09dolphin
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FundingSecure (FS) in Administration
Picasso
Jan 12, 2017 21:12:47 GMT
Post by 09dolphin on Jan 12, 2017 21:12:47 GMT
As Rookey says, with the value of the £ significantly down which could well drop further, this seems a fairly safe investment. However I know virtually nothing about art so I have no idea if the valuation is realistic or not. I have made a small (toe in the water so to speak) punt and I'm just hoping with the low LTV etc it's going to be better than the Scottish boatyard!!
Makes a change from property which could bomb if Brexit affects the property market country wide.
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09dolphin
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Post by 09dolphin on Jan 7, 2017 3:59:56 GMT
I honestly can't understand anyone investing in 5 year loans at the present rate. Can anyone see BoE interest rates remaining at the present rates in 4 years time, or even being reduced when inflation is expected to significantly raise by a point or two due to the value of the pound being reduced. Yes I know that the money market is awash with money but doesn't this remind you of before the last crash and the consequences.
As others have said you can have money in protected bank accounts (albeit with a few DDs) at 3% so why risk money at less than 3% in RS where the protection is so much poorer? I really don't understand
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09dolphin
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Post by 09dolphin on Jan 7, 2017 3:33:17 GMT
If a loan is repaid or renewed by the date planned I am pleasantly surprised.
My expectation is that many loans will overrun by at least a month and even possibly by 3 months. However when a loan's repayment date exceeds 3 months I think FS should become more proactive and give more detail about the actions they are taking to recover lenders money.
Does anyone know how long FS will allow lenders money to be tied up before drawdown. I invested in the Castle loan about 2.5 months ago and it's still waiting to be made active so the best I can hope for is that this will be a loan for 8.5 months, even assuming it is repaid or renewed on time. After all lenders do make the loan on the assumption it is for a peeriod in the order of 6 months.
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09dolphin
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Post by 09dolphin on Jan 7, 2017 3:09:30 GMT
FS say they only provide loans up to 70% of the asset being used as security. I can understand them going slightly over 70% by say 1% but 10% over seems a little foolhardy. Whilst FS may say they have a dealer who will cover the loan and interest it's a worthless statement unless they have a watertight contract with the dealer.
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09dolphin
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Post by 09dolphin on Jan 6, 2017 8:46:50 GMT
I think FS are bending over backwards to be fair to borrowers. Yes they need to be fair to borrowers but they should also balance that with being fair to lenders. The Boatyard loan is a prime example of where FS have got this really wrong as they took many months before they decided to call in receivers having accepted the excuses made by the borrower at face value. It is now almost 12 months overdue and, because of the time taken by FS in initiating action, is likely to result in losses to investors.
Because the number of loans I have that are significantly overdue for payment or renewal I have reduced the amount I invest in any single loan. I now require a LTV of 60% or less to persuade me to invest and am generally much more sceptical where property loans are concerned. The exit strategy is also pretty influential and is often missing or relates to other assets being sold. The sale of other assets is now a red flag to me personally as this cannot be enforced, the asset seems to be overvalued or takes several months longer than the borrower and FS anticipate.
Where jewelery is the security I am happy to lend up to 68% as this can be disposed of easily at auction (and has been in the past). Boats - I don't mind a small punt if it's a low LTV Cars - it depends on too many factors to enumerate.
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09dolphin
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Post by 09dolphin on Dec 28, 2016 14:22:16 GMT
Not done much research as I only invested a small amount. Basically trusted LTV on original loan as given by FS. As it's so near the famous golf course it seems likely a sale could be achieved (to a wealthy keen golfer). I do know 1 person who would be interested if it came up for sale so that gave me confidence.
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09dolphin
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Post by 09dolphin on Dec 28, 2016 14:07:29 GMT
Ablender. It's loan 2888506800 - still waiting for funding and is at 78% funded (underwriters have funded the remainder of the loan but it's still listed as it's waiting for others to replace underwriters - as are all the renewals). Been available since mid November so likely to be a loan of 7.5 months from day made available even if it's listed today. If you are thinking of investing suggest you check LTV in your DD checks. This may include reading opinions re this loan on this forum.
