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Post by davidtaske on Mar 6, 2017 15:23:09 GMT
What are the three most important things you look for when investing in P2P opportunities?
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Post by Butch Cassidy on Mar 6, 2017 15:27:48 GMT
1. Getting my money back, in a timely manner
2. that the reward reflects the risk (of getting my money back, in a timely manner)
3.Getting my money back plus the interest due, in a timely manner
How hard can that be  ?
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justme
Member of DD Central
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Post by justme on Mar 6, 2017 15:29:25 GMT
Loan quality
Liquidity
Interest rate
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 10,840 
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Post by ilmoro on Mar 6, 2017 15:31:08 GMT
In no particular order Return on capital (ie rate), return of capital (ie risk profile), communication (and no shrapnelator, right Chris  ) |
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SteveT
Member of DD Central
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Post by SteveT on Mar 6, 2017 15:40:06 GMT
Basically what Butch Cassidy said! My own 3 would probably be: 1) The security behind the loan (including the quality of the information and assumptions that support the valuation of said security) 2) The interest rate payable (and the likelihood that the promised interest will actually materialise), relative to 1) 3) The communication (am I being told what I need to know, and can I trust what I'm being told?) Adding a freebie no.4: 4) The ability to exit (ideally without penalty) when I stop liking the balance of 1), 2) and 3) |
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jonno
Member of DD Central
nil satis nisi optimum
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Post by jonno on Mar 6, 2017 15:41:52 GMT
Anything that doesn't look like Rebuilding Society, Funding Circle or Assetz Capital |
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Mar 6, 2017 16:46:02 GMT
What are the three most important things you look for when investing in P2P opportunities? > Information, Information, Information > Good & fair rate to risk ratio > Honesty
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jo
Member of DD Central
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Post by jo on Mar 6, 2017 16:55:22 GMT
1) Platform security.
2) Security of platform.
3) How secure the platform is.
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ben
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Post by ben on Mar 6, 2017 17:35:31 GMT
My 3 would be:
1) The plans of the borrower
2) The sums, do they add up
3) History of the borrower, do they have the ablility to complete the project, and in case of being unable to complete the project what are the likelhood of gaining control of the asset without a big bill.
The LTV on a loan is pretty irrelevent, as a general rule of thumb I would personally prefer a higher LTV and a good project manager, rather then a lower lTV and a dodgy character. Also the LTV that most sites give is not that relevent as most of these sites have been purchased on the cheap and if a sale was forced it would probably be for even cheaper.
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Post by GSV3MIaC on Mar 6, 2017 17:40:22 GMT
1) Reward vs perceived risk (including liquidity risk).
2) Enough information to make a sane stab at the risk(s).
3) Effort involved in running the account (getting approved, getting money in, re-investing funds, logging in (thanks RS .. not), tax records).
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Post by Deleted on Mar 6, 2017 18:02:20 GMT
a) do I understand the risk of lending to the loan, the borrower and the portal?
b) do I believe that I will get my capital and an acceptable interest back as promised based on the above?
c) do I have a route where I can sell my loan easily if I need the cash for something else?
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trevor
Member of DD Central
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Post by trevor on Mar 6, 2017 18:40:31 GMT
1. Platform security
2. Multiple loans for diversification
3. % rate and LTV
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adrianc
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Post by adrianc on Mar 6, 2017 19:44:54 GMT
What are the three most important things you look for when investing in P2P opportunities? There's two different ways to answer that. Firstly - when choosing a platform. * - The viability of the model. * - The ease of working with the platform. * - The quality of the information. Secondly - when choosing an individual opportunity on a platform. * - The return. * - The information on the risk. * - Diversification.
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elliotn
Member of DD Central
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Post by elliotn on Mar 7, 2017 8:36:59 GMT
Rate, deal flow, after market liquidity (+ platform comms).
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Post by charles on Mar 7, 2017 10:48:23 GMT
I am so weird. My three would be: - IFISA
- Everything bought and sold at par for free
- Primary Market flow.
So paul123 , is the availability of a secondary market (SM) an absolute must have before you invest (even if liquidity may be illusory)? How does the investment term affect that requirement (e.g. if you were holding a 6-month bridging loan on PC, vs. a 5-year equity investment on PP)? That's something which we're working on at Property Crowd, and it would be good to hear from investors such as yourself why an SM is so important.
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