mikes1531
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Post by mikes1531 on Sept 28, 2017 21:23:49 GMT
I read somewhere there are premiums and discounts. How do you know what you are buying and if it has a premium? The more units avaialble, the harder to sell up at a later. What order do things get sold, if loads of people are selling? I didn't think you can sell AC parts at a premium, but that's old info and might have changed. On a PC, if you hover your cursor over the amount of parts available, a 'hint' should pop up. (I don't think that works on a phone/tablet.) If there are parts for sale at a discount, that should be visible in the pop-up. (I've just taken a look at the list, and I didn't see any discounts available. In my experience, they aren't that common.) If you are looking at the page of a loan that has parts available and click on the amount of parts available, you'll see a pop-up which shows what parts are available at what discount. (That works on my phone.) If you buy parts, you'll first be sold any parts available at a discount. Otherwise, you'll be sold parts from however many different sellers there are, though IIRC, you won't buy chunks smaller than £1 unless that's all someone has left to sell. So if you ask for £50, you could find you've bought £50 from the only seller, or 50 £1 parts where there are more than 50 investors trying to sell. From the above, you probably can work out what happens when you sell. If you're the only seller, your parts will be distributed among all the unfilled buying instructions. If there are lots of other sellers, you'll sell a small amount when someone places a buy order. Or you might sell nothing if, for instance, there are 50 sellers when someone wants to buy £25. In that case, the system should take £1 each from 25 random sellers. If you offer parts for sale at a discount, they'll end up at the front of the sale queue and will be sold as soon as someone buys -- unless others also are trying to sell at a discount. If you offer parts at a discount, they'll probably sell quickly if anyone is buying -- which is why there generally aren't many parts available at a discount. If nobody is buying... HTH
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Post by oldnick on Sept 29, 2017 5:13:12 GMT
I think you've described it well mikes1531, and AC have always been against premium selling. |
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littleoldlady
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Post by littleoldlady on Oct 1, 2017 12:24:09 GMT
Could you explain and describe the apparent time lags in buying?
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mikes1531
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Post by mikes1531 on Oct 2, 2017 1:34:20 GMT
Could you explain and describe the apparent time lags in buying? : If you're referring to the fact that if you put in a buy instruction for a loan that's showing availability and it takes an hour or so before the instruction is acted upon, that's a normal occurrence. Things used to happen more quickly, but they've slowed don as the platform has grown. It seems to take about an hour for the system to go through the whole list of loans and check if there are any buy/sell instructions it can execute, so each loan seems to be dealt with roughly at hourly intervals. (If you're referring to delays significantly longer than that, I haven't a clue.) I think chris explained this to us once some time ago. If he sees this and has a minute to respond, perhaps he'll tell us what the current cycle time is these days, and/or whether there's been any procedural change.
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number5
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Post by number5 on Oct 3, 2017 13:20:27 GMT
I was wondering -
Have there been any defaults in property development loans, where interest has been witheld....prior to the end of loan date?
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ilmoro
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Post by ilmoro on Oct 3, 2017 13:51:30 GMT
I was wondering - Have there been any defaults in property development loans, where interest has been witheld....prior to the end of loan date? No, not as yet I think, though there has been a default where AC retained a buffer to cover missed payments but that isnt the same. The thing to remember is that AC uses the correct definition of a default ie any breach of loan terms so a loan could be defaulted at anytime. However, a default on AC doesnt automatically mean that the loan is put into recovery or trading is suspended. AC will assess the sitution, inform lenders and then either determine a course of action or put it to a vote. Unless there is a serious danger that the loan wont be repaid by normal means eg company goes bust, AC tends to allow the loan to carry on.
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number5
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Post by number5 on Oct 3, 2017 13:58:53 GMT
Really informative reply ilmoro, thank you for that.
Between AC and FS, which would you say is the more liquid platform for property development loans? For an early exit.
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SteveT
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Post by SteveT on Oct 3, 2017 14:14:53 GMT
I’d say it has to be AC since, provided a loan remains tradeable, you always have the option of offering a bigger discount than anyone else in any queue there might be for the exit. On FS, you might find yourself behind other large offers already at the maximum discount.
Also AC loans generally remain tradeable right up to Term and often well beyond, provided an extension is agreed, whereas you’re locked into an FS loan as soon as it passes 30 days remaining.
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ilmoro
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Post by ilmoro on Oct 3, 2017 14:19:52 GMT
Really informative reply ilmoro, thank you for that. Between AC and FS, which would you say is the more liquid platform for property development loans? For an early exit. Probably AC. Just looking at the loans with a month to go and none of them have any availability currently (not saying there is any demand). Personally not had difficulty dumping loans when required and I tend to hold them closer to term or beyond with default interest on AC (much less of a flipper on AC) The nature of FS means the market is harder because of the accrued tax liability so discounts are nearly always a must the nearer term you get. My modest investments tend to get flipped around 90 days largely at par or premium without too much trouble. edit crossed with Steve who makes some pertinent points re FS lock in
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number5
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Post by number5 on Oct 3, 2017 15:10:52 GMT
Thanks guys, really appreciate the advice...I am sure you have seen me commenting quute a bit recently looking for advice from the pros.
I was a FC flipper...but I am now trying to look for the closest I can get to that. I appreciate that nothing is the same as FC.
Only thing between AC v FS is that interest rates are almost doouble on FS, but I think at the end of the day liquidity and reducing risk of being tied into a loan...AC has the edge on that, based on what you guys have said?
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littleoldlady
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Post by littleoldlady on Oct 3, 2017 16:10:21 GMT
Only thing between AC v FS is that interest rates are almost doouble on FS, Return OF capital is more important than return ON capital. Have a glance at the Turbine thread.
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SteveT
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Post by SteveT on Oct 3, 2017 16:50:22 GMT
Only thing between AC v FS is that interest rates are almost doouble on FS, but I think at the end of the day liquidity and reducing risk of being tied into a loan...AC has the edge on that, based on what you guys have said? Not always.It depends on the loan. IIRC, there was a large new 12 month property loan with retained interest just last week on AC that paid 9%. I didn't pay it much attention, though, so don't take it as a recommendation.
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number5
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Post by number5 on Oct 3, 2017 16:55:24 GMT
Only thing between AC v FS is that interest rates are almost doouble on FS, but I think at the end of the day liquidity and reducing risk of being tied into a loan...AC has the edge on that, based on what you guys have said? Not always.It depends on the loan. IIRC, there was a large new 12 month property loan with retained interest just last week on AC that paid 9%. I didn't pay it much attention, though, so don't take it as a recommendation. As long as there is retained interest and a liquid market, I do not mind. But is it right that all loans are SM, manual investors only get access to loans after they have gone through to the QAA guys?
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ashtondav
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Post by ashtondav on Oct 3, 2017 17:10:41 GMT
Only thing between AC v FS is that interest rates are almost doouble on FS, Theoretically, yes. Go to the forum 
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number5
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Post by number5 on Oct 3, 2017 20:54:32 GMT
Only thing between AC v FS is that interest rates are almost doouble on FS, but I think at the end of the day liquidity and reducing risk of being tied into a loan...AC has the edge on that, based on what you guys have said? Not always.It depends on the loan. IIRC, there was a large new 12 month property loan with retained interest just last week on AC that paid 9%. I didn't pay it much attention, though, so don't take it as a recommendation. Why can I not see this 9% 12 month loan available to invest in?
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