rogerbu
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Post by rogerbu on Mar 16, 2015 16:00:26 GMT
When Ed announced his managed Portfolios, a number of people thought that he was going to offer personal £10k portfolios. This got me wondering what such a beast might look like.
Here are my thoughts
Personal Managed Portfolios would be:-
1. A £10k portfolio of smaller loans created and managed for an individual Userid
2. Each PMP would contain a minimum of 25 smaller loans
3. No one smaller loan may be more than 5% of the entire portfolio. Providing a home for Ed's £200 - £500 loans
5. MT will maintain a full portfolio of smaller loans
6. Although Property Loans (part of larger Property loans?) may be included, there can not be more than 3 such loans making up no more than 15% of the PMP.
7. PMPs would have no termination date or renewal requirement.
8. The customer can at any time declare that the PMP is required to end. At which time the PMP will be no longer 'topped up'
9. During the following 6 month run out phase, As each smaller loan matures or is defaulted and sold. That capital will be returned.
10. As a result of the higher individual risk being accepted by the customer and the reduced admin load on MT, the interest rate offered should be higher than the current 12%
11. During the active phase. Full interest of 1/12th of the agreed interest rate is paid each month. Even if MT has decided not to keep the PMP topped up or has over filled the PMP
12. During the run out phase, interest at 1/12th of the balance on the monthly start anniversary will be paid.
13. MT will maintain a list of interested Customers and PMPs will be offered in turn with at least 1 weeks notice to allow users to get the £10k in place with MT
14. If a user cannot utilise their PMP offer, they would go to the back of the 'interested list' if they are still interested.
15. A user may only be on the list once at any one time. Once they have accepted a PMP offer they can go back onto the list in the last position.
If MT provide a similar facility to the above, I would be very interested.
Would other users be interested or have I got the ideas wrong?
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webwiz
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Post by webwiz on Mar 16, 2015 16:15:45 GMT
I agree with most of your ideas, and would certainly be interested in investing myself. Maybe £5000 would be a more realistic size, unless we allowed a greater percentage of property. I don't think we can ask for more than 12% (24 times bank rate). It would be nice if there was a cleaner and quicker exit procedure, maybe Ed could take the loans back onto his book or the next person on the list could take on the loan book.
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Post by Deleted on Mar 16, 2015 17:06:33 GMT
Interesting start. My immediate view would be
1) no property, loads of property out there and all the dangers of liquidity which come with it
2) Individual items worth no more than say £200/£400
3) £10k would be great but maybe £5k might interest (after all I oculd have 2) but less than £5k no interest.
Coming out of the account; I think Ed has a process where the loan is sold back to the originators already, why not use that or just move the loan over to another holder?
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webwiz
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Post by webwiz on Mar 16, 2015 17:30:07 GMT
Another thought: instead of having a priority list of lenders (difficult to see how you could get this started off fairly) have different portfolio mixes with property making up different proportions say from zero to 50% and then just offered on a first come first served basis, starting with a high property element and reducing.
I sense an aversion to property on this platform which is odd as there is a wall of money waiting for more property on SS. But MT need to get their property away and a portfolio with 8.5% property would return all capital on time even if there was some catastrophic delay with the property.
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coop
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Post by coop on Mar 16, 2015 17:44:30 GMT
Sounds like an excellent way to price loads of people out of a big chunk of the loan book.
Besides, MT can currently fill any non-property loan they choose to almost instantly so why would they go to such great lengths to aggrieve so many of their customers?
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bugs4me
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Post by bugs4me on Mar 16, 2015 17:57:42 GMT
Another thought: instead of having a priority list of lenders (difficult to see how you could get this started off fairly) have different portfolio mixes with property making up different proportions say from zero to 50% and then just offered on a first come first served basis, starting with a high property element and reducing. I sense an aversion to property on this platform which is odd as there is a wall of money waiting for more property on SS. But MT need to get their property away and a portfolio with 8.5% property would return all capital on time even if there was some catastrophic delay with the property. I have an aversion to property unless the LTV is conservative. Unfortunately once you throw in some commercial property then it becomes a big turn off IMO. Another platform is having more than it's share of problems with property disposals ATM. However, if the proposal and rate are attractive enough then I cannot see why MT shouldn't at least give it a go. Whether 8.5% would cut it I have my doubts.
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rogerbu
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Post by rogerbu on Mar 16, 2015 18:11:10 GMT
Sounds like an excellent way to price loads of people out of a big chunk of the loan book. Besides, MT can currently fill any non-property loan they choose to almost instantly so why would they go to such great lengths to aggrieve so many of their customers? I have the feeling that Ed has a problem with the £200-£400 CS loans. He has bundled the <£200s into his Managed portfolio, whilst the £500+ loans can be stand alone. The £200 - £400 loans would be a lot of work for little return. Hence this idea to mop them up in a cost effective way for MT & us.
