star dust
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Post by star dust on Nov 21, 2014 17:56:12 GMT
New property loan for >£1million 70% LTV on the Saving Stream platform this afternoon. Usual 0.5% pre-drawdown cash-back, and go-live date expected to be early December. I had been away, and nearly missed it altogether, but as a large loan there is plenty left to fund at the moment, only half funded  It's a loan to purchase a vacant commercial building in Bedford, with a view to re-devolping into flats. Not sure what to make of it really as it entails conversion of a concrete office structure, I know there can be some difficulties with retail mortgages on these types of conversion, but then valuation includes both rental and sale propositions, and I'm no expert! |
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mikes1531
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Post by mikes1531 on Nov 21, 2014 20:42:54 GMT
I'm not sure about the exit strategy. The description says "Refinance with mainstream lender", but this is a six-month loan and it looks like the designer thinks the development project would take 12-15 months. It's also unclear where the money for the redevelopment would come from. Perhaps the plan is that once the purchase is completed the borrower intends to obtain a development loan that would fund the development as well as pay off the SS loan. savingstream: Could you please clarify how the borrower intends to proceed once they have completed the purchase? |
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mikes1531
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Post by mikes1531 on Nov 21, 2014 21:31:03 GMT
Uh, oh... Funny things are happening again. I was about to report that the funding of this loan was going very well, with only about £200k left to raise. But then I refreshed my screen and now it's telling me that there's about £500k required!
I presume this means that some of the early 'investments' were shadow bids from underwriters, and now SS have removed them to allow more 'ordinary' investors to participate. Unfortunately, this is sending misleading signals out to potential investors and it's more likely to hit them negatively than positively. I know I looked at the rapidly-decreasing amount remaining to fund and decided that I needed to act quickly and throw some money at this loan before the opportunity disappeared instead of my preferred plan, which would have been to get some questions answered before making my decision. With the amount remaining to fund having jumped up so substantially after I invested, I feel that I was manipulated into thinking the situation was different than it actually was.
I do not like that feeling at all!
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star dust
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Post by star dust on Nov 22, 2014 9:00:47 GMT
I'm not sure about the exit strategy. The description says "Refinance with mainstream lender", but this is a six-month loan and it looks like the designer thinks the development project would take 12-15 months. It's also unclear where the money for the redevelopment would come from. Perhaps the plan is that once the purchase is completed the borrower intends to obtain a development loan that would fund the development as well as pay off the SS loan. savingstream: Could you please clarify how the borrower intends to proceed once they have completed the purchase? I wondered about this too. In fact the whole thing seems a bit odd as the valuation mentions the purchaser proposing to buy the adjoining building as well; so maybe it's just one part of a much bigger deal? i have also subsequently 'discovered' that the building sold at auction for a mere £375k in 2011. I don't know if it's the government easing of change of use rules that has resulted in such a phenomenal leap in the valuation  .
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star dust
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Post by star dust on Nov 22, 2014 9:08:13 GMT
Uh, oh... Funny things are happening again. I was about to report that the funding of this loan was going very well, with only about £200k left to raise. But then I refreshed my screen and now it's telling me that there's about £500k required! I presume this means that some of the early 'investments' were shadow bids from underwriters, and now SS have removed them to allowth more 'ordinary' investors to participate. Unfortunately, this is sending misleading signals out to potential investors and it's more likely to hit them negatively than positively. I know I looked at the rapidly-decreasing amount remaining to fund and decided that I needed to act quickly and throw some money at this loan before the opportunity disappeared instead of my preferred plan, which would have been to get some questions answered before making my decision. With the amount remaining to fund having jumped up so substantially after I invested, I feel that I was manipulated into thinking the situation was different than it actually was. I do not like that feeling at all! The loan description did say that it was underwritten, they did something similar with PBL014 IIRC. Maybe there is some unwinding of bids too, although half a mill seems quite a lot. Yesterday afternoon someone put through c £250k, but not all in one slab. I assume we wouldn't see the underwritten bits go through in the usual way, I don't think they did on PBL05. Anyway, if it is underwriters, you could always re-sell your bid  .
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Post by savingstream on Nov 22, 2014 9:08:49 GMT
Uh, oh... Funny things are happening again. I was about to report that the funding of this loan was going very well, with only about £200k left to raise. But then I refreshed my screen and now it's telling me that there's about £500k required! Unfortunately this increase in availability was due to an unscrupulous investor who signed up, auto deposited £300,000 and invested it all in PBL015. We are putting measures in place to prevent this from happening in future. We were pleased as well when we initially viewed the funding progress until we realised that it was unfortunately not accurate.
