ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Nov 12, 2015 18:23:53 GMT
£3.5m required from 656 registered investors is hefty £5.3k per investor. I hope you get it Ed but I suspect you need some new investors for this one. It's a big step up but welcome all the same. Managed to get 4.3mil pledged for the abortive loan in Sep, admittêdly at higher rate, so doesnt seem unrealistic
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webwiz
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Post by webwiz on Nov 12, 2015 18:31:19 GMT
£3.5m required from 656 registered investors is hefty £5.3k per investor. I hope you get it Ed but I suspect you need some new investors for this one. It's a big step up but welcome all the same. Managed to get 4.3mil pledged for the abortive loan in Sep, admittêdly at higher rate, so doesnt seem unrealistic Yes but this pledge is hard cash whereas the other one was - well just a pledge. It would really help me to get my head round this if MT and SS used the same site terminology. Does anyone know the relationship between SS's "Site 1" and "Site 2" and MT's "Block B" and "Block C". It still looks to me as if the SS money was secured by a charge on one site but spent on the other one. If true this possibly makes the MT loan even more secure but the SS one looking a bit pasty.
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Post by MoneyThing on Nov 12, 2015 18:31:41 GMT
If Tranche 1 fills and draws down, then MoneyThing takes over as 1st charge holder. If Tranche 2 doesn't fill, then the 2nd loan will not complete and therefore the borrower will likely have to find another lender to borrow the additional £1.5m (under a 2nd charge). Regards, Ed. Ed, Am i right to assume that block C work to date was funded partly by the SS loan that expires in 3 months secured against block B, so is tranche 1 intended to facilitate paying off that loan. Also is tranche 2 intended to complete the block or landscape the site. Evening grahamg, Our loan is not taking out SS's loan as we are providing finance to the borrower secured against a different block. The funds generated from Tranche 2 will assist with financing the rest of the build (alongside funds generated from units that have and will exchange of which 50% of the sales of the units are released to fund the build). Kind regards, Ed
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Post by mrclondon on Nov 12, 2015 18:42:21 GMT
£3.5m required from 656 registered investors is hefty £5.3k per investor. I hope you get it Ed but I suspect you need some new investors for this one. It's a big step up but welcome all the same. Some SS lenders may decide to invest in this loan and reduce their exposure in the SS loan which at face value is less attractive for the same yield (which is probably what I'll be doing as I certainly don't want to increase my exposure to this overall development)
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bjorn
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Post by bjorn on Nov 12, 2015 18:59:27 GMT
£3.5m required from 656 registered investors is hefty £5.3k per investor. I hope you get it Ed but I suspect you need some new investors for this one. It's a big step up but welcome all the same. Some SS lenders may decide to invest in this loan and reduce their exposure in the SS loan which at face value is less attractive for the same yield (which is probably what I'll be doing as I certainly don't want to increase my exposure to this overall development) Why do you say the SS loan is at face value less attractive? On a like-for-like basis they both have a £4.79m valuation (as SS doesn't add extra to the valuation for works completed as MT do), so that gives the SS loan a 65% LTV and the MT one (on the same basis) a 73% LTV. Those figures would lead me to marginally favour the SS one. Plus an SM and shorter remaining term would give better liquidity at SS. Which could be another gentle prod to MoneyThing to get that SM launched ;-)
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Post by mrclondon on Nov 12, 2015 19:06:14 GMT
Some SS lenders may decide to invest in this loan and reduce their exposure in the SS loan which at face value is less attractive for the same yield (which is probably what I'll be doing as I certainly don't want to increase my exposure to this overall development) Why do you say the SS loan is at face value less attractive? On a like-for-like basis they both have a £4.79m valuation (as SS doesn't add extra to the valuation for works completed as MT do), so that gives the SS loan a 65% LTV and the MT one (on the same basis) a 73% LTV. Those figures would lead me to marginally favour the SS one. Primarily because if the first block was to prove to be anything less than a success, there is a risk the second block would be aborted and the security would essentially be worthless. Or if during the construction of the second block major flaws were uncovered in the first block. Or if something unfortunate happened to the borrower. There are almost unlimited reasons why the partially completed block could be viewed as better security than a "hole in the ground"
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webwiz
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Post by webwiz on Nov 12, 2015 19:40:26 GMT
Why do you say the SS loan is at face value less attractive? On a like-for-like basis they both have a £4.79m valuation (as SS doesn't add extra to the valuation for works completed as MT do), so that gives the SS loan a 65% LTV and the MT one (on the same basis) a 73% LTV. Those figures would lead me to marginally favour the SS one. Primarily because if the first block was to prove to be anything less than a success, there is a risk the second block would be aborted and the security would essentially be worthless. Or if during the construction of the second block major flaws were uncovered in the first block. Or if something unfortunate happened to the borrower. There are almost unlimited reasons why the partially completed block could be viewed as better security than a "hole in the ground" Furthermore it seems that the SS loan, whilst secured against Block B, has actually been spent developing Block C thus appreciating it's value.
