ben
Posts: 2,020
Likes: 589
|
Post by ben on Sept 25, 2017 17:57:15 GMT
I opened a new account at the weekend and paid in £200 on Sunday for a trial, but nothing has arrived in my account yet. Is this normal? It will be credited tomorrow morning you need to get it sent before 5 or 6 pm day, can not remember fore for next day credit (fri for monday).
|
|
ben
Posts: 2,020
Likes: 589
|
Post by ben on Sept 25, 2017 16:50:17 GMT
First, lenders through the Lendy platform have, to date, suffered no losses of principal on loans, and we have so far returned £29.5 million in interest alone to lenders. Repayments of principal include a further £137.8m. I'm sick of hearing this 'defense' trotted out by Lendy! As if is proved anything, except that they have been exceptionally lucky! Lendy, have you never heard the assertion "Past Performance Is Not An Indicator Of Future Results"? You should have. It, or something equivalent, is in the small print of almost every financial offering I have read. What they do not state though is that for the majority of that £29.5 million they were only actually holding onto it after we very nicely gave it to them.
|
|
ben
Posts: 2,020
Likes: 589
|
Post by ben on Sept 25, 2017 12:17:37 GMT
Three simple tips for you
1. Google your borrowers.
2. Do not lend more for the asset then the purchaser purchased it for (unless they have held it for 10/15 years or so)
3. If a borrower tells you something do not take it as fact.
If all you can competently do is these three things, you will still be in a better position then you are now.
|
|
ben
Posts: 2,020
Likes: 589
|
Post by ben on Sept 25, 2017 12:09:47 GMT
Indeed. They are also relevant when I consider if a borrower is trying to make a loan look better than it really is. Going to be a few tears at the end of this loan, unfortunately unless Lendy get a good result on this loan (which is unlikely) they will basically turn into a ponzi scheme. New loans paying of the losses of old loans. Which is a shame as even though they had some appalling loans they have had some very good loans.
|
|
ben
Posts: 2,020
Likes: 589
|
Post by ben on Sept 25, 2017 9:58:42 GMT
I think that the article is partially trying to assert that the background of the borrower does matter. I recall another very intelligent poster saying that the manpower/IBM loan (referenced in the Telegraph article) is a solid loan and has good security and the background of the borrower does not matter. Unfortunately, I can't find this post as seems to have been deleted. In my humble opinion the background of the borrower is important; good borrowers hopefully reduce likelihood of default. The background of the borrower is just as important as the asset, no point having a good asset and a borrower that has no intention of repaying/walking away if it goes bad.
|
|
ben
Posts: 2,020
Likes: 589
|
Post by ben on Sept 24, 2017 16:35:30 GMT
I have a new business plan... - Set up SPV.
- Use it to buy a property at a knock-down price.
- Find a valuer who will provide a generous VR.
- Find a lender who will provide a loan at a high enough LTV to cover more than 100% of the purchase price.
- Default on the loan.
- Let the lender call in the receivers and sell the property at a knock-down price.
- Pocket the profit.
Repeat.
Would anyone here be interested in backing me?
Will the interest be retained? We can be generous and let Lendy keep that. Not to worry though they are all highly trained and experienced so they will spot that obvious con a mile away. After all nobody would be stupid enough to lend more against an asset for more then they paid for it.
|
|
ben
Posts: 2,020
Likes: 589
|
Post by ben on Sept 24, 2017 16:28:56 GMT
Here we go.... "We are in continuous contact with the borrower - who is keeping us fully updated with all discussions. The borrower remains confident that the equity partner will provide funding, although there have again been further delays, relating to bank guarantees. This continued delay is creating concerns with the borrower's sponsors as they would be unable to participate in demonstrations or promotional events until the promised funding is received.
They have therefore accelerated discussions with a further investor who had previously shown interest in coming in on the back of the major equity partner. While the primary partner remains the main focus the additional discussions will continue in parallel."
