Also it depends on whether you are trying to avoid default, or loss. As I see it, this platform specialises in asset-backed loans. The security is more to do with avoiding loss rather than avoiding default, and if you assessment is simply related to the risk of default, then the security is a secondary matter. This is more a platform for lenders who value the security, and are not so concerned about having to wait for the value of the security to be realised. If you are with FC then it's defaults you have to avoid, because the security is ... .
why is it generally a bad idea to invest in p2p yacht loans?
I don't think it is generally a bad idea. We are not investing in the yacht, just lending on it as the main security. Yachts are not real property, such as land and buildings, but chattels, and values are not so secure. Our security is not limited to the boat, and as long as the insurance is secure for all eventualities then it seems good enough to provide some diversity in lending. The rate reflects the risk, and note that Ablrate is taking 4% pa plus 2% up front which with our 14% equates to around 20% for the borrower. I do like to see an income stream for this particular niche platform, which reduces platform risk.
I think I missed the very first Tewkesbury loan because I felt that I should support real businesses and not feed house price inflation. I got over that, or perhaps FC corrupted me - note to self: must look for a specialist firm of caring lawyers who can help me stop other people being corrupted, as I was, by getting me lots of compensation.
So when you say 4 or 5 months late - how late is completion and sale of the original development planned?
It's a sad fact that part of the required performance of being rich is that you have to be seen to engage in an extravagant lifestyle and splash out on boats, or shares in very expensive boats. If you prefer solid ground and can't swim or hate to be constrained in a small space, well you just have to put up with it. Better than getting involved with breeding racehorses, though.
Is this the same old Tewkesbury that was one of the first FC property loans, when the team were still bright-eyed and bushy-tailed (though hugely experienced)? I dimly remember making some decent cash out of that.