syalith
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Post by syalith on Jan 24, 2024 10:55:50 GMT
I can't believe it has finally happened! 39.15% interest which over 74 months works out at 5.5% annualized.
When I first invested in this loan I thought about all the things that could possibly go wrong:
1) The borrower might not repay. 2) The three separate RICS valuers giving it a valuation of £4m+ could be slightly off. 3) FundingSecure could go bankrupt. 4) There could be fraud involved. 5) There could be some unknown problem with the building.
I decided that given the low LTV of the first ranking tranche that I should be well covered if any of these eventualities came to pass. Never in a million years did I think they would ALL occur, yet somehow I have still managed to come out okay.
This highlights the importance of margin of safety when investing in P2P loans. Anything other than low LTV 1st charge loans are to be avoided like the plague. I am shocked to see other platforms are still able to attract investors to their 2nd/3rd/4th/5th charge/tranche loans with high LTVs. The people investing in them are playing with fire and likely to get burned. Usually there is only a couple of percentage points difference between the 1st charge and subsequent charges interest rates, yet the risks are multiple times greater.
I'll be glad never to have to think about FundingSecure again. An absolute farce from start to finish. It still boggles my mind that so many clowns/frauds/liars/cheats were able to coalesce in such a way as to create this abomination. The only solace is that none of them will ever achieve fulfilment in their lives. They are more like desperate animals acting on instinct in search of their next meal, than reasoned human beings acting rationally to build genuine long-term success. What a miserable existence that must be for them.
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syalith
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Post by syalith on Aug 16, 2023 14:58:55 GMT
"Steps to make the guarantor are ongoing.The guarantor is continuing to frustrate the position"
This quarterly update is 15 words long and they couldn't even be bothered to proof read it. You have to think it is deliberate at this point.
The administrators are supposed to be keeping lenders updated yet the updates contain so little information that they may as well not bother.
I have £50k in the first ranking loan, my account is showing £42k in accrued interest, yet I have no idea whether I am getting back £0, £92k, or something in between. The administrators are failing in their obligation to keep me updated and it is affecting my ability to plan my life finances.
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syalith
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Post by syalith on Oct 31, 2021 16:23:42 GMT
Update 29/10/2021
"The application to set aside the statutory demand was not successful, although the guarantor has now taken steps to appeal this decision. Further, the Borrower Company has been wound up, and FundingSecure's preferred Liquidators have been appointed."
This is pretty good news, right?
We just have to wait for the guarantor (I assume that's the borrower?) to lose his appeal, and the quistclose nonsense to be resolved, then we should finally see some of our money from four years ago returned.
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syalith
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Post by syalith on Jan 29, 2021 14:17:16 GMT
Latest Update: "No Update"
See you next quarter.
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syalith
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Post by syalith on Nov 27, 2020 13:07:49 GMT
£1,139,549 net of receivers! This should be enough to fully repay the first 3 loans I would hope. This is my biggest FS investment, does anybody know any more, this waiting is killing me. Only the first loan (£575k) has any chance of being fully repaid. The eight development loans (totaling £1.5 million) that came afterwards all rank equally after the first loan, and when you factor in interest on the first loan there's probably only likely to be around £200k left to be shared out between them, so less than 20% capital returned at best. The supplemental loan (£225k I think) ranks behind all the other loans and has no chance of getting anything back. I find it quite disgusting that the administrators have been "seeking direction" from the solicitors for more than 58 days now and haven't given us even the slightest clue as to what is going on. We find ourselves in a position where the administrators, the solicitors, and the borrower, are all incentivized to make this drag on as long as possible. The longer they take, the more of our rapidly diminishing pot of money finds its way into their pockets.
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syalith
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Post by syalith on Nov 13, 2020 12:40:17 GMT
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syalith
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Post by syalith on Nov 12, 2020 19:10:56 GMT
Still not a word a month later. Still, it's only my money so why would I need to know anything. This is outrageous, we still can't can't our money back even when it's sitting there! Totally agree. Disgusting, isn't it? Surely it doesn't take 43 days for a solicitor to give us an idea where we stand. My worry is that the longer this takes, the less likely it is to be a trivial matter. Hopefully, it does turn out to be trivial and the administrators are just being slow to update. I actually drove up to Liverpool to check out another of the development loans on Fundingsecure back in the day, it was supposedly progressing well with the foundations going in, but when I got there all I saw was a huge pile of rubble. I never bothered to check out the tower block as I thought the LTV was so low it wasn't necessary. I sold the pile of rubble on the secondary market immediately, but if I had been smart I would have sold all my loans and exited from Fundingsecure entirely. I was greedy and didn't think rationally and I'm paying the price for that now.
