jlend
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Post by jlend on Dec 14, 2017 10:03:14 GMT
It would have been good to know what discusions took place between the borrower and MT regarding the request for extra funds.
I hope this included the borower sourcing the funds from other sources e.g. other income streams they have, other sources of capital that could be liquidated, other assets that could be used as security.
It seems surprising that MT have offered to try and raise all the shortfall in the circumstances. But it is difficult to know with such little information.
I agree with other lenders who have commented that they doubt the site is really worth more money now in a distressed sale which for the purposes of security is all that matters I think in terms of a valuation.Adding some extra security would have sent a good message that the borrower has a high level of confidence in the venture. Perhaps a charge over a different asset
It is interesting that existing lenders in this loan were not at least given the opportunity to vote on extending the loan amount given the concern that was already there regarding the valuation. It feels like the potential for a capital loss has now increased in the event of a default for no benefit. A small increase in the interest rate for existing lenders may have been an option worth pursuing.
Given the rather dramatic change in circumstances between the 23rd Oct update and now, I am surprised about what appears to be a high level of trust in the borrower by both MT and the surveyors in the information provided to advance an additional loan. Again with such little information it is difficult to assess the level of additional due diligence undertaken by the surveyor and MT given the sudden change in circumstances.
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r00lish67
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Post by r00lish67 on Dec 14, 2017 10:44:04 GMT
It would have been good to know what discusions took place between the borrower and MT regarding the request for extra funds. I hope this included the borower sourcing the funds from other sources e.g. other income streams they have, other sources of capital that could be liquidated, other assets that could be used as security. It seems surprising that MT have offered to try and raise all the shortfall in the circumstances. But it is difficult to know with such little information. I agree with other lenders who have commented that they doubt the site is really worth more money now in a distressed sale which for the purposes of security is all that matters I think in terms of a valuation.Adding some extra security would have sent a good message that the borrower has a high level of confidence in the venture. Perhaps a charge over a different asset It is interesting that existing lenders in this loan were not at least given the opportunity to vote on extending the loan amount given the concern that was already there regarding the valuation. It feels like the potential for a capital loss has now increased in the event of a default for no benefit. A small increase in the interest rate for existing lenders may have been an option worth pursuing. Definitely agree, jlend . A first charge against a residential property, which must surely feature in the various range of assets this borrower has, would go a long way to making the proposition more convincing. That, or make this facility rank behind the first and offer a higher rate of interest. I wouldn't be pleased if I was in this loan.
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jlend
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Post by jlend on Dec 14, 2017 11:07:23 GMT
Good ideas. A question for more experienced lenders than me. Would lenders in the current loan have any rights to tell MT that they reject the new tranche being offered on the terms that are being offered? Or is this solely up to MT to decide?
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stokeloans
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Post by stokeloans on Dec 14, 2017 11:16:20 GMT
It would have been good to know what discusions took place between the borrower and MT regarding the request for extra funds. I hope this included the borower sourcing the funds from other sources e.g. other income streams they have, other sources of capital that could be liquidated, other assets that could be used as security. It seems surprising that MT have offered to try and raise all the shortfall in the circumstances. But it is difficult to know with such little information. I agree with other lenders who have commented that they doubt the site is really worth more money now in a distressed sale which for the purposes of security is all that matters I think in terms of a valuation.Adding some extra security would have sent a good message that the borrower has a high level of confidence in the venture. Perhaps a charge over a different asset It is interesting that existing lenders in this loan were not at least given the opportunity to vote on extending the loan amount given the concern that was already there regarding the valuation. It feels like the potential for a capital loss has now increased in the event of a default for no benefit. A small increase in the interest rate for existing lenders may have been an option worth pursuing. Given the rather dramatic change in circumstances between the 23rd Oct update and now, I am surprised about what appears to be a high level of trust in the borrower by both MT and the surveyors in the information provided to advance an additional loan. Again with such little information it is difficult to assess the level of additional due diligence undertaken by the surveyor and MT given the sudden change in circumstances. Could always sell/pawn the wife's Ferrari if they're short of funds 😉
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toto
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Post by toto on Dec 14, 2017 11:46:43 GMT
Sounds like they must of invested funds to increase the value, how else can it be done? I've read through this carefully....I'm beginning to question the value of this forum which amounts to idle speculation. My understanding is we're on this forum to exchange investment ideas...which would be great. The rest is nonsense. Evaluate, invest or don't! Anything else is a waste of time IMHO.
