bababill
Member of DD Central
Posts: 527
Likes: 245
|
Post by bababill on Oct 29, 2015 0:04:43 GMT
Am I right in thinking that this is the exit position that the loan is heading towards. Anyone who took on this loan has to take this view and valuation. Presumably there were other financiers and they couldn't or didn't take this view and so passed over. In taking on the loan they have to take this view or why take on the loan? The same goes for the Lenders if you can't agree don't take on the loan. Well it seems 18% for a bridging loan is par for the course.. My gripe is SS forces me to read all the small print and cross check all the 'facts' as they are presented..After reading all of the documents it is only then I can decide not to take on the loan. I can not rely on the summary pages... SS is very popular and growing fast so I believe I am in the minority.
|
|
bababill
Member of DD Central
Posts: 527
Likes: 245
|
Post by bababill on Oct 28, 2015 6:47:34 GMT
You are correct they made up the decision to follow the valuation of £14m which is why I used term fabricated. The property does not have full planning therefore they can not use the headline rate of 36% LTV. If they can use this value then why not use the GDV value of 70,000,0000 making a LTV of 7.1% which is even more appealing. This is why I am confused how it appears they arbitrarily pick which figure to use.
|
|
bababill
Member of DD Central
Posts: 527
Likes: 245
|
Post by bababill on Oct 28, 2015 3:36:17 GMT
chielamangus, I received the following advice from another forum a while back.. Thought I would just cut and paste the same with slight editing of content.
''If you send a payment, and then do a ‘Deposit Request’ TC credit your account within 2hrs, even though your payment may arrive as a BACS payment a couple of days later. .......
Just to set it out step by step You see a loan you like, you need to transfer funds in.
1 Log in to TC
2 Click on your name top right
3 select deposit request (boggle at the title but anyway)
4 type in the amount you intend to transfer in – taking care that you get the decimal point in the right place because there is some silly code which makes it so if you type 1 0 0 0 then instead of £1000 you actually write £10.00
5 change the date if you need to..
6 that’s it. A couple of hours later (weekends included I think, but not the small hours) somebody at TC will have added to your balance. You will be able to bid before the money actually lands in the account at Street/TC. I don’t know how much leeway TC will allow, if you make the deposit request on a Monday and say it will arrive Friday they might get sniffy, you could ask stuart@tincats what he can tolerate.
7 do not forget to actually tell your bank to make the transfer. You are able to remind yourself of the amount by clicking on the envelope symbol top right, then sent messages the message is entitled Make deposit"
|
|
bababill
Member of DD Central
Posts: 527
Likes: 245
|
Post by bababill on Oct 28, 2015 1:15:24 GMT
Now that the structure of SS has been sorted to more of a proper p2p I have decided to give it a go. I have invested £500 with a view to invest in the five digits.
Following questions:
1) Why would borrowers pay 18%.. I cant fathom how any borrow can make that interest rate work even if it is only for 6-12 months….
2) The given security value of the property seems to be either misleading or totally wrong depending on one’s viewpoint.
I take the case of P PBL 33 S**** Place Hemel Hempstead
Security Value of 14,000,000 is indicated.
However on the valuation document it states
a) Market value (special assumption) Outline planning is granted—£9,800,000
Or
b) Market value (special assumption) Full planning is granted £14,000,000
So naturally I refer to the decision notice to read further and learn (PLAN NO. 4/*****/14/MOA) that only outline planning has been given.
Furthermore the bridging loan particulars document states
''The applicant has obtained planning permission (PLAN NO. 4/*****/14/MOA) …….. Total security value of site with planning permission i.e. today - £14,000, 000 (Open Market) ‘’
So with the combination of a borrower who is willing to pay 18% and fabricated security values I am having doubts.
|
|
bababill
Member of DD Central
Posts: 527
Likes: 245
|
Post by bababill on Oct 25, 2015 7:22:21 GMT
I would invest now in TC. The basic parts of the current software are easy enough to learn quickly. I wouldn't wait till I have 75k free... It would take me too long to find enough loans that I like whilst ensuring diversification. Too much cash drag to start with.. Begin with whatever you feel comfortable... Say 1,000 in one loan.. Then when you find another loan you like invest another 1000...... or 10,000 in the first loan then when u find another loan invest another 10k.....
Most of the loans on TC I don't like.... For example, I don't like 5 year loans with only a company debenture as security... But thats just me, I am very risk adverse. I only have 8% exposure on TC vis a vie other platforms..... I would like to increase it tho.... I have earned approximately 10%..
|
|
bababill
Member of DD Central
Posts: 527
Likes: 245
|
Post by bababill on Oct 20, 2015 8:22:42 GMT
Yes, it was Lendinvest where I had the loan in question. To be fair it was an entirely proper impairment case, the borrower wanted a couple month extension for some reason which did sound reasonable. I did tell Lendinvest I did not mind the extension but if I did can I 'argue' the same. That is when they said no I have no influence in the matter. In the end the borrower still didn't pay and Lendinvest then bought back the loan i.e. returned all investors money and created a 'new' 12 month loan.
Yes one of the co-founders was a solicitor at Clifford Chance but what I don't understand is why he doesn't have any share ownership in the company. Any ideas?
Your right Proplend doesn't prefund the loans but they do have a method to ensure all loans are filled. It does seem to me that Proplend is more of a true P2P then Lendinvest and therefore safer in terms of platform risk.
|
|
bababill
Member of DD Central
Posts: 527
Likes: 245
|
Post by bababill on Oct 17, 2015 3:54:56 GMT
Thanks Pikestaff for your response.
