zoll
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Post by zoll on Dec 6, 2019 9:58:46 GMT
... It starts off as an orderly wind down- but what sources of capital do they have to pursue the defaults ? ... One (and perhaps the main) source of capital will be the loan they just took out - see this thread. Yes- and how do they repay that loan eventually ? There are no free lunches.
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zoll
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Post by zoll on Dec 6, 2019 9:45:08 GMT
I still have a chunk tied up with them in defaults and very concerned. It starts off as an orderly wind down- but what sources of capital do they have to pursue the defaults ? I don't think this is going to end well. Am in Collateral and FS as well- regret the day I began my foray into UK P2P lending.
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zoll
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Post by zoll on Mar 8, 2018 8:46:59 GMT
Sorry didn't look into it any further once I decided not to go ahead. BTW- I got the following official response from PP regarding the apparently vacant property in 2015: "I am emailing further to our live chat earlier today. Having consulted our property team they have advised that WM Morrisons, who were the previous tenant to the lease, closed in early 2015. There would have been a period between WM Morrisons closing and Home Bargains opening for trade (late 2015) where the lease would have been assigned and the property fitted out. With this picture being taken in May 2015 then this appears to have been prior to the property being fitted out, hence why there would not have been any signs on the front. You will see from the property detail that WM Morrisons assigned the lease over to Home Bargains. Please do not hesitate to get in touch should you have any further queries. Kind Regards, Marc Page"So sd was spot on above.
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zoll
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Post by zoll on Mar 7, 2018 20:34:07 GMT
Market rent is what the market is prepared to pay, not what a particular tenant is paying. A particulat tenant may have unusual circumstances leading to a situation where they are overpaying (or alternatively underpaying) for a property. Market rent needs to be assessed by averaging comparable rentals in the area at any given time. Given this properties low cap rate despite above market income, leads me to believe it is overpriced. I am taking a rain check on this one.
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zoll
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Post by zoll on Mar 7, 2018 19:20:20 GMT
I’m not sure: - what a 5 cap rate is - what you mean by over tenanted - why the property value would drop by half if the tenant moved out (presumably you would rent it out again, and isn’t it a “sublet” by Morrison’s? Cap rate is reached by dividing the net income by the property's purchase price. Its a vital ratio for assesing commercial property value. (I actually think I made a mistake, the cap rate is lower. I was looking at gross income.) Over tenanted is the extraordinary situation where a tenant is paying an above market rent and as such a commercial property is artificially over valued. If tenants need to be replaced its very unlikely the same rental rates would be achieved. Its a trap to be avoided. This is supported in the surveyors report and they asses the value of the property vacant at around half its current value.
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zoll
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Post by zoll on Mar 7, 2018 14:56:51 GMT
Just looking at this new offering. Initially interesting- but I think the exit will be a problem. - It is currently over tenanted and being bought at a 5 cap rate. If the tenant moves out the property value drops by half. The other thing that doesn't add up- apparently the tenant is 11.5 years into a 25 year lease- ie. the lease supposedly began around 2006 but when I do a simple google streets view the view from May 2015 clearly shows an empty property- no signage and no one in the parking. ? (Attached) Any explanations ? Attachments:
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zoll
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Post by zoll on Jan 17, 2018 15:25:28 GMT
I did come across this site: Cogress - which after a precursory look appears to be offering a form of the above, although I haven't yet done any deep DD. Has anybody had any experience with them ? This looks like an interesting operation. Does anyone have any experience with them? I went ahead and invested in 3 offerings of theirs since this thread was started. So far so good- They appear to be a very polished operation and developments progressing as per business plan on the whole. All the offerings are development opps- so no cash flow during the term of the investment. Pretty high minimums of 20K per investment. They deliver detailed quarterly reports- its not really P2P but more old fashioned RE syndication packaged in a shiny new wrapping. Definitely need to do your own DD if considering a particular offering. Waiting for my first exit in about 12 months and will be wiser. Happy to provide more info if of interest. If you intend proceeding- can provide a referral- (believe they may give a referral fee to both sides.)
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zoll
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Post by zoll on May 23, 2017 6:35:45 GMT
Has anybody managed to understand if the 4m evaluation of the property is for the land as vacant + planning permission, or does it include the existing building ? If it includes the existing building , then the 62.5% LTV is all good on the day the loan is made but as the building is slated for demolition the true LTV to look at is the value once it is demolished. I haven't had a chance to dig very deep into the evaluation yet - but from the looks of things this is the case. and in reality we are probably looking at a much higher LTV than presented of around 80% plus.
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zoll
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Property Moose
SPV 85
May 18, 2017 5:47:50 GMT
Post by zoll on May 18, 2017 5:47:50 GMT
Anybody invested/looking at this or done any DD ?
What interests me is the potential upside if planning approval is achieved to convert to studio apartments. To be honest my concern even if planning permission is achieved, is the ability of PM to deliver and follow through on the build out and delivery. (The property doesn't seem to be in great condition and I don't think they have allocated enough for a renovation- but that is probably because of the assumption that the conversion will happen.)
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zoll
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Post by zoll on Jan 30, 2017 16:15:07 GMT
Well - 80% funded in 10 minutes.
Looks like the crowd has voted for this one.
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zoll
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Post by zoll on Jan 30, 2017 11:32:51 GMT
"Appears to me its use it or lose it. Each 24hrs will have bidding limit of 1600." If you can't bid on Monday for some reason just bid at 3.55pm on Tues and again at 4.01pm. That gives two lots of 1600? Unless you can't get to a computer on Tuesday of course....... Thats on the assumption that there will be still remaining loan parts by 3.55 pm Tuesday. I am not certain it wont fill by then.
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zoll
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Post by zoll on Jan 30, 2017 9:25:57 GMT
If I don't bid my £1600 on Monday, does the unused portion carry forward so I can bid more than £1600 Tuesday, or is it ' use it or lose it' ?? Appears to me its use it or lose it. Each 24hrs will have bidding limit of 1600. I doubt very much the system will be able to single you out as not having participated in the first round, and allow a higher bid.
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zoll
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Post by zoll on Jan 24, 2017 9:07:25 GMT
Agreed. Looks like we'll have to keep looking.
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zoll
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Post by zoll on Jan 23, 2017 17:57:55 GMT
Anybody considering this ? It looks like something I may go for but would really be happier if we could get more information on the borrower, and rehab budget. Not clear what sort of experience the borrower has rehabbing or landlording an HMO (if any at all ?)
In general I find the information provided on property loans spotty at best on most of the P2P sites - but I suppose that's a topic for a separate thread.
Perhaps a Collateral Rep. would care to add some information ?
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zoll
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Post by zoll on Nov 8, 2016 14:36:51 GMT
MoneyThing- Can you enlighten us as to why the borrower is looking to refinance ? Have there been problems with the first charge lender ?
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