Post by max on Jan 8, 2016 17:11:24 GMT
mikes1531 : mine is just an example with vague reference to a long list of deals that have actually have been struck in past two years thanks to P2P lending. Incidentally, one might find some of these traits in a loan just gone live on FS. One might also find them in a long list in SS and TC. But this is not the point that I’m trying to make here.
Valuations for land with planning permissions bear a large component of uncertainty that is openly highlighted in their professional valuations. Very few investors would buy a parcel of land at the valuation price and for the use stated in the valuation. The margins for profit would be too tight (10-20%) and uncertainty on costs and realisation value too large. Better margins can be made by changing the planning permissions at a later stage or obtaining an heavy discount from the original evaluation price.
P2P platforms are empowering a growing legion of borrowers who are able to secure heavy discounts via quick buy, cash in hands –our cash. The value of the land with planning after one of these investors fails to realise any additional value and the loan defaults should be expected to carry forward a similar or higher discount.
Valuations for land with planning permissions bear a large component of uncertainty that is openly highlighted in their professional valuations. Very few investors would buy a parcel of land at the valuation price and for the use stated in the valuation. The margins for profit would be too tight (10-20%) and uncertainty on costs and realisation value too large. Better margins can be made by changing the planning permissions at a later stage or obtaining an heavy discount from the original evaluation price.
P2P platforms are empowering a growing legion of borrowers who are able to secure heavy discounts via quick buy, cash in hands –our cash. The value of the land with planning after one of these investors fails to realise any additional value and the loan defaults should be expected to carry forward a similar or higher discount.