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rogerbu
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Post by rogerbu on Nov 12, 2015 20:06:22 GMT
Afternoon Maestro. Happy to consider this if there is the demand. Kind regards, Ed. I prefer equal rates and equal charges. Me too. To me, tranches are about cashflow not playing dangerous games with risk and rates
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arbster
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Post by arbster on Nov 12, 2015 21:01:41 GMT
Is it possible to apply cash back on everyone (democratically) instead of only those with deep pockets? I would be happy to look at reducing the Cash Back qualification amount. Regards, Ed. Any news on what you might reduce this to, Ed?
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Post by MoneyThing on Nov 12, 2015 21:05:36 GMT
I would be happy to look at reducing the Cash Back qualification amount. Regards, Ed. Any news on what you might reduce this to, Ed? Would £100 work? Regards, Ed.
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Investboy
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Trying to recover from P2P revolution
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Post by Investboy on Nov 12, 2015 21:08:51 GMT
Is it possible to apply cash back on everyone (democratically) instead of only those with deep pockets? "Investors who commit funds pre-drawdown will earn a 1.5% Cash Back on investments of £500 and over."Thats not bad, considering on FS there was a +1% bonus for 10k investment, 2% for 25k. That are true "deep pockets"
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arbster
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Post by arbster on Nov 12, 2015 21:17:57 GMT
Any news on what you might reduce this to, Ed? Would £100 work? Regards, Ed. I'm sure £100 would work very nicely for most - certainly for me. Thanks very much. It's worth noting that with your 2 week funding period, some may be inclined to monitor the rate at which the tranche is filling and invest close to the end, to maximise returns. Ablrate address this by paying instant returns, meaning there is no incentive to hold off. Your offer is clearly more generous than that, but there are plenty of people who like to "optimise" their investments wherever possible.
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hendragon
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Post by hendragon on Nov 12, 2015 21:22:46 GMT
Would £100 work? Regards, It's worth noting that with your 2 week funding period, some may be inclined to monitor the rate at which the tranche is filling and invest close to the end, to maximise returns. Ablrate address this by paying instant returns, meaning there is no incentive to hold off. Your offer is clearly more generous than that, but there are plenty of people who like to "optimise" their investments wherever possible. Imho there is a danger of a "mexican standoff" here. Will be all be waiting until the 11th hour and then a frenzy of bidding?
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Post by MoneyThing on Nov 12, 2015 21:27:17 GMT
Would £100 work? Regards, Ed. I'm sure £100 would work very nicely for most - certainly for me. Thanks very much. It's worth noting that with your 2 week funding period, some may be inclined to monitor the rate at which the tranche is filling and invest close to the end, to maximise returns. Ablrate address this by paying instant returns, meaning there is no incentive to hold off. Your offer is clearly more generous than that, but there are plenty of people who like to "optimise" their investments wherever possible. Acknowledged. I can appreciate some may wish to invest at the last minute with this particular setup. Whilst not possible this time, we may well consider an alternative system when we next offer loans that we have not funded outright first. Regards, Ed.
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arbster
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Post by arbster on Nov 12, 2015 21:36:45 GMT
It's worth noting that with your 2 week funding period, some may be inclined to monitor the rate at which the tranche is filling and invest close to the end, to maximise returns. Ablrate address this by paying instant returns, meaning there is no incentive to hold off. Your offer is clearly more generous than that, but there are plenty of people who like to "optimise" their investments wherever possible. Imho there is a danger of a "mexican standoff" here. Will be all be waiting until the 11th hour and then a frenzy of bidding? Define 11th hour? I might hedge and go for the 10th hour...
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