littleoldlady
Member of DD Central
Running down all platforms due to age
Posts: 3,017
Likes: 1,835
|
Post by littleoldlady on Feb 13, 2024 15:26:04 GMT
Loan (L**d o** C****h S****t H******s) is the first to declare a capital loss. It was a £273k loan, that lost £40,043 according to the stats page. It was from the 2019 cohort. It was scheduled to be phase 1 of 3 for a total loan of £1m. It's not clear to me whether the other phases went into funding. I'm not in the loan, so don't know the details. . Is anyone here in this loan? I am interested in why it is different from all the other loans which appear to be defaulting. What forced them to crystallise the loss on this one but not the others?
|
|
littleoldlady
Member of DD Central
Running down all platforms due to age
Posts: 3,017
Likes: 1,835
|
General P2x Discussion
Nester
Feb 2, 2024 17:40:18 GMT
Post by littleoldlady on Feb 2, 2024 17:40:18 GMT
Can*** Hill due to repay this month. N indication from N as to status. I cannot see the property on sale anywhere.
Later: Redeemed OK
|
|
littleoldlady
Member of DD Central
Running down all platforms due to age
Posts: 3,017
Likes: 1,835
|
Post by littleoldlady on Jan 12, 2024 18:39:13 GMT
A time line on one of my loans (not the worst and one I still hope for some return on) 2019 Loan started initial end date 10.3.21 Oct 20 End dated pushed out to Dec 21 Dec 21 End dated pushed out to Q1 22 They claim the initial end date was Dec 21 so I don't know from when they are accruing default interest but I don't expect to get any so not worried. Mar 22 End dated pushed out to Apr 22 May 22 End dated pushed out to Aug 22 Aug 22 End dated pushed out to Dec 22 Jan 23 End dated pushed out to Mar 23 (but CP think this is optimistic) May 23 End date postponed indefinitely Aug 23 End dated pushed out to Q4 23 Nov 23 End date postponed indefinitely Jan 24 End date postponed indefinitely
Delays in development projects are to be expected and this project was affected by Covid, but even so not pretty.
|
|
littleoldlady
Member of DD Central
Running down all platforms due to age
Posts: 3,017
Likes: 1,835
|
Post by littleoldlady on Jan 6, 2024 18:32:11 GMT
Having an SM wouldn't help much with exciting the platform as you still wouldn't be able to sell your overdue/defaulted loans. Not at par but everything has its price. What would be ideal if platforms were legally obliged to make an offer for loans in certain circumstances eg a portfolio stuck in probate with no way of gettiing a valuation. The platform could offer a peppercorn if that is all they think it was worth so no onerous financial risk to them and it would be useful for other lenders to see just what the platform thought the loans were worth. A useful increase in transparency. Executors of estates could decide whether to accept the offer or hang on in hope but either way they could use the valuation to complete probate..
|
|
littleoldlady
Member of DD Central
Running down all platforms due to age
Posts: 3,017
Likes: 1,835
|
Post by littleoldlady on Jan 5, 2024 14:13:57 GMT
CrowdProperty’s chief executive has said that access to secondary markets is not a major selling point to peer-to-peer investors, and may even be “dangerous”.
Mike Bristow said that the P2P development lending platform learned through its own investor research that asking for secondary market access is “quite low down” on investors’ list of priorities. He added that the presence of a secondary marketplace could actually harm investors by giving them a false sense of liquidity.
“Bigger picture, secondary markets are dangerous,” Bristow said. “This is why we will not have a secondary market.
==============================================================================================================
These may be valid points, although I'm not sure about the "selling point" issue, but one of the uses of a secondary market is to exit the platform at the end of one's investment career - a point which will come to all of us. Without one it is a "Hotel California" platform as they never want to crytallise a loss.
|
|
littleoldlady
Member of DD Central
Running down all platforms due to age
Posts: 3,017
Likes: 1,835
|
Post by littleoldlady on Jan 5, 2024 10:51:52 GMT
Might I suggest someone more grown up and eloquent then me ask Q the pertinent questions. I have messaged Q a basic wtfrell is the plan ?.. The problem is that Sharia loans are not allowed to charge interest so terms like APR are not applicable. In theory the cost of credit is not known at the outset of the loan as it depends on the future price of a tradable instrument, although the cunning Sharia compliant method gives a high degree of certainty to the borrower. So I don't think that Q are actually able to give you the information Penny Pincher wants in a simple form. If they disclosed full details you could calculate the equivalent interest rate yourself if you assume the future price of the underlying security is the same as now, but I doubt they would be prepared to do that.
