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Post by Penny Pincher on Feb 29, 2024 12:35:52 GMT
Second charge on a period property that is difficult to value and has exceeded its contingency funding, is risky enough. For me, the 24% rate just emphasises the risk. The only aspect that encourages me, is the fact that CP Capital is still finding its feet and I'm sure that CP will not want a bad debt at this early stage in its life.
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Post by Ace on Feb 29, 2024 12:57:03 GMT
The fund raise doesn't seem to be doing terribly well by CrowdProperty standards. Of the £125k they were trying to raise, 24 hours later it has only raised £106,691. By comparison, as most of you know, almost all other loans get 100% funded within seconds of going live. Are there reasons why lenders are generally avoiding this loan? One would imagine the 24% p.a. return would compensate for the higher risk? CPC has a much more limited audience than CP. CPC loans are only available to HNW and "sophisticated" investors, and only the subset who have separately registered for CPC. CPC also has a higher minimum of £1k. Also, most CP investors are likely to be already at their max for this loan via the multiple CP tranches. I would have taken a slice if I'd had sufficient available funds in my CP ISA account, but the cash balance there is rarely sufficient to make the £1k minimum when these loans appear.
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Post by scepticalinvestor on Mar 1, 2024 10:19:00 GMT
This might be a stupid question due to a lack of knowledge re how CPC works - if this goes pear-shaped, other than a diminished reputation, what skin in the game does CP/CPC have?
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Post by overthehill on Mar 1, 2024 10:54:34 GMT
This might be a stupid question due to a lack of knowledge re how CPC works - if this goes pear-shaped, other than a diminished reputation, what skin in the game does CP/CPC have?
When the sharks start circling, I might get some of my capital back and no interest from my 8% loan tranche and allowed in the lifeboat whereas CPC is swimming.
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Post by Ace on Mar 1, 2024 13:49:43 GMT
This might be a stupid question due to a lack of knowledge re how CPC works - if this goes pear-shaped, other than a diminished reputation, what skin in the game does CP/CPC have? I don't believe that CP or CPC have any direct skin in the game. I recall reading somewhere that the Directors have personal investments in CPC loans, but can't find any reference to it now.
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dave4
Member of DD Central
Cynical is a hobby not a lifestyle
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Post by dave4 on Mar 22, 2024 11:00:38 GMT
Glasgow loan live 24% for 6 months. 2nd chance/charge
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