|
Post by elephantrosie on Jun 25, 2017 9:10:34 GMT
Why is one filling up much quicker than the other? when both are from the same borrower, surely they are of similar risk?
|
|
elliotn
Member of DD Central
Posts: 3,063
Likes: 2,681
|
Post by elliotn on Jun 25, 2017 9:14:31 GMT
Why is one filling up much quicker than the other? when both are from the same borrower, surely they are of similar risk? All development tranches are pari passu. Some lenders may be kindly investing in DL1 to complete first and help the borrower get the funds required to continue construction.
|
|
ganymede
Member of DD Central
Posts: 299
Likes: 207
|
Post by ganymede on Jun 25, 2017 9:37:07 GMT
Once a loan becomes 100% fully funded then it can be traded on the secondary market, if there is no difference between two loans, I then opt for the one with highest level of funding, while I may not ever try to sell on the secondary market, it's more likely to become fully funded sooner and be able to be traded on the secondary market.
|
|
blueninja
Member of DD Central
Posts: 79
Likes: 48
|
Post by blueninja on Jul 18, 2017 20:31:26 GMT
Hi Collateral RepWhy do the development loans have different term lengths DL00001 - 187 days DL00002 - 187 days DL00003 - 180 days BL00026 - 246 days It looks like the development loans which are 2nd charge will be repaid before the original 1st charge bridging loan (BL00026) and the DL0003 will be repaid before DL0001 and DL0002 Is that correct?
|
|
|
Post by Collateral Rep on Jul 19, 2017 5:54:46 GMT
Morning blueninja , All loans will be brought into line nearer completion so they end at the same time. Many thanks, Gordon
|
|
GeorgeT
Member of DD Central
Posts: 1,321
Likes: 1,575
|
Post by GeorgeT on Aug 16, 2017 14:46:05 GMT
15% on a £100k tranche. If Chris Kamara was a member he would be posting "Unbelievable!" From COL:
|
|
jonno
Member of DD Central
nil satis nisi optimum
Posts: 2,739
Likes: 3,134
|
Post by jonno on Aug 16, 2017 14:49:49 GMT
Unbelievable !!!
|
|
GeorgeT
Member of DD Central
Posts: 1,321
Likes: 1,575
|
Post by GeorgeT on Aug 16, 2017 15:30:49 GMT
The 15% tranche is 50% funded after 1 hour. Selling like the proverbial hot cakes.
I can't see this one hanging around much into the evening so best be quick.
|
|
SteveT
Member of DD Central
Posts: 6,871
Likes: 7,915
|
Post by SteveT on Aug 16, 2017 15:35:10 GMT
You've spotted that these 15% tranches effectively are 3rd charge loans, have you?! No scope for flipping them either on COL. I think I'll stick with my 12%, thanks.
|
|
jcb208
Member of DD Central
Posts: 814
Likes: 597
|
Post by jcb208 on Aug 16, 2017 15:37:34 GMT
You've spotted that these 15% tranches effectively are 3rd charge loans, have you?! No scope for flipping them either on COL. I think I'll stick with my 12%, thanks. I think they will be easy to sell later on though,I shall take a small amount
|
|
jonno
Member of DD Central
nil satis nisi optimum
Posts: 2,739
Likes: 3,134
|
Post by jonno on Aug 16, 2017 15:38:12 GMT
You've spotted that these 15% tranches effectively are 3rd charge loans, have you?! No scope for flipping them either on COL. I think I'll stick with my 12%, thanks. Yes, to be fair COL have made that clear. I still thought it was worth a sensible, moderate punt.
|
|
SteveT
Member of DD Central
Posts: 6,871
Likes: 7,915
|
Post by SteveT on Aug 16, 2017 15:57:39 GMT
You've spotted that these 15% tranches effectively are 3rd charge loans, have you?! No scope for flipping them either on COL. I think I'll stick with my 12%, thanks. Yes, to be fair COL have made that clear. I still thought it was worth a sensible, moderate punt. I hope you're right, for your sake. However, having just dodged one bullet in Birkenhead (MT, tranche B), a second in Wimbledon (FS, a 3rd charge) and suffered a direct hit in Knaresborough (FS again, another 3rd charge and a total write-off, albeit happily just a trivial sum), I'm now sworn off any and all high rate / low security development loan tranches!
|
|
GeorgeT
Member of DD Central
Posts: 1,321
Likes: 1,575
|
Post by GeorgeT on Aug 16, 2017 15:58:09 GMT
You've spotted that these 15% tranches effectively are 3rd charge loans, have you?! No scope for flipping them either on COL. I think I'll stick with my 12%, thanks. Of course, I read the email. Irrelevant to me. 12%+ rate, 100 days+ remaining days and small loan/tranche size is what sells. Liquidity on this £100k tranche at 15% will be like Jack Flash for the next 3 months. Like instant access on wheels and 15% in the meantime. The £1.6m first priority loan at 12% will be harder to shift down the line when it gets down to sub 100 days, which is why I only went into it on a 3 figure basis. I went much bigger on the 14% and I've gone moderately big on the 15%. Different strokes for different folks. And as long as we remain different and favour different investment approaches, we all win. The important thing is to get this project completed and over the line.
|
|
SteveT
Member of DD Central
Posts: 6,871
Likes: 7,915
|
Post by SteveT on Aug 16, 2017 16:05:30 GMT
You've spotted that these 15% tranches effectively are 3rd charge loans, have you?! No scope for flipping them either on COL. I think I'll stick with my 12%, thanks. Of course, I read the email. Irrelevant to me. 12%+ rate, 100 days+ remaining days and small loan/tranche size is what sells. Liquidity on this £100k tranche at 15% will be like Jack Flash for the next 3 months. Like instant access on wheels and 15% in the meantime. Ah, the "Bigger Fool" approach again...
|
|
|
Post by elephantrosie on Aug 16, 2017 16:33:15 GMT
the higher the interest, the more i am anxious about this loan. please be safe as i have invested in their first two drawdowns...
|
|