|
Post by emoney on Dec 10, 2015 19:28:42 GMT
Good evening, we have just listed a secured loan opportunity that's Peer to Peer to it's core www.emoneyunion.com/marketplace/ . To view the full detail you will need to be registered as a lender at eMoneyUnion, further in-depth detail is available once approved.
|
|
|
Post by emoney on Dec 10, 2015 20:15:17 GMT
|
|
|
Post by emoney on Dec 10, 2015 20:57:59 GMT
I am warmed by recent comments received offline such as "this is a marathon and not a sprint"
|
|
huxs
Member of DD Central
Posts: 299
Likes: 218
|
Post by huxs on Dec 11, 2015 10:08:44 GMT
Hmmm, Not overly impressed by the enhanced rates on this loan it really gives no incentive to the small time investors who have been supporting eMoneyUnion up until now. I fully understand you need to bring in the big players but it does feel like the small time investors are being taken for granted on this one. 9% on a 12% loan is fine (I understand to get this loan the rate needed to be competitive) but only 10% on 18% loan seems like you are cutting small investors just to persuade big hitter that they are getting a good deal whereas in fact on MT ad SS where everyone gets 12% on deals that are probably charging around the 18% mark.
|
|
|
Post by emoney on Dec 11, 2015 10:44:50 GMT
Hi Huxs, "Market participants consist of all the buyers and sellers of a good who influence its price" - Wikipedia
I hope you would agree that eMoneyUnion is a free and transparent marketplace. 10%+ yield, when comparing with the best challenger bank savings rates, who by the way lend on these types of transactions with tiered rates savers money, surely still makes this loan worthy of consideration?
|
|
|
Post by reeknralf on Dec 11, 2015 14:59:12 GMT
You give the OMV as £500k, and the purchase price as £625k. Why is the developer paying 25% more than the market value?
Development loans on AC, FS or SS pay 10-12% for 70-80% LTV. A loan of £632k paying 10% on security worth £500k seems a very long way off. If the developer for whatever reason decides to not go ahead with the redevelopment, or he stops part way through, lenders would be very exposed.
|
|
|
Post by emoney on Dec 11, 2015 16:53:35 GMT
Hi Reeknralf, the developer is paying £625,000 because of the value up-tick upon Co-op occupation after the £80,000 works are completed. The 130 page 15 Year Co-op lease makes the property a highly sort after asset, pension funds etc due to the long term blue chip 8% rental yield alone. The land for residential property basically becomes pure profit.
The mortgage free £230,000 property that we will have 1st Charge on is due for sale in Q1 2016 and the sale proceeds will be paid directly to eMoneyUnion and reduce the loan exposure dramatically. The solicitors client account currently holds £130,000 cash from the developer, £50,000 is being retained for lender interest payments and £80,000 is retained for the Co-op works. The developer is highly incentivised and the premium purchase prices reflects the development opportunity and is reflected in the Gross Development Value of £1,080,000 giving the developer 20% net profit, which is the norm.
|
|
|
Post by reeknralf on Dec 11, 2015 19:48:01 GMT
OK, I'd missed the 1st charge on the flat, making the loan less risky than I thought.
I'm afraid I'm just going to reverse my first question. Why isn't the OMV £625k if that's what it's worth with the co-op opportunity?
Unless this developer has some sort of exclusivity arrangement with the co-op, hence the property would be worth less to any other developer?
|
|
|
Post by emoney on Dec 12, 2015 8:55:45 GMT
Good morning, good question. For developments to be purchased above a market value, to realise the true development value is not uncommon. The higher yield is due to the fact that development loans carry a higher element of risk than a straight forward residential property loan and this needs to be understood and considered by all lenders. I asked a High Net Worth property professional, who has a portfolio himself, what he valued a £61,000 Co-op rental yield property at, and he actually said "6% yield is his personal target, so £1M"I hope this answers your question?
|
|
ben
Posts: 2,020
Likes: 589
|
Post by ben on Dec 12, 2015 19:03:09 GMT
seems to be going quite slow this one, suppose starting it on a Friday would not help
|
|
|
Post by emoney on Dec 14, 2015 16:13:38 GMT
Hi Ben, an amazing £100,000 on this loan from one investor. Our highest ever
|
|
|
Post by emoney on Dec 14, 2015 18:22:08 GMT
Thanks to the many new lenders who have committed bids today on this loan, £10, £100, and £100,000 are just 3 of them, and all very much appreciated.
|
|
ben
Posts: 2,020
Likes: 589
|
Post by ben on Dec 18, 2015 11:30:02 GMT
Thanks to the many new lenders who have committed bids today on this loan, £10, £100, and £100,000 are just 3 of them, and all very much appreciated. looks like could be another loan that is just too big for a site, been over a week, how long does the loan keep trying to get funding for?
|
|
alanp
Member of DD Central
Posts: 168
Likes: 72
|
Post by alanp on Dec 18, 2015 11:49:51 GMT
Hopefully not too much longer as I would rather have the cash I have bid back than leave it in limbo for weeks on end.
|
|
ben
Posts: 2,020
Likes: 589
|
Post by ben on Dec 18, 2015 12:54:58 GMT
Hopefully not too much longer as I would rather have the cash I have bid back than leave it in limbo for weeks on end. I am only new on emoney union so do not have much on it anyway so I am not to bothered about that, but I bet the person that put 100,000 down will not be wanting it to wait there for ages. I would think if it does not make much traction over the weekend the chances are it will not find the funding
|
|