snowmobile
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Post by snowmobile on Aug 19, 2017 8:56:00 GMT
Any advance on 15%? 16%, 16% do I hear 16%? Sold to the man gesticulating on my right. Your name Sir? Mr 12%. iirc around £3m has been raised so far with another £3m to come, about halfway. So I wouldn't bet against it needing yet more encouragement. The 15% is certainly working at the moment, flying off the shelf, but then so did 12 and 14% once. A less expensive way to sustain the enthusiasm would be having boots on the ground giving regular useful reports and taking decent pics: showing that having had half the money it was half built, rather than showing a bit of fencing and some scaffolding. That's a long way to go in £100k tranches. The email from Collateral does say 15% on all further tranches, so it'll be interesting to observe how they manage to fill them all. As you say the enthusiasm for 15% will drop once people have as much as they feel comfortable with. Personally I'm happy with the lower risk on my existing tranches and am going to put more in at 14%, as that offers a superior risk/reward balance in my view.
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agent69
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Post by agent69 on Aug 19, 2017 9:34:20 GMT
Joint contracts tribunal - sets out detailed contracts for big builds JCT provide a suite of contracts to be used in the building industry, detailing the terms and conditions that will apply between the client and the building contractor. It comes in various forms including small works and design & build. The loan details just say fixed price JCT, so it isn't obvious which form is being used here. It's important to bear in mind that generally there's no such thing as a fixed price contract. If the developer starts changing things the bill will go up. Design and build is generally a better option in terms of cost control, because if there is a problem with the design then the contractor picks up the bill as it's his design.
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guff
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Post by guff on Aug 19, 2017 11:00:30 GMT
Joint contracts tribunal - sets out detailed contracts for big builds JCT provide a suite of contracts to be used in the building industry, detailing the terms and conditions that will apply between the client and the building contractor. It comes in various forms including small works and design & build. The loan details just say fixed price JCT, so it isn't obvious which form is being used here. It's important to bear in mind that generally there's no such thing as a fixed price contract. If the developer starts changing things the bill will go up. Design and build is generally a better option in terms of cost control, because if there is a problem with the design then the contractor picks up the bill as it's his design . Having seen a supposed fixed price JCT contract apparently go horribly wrong elsewhere (despite assurances that progress was consistent with spend) it seems to me that the brief of the IMS should include an assessment of any changes to the baseline specification. Would you care to comment Collateral Rep ?
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Post by Collateral Rep on Aug 21, 2017 10:41:39 GMT
Morning guff, We will be putting processes in place which will provide monthly updates on property loans. Collateral will visit each site monthly taking photographs, which will be added to the listing and our QS will also visit the site to verify works carried out. We will be asking on large development loans for interim valuations to verify the reports. Many thanks, Gordon
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david42
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Post by david42 on Aug 21, 2017 11:32:55 GMT
Morning guff , We will be putting processes in place which will provide monthly updates on property loans. Collateral will visit each site monthly taking photographs, which will be added to the listing and our QS will also visit the site to verify works carried out. We will be asking on large development loans for interim valuations to verify the reports. Many thanks, Gordon What a great idea. Maybe you could also offer training courses to teach some of the other property P2P platforms how to visit sites monthly and take photos?
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GeorgeT
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Post by GeorgeT on Aug 21, 2017 20:32:39 GMT
Yes all is very sweet on this one at the moment and COL are making a big effort to do the right thing, build confidence and ensure a happy ending for all involved. I for one am enjoying my 15% interest on the recent new tranches and look forward to backing any subsequent tranches at the same rate of interest.
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Post by df on Aug 22, 2017 0:12:26 GMT
Morning guff , We will be putting processes in place which will provide monthly updates on property loans. Collateral will visit each site monthly taking photographs, which will be added to the listing and our QS will also visit the site to verify works carried out. We will be asking on large development loans for interim valuations to verify the reports. Many thanks, Gordon What a great idea. Maybe you could also offer training courses to teach some of the other property P2P platforms how to visit sites monthly and take photos? ... I doubt they have time for educational trips to Cowes
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debaura
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Post by debaura on Sept 11, 2017 21:17:56 GMT
Selling slowly now. 15% been on for 4 days. Half full. Where has the enthusiasm gone?
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sirius
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Post by sirius on Sept 11, 2017 21:27:39 GMT
I would imagine that like myself, quite a few have reached their personal limits on this loan.
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GeorgeT
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Post by GeorgeT on Sept 11, 2017 21:31:10 GMT
Selling slowly now. 15% been on for 4 days. Half full. Where has the enthusiasm gone? I don't know - perhaps COL need to send out another email to remind people the latest 15% tranche is still available? I pounced on both the new tranches and I'm surprised there is still availability. To be fair I'm pretty maxed out on this project now and already above what my risk reduction strategy says is sensible. But 15% was such a big carrot I was like a hungry rabbit when the 2nd of the latest 15% tranches went up and I couldn't resist. It's a pleasure when I log in to My Live Loans every day and observe my rapidly rising interest tally. In fact I've now got more in COL than in any other platform and that's a direct result of the 14% and 15% rates.
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debaura
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Post by debaura on Sept 11, 2017 21:40:00 GMT
I agree come on Collateral - market it up!
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elliotn
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Post by elliotn on Sept 12, 2017 2:30:13 GMT
Time for 16%?
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applets
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Post by applets on Sept 12, 2017 13:55:59 GMT
Selling slowly now. 15% been on for 4 days. Half full. Where has the enthusiasm gone? Although more has shifted today, there are still a number of tranches still to come.
My own view is that, for the size of platform, this has been too large a loan. Yes, there will be some lenders who will be happy to plough large sums into a 15% loan with countless tranches but, for many lenders, sensible risk management dictates a limit to how much is put into any one loan/ borrower. The fact that the current tranches in this loan are in effect 3rd charges only adds to the risk.
Personally, I reached my limit in this loan some time ago and, no matter how much I want to support Collateral, I will not be taking up any further tranches in this one.
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seeingred
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Post by seeingred on Sept 12, 2017 14:38:47 GMT
Meanwhile the SM for 12% loans is as dead as a recently deceased parrot.
Sales on Burnley were all of £100 yesterday with a queue of over £25,000. I'm not in this loan but it's a similar story with Darwen - £102.46 sold yesterday and with nearly £85,000 in the queue.
The arguably over-rapid expansion of the COL property loan book could yet provide a time of reckoning.
It is all very well filling up loans using the CB incentive (which is honestly really only of value to large investors) but if a pattern of SM stagnation develops then people will buy only what they are happy to hold to term - and that is a lot less than initial sales on some loans and with some (as yet unproven) borrowers.
I can only suggest COL make the most of their photographic forays to bring us the best possible coverage of progress to date on these sites.
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GeorgeT
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Post by GeorgeT on Sept 12, 2017 23:25:00 GMT
Meanwhile the SM for 12% loans is as dead as a recently deceased parrot. <snip> To be fair I notived a couple of 12%ers I wasn't in on the SM today - with quite long terms to run and I invested £100 in a couple of them. Maybe I was the only one but I'm realising my need to diversify on COL as I'm over concentrated in the newer, high rate stuff.
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