|
|
littleoldlady
Member of DD Central
Running down all platforms due to age
Posts: 3,017
Likes: 1,835
|
Post by littleoldlady on Jan 2, 2024 15:31:35 GMT
I guess you will see the rest tomorow but this is the important bit. It makes the loan look safer, but why would they need it? Does it spell out exactly what they plan to use the loan for? "£150,000 that will be used for growth capital"
|
|
littleoldlady
Member of DD Central
Running down all platforms due to age
Posts: 3,017
Likes: 1,835
|
Post by littleoldlady on Jan 2, 2024 15:22:59 GMT
Quote: The company has stable revenues and gross profit margins at c.£573k and c.90% respectively. The company is funded through the West Yorkshire Combined Authority adult education budget. End It's hard to see why they would need an expensive loan. For me, it's just hard to see I guess you will see the rest tomorow but this is the important bit. It makes the loan look safer, but why would they need it?
|
|
littleoldlady
Member of DD Central
Running down all platforms due to age
Posts: 3,017
Likes: 1,835
|
Post by littleoldlady on Jan 2, 2024 15:20:50 GMT
Ace can you estimate how much time you spend managing your p2p portfolio?
|
|
littleoldlady
Member of DD Central
Running down all platforms due to age
Posts: 3,017
Likes: 1,835
|
Post by littleoldlady on Jan 2, 2024 15:04:33 GMT
Quote:
The company has stable revenues and gross profit margins at c.£573k and c.90% respectively. The company is funded through the West Yorkshire Combined Authority adult education budget.
End
It's hard to see why they would need an expensive loan.
|
|
littleoldlady
Member of DD Central
Running down all platforms due to age
Posts: 3,017
Likes: 1,835
|
Post by littleoldlady on Nov 30, 2023 19:33:05 GMT
Semantics. It would have been clearer if I had said they have never crystallised a loss, which is what I meant. My gripe with them is not that there have been losses, these are to be expected, it is that they will not crystallise a loss and enable one to exit. In some of my loans they have claimed years ago that they had been offered a way out but had rejected it "in the interests of lenders", meanwhile Admin costs pile up and the asset deteriorates and the outlook just gets worse - but they preserve their precious "Never had a loss" status. This is what I mean by "festering".
|
|
littleoldlady
Member of DD Central
Running down all platforms due to age
Posts: 3,017
Likes: 1,835
|
Post by littleoldlady on Nov 30, 2023 8:57:16 GMT
As far as I know, but happy to be corrected if not, CP have never admitted that a loan has failed. Any that have are just left festering. Cetainly the case with all my loans. At my age I would be happy to take whatever haircut is coming just to clear the decks for the executors of my estate. The total amount outstanding is not large and is less than total interest received from CP but it's a Hotel California platform. I'm interested to see how they do handle their first crystallised loss, particularly to see whether they forgo any of their own fees, which some of the better platforms do in loss situations, or whether they stick to the letter of the contracts to maximise platform profits. Forgoing their fees would go a long way to appease lenders, and will help me determine my future lending amounts with them. Re (my) bold, I think this confirms my assertion.
|
|
littleoldlady
Member of DD Central
Running down all platforms due to age
Posts: 3,017
Likes: 1,835
|
Post by littleoldlady on Nov 28, 2023 9:06:16 GMT
As far as I know, but happy to be corrected if not, CP have never admitted that a loan has failed. Any that have are just left festering. Cetainly the case with all my loans. At my age I would be happy to take whatever haircut is coming just to clear the decks for the executors of my estate. The total amount outstanding is not large and is less than total interest received from CP but it's a Hotel California platform.
|
|
littleoldlady
Member of DD Central
Running down all platforms due to age
Posts: 3,017
Likes: 1,835
|
Post by littleoldlady on Nov 16, 2023 19:40:18 GMT
Latest update published.
I cannot work out whether this is good or bad news as I am only in the initial loan to purchase the site and I don't know how much has been lent for the development nor how much the Administrators will take, but I am pessimistic as the net proceeds will barely cover just the initial loan which is pari passu with development loans.
Edit 19/3/2024: See next post
|
|
littleoldlady
Member of DD Central
Running down all platforms due to age
Posts: 3,017
Likes: 1,835
|
Post by littleoldlady on Nov 7, 2023 20:56:49 GMT
I am not making any more investments in CP, but if I were it would not be the loans in default that would concern me, it would be the torrent of new loans, roughly one a day. I question whether CP are expanding their staff in proportion to be able to monitor the projects properly.
|
|