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r00lish67
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Post by r00lish67 on Dec 14, 2017 11:54:32 GMT
Sounds like they must of invested funds to increase the value, how else can it be done? I've read through this carefully....I'm beginning to question the value of this forum which amounts to idle speculation. My understanding is we're on this forum to exchange investment ideas...which would be great. The rest is nonsense. Evaluate, invest or don't! Anything else is a waste of time IMHO. Well, we'll just have to try and up our game in future to compete with "sounds like they must of invested funds to increase the value". Be patient with us.
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dovap
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Post by dovap on Dec 14, 2017 12:14:31 GMT
maybe toto did the report ? yeah must have spent the munee so it's worth more now
embarassing
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toto
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Post by toto on Dec 14, 2017 13:00:32 GMT
I think you've just rather confirmed my point!
I prefer reasoned detail...but I have been investing for many years. Good luck!
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Post by Badly Drawn Stickman on Dec 14, 2017 13:10:40 GMT
Only jjust joined the p2p world but I like this...defiantly in. I've looked at lots. Like the cashback also! No comment (merely observation, did you know this is the only thread you have posted on, others are available)
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toto
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Post by toto on Dec 14, 2017 14:01:24 GMT
Thanks and yes. I'm newish to p2p but the reasons for investing remain consistent for me, whatever market I'm investing in. The security, seasoned borrower and returns on this loan tick the right boxes here. I'm not particularly interested in investing in depreciating assets, cars boat loans etc so there's no value to posting elsewhere outside what I'm interested in or invested in. Always looking for new sensible opportunities though! Its difficult to keep up with the many avenues out there.
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jlend
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Post by jlend on Dec 14, 2017 14:55:53 GMT
The extra info requested by the council was sent on the 12th December and is now on the planning portal. It took about 3 weeks for the council to reply last time so perhaps early January for a reply.
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Post by Deleted on Dec 14, 2017 15:10:55 GMT
Thanks and yes. I'm newish to p2p but the reasons for investing remain consistent for me, whatever market I'm investing in. The security, seasoned borrower and returns on this loan tick the right boxes here. I'm not particularly interested in investing in depreciating assets, cars boat loans etc so there's no value to posting elsewhere outside what I'm interested in or invested in. Always looking for new sensible opportunities though! Its difficult to keep up with the many avenues out there. Welcome to the forum toto, 15 posts all in the one loan topic which to quote you again, ticks security, borrower and return! One would consider cautioning you on the advantages of diversification over an absolute passion for a single loan if they didn't think there could be other issues at hand here. Hope to see your interest in sensible opportunities take you to pastures new!
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oldgrumpy
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Post by oldgrumpy on Dec 14, 2017 18:41:20 GMT
Sounds like they must've invested funds to increase the value. How else can it be done? I've read through this carefully.... I'm beginning to question the value of this forum which amounts to idle speculation. My understanding is we're on this forum to exchange investment ideas...which would be great. The rest is nonsense. Evaluate, invest or don't! Anything else is a waste of time IMHO. With your Newcastle-under-Lyme connected user name, maybe you already know the people behind this loan, and that they have invested some of their own cash (to augment yours ). Are you keeping your nose to the ground and watching the site too? Have you got any real-time info for us? How much work have you seen being done over recent weeks?
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Post by SophieThing on Dec 15, 2017 8:12:19 GMT
Morning All,
FAQ's added to the platform.
Kind regards
Sophie
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Post by swissbankers on Dec 20, 2017 10:50:52 GMT
Well someone is keen they just took over 35k, oh no its now back on the sm
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