elliotn
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Post by elliotn on Feb 24, 2017 16:00:11 GMT
collateralI have not invested in property loans as yet. Before I do, can you advise on the following 2. Other property loans have filled, but at the end of six months as with the Elms loan, I assume if the loan is renewed, then investors can choose to renew or redeem their loans parts as usual. If the non redeemed element is not taken up by new investors or there is a lag between redemption and new take up, where do the funds come from to make up the shortfall/repay redeeming lender Was thinking the same today for all loans as I bought some short dated parts. Collateral Rep if a borrower does not renew or redeem ie defaults, does this become an overdue loan to the lender and then we wait until your trade partner steps in, the item is auctioned or, for property, going through default procedures - do we lose the clear-cut renewal/redemption exit?
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Post by Collateral Rep on Feb 27, 2017 11:26:03 GMT
Morning,
Answers to your questions re the Elms below.
1) When will the 'alternative investment groups' step in?
We will update on this shortly.
2) Will they take all of the overhang?
This will depend on the amount.
3) Will the 'alternative investment groups' then be able to drip-feed their tranche back to the secondary market?
This may differ each time, but yes they will be able to sell loan parts.
4) Where do Collateral loan parts stand in relation to those taken by the 'alternative investment groups' - do they have an equal ranking in case of default?
Yes they will have an equal ranking.
5) Other property loans have filled, but at the end of six months as with the Elms loan, I assume if the loan is renewed, then investors can choose to renew or redeem their loans parts as usual. If the non redeemed element is not taken up by new investors or there is a lag between redemption and new take up, where do the funds come from to make up the shortfall/repay redeeming lenders?
At this moment in time that's not an issue but with pre-funding and auto-invest (coming shortly), we expect to be able to manage this situation.
6) Collateral Rep if a borrower does not renew or redeem ie defaults, does this become an overdue loan to the lender and then we wait until your trade partner steps in, the item is auctioned or, for property, going through default procedures - do we lose the clear-cut renewal/redemption exit?
We haven't had any defaults to date and always work on the exit to reduce the risk of a borrower defaulting. However if this was to happen, yes you would lose the clear-cut renewal/redemption exit.
Many thanks,
Gordon
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jhma
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Post by jhma on Mar 1, 2017 12:07:12 GMT
Appreciate the detailed response above, thanks, but unfortunately the answers don't tempt me to see this loan as attractive as a short term home for uninvested cash building up on the platform!
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Post by spareafewcoppersguv on Mar 2, 2017 9:43:10 GMT
collateral Rep could you give us an update please? You had previously said that drawdown was due / expected at the end of Feb at which point any remaining amount available in this load would be offered to alternative funding sources...... thanks.
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Post by Collateral Rep on Mar 2, 2017 10:00:09 GMT
Hi spareafewcoppersguv, We expect it to take another couple of weeks due to a delay relating to probate issues. Many thanks, Gordon
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Post by spareafewcoppersguv on Mar 2, 2017 14:30:22 GMT
Hi spareafewcoppersguv , We expect it to take another couple of weeks due to a delay relating to probate issues. Many thanks, Gordon OK, thanks for the reply....
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Post by sannytwist on Mar 6, 2017 10:34:55 GMT
Hi , l have invested some money into the Elms Hotel loan. Was wondering if l wanted to sell part of my loans now, do l need to wait until the full loan is taken out (ie. its sitting at 60% invested) before my loan parts will sell?
As it stands just now l'm not sure what will happen if l sell part of my investment in this loan.
Any advice will help.
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littonowl
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Post by littonowl on Mar 6, 2017 10:41:15 GMT
Hi , l have invested some money into the Elms Hotel loan. Was wondering if l wanted to sell part of my loans now, do l need to wait until the full loan is taken out (ie. its sitting at 60% invested) before my loan parts will sell? As it stands just now l'm not sure what will happen if l sell part of my investment in this loan. Any advice will help. sannytwist Pretty sure you can only sell your loan part once the loan is fully sold out...
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Post by sannytwist on Mar 6, 2017 11:05:13 GMT
Thats bad news for me then, doesnt look like this loan will fill up anytime soon. Crapppp
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star dust
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Post by star dust on Mar 6, 2017 11:07:32 GMT
Actually, it certainly looks like you can put a loan part up for sale, but I think it would go to the back of the queue and not earn interest from the point of being put up for sale either, if you try the 'are you sure' pop-up says this "Once your loan parts have been purchased we will credit the balance to your account, however any available funding on the loan will take precedence over your selling loan parts until sold."
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hantsowl
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Post by hantsowl on Mar 6, 2017 11:45:59 GMT
Not sure if this has already been mentioned elsewhere, but it is listed as "under offer" at Christie & Co. with offers in the region of £750000 so valuation looks correct.
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Mar 6, 2017 12:57:31 GMT
Hi spareafewcoppersguv , We expect it to take another couple of weeks due to a delay relating to probate issues. Many thanks, Gordon Forgive my thickness Gordon, but how do these probate issues affect you offering the Balance to your "alternative investment group" and filling the loan now? Also, I can't recall (on too many platforms ) but are we Investors accruing Interest whilst we wait for this Loan to fill? If so, I suppose there's no great hurry, but if not ..............
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Post by Collateral Rep on Mar 6, 2017 13:03:12 GMT
Hi ozboy, We are offering the loan to our investors for as long as we can before the drawdown date. All investors are receiving interest from when they bought a loan part. Many thanks, Gordon
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Post by sannytwist on Mar 6, 2017 14:33:21 GMT
It affects me negatively as l no longer have the option of selling and money is tied up until this loan is 100% filled up . At the speed we are going, this loan won't be filled 100% for the foreseeable future. I suppose its my own fault at the end of the day but still regret it .
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Post by sannytwist on Mar 6, 2017 15:51:03 GMT
Yes, its my inexperience. Won't make that mistake again. Big lesson learnt here
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