to age
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Post by littleoldlady on Dec 10, 2019 19:57:21 GMT
One risk with this type of project is that a dodgy borrower can deliberately default on the loan half way through, let the platform repossess the half finished site and sell it to to the highest bidder which will inevitably be the borrower, at a greatly reduced amount. No developer wants to try and complete someone else's project. The borrower is the only one who knows the true state of play and can seamlessly pick it up and complete it. So it is up to the platform to investigate the borrower's background to mitigate this risk. The developer on this site has a good track record and would seem unlikely to want to trash his reputation, so it may not be fair to compare him to the crooks on other platforms referred to in the OP.
However having said that this loan is not for me. As it happens I am fully invested but I have turned on "Skip next loan" just to sure.
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easylender
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Post by easylender on Dec 10, 2019 20:27:05 GMT
I'm not sure what to make of the borrower. Might justify a thread on DD Central if anyone's got the time for it.
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Post by Ace on Dec 10, 2019 20:40:32 GMT
Whilst I agree with the above comments I've come to trust CP's DD and judgement. There's a good profit in this for an honest developer. Rightly or wrongly I've stopped bothering with my own DD for CP loans as I'm happy that they've got everything covered that I'm ever likely to be able to expose. I'm in this for my usual max on auto-invest.
I feel the greater risk on this one is that it will suffer significant cash drag until it fills due to its size. I know that I could hold funds back until it's full, but it's just too much hassle in an ISA for me to bother with.
I also think CP will be well motivated to make sure this one succeeds. If a loan this big to retail investors fails their source of funds from that sector is likely to be severely impacted.
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puddleduck
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Post by puddleduck on Dec 11, 2019 8:38:00 GMT
I don't like the look of this one at all, and haven't been keen on the many recent multi-phase loans from CP either.
As we all know if a project fails - and large development loans have a history of doing so, recoveries will be far lower and a 25-50% recovery is not unfeasible or even to be unexpected.
Anyone using Auto-lend must also take care not to end up over exposed to a particular loan as you could end up sleep walking into funding multiple tranches.
Yet another recent CP loan that is not for me.
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rocky1
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Post by rocky1 on Dec 11, 2019 13:05:44 GMT
our borrowers construction company for this project was only created last month with our borrower as only directorwith 2 more active companies involved in this project.previously 3 dissolved and 1 liquidation to his name.
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littleoldlady
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Post by littleoldlady on Dec 11, 2019 13:18:20 GMT
Another risk is that later tranches may not fill. I hope that CP have not launched this on the assumption that they will all fill, and instead have a plan B.
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jj
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Jolly Jammy
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Post by jj on Dec 11, 2019 13:19:26 GMT
our borrowers construction company for this project was only created last month with our borrower as only directorwith 2 more active companies involved in this project.previously 3 dissolved and 1 liquidation to his name. I know. I want to know what is going on in CP headquarters. Have they taken someone from Lendy on ?
The valuation looks dubious if you ask me. Valued at £3,400,000 ? I bet the borrower didn't pay near that for the site. £1,500,000 perhaps ?
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rocky1
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Post by rocky1 on Dec 11, 2019 13:42:43 GMT
google brick tribe weymouth ferrybridge for a bit more info
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littleoldlady
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Post by littleoldlady on Dec 11, 2019 17:51:15 GMT
I would not be surprised if CP pulled this one.
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Post by Ace on Dec 11, 2019 22:10:58 GMT
CrowdProperty Representative , I'm happy to invest in this loan at my usual maximum AutoInvest amount, but I feel that I need to know more about how you intend to fund this and future phases. It seems obvious that you won't be able to fund this loan from your standard retail investors. Forum members are clearly concerned that, if this phase was to get fully funded, they could have their funds trapped in a partially completed development that can't obtain the funds to complete. Particularly so given that it needs 12 further phases. I realise that we have discussed this topic in general before, but I really think that, as investors, we need to understand your plan for this particular loan. I'm trying not to sound too negative here. CP is one of my top 4 rated platforms, and one where I'm happy to continue to increase my investments, but without some reassurance of a credible plan I feel that I will have to consider cancelling my pledge on this one. On a slightly different, but related point: Will your AutoInvest tool allocate the maximum amount of one's AutoInvest funds to each phase of a multi-phase loan, or is it clever enough to only allocate the maximum AutoInvest amount across all phases?
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easylender
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Post by easylender on Dec 11, 2019 22:46:53 GMT
On a slightly different, but related point: Will your AutoInvest tool allocate the maximum amount of one's AutoInvest funds to each phase of a multi-phase loan, or is it clever enough to only allocate the maximum AutoInvest amount across all phases? In my experience AutoInvest treats phases of a project like different projects. It is also unable to spot different projects with the same borrower. I find it necessary to carefully check upcoming projects and make frequent use of the 'skip next project' option to achieve good diversification.
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Post by gravitykillz on Dec 12, 2019 8:08:05 GMT
Project is only 37% filled so far. So it's not very popular.
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