fogey
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Post by fogey on Mar 5, 2017 19:41:36 GMT
So is it really this easy to get money into MT ? On these large loans on their umpteenth tranche, yes. 'Want'? Maybe not. They'd probably like to have more, but sensible risk mitigation means spreading any single platform's fund allocation across as many loans as possible on that platform. Given the multitude of other platforms offering broadly similar returns, with broadly similar risks, why have all your eggs in one basket? Well this is only the second basket that I have so far really considered and I seem to remember a sort of recommendation from BM too ! Someone here has even suggested that they are buying into MT at 12% and then flogging it at a "target" rate of 7% +fees. Surely it's not really that easy to make money this way ?
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fp
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Post by fp on Mar 5, 2017 19:58:55 GMT
Well this is only the second basket that I have so far really considered and I seem to remember a sort of recommendation from BM too ! Someone here has even suggested that they are buying into MT at 12% and then flogging it at a "target" rate of 7% +fees. Surely it's not really that easy to make money this way ?
They buy loans on MT, and divide them in to lots to distribute to accounts on their platform and pay the same rate of interest to their investors as they receive from MT, BM make money from the 1% fee they charge.
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Post by GSV3MIaC on Mar 5, 2017 20:59:53 GMT
/mod hat off (having already supplied the required stars, upthread)
Yes, it is easy to get money into MT if you are talking 'a few £100', and 'new loans, or new tranches'. If you are looking for £10k or £100k, then be prepared to struggle. If you want to get £x00 into a loan floated last year, hell may freeze over before enough comes up for sale on the SM (although new loan launches often break some loose). As people have already advised you, if you have £x in P2P then you really didn't ought to have more than £x*y% in any single loan, or with any single borrower (who may have multiple loans) or with any single platform, under the age old 'eggs and baskets' rules. Some people break that rule, for short periods, for good reasons. Some live to regret it. 'y%' depends on how brave you are, and how badly the loss of £x*y% is going to affect you. Over the long haul, with multiple loans and platforms, you are for sure going to make some losses. That's why the interest rate is 12%. Heck you can get 20% or 16% elsewhere (ABLRate, FC, ReBS, Lending Crowd, to name but 4) ,, but the losses may be higher and less predictable.
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fogey
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Post by fogey on Mar 6, 2017 1:12:29 GMT
/mod hat off (having already supplied the required stars, upthread) Yes, it is easy to get money into MT if you are talking 'a few £100', and 'new loans, or new tranches'. If you are looking for £10k or £100k, then be prepared to struggle. Well the problem for me recently is that every day there have been no opportunities at all for me to put any money into MT, so I am surprised that the view here is that now it will be no problem on Monday afternoon and perhaps the next day too ! Yes the amounts are very small but they are a lot bigger than nothing ! I am not using p2p as any serious form of investment so the amounts I am bidding here will certainly not give me any sleepless nights, but thank you everyone for pointing out how risky it can become. I see p2p as a form of snakes and ladders, but where there seem to be far more ladders than snakes at the moment
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Post by GSV3MIaC on Mar 6, 2017 8:39:19 GMT
Ah, it's easy to get into new loans when there are some! Recently there has been a bit of a drought. Renewals of old loans don't count .. 99% of the previous lenses stay in.
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mrflush
Member of DD Central
This is not me
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Post by mrflush on Mar 6, 2017 10:30:05 GMT
Well the problem for me recently is that every day there have been no opportunities at all for me to put any money into MT,...
There have been opportunities recently. I sold over £3k on the SM on Friday and there was at least one other investor selling at the same time and it didn't all go in seconds either.
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Post by marcusponds on Mar 6, 2017 11:24:25 GMT
fogey I'm not sure I will add much to other comments, but as a relative newbie myself... I've been with MT for 4 months. I really like it but there are drawbacks. It's not so easy as (for example) Ratesetter or Zopa to get large sums invested. Like many similar sites MT suffers from an excess of lenders vs borrowers, and more lenders are joining all the time. If the frequency and/or size of loans doesn't increase, there will come a time where it's impossible to increase your portfolio above £30k or so because your old loans will be paying out at the same rate as new cones coming in. That's unless you invest in the Secondary Market (people selling their loan pieces) which requires you to be on the site at the moment the sales come up - they are snatched up v quickly. Finally I would advise you not to put all your eggs in any P2P basket - MT hasn't had a default yet but that doesn't mean it won't happen. IMHO.
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pom
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Post by pom on Mar 6, 2017 12:30:56 GMT
Finally I would advise you not to put all your eggs in any P2P basket - MT hasn't had a default yet but that doesn't mean it won't happen. IMHO. Wrong way to think IMHO....you should expect that defaults WILL happen, and if anything be "looking forward"* to when they do to see how they are handled. With luck losses will be small or non-existant but they will eventually happen. * it has frequently been said that I have a number of very warped definitions of what counts as "fun"
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adrianc
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Post by adrianc on Mar 6, 2017 12:57:43 GMT
Well the problem for me recently is that every day there have been no opportunities at all for me to put any money into MT,...
There have been opportunities recently. I sold over £3k on the SM on Friday and there was at least one other investor selling at the same time and it didn't all go in seconds either. To put the availability into perspective, there are always the graphs maintained by jonahp2pindependentforum.com/thread/5507/current-loan-availability-tracker
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