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syalith
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Post by syalith on Sept 10, 2020 17:41:49 GMT
PS Another borrower company still seems to own part of the title, charges still extant at CH Thank you for this information, could you explain this a little more for the layman? I have a large sum in the first tranch and have been under the impression for the last two years that the only thing left to do was sell the property and distribute the proceeds. Perhaps you could give your opinion on what you expect to happen now and what sort of chance you think I have of getting my money back. Much appreciated!
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syalith
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Post by syalith on Sept 9, 2020 11:28:41 GMT
So the borrower, unsatisfied with his £1m+ ill-gotten gains, has noticed some flaky wording in FundingSecure's amateurish loan agreements and decided to have a go at pilfering a little more of our hard-earned cash.
I suppose any legal costs for defending against this asshole will also be coming out of our pocket?
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syalith
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Post by syalith on Apr 2, 2020 14:41:06 GMT
Might get something back then but I expect the total expenses to be horrendous so Regarding the expenses, I remember reading recently (though I can't remember where) that the receivers agreed to be paid a fixed percentage of the final sale price.
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syalith
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Post by syalith on Apr 2, 2020 12:47:27 GMT
hopefully this is good news but we have been down this path before - be nice if got back some of my second charge as I had written it off... Even if this buyer pulls out, this is still great news. I had been basing my sale price expectations on the £650k level at which we deduced it was listed on Rightmove, but if we were wrong about that and just focus on the updates then we only have two solid leads that give any indication of price. The first is the update which stated the sale price would be enough to cover the first loan + interest + some of the second loan. And now, we have an update giving a figure of £1.3million. Like you, I had written off my large investment, but I've found renewed hope in this update. I believe we were wrong about the £650k figure and have instead been witnessing several failed attempts to find a buyer at well over £1million. You're right, we have been led down the garden path before, but we have professionals running the show now, not fraudsters. If they are saying a sale is progressing at £1.3million, have seen proof of funds, and have taken the property off the market, then I think we can be confident there is a good chance of success here. I won't be celebrating until the cash is in the bank, but things do not appear to be as bleak as I thought they were, though having said that, Covid19 and the associated economic impact may prove to be a huge spanner in the works.
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syalith
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Post by syalith on Apr 2, 2020 12:12:57 GMT
Latest update: Sale progressing at £1.3million!
I won't crack open the champagne just yet but it's hugely positive (at least for those in the highest ranking loan) that discussions are still taking place around this price.
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syalith
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Post by syalith on Mar 10, 2020 15:32:37 GMT
Third buyer has pulled out. Buyers clearly don't want to touch it with a barge pole.
With stock markets across the world in free fall due to the virus I don't see anyone buying this any time soon.
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syalith
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Post by syalith on Feb 3, 2020 17:41:23 GMT
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syalith
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Post by syalith on Jan 17, 2020 0:52:17 GMT
The property has reappeared on Rightmove this month.
This is confirmation that the buyer has pulled out, as they had paid a non-refundable fee of £25,000 for exclusivity.
I'm beginning to sense a pattern here, with buyers initially eager to purchase the property only to hastily retreat upon closer examination. It appears something is seriously wrong with the property. Upon taking another look through the valuations provided on the Fundingsecure website, it struck me that the valuers are very keen to point out that no structural survey was undertaken in the process of making their valuations. We also know that when the receiver commissioned their own valuation, the cost to refurbish the property came in "significantly higher" than expected, perhaps due to a previously unknown structural issue coming to light during the survey? The property is listed at around £650k on Rightmove, a price which would be consistent with such huge refurbishment costs, probably in the millions.
We're now left in a truly dire situation, our property remains unsold, with no buyers lined up and developers seemingly afraid to touch it even at a knockdown price. In addition, we have the mounting costs of both the receiver and administrator to come out of any proceeds.
In my view, based on the evidence I see, the property is likely in need of £2-3million spending on it to bring the apartments to a habitable state, at which point it will be worth £3-£4million. It's entirely possible that the property needs more spending on it than it would be worth afterwards, making it almost worthless in its current state. We can see from this borrowers other loans that his playbook was to borrow against near worthless properties using inflated valuations with one just recently selling for below 10% of what it was valued at. We could be looking at this selling for below £500k which will mean a huge capital loss for those in the first ranking loan. For anyone not in the first ranking loan I don't see any possibility of getting anything at all back.
These are just my thoughts and observations, I'm no expert, I could be wrong and with £50k at stake I sure hope I am.
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