Potentially back to square one then? fundingsecure When are you going to learn that the pawn shop model is NOT appropriate for large loans such as this and property development, and you (on our behalf) repeatedly leave yourself open to impotence? I am having serious doubts as to your corporate competence. Unfortunately they do not have any competence in this area, they went from pawn to property without changing the business model, even though they were well informed it was a bad idea. When you look at the list of some of the updates on overdue loans it does not exactly scream competence out. There business model appears to be to kick the loan further and further down the road and hope for the best, which is all well and good when the borrower is at least paying interest, but when they are paying nothing it is daft.
|
|
ben
Posts: 2,020
Likes: 589
|
Post by ben on Sept 24, 2017 7:35:46 GMT
I've been digging a bit further and it seems that the couple in question had quite a chequered past starting from well before Lendy ever lent them any money. Surprising that Lendy weren't more careful. Lots of stuff in local newspapers. Edit: Removed search terms as it breaks forum rules. Apologies. Not to worry as Lendy have previously told us the borrower history does not matter the important thing is the value of the security. Buying property/land is like buying a car unless you are buying a desirable property the chances are the buyer will not pay what the valuation states, just like I am sure many on here did not pay the valuation for there own property. So the actual value of the property is what they paid for it but unfortunately a lot of p2p sites seem to be unaware of that and are happy to lend more/equal to what the person brought the asset for and then state its 70% LTV loan. So win win for borrowers and p2p site whatever happens.
|
|
ben
Posts: 2,020
Likes: 589
|
Post by ben on Sept 23, 2017 9:45:46 GMT
No objection to different times as it gives everybody a fair chance but I just wish they would state what was already funded before the loan goes live, especially on the good loans it is always the same people who get in first, with the fact that the website can quite often be slow to load, FS don't always push the button on time there is no way each time they can be sat there bidding before everyone else.
It getting to the point that the only bid limits they put on are on the rubbish loans that nobody has offered to buy a large chunk of before go live.
|
|
ben
Posts: 2,020
Likes: 589
|
Property Moose
SPV24
Sept 22, 2017 20:34:17 GMT
Post by ben on Sept 22, 2017 20:34:17 GMT
Was not one I was in either.
But what PM seem to ignore is that yes they purchased it for below market price, but there is a reason for that. So unless they are planning on doing major work on it the same reason will be there when they come to sell it. But they use the fact that they have purchased below market price in there calculations of return and the calculation of their fees, so even though it will probably never sell for market value they calculate the return on it will doing. Be interesting to see there positive spin on this one although I am sure Lendy or FS can give them a few tips
I am finding it harder and harder to continue to invest, it is probably one of the better models just run very badly.
|
|
ben
Posts: 2,020
Likes: 589
|
Post by ben on Sept 22, 2017 20:16:11 GMT
Not really looked at the auto invest but how come you invest 5% in them and 20% in the manual investments.
|
|
ben
Posts: 2,020
Likes: 589
|
Post by ben on Sept 22, 2017 9:42:46 GMT
At least they have accepted that they have issues, for a company it is a good issue to have but they still need to manage it so not to lose all there investors.
|
|
ben
Posts: 2,020
Likes: 589
|
Post by ben on Sept 22, 2017 9:29:35 GMT
I just valued it myself at what other similar properties had sold at near by in the last 3 months, not an exact science but near enough, I did try getting some figures and all I got back was worthless rubbish.
|
|
ben
Posts: 2,020
Likes: 589
|
Post by ben on Sept 22, 2017 2:34:47 GMT
The borrower is not the best borrower on a good day, so with an increase in rate I doubt many people will be investing in this again, and not much has happened really since this loan originally launched.
|
|
ben
Posts: 2,020
Likes: 589
|
Post by ben on Sept 21, 2017 21:47:52 GMT
The few I have been in that have completed to leave would have been a capital loss in leaving and would have only made me about 2% over the time period so not exactly great. I stayed even though did not really want to. So not that keen in investing in new loans if I am going to forced to sell at a loss or very little return over the time.
|
|