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09dolphin
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Post by 09dolphin on Dec 28, 2016 10:19:15 GMT
I clicked the "renew" button before FS informed lenders about the fire and my part of the loan was renewed. FS obviously knew of the fire but chose not to inform lenders until after the loan had been put up for renewal. In all honesty I may have reinvested even if I'd been made aware of the fire and damage, but that is beside the point.
However I do now have concerns about FS not keeping investors fully informed, especially as it now transpires FS were made aware of the fire but chose not to inform lenders before the loan was renewed. In view of the fact FS obviously choose not to keep investors fully informed about renewals I wouldn't advise anyone to invest (in renewals). You really have no idea what information FS are withholding and it has been obvious from this renewal they most obviously do withhold pertinent information.
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09dolphin
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Post by 09dolphin on Dec 28, 2016 2:59:38 GMT
Agree FS have recently had renewals underwritten, presently 50% of loans available
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09dolphin
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Post by 09dolphin on Dec 23, 2016 19:06:49 GMT
Re the updates posted today (23/12/16) Wouldn't it be easier to just say there is nothing to report and, as we assume everyone is on holiday for the next week, we are also shutting down for Christmas and our next "update" will be 2 weeks hence.
Asking borrowers "to pay interest" seems pointless. If they could have paid the interest they would. So are FS stating that asking for interest to be paid is something new, something they haven't done before in the past few months? By implication FS do NOT ask late payers to pay interest, otherwise why would they say they are only now asking for interest to be paid, several months after the loan should have been repaid or renewed. I think if I was a borrower I would ignore this "request" as I would know nothing will happen for at least another 2 weeks and probably considerably longer based on the track record of FS.
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09dolphin
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Post by 09dolphin on Dec 14, 2016 14:44:44 GMT
On the more recent discussion I would be happy for borrowers to have longer loans, up to 2 or 3 years, providing they made an interest payment after 6 months and then either monthly or 3 monthly interest payments. If interest is not paid as agreed after the initial 6 months then I do believe there should be penalties - I'm not sure how big or small these should be. Having said I support penalties for late payment I do think there should be a short period of grace - weeks rather than months - I'm sure we've all expected money to be available (especially from property deals) but there has been a couple of weeks before we can access it. I also seem to recall I've been told that legislation affects the type of transaction we all invest in and limits the ability to charge extra interest with the typical contract signed for short term loans.
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09dolphin
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Post by 09dolphin on Dec 14, 2016 14:25:24 GMT
Out of curiosity what happens to the interest (money) when borrowers make a payment which doesn't cover the whole amount due?
There have been a couple of loans that FS have posted that a payment has been made as a gesture of good faith but I haven't received a partial repayment.
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09dolphin
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Post by 09dolphin on Dec 14, 2016 14:12:44 GMT
This relates to Liverpool and assisted living apartments. Reading the renewal information for loan 9682709212 I note that a loan of 245K at 70.2% LTV was funded last month. There is a 2nd loan for £113.6K at a LTV (including pervious loan) now 39.5% LTV. I have asked FS about the reason for the change in value of the property and I have been told that the reason is because assisted living apartments command a much higher rent. This information is included for the 1st loan at 70.2%
My understanding is that the increased rent for assisted living properties normally reflects the staffing costs associated with supporting disabled people rather than some inherent increase in value of the property. As someone who has previously invested in care homes, nursing homes and supported living accommodation in the past I cannot understand how the there can be such an uprate in the valuation of a property in 1 month.
I would appreciate anyone who has information posting responses on this thread.
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09dolphin
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FundingSecure (FS) in Administration
Overdue loans
Dec 5, 2016 14:14:43 GMT
Post by 09dolphin on Dec 5, 2016 14:14:43 GMT
So sorry. I've not made my question clear. What I was asking was about reinvesting when interest has been paid and borrowers are looking to renew the loan.
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09dolphin
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FundingSecure (FS) in Administration
Overdue loans
Dec 4, 2016 21:58:18 GMT
Post by 09dolphin on Dec 4, 2016 21:58:18 GMT
What are investors views about continuing their investments in loans where the interest is 1 week + overdue.
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