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Post by Ace on Sept 15, 2020 17:21:27 GMT
Today's loan from CP is the first in a long while that I have seen that hasn't instantly filled. There is still a few £k available 10 hours after launch. So, for those that have been holding off for fear of excessive cash drag, and with another loan for £805k due on Friday, now could be the time to add funds.
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puddleduck
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Post by puddleduck on Sept 15, 2020 17:26:34 GMT
Not an appealing loan in my view - Phase 1 loan value is far more than the mortgage its intended to clear, and the security is being demolished, reducing value.
It's a fairly unappealing multi-phase loan so I can see why it hasn't had the usual stampede.
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metoo
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Post by metoo on Sept 15, 2020 17:59:42 GMT
As you likely know, the money from each phase is only released in stages following MS reports. The initial LTV is 48%. Of course, once demolished, value will only exceed the loaned amount in the final fit out. A positive with this project is the flats only have to be let, not sold, as the borrower intends a BTL loan exit.
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Post by overthehill on Sept 15, 2020 19:20:20 GMT
Given that progress stalls during or right after the demolition, it depends on the actual released funds against the value of the land + existing planning permission. I'm assuming CP take this into consideration for all similar projects. They would be in a strong position to either take over or sell as building contract in place and planning conditions discharged, the value of a demolished site is expected sale value - build cost - decent profit.
On the downside, it has a lower interest rate than the majority of loans if you're a big investor. I was looking back at the older loans and one had 18 investors for 200k, or something like that, things have moved on for CP.
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Post by Ace on Oct 8, 2020 14:52:32 GMT
Today's loan was an interesting situation that I've not seen before. The AutoInvest half was well oversubscribed (I got 38.8% of my request), but there was still some availability in the SelfSelect half a few minutes after opening. Hence, I managed to increase my allocation by self selecting. I haven't bothered to attempt this for ages as its normally all gone before I've discovered how much I've been allocated by the AutoInvest.
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Post by otis71 on Oct 8, 2020 17:25:02 GMT
I noticed that my auto-invest pledge was bumped up just at the end - as I've seen on other loans there. I guess when the self-selects slow down they give the AIs another small bite.
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Post by Ace on Oct 8, 2020 19:43:38 GMT
I noticed that my auto-invest pledge was bumped up just at the end - as I've seen on other loans there. I guess when the self-selects slow down they give the AIs another small bite. That's interesting. Any idea what time that happened? I'm pretty sure that my AutoInvest didn't change after the first minute. Perhaps it was somehow affected by my SelfSelect pledge. EDIT: Corrected an obvious mistake.
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Post by otis71 on Oct 8, 2020 21:15:50 GMT
I'm pretty sure it was a few moments before the loan was filled - about ten minutes or so after opening. It was less than £1k short then that was that.
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Post by Ace on Oct 8, 2020 23:21:14 GMT
I'll try and watch tomorrow's loan more closely if I remember. I think it will be slower to fill as its a similar size, but as it's a 4th phase many will probably already have had their fill.
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Post by Ace on Oct 9, 2020 9:03:14 GMT
I'll try and watch tomorrow's loan more closely if I remember. I think it will be slower to fill as its a similar size, but as it's a 4th phase many will probably already have had their fill. I was wrong as usual.It filled in the first minute. I got 43.8% of my max AutoInvest pledge.
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Post by otis71 on Oct 9, 2020 9:10:58 GMT
43.8% - exactly what I got too.
We'll have to wait for another 'slow' filler (by CP standards - i.e. 5-10 mins) to test the 'second bite' theory again.
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puddleduck
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Post by puddleduck on Oct 10, 2020 11:24:42 GMT
I think autoinvest was a bit broken on this one, as I got...We are delighted to inform you that £1.78 of your AutoInvest funds were pledged towards the Land at Mxx Mxxx, Dxxxxxe Road, Rxxxxxn, St. Axxxs, Axx 7xx - Phase 4 (2220) project.
I didn't think AutoInvest went into anything less than £50. I'm not complaining as I meant to 'skip' this project anyway. I had more than £1.78 in my account, sol very strange!
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Post by Badly Drawn Stickman on Oct 10, 2020 11:32:48 GMT
I think autoinvest was a bit broken on this one, as I got...We are delighted to inform you that £1.78 of your AutoInvest funds were pledged towards the Land at Mxx Mxxx, Dxxxxxe Road, Rxxxxxn, St. Axxxs, Axx 7xx - Phase 4 (2220) project. I didn't think AutoInvest went into anything less than £50. I'm not complaining as I meant to 'skip' this project anyway. I had more than £1.78 in my account, sol very strange! I really should pay more attention in truth, but have a feeling the autoinvest has a function to restrict amount lent to individual projects (if not it should have). Now I could be completely wrong but would that be possible?
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puddleduck
Member of DD Central
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Likes: 489
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Post by puddleduck on Oct 10, 2020 11:57:07 GMT
I think autoinvest was a bit broken on this one, as I got...We are delighted to inform you that £1.78 of your AutoInvest funds were pledged towards the Land at Mxx Mxxx, Dxxxxxe Road, Rxxxxxn, St. Axxxs, Axx 7xx - Phase 4 (2220) project. I didn't think AutoInvest went into anything less than £50. I'm not complaining as I meant to 'skip' this project anyway. I had more than £1.78 in my account, sol very strange! I really should pay more attention in truth, but have a feeling the autoinvest has a function to restrict amount lent to individual projects (if not it should have). Now I could be completely wrong but would that be possible? No, autoinvest will invest in all tranches of a loan if you give it a chance. I said in the Weymouth loan thread that there is a danger of sleepwalking into funding multiple tranches and thus over-exposing oneself. I generally avoid multi-phase development loans, doubly so when you can end up accidentally end up investing.
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Post by Badly Drawn Stickman on Oct 10, 2020 12:27:43 GMT
I really should pay more attention in truth, but have a feeling the autoinvest has a function to restrict amount lent to individual projects (if not it should have). Now I could be completely wrong but would that be possible? No, autoinvest will invest in all tranches of a loan if you give it a chance. I said in the Weymouth loan thread that there is a danger of sleepwalking into funding multiple tranches and thus over-exposing oneself. I generally avoid multi-phase development loans, doubly so when you can end up accidentally end up investing. I will pass then, I know it will happily use up odds and ends from auto invest (I am not committed enough to keep it topped up and just add £500 occasionally) so was not surprised at the amount but not using it all seems curious.
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