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j
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Post by j on Nov 22, 2014 9:26:50 GMT
Uh, oh... Funny things are happening again. I was about to report that the funding of this loan was going very well, with only about £200k left to raise. But then I refreshed my screen and now it's telling me that there's about £500k required! Unfortunately this increase in availability was due to an unscrupulous investor who signed up, auto deposited £300,000 and invested it all in PBL015. We are putting measures in place to prevent this from happening in future. We were pleased as well when we initially viewed the funding progress until we realised that it was unfortunately not accurate. I can't quote savingstream's Ts & Cs to the letter but, don't they have the right to ban/refuse clients if they wish so (ie not legally obliged to accept all & sundry as members if they do not wish to do so)? This looks like a manipulation of the current scheme allowing us to deposit funds on faith to allow instant investment & maybe making useof the 0.5% bonus n offer by this investor (or is it impostor)?
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mikes1531
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Post by mikes1531 on Nov 22, 2014 15:40:41 GMT
Unfortunately this increase in availability was due to an unscrupulous investor who signed up, auto deposited £300,000 and invested it all in PBL015. We are putting measures in place to prevent this from happening in future. We were pleased as well when we initially viewed the funding progress until we realised that it was unfortunately not accurate. I can't quote savingstream's Ts & Cs to the letter but, don't they have the right to ban/refuse clients if they wish so (ie not legally obliged to accept all & sundry as members if they do not wish to do so)? This looks like a manipulation of the current scheme allowing us to deposit funds on faith to allow instant investment & maybe making useof the 0.5% bonus n offer by this investor (or is it impostor)? I haven't examined the Ts&Cs either, but I expect SS do have such rights. As for the imposter investor, I can see how they could disrupt things, but I don't see how they could make any money at it. If they AutoDeposit funds but don't follow that up with a real deposit then their investment would be unwound and they'd earn nothing. And in order to earn the cashback you have to be invested at drawdown time.
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max
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Post by max on Nov 22, 2014 23:37:48 GMT
Uh, oh... Funny things are happening again. I was about to report that the funding of this loan was going very well, with only about £200k left to raise. But then I refreshed my screen and now it's telling me that there's about £500k required! Unfortunately this increase in availability was due to an unscrupulous investor who signed up, auto deposited £300,000 and invested it all in PBL015. We are putting measures in place to prevent this from happening in future. We were pleased as well when we initially viewed the funding progress until we realised that it was unfortunately not accurate. This is really a bad news. I have currently invested in savingstream a considerable amount of funds – including this particular loan. I trust the goodwill and professionalism of the directors in keeping the platform a safe place for investments. I consider a major failure of security if anyone can register (with a fake id?) and instantly make a fake deposit of £300,000 with the aim of attracting the attention of other lenders into a particular auction. This type of behaviour would be considered market manipulation in other settings. I believe trust and reputation are the key elements of the success of a platform in P2B lending. I would urge savingstream in giving appropriate assurance to their investors that they will take effective measures to prevent a similar outcome from happening again in the future. Many thanks for flagging this up.
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ramblin rose
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Post by ramblin rose on Nov 23, 2014 12:35:11 GMT
Unfortunately this increase in availability was due to an unscrupulous investor who signed up, auto deposited £300,000 and invested it all in PBL015. We are putting measures in place to prevent this from happening in future. We were pleased as well when we initially viewed the funding progress until we realised that it was unfortunately not accurate. I believe trust and reputation are the key elements of the success of a platform in P2B lending. I would urge savingstream in giving appropriate assurance to their investors that they will take effective measures to prevent a similar outcome from happening again in the future. Hi max, you are absolutely right and I'm sure you echo many lenders' thoughts. I took their statement in the post that you quoted (my bold) as that assurance though.
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nw99
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Post by nw99 on Nov 26, 2014 17:39:07 GMT
Huge buying into the loan this afternoon will be covered shortly
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mikes1531
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Post by mikes1531 on Nov 26, 2014 18:20:50 GMT
Huge buying into the loan this afternoon will be covered shortly £160k from one lender in one lump. Another lump three-quarters that size would fill the loan. But without a big lump, there could be availability for some time. Who knows? It could be an underwriter lump, since savingstream said on 21/Nov that they're working toward a completion date in seven business days. Or it could be another rogue bid, though hopefully the changes put in place to prevent a recurrence of that would have prevented such. Or maybe they're trying to clear the decks so that they can list the two loans in the Pipeline that are expected to "Go live around 20/11/14". 
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Post by savingstream on Nov 26, 2014 19:30:18 GMT
We can confirm the bid wasn't a rogue bid. Lendy will act as an underwriter if required for any remaining funds in this loan.
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nw99
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Post by nw99 on Nov 26, 2014 20:51:52 GMT
Great news thanks for the update . Keep up the good work
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mikes1531
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Post by mikes1531 on Dec 5, 2014 15:51:45 GMT
I see this loan is completing today. (The loan description page says it's already live.)
Is there any chance the interest and cashback payments will hit our accounts before PBL018 is fully taken up?
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