j
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Penguins are very misunderstood!
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Post by j on Feb 28, 2014 14:10:18 GMT
New loan on site, offering 10% pa for 15 mths with minimum charge period of 6 mths. Low LTV!
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Post by pepperpot on Feb 28, 2014 14:37:47 GMT
I'm no developer but the return of 700k on a GDV of £5.7M looks a bit tight to me, I thought the idea was to aim for a min 20% on a development, preferably 30+%.
From our point of view the LTV on the face of it looks good but how many people would be willing to take on a part completed development with a low profit margin should it turn sour? I'll look a bit closer over the w/end.
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j
Member of DD Central
Penguins are very misunderstood!
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Post by j on Feb 28, 2014 16:46:59 GMT
I'm no developer but the return of 700k on a GDV of £5.7M looks a bit tight to me, I thought the idea was to aim for a min 20% on a development, preferably 30+%. From our point of view the LTV on the face of it looks good but how many people would be willing to take on a part completed development with a low profit margin should it turn sour? I'll look a bit closer over the w/end. Having now read the credit report in full, I would also add that interest is lumped up in one sum with the capital repayment @ loan end, be that 6 mths, 13, 15 or anywhere in between, depending on property sale success. I like the loan as such but, having learned a lesson to preferentially invest in loans that pay out monthly, as this has a positive impact on cash flow, even if it means accepting a little less overall return, I may avoid this altogether or invest a very small amount only for diversification sake.
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mikes1531
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Post by mikes1531 on Mar 1, 2014 4:38:13 GMT
I'm no developer but the return of 700k on a GDV of £5.7M looks a bit tight to me, I thought the idea was to aim for a min 20% on a development, preferably 30+%. From our point of view the LTV on the face of it looks good but how many people would be willing to take on a part completed development with a low profit margin should it turn sour? I'll look a bit closer over the w/end. Having now read the credit report in full, I would also add that interest is lumped up in one sum with the capital repayment @ loan end, be that 6 mths, 13, 15 or anywhere in between, depending on property sale success. I like the loan as such but, having learned a lesson to preferentially invest in loans that pay out monthly, as this has a positive impact on cash flow, even if it means accepting a little less overall return, I may avoid this altogether or invest a very small amount only for diversification sake. Does anyone have any idea why in this case the payment of interest is being left until the end whereas in other cases the interest has been held back from the loan proceeds at the beginning and paid out to lenders during the loan term?
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j
Member of DD Central
Penguins are very misunderstood!
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Post by j on Mar 1, 2014 11:17:11 GMT
Having now read the credit report in full, I would also add that interest is lumped up in one sum with the capital repayment @ loan end, be that 6 mths, 13, 15 or anywhere in between, depending on property sale success. I like the loan as such but, having learned a lesson to preferentially invest in loans that pay out monthly, as this has a positive impact on cash flow, even if it means accepting a little less overall return, I may avoid this altogether or invest a very small amount only for diversification sake. Does anyone have any idea why in this case the payment of interest is being left until the end whereas in other cases the interest has been held back from the loan proceeds at the beginning and paid out to lenders during the loan term? Reply from AC to a question posed re:issue, which, to me, still doesn't fully answer the question, apart from stating that it's a regular type of agreement in this type of loan to pay interest at loan end, not monthly......you can draw your own conclusions! Quote:"Any particular reason why interest is lumped with capital repayment at loan end rather than paid monthly, with capital paid at end as usual?" On 28th Feb 2014 at 17:15 Assetz Capital answered: "Interest is rolling up in the background and being repaid in one amount at the end. Interest is not being capitalised to (i.e not paid by drawing against the) loan on a monthly basis but is rolling up, as I say, in the background. Interest is invariably rolled up on any given development facility. It is certainly an express feature of this loan."
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agent69
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Post by agent69 on Mar 1, 2014 11:32:36 GMT
Clear as mud, as they say
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Post by andrewholgate on Mar 1, 2014 12:23:29 GMT
Clear as mud, as they say Even I'm confused. I'll find out on Monday.
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agent69
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Post by agent69 on Mar 1, 2014 13:23:10 GMT
Think my main concern would be how brown the brownfield site is.
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j
Member of DD Central
Penguins are very misunderstood!
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Post by j on Mar 4, 2014 12:34:40 GMT
now 50% underwritten & counting. Wonder what's going to happen with the chippy one? 1 day to go & only @ 35% ?!
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j
Member of DD Central
Penguins are very misunderstood!
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Post by j on Mar 4, 2014 12:38:37 GMT
now 50% underwritten & counting. Wonder what's going to happen with the chippy one? 1 day to go & only @ 35% ?! oh my  make that 65% underwritten, taking it up to 79% funded. I wonder if more underwriting is on the way to completely fill?
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j
Member of DD Central
Penguins are very misunderstood!
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Likes: 540
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Post by j on Mar 4, 2014 12:47:26 GMT
now 50% underwritten & counting. Wonder what's going to happen with the chippy one? 1 day to go & only @ 35% ?! oh my make that 65% underwritten, taking it up to 79% funded. I wonder if more underwriting is on the way to completely fill? yup....yet another £100k added, @ 93% now...looks like this will be fully funded today then after all. I expect it to stay open for the other 10 remaining days though to take out underwriters, unless AC communicate otherwise.
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j
Member of DD Central
Penguins are very misunderstood!
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Likes: 540
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Post by j on Mar 4, 2014 20:16:13 GMT
100% funded with underwriting
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j
Member of DD Central
Penguins are very misunderstood!
Posts: 2,188
Likes: 540
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Post by j on Mar 14, 2014 9:11:00 GMT
Like the other Wales-based loan, this has also been extended by 3 days!
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spockie
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Post by spockie on Mar 29, 2014 9:08:20 GMT
The expected drawdown date has come and gone. Should have been yesterday.
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mikes1531
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Post by mikes1531 on Mar 29, 2014 20:56:02 GMT
The expected drawdown date has come and gone. Should have been yesterday. I noticed that as well. I've asked for an updated timing estimate via the Q&A page.
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make that 65% underwritten, taking it up to 79% funded. I wonder if more underwriting is on the way to completely fill? 