I agree the need/benefit to pre-fund a loan. As you say Lendinvests system should work but leaves an element of doubt. Why don't they use Proplends method where they operate a genuine P2P model where the borrower and lenders have direct loan contracts between each other.
Proplend auctions a loan and if it does not fill their backer GLIF then buys the remaining part of the loan.
Then GLIF sells the loan (at par) on the secondary market. If one buys a loan on the secondary market then on the loan contract at the bottom the following is added: Loan assigned to 'new buyer' on xxxx date.
This matters because I recently questioned the further extension of a loan and they told me in no uncertain terms I have no say in decision making. The exact words were as follows:
"As the primary lender and also the servicer of the loan we remain in full control with regards to decisions on the borrower and the underlying loan. As the investor, you are investing in the receivable of this loan which is a portion of the interest'
|
|
bababill
Member of DD Central
Posts: 527
Likes: 245
|
Post by bababill on Oct 15, 2015 22:52:25 GMT
With regard to the P2PFA, I have to say I'm not a fan. They seem as slippery as most trade bodies typically are. Ms Farnish seemed totally unwilling to answer my question on how LendInvest was a member when they don't actually seem to have a deal flow structure than involves lenders facing borrowers! .. Exactly my sentiments on LendInvest. Glad to see somebody agrees with me. With Lendinvest you are buying the 'right to receive interest'; that is LendInvests exact words. It is not a P2P. I cannot believe they can try and claim P2P status and continually mis-sell to consumers. I thought they were P2P and the loans were properly asset backed but that is not the case at all. Now I am suffering with funds locked in for another 11 or so months with undo risk. Phrase Caveat Emptor does not apply in the case as the goods were not sold as is or perhaps they were.... From their website can anyone really explain what this means......When an investor invests in a loan (by way of the interest rate receivable contract), LendInvest holds the security on trust for the investor, in proportion to their investment.
|
|
bababill
Member of DD Central
Posts: 527
Likes: 245
|
Post by bababill on Oct 15, 2015 22:15:53 GMT
Interesting article thanks for sharing.
|
|
bababill
Member of DD Central
Posts: 527
Likes: 245
|
ThinCats/ BLN (TC) in Administration
Warning
Oct 6, 2015 2:21:18 GMT
Post by bababill on Oct 6, 2015 2:21:18 GMT
However, some lenders expectations seem unrealistic. "Sponsors" are just brokers that act for and are paid by the borrower (F&P website: "we are paid by, and act on behalf of, the borrower, not the lenders"). Their primary aim is to print the deal and worry about consequences later. Lenders need to take that into account when they look at deals. On the surface, I wanted to be in 100% agreement and thought I better rethink things myself taking into account this info...Upon further reflection I have to disagree with the above comment. Going back to Thincats homepage I read the following: ''Our accredited Sponsors make sure deals on the ThinCats platform are high quality and low risk'' It can't be both ways... Seems like a mis-selling scandal to me, even if sponsor or the platform are just commission agents... P.S. I am not in this loan either...
|
|
bababill
Member of DD Central
Posts: 527
Likes: 245
|
Post by bababill on Oct 4, 2015 22:44:51 GMT
have made the edit to read cash rich
|
|
bababill
Member of DD Central
Posts: 527
Likes: 245
|
ThinCats/ BLN (TC) in Administration
Warning
Oct 4, 2015 3:34:02 GMT
Post by bababill on Oct 4, 2015 3:34:02 GMT
Mrclondon I agree with your suggestion regarding returns of 5% to 7%.. However, I am tired of sponsors repeatedly giving misleading or sometimes even false information. This should not be tolerated by any platform. And then the sponsors even have the audacity to complain that their loans do not fill.
|
|
bababill
Member of DD Central
Posts: 527
Likes: 245
|
Post by bababill on Oct 4, 2015 1:48:26 GMT
Why not consider Proplend.. They offer 11% on a trance C loan.. (albeit at £5000 entry).. But it is a true p2p unlike say Lendinvest where you are not actually loaning to 'person' but rather only paying for the right for a proportion of the receivables. In other words a syndicate.... or in other words you are really only lending to the platform. I don't think this should be allowed to be called p2p as it is very very misleading... Somebody should write to the standards authority...
|
|
bababill
Member of DD Central
Posts: 527
Likes: 245
|
Post by bababill on Oct 4, 2015 1:38:42 GMT
I think you should also consider the risk vs reward. You can easily obtain 5% in a bank account with next to no risk, so if your investing in P2P for returns around that or less, then why are you taking the risk? With Ratesetter's current rates on average being around 5%, I can't see why people think this is the safest? Can't find any bank that lets me make a deposit of say £1000 at 5%.
|
|
bababill
Member of DD Central
Posts: 527
Likes: 245
|
Post by bababill on Oct 4, 2015 0:10:49 GMT
Depends, its not worth setting up a company purely to invest, but if you have a company that is cash rich and want more than the 2% max (or 0.1% commonly) from company savings accounts or have maxed/don't like company pension payments, then it might be worth it. I don't see a tax advantage as my company is an Ltd. and pays CT on interest like I would pay IT personally, but 12% interest is better than 2%! If anyone can see any tax benefits, I would be interested to hear them? If the company is cash rich then it makes 100 percent to invest in a company scheme. Otherwise you have to pay tax to withdraw the funds and then reinvest the same lessor amount again.
|
|