ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Jun 6, 2017 10:38:23 GMT
I couldn't find a Topic on this Loan so thought I'd start one. I have yet to embark on my amateurish cackhanded DD however 13% at 59.33% LTV seems reasonably investable, on the face of things.  This is a Renewal from the first, original Loan - "The loan has been increased to cover the interest due to date and to help fund fees for additional planning application on the land, prior to a planned sale." and Bonuses are payable. 74% subscribed @ 11:37 |
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Post by sunburyjane on Jun 6, 2017 10:54:02 GMT
I invested in the original loan. It was 3 months late in repayment, which was financed by an 18% rise in valuation, which would suggest a shortage of funds. I considered myself lucky to get out of this one. The loan still hasn't been filled after 3 weeks
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Jun 6, 2017 12:08:54 GMT
Thank you sunburyjane, good snippets of information. 
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james21
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Post by james21 on Jun 6, 2017 15:14:03 GMT
The new loan is over £1.3M, its bound to take longer to fill. I have invested in it and am happy to have done so
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Jun 6, 2017 16:39:14 GMT
I'm "off" FS for Property at the mo, but will look closer at this one as a "Possible" rather than a "Probable".
I am just getting SO very weary from the endless Due Diligence, which almost always turns up surprises, which almost always are not pleasant.
Not referring to FS only.
Thanks james21
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james21
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Post by james21 on Jun 6, 2017 18:33:12 GMT
Developing property cant be fitted into a fixed time period, FS offer 6 month loans but the development may take 8 months or more, this is why they overun. Compared to Mickey Mouse platforms like Funding Circle where most loans have no security and lend to many doubtful propositions which so often are "a default waiting to happen" FS are a good bet. Try doing your due diligence on some of the FC loans. With FS worst case you get some of your money back after default (few as they are), with FC you get nothing. FS offer a lot of loans with short investment periods at an excellent rate of return. You could of course chose Zopa or Rate Setter and bask in 2 or 3% over the long term with no guarantees. I know where my money is going
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r00lish67
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Post by r00lish67 on Jun 6, 2017 20:01:18 GMT
Developing property cant be fitted into a fixed time period, FS offer 6 month loans but the development may take 8 months or more, this is why they overun. Compared to Mickey Mouse platforms like Funding Circle where most loans have no security and lend to many doubtful propositions which so often are "a default waiting to happen" FS are a good bet. Try doing your due diligence on some of the FC loans. With FS worst case you get some of your money back after default (few as they are), with FC you get nothing. FS offer a lot of loans with short investment periods at an excellent rate of return. You could of course chose Zopa or Rate Setter and bask in 2 or 3% over the long term with no guarantees. I know where my money is going Agree with the general sentiment, but after one dalliance with the 2 Bristols I'm also out for this one. Definitely felt fortunate to escape unscathed and see little to encourage me that things will be any better this time around.
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Jun 6, 2017 20:03:55 GMT
I'm out.
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james21
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Post by james21 on Jun 7, 2017 18:33:20 GMT
In your case a sensible outcome
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phil
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Post by phil on Jun 8, 2017 8:05:25 GMT
In your case a sensible outcome I'm in, they look like a lovely pair of Bristols. Though it's quite astounding the money the borrower is paying in interest, £141,936 on the last loan and he's back for more. I can't work out if that's with FS fees or not.
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mikes1531
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Post by mikes1531 on Jun 29, 2017 16:55:21 GMT
Though it's quite astounding the money the borrower is paying in interest, £141,936 on the last loan and he's back for more. I can't work out if that's with FS fees or not. : I'm pretty sure that's just interest paid to FS's investors. It comes to more than the 12% p.a. rate shown for the loan because it also includes the bonus interest payable to those who invested more than £25k. Interest and fees paid to FS would be on top of that.
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ashtondav
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Post by ashtondav on Jun 29, 2017 17:12:37 GMT
In your case a sensible outcome I'm in, they look like a lovely pair of Bristols. Though it's quite astounding the money the borrower is paying in interest, £141,936 on the last loan and he's back for more. I can't work out if that's with FS fees or not. These are borrowers of last resort. No one else will lend to them, and the rates are therefore high - AND RISKY, like all FS loans. would you pay 13%+? No, because you'd be able to borrow at 4%-5% on a decent asset.
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Post by mrclondon on Dec 1, 2017 14:22:56 GMT
Renewal this time round is just a couple of weeks late, so a major improvement on the 3 months plus late renewal in May. (EDIT: However, once again interest is being rolled up, the loan values are Dec 17 £1.48m >> May 17 £1.305m >> July 16 £1.12m ) The FS update (on assets tab of the new loan) reads Infact, it seems that the planning application was approved on 29th November ( South Glouc Planning Search with postcode from VR, or direct link on DD Central) |
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steve11523
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Post by steve11523 on Dec 1, 2017 20:40:12 GMT
On that basis this looks OK even if it is one of those relying on increased valuations to pay the interest
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mikes1531
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Post by mikes1531 on Dec 1, 2017 21:37:19 GMT
I'm not quite so convinced. I expect this loan to need help -- the interest is being rolled up into the replacement loan. The first time that happened, FS justified the larger loan with increased valuations, but they also felt the need to increase the base interest rate and add more bonus tiers. They haven't tried that this time, so the LTV has increased from 58% to 66% with no improvement in terms for investors. And I note that the exit plan -- "Borrower expects to sell off the second property and obtain longer term finance on the main property" -- is the same as it was 17 months ago. No obvious progress on that front, then.
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