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rogerbu
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Post by rogerbu on Mar 16, 2015 18:23:35 GMT
Another thought: instead of having a priority list of lenders (difficult to see how you could get this started off fairly) have different portfolio mixes with property making up different proportions say from zero to 50% and then just offered on a first come first served basis, starting with a high property element and reducing. I sense an aversion to property on this platform which is odd as there is a wall of money waiting for more property on SS. But MT need to get their property away and a portfolio with 8.5% property would return all capital on time even if there was some catastrophic delay with the property. I have an aversion to property unless the LTV is conservative. Unfortunately once you throw in some commercial property then it becomes a big turn off IMO. Another platform is having more than it's share of problems with property disposals ATM. However, if the proposal and rate are attractive enough then I cannot see why MT shouldn't at least give it a go. Whether 8.5% would cut it I have my doubts. Personally I would prefer to have no 'property' in the bundle, but I could understand that MT might want to shift some of its property loans. Therefore I included property at a defined limit in the 'ideas' to get the debate going.
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coop
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Post by coop on Mar 16, 2015 18:27:29 GMT
Not cost effective for me though is it???
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webwiz
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Post by webwiz on Mar 16, 2015 22:53:52 GMT
Another thought: instead of having a priority list of lenders (difficult to see how you could get this started off fairly) have different portfolio mixes with property making up different proportions say from zero to 50% and then just offered on a first come first served basis, starting with a high property element and reducing. I sense an aversion to property on this platform which is odd as there is a wall of money waiting for more property on SS. But MT need to get their property away and a portfolio with 8.5% property would return all capital on time even if there was some catastrophic delay with the property. I have an aversion to property unless the LTV is conservative. Unfortunately once you throw in some commercial property then it becomes a big turn off IMO. Another platform is having more than it's share of problems with property disposals ATM. However, if the proposal and rate are attractive enough then I cannot see why MT shouldn't at least give it a go. Whether 8.5% would cut it I have my doubts. Sorry I was not clear. I meant that as the interest rate is 12% if the property element is less than 12% then an an amount equal to or more than your investment would be returned on time (assuming no problems with the non-property portion) whatever delays or even losses there might be on the property portion. Anyone averse to any property element at all could restrict themselves to the PMPs with no property. My reason for suggesting mixed PMPs is that I doubt that MT have enough non-property to start issuing PMPs as rogerbu suggests.
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bugs4me
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Post by bugs4me on Mar 16, 2015 23:07:33 GMT
I have an aversion to property unless the LTV is conservative. Unfortunately once you throw in some commercial property then it becomes a big turn off IMO. Another platform is having more than it's share of problems with property disposals ATM. However, if the proposal and rate are attractive enough then I cannot see why MT shouldn't at least give it a go. Whether 8.5% would cut it I have my doubts. Sorry I was not clear. I meant that as the interest rate is 12% if the property element is less than 12% then an an amount equal to or more than your investment would be returned on time (assuming no problems with the non-property portion) whatever delays or even losses there might be on the property portion. Anyone averse to any property element at all could restrict themselves to the PMPs with no property. My reason for suggesting mixed PMPs is that I doubt that MT have enough non-property to start issuing PMPs as rogerbu suggests. I believe Ed raised the property idea on another thread and the feedback was mixed even though there is a connection with Capital Mortgages so no doubt they have the expertise. Another platform started with jewellery and other relatively low value items that most could get their teeth into. Now it seems to be 90% property pawn loans (if that's how they are termed) with very little in the way of 'general' pawn. For all I know, they've taken the smaller value items in-house and are now just feeding the higher value items to the lenders - just a thought. There is obviously a balance here and I commend MT for taking many suggestions on board but investment decisions are obviously entirely up to the individual. Provided MT continue to engage with the community then I see a bright future in P2P for them. If they release something that's not for me then I'll just give it a wide berth but at the same time it could fit perfectly with another lender's comfort level.
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Post by MoneyThing on Mar 17, 2015 9:32:24 GMT
Thank you everyone for your outline of what a PMP might look like. I am pleased to hear that there might be appetite for such a product. As soon as the deal flow is ramped up sufficiently to accommodate the PMP then I will look at creating this. Kind regards, Ed.
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hendragon
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Post by hendragon on Mar 17, 2015 11:10:02 GMT
I would like to ask about the non-hallmarked items in the portfoilios. My understanding that any item above 1gm must be hallmarked if it is to be sold in the uk. Does this mean that any defaulted items that are non-hallmarked would be melted down?
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Post by MoneyThing on Mar 17, 2015 11:34:51 GMT
I would like to ask about the non-hallmarked items in the portfoilios. My understanding that any item above 1gm must be hallmarked if it is to be sold in the uk. Does this mean that any defaulted items that are non-hallmarked would be melted down? Morning. In the event of default, all non-hallmarked jewellery of good condition & is marketable will go to the assay office to be hallmarked before being sold on retail/at auction. In circumstances when the jewellery is of poor condition & without a ready market then this would be melted down and the base metal(s) sold. Regards, Ed.
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rogerbu
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Post by rogerbu on Mar 18, 2015 9:34:03 GMT
Thank you everyone for your outline of what a PMP might look like. I am pleased to hear that there might be appetite for such a product. As soon as the deal flow is ramped up sufficiently to accommodate the PMP then I will look at creating this. Kind regards, Ed. Thanks Ed. I'll await PMPs in the future with interest. As others have said. It is MoneyThing's willingness to work with their user community that separates you from the rest. I also predict a good future for Moneyhing. 
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