|
Post by marcusponds on Oct 18, 2017 11:22:08 GMT
Very fair shimself and a refreshing opinion based on evidence (or lack of, as it were). I have invested but like you, I suspect, I'm nervous. If all loans were dead certs, they would not be 11, 12, 13 %
|
|
oldgrumpy
Member of DD Central
Posts: 5,087
Likes: 3,233
|
Post by oldgrumpy on Oct 18, 2017 11:24:08 GMT
Very fair shimself and a refreshing opinion based on evidence (or lack of, as it were). I have invested but like you, I suspect, I'm nervous. If all loans were dead certs, they would not be 11, 12, 13 % Pah! I've already got some dead certs! Well dead! ![>:D](//storage.proboards.com/forum/images/smiley/superangry.png) (Various platforms)
|
|
|
Post by spectra on Oct 18, 2017 11:50:53 GMT
Even though this loan has, let’s say, a novel and colourful backdrop and characters, working on the principle that you have to speculate to accumulate, I’ve put £3k in and will probably top up to £10k when the restriction ends.
|
|
|
Post by spectra on Oct 18, 2017 11:57:32 GMT
I hope that 10k is 1% of your total P2P budget which is no more than 10% of your total investments otherwise perhaps you should take a step back and have a think. Not quite.
|
|
averageguy
Member of DD Central
Posts: 1,168
Likes: 846
|
Post by averageguy on Oct 18, 2017 12:03:13 GMT
I hope that 10k is 1% of your total P2P budget which is no more than 10% of your total investments otherwise perhaps you should take a step back and have a think. Dam i’m at 1.5%.....half a step back?
|
|
james100
Member of DD Central
Posts: 1,021
Likes: 1,223
|
Post by james100 on Oct 18, 2017 12:42:40 GMT
"If MT had brought some evidence of the £1.2M spent then I'd be ok with this (not very ok, but ok enough). Seeing as there very little to show for it I fear that they may have just accepted an empty assurance".
Well any evidence should be simple enough to provide assuming the majority of work was overseen by the primary contractor party, stated as - the sister company Pxxx Cxxx Ltd. There are a couple of youtube videos of the interior taken by so-called urban explorers which convey the size of it better (to me) than photos and numbers and that it is (was?) an enormous wreck, so I am pretty open to the idea that there could massive costs incurred in bringing it up to a "pre-development" standard. I am not yet invested in this loan, but not for this reason.
|
|
Doc
Member of DD Central
Posts: 196
Likes: 211
|
Post by Doc on Oct 18, 2017 12:47:42 GMT
I hope that 10k is 1% of your total P2P budget which is no more than 10% of your total investments otherwise perhaps you should take a step back and have a think. Good guidelines for those who wish to diversify widely. I personally prefer not to diversify that much, I'd rather do my DD and then spread my lending over what I consider to be the better loans. I'm aware that performing DD can only go so far in determining all the risks involved - better though IMO to have some knowledge of the risk/reward prospects than just lending with minimal DD on a large number of loans just to be diversified. Additionally the choice of whether to diversify widely or not depends on your risk appetite, I personally don't mind taking calculated risks - most probably because I've spent many years trading/investing (quasi gambling) in the markets.
|
|
Carter
Member of DD Central
Posts: 250
Likes: 549
|
Post by Carter on Oct 18, 2017 13:37:45 GMT
Out of interest, regarding the £1.2M spent on the property, how does this work from an accounting perspective? As the borrowing company has put £1.2M worth of revenue onto it's sister companies books does this just sit as debt on the borrowing companies books?
|
|
|
Post by marcusponds on Oct 18, 2017 13:59:42 GMT
I hope that 10k is 1% of your total P2P budget which is no more than 10% of your total investments otherwise perhaps you should take a step back and have a think. Good guidelines for those who wish to diversify widely. I personally prefer not to diversify that much, I'd rather do my DD and then spread my lending over what I consider to be the better loans. I'm aware that performing DD can only go so far in determining all the risks involved - better though IMO to have some knowledge of the risk/reward prospects than just lending with minimal DD on a large number of loans just to be diversified. Additionally the choice of whether to diversify widely or not depends on your risk appetite, I personally don't mind taking calculated risks - most probably because I've spent many years trading/investing (quasi gambling) in the markets. Agree Doc . Parameters are helpful but they will be different for different people, depending on, for example, age, income, ability to spend time on DD, plus external factors such as relative value of P2P vs other possible investments. If banks were paying 10 % who would bother with P2P. I have 30 % of my free cash in P2P - across multiple platforms and loans - and am quite comfortable at that level.
|
|
am
Posts: 1,495
Likes: 601
|
Post by am on Oct 18, 2017 14:11:38 GMT
Out of interest, regarding the £1.2M spent on the property, how does this work from an accounting perspective? As the borrowing company has put £1.2M worth of revenue onto it's sister companies books does this just sit as debt on the borrowing companies books? I would have guessed that the asbestos removal was done by an outside specialist contractor. Beyond that you could study the planning application to see if there's any evidence whether the architects and planning consultants involved are in-house or external contractors. On the other hand work done to make the building safe sounds like something that could be done by the captive construction company, as could removing buddleias and birches and any other plants which have colonised the building. The building is newer that I'd assumed; it's reported on the web that construction was completed in 1902.
|
|
Carter
Member of DD Central
Posts: 250
Likes: 549
|
Post by Carter on Oct 18, 2017 14:34:27 GMT
Out of interest, regarding the £1.2M spent on the property, how does this work from an accounting perspective? As the borrowing company has put £1.2M worth of revenue onto it's sister companies books does this just sit as debt on the borrowing companies books? I would have guessed that the asbestos removal was done by an outside specialist contractor. Beyond that you could study the planning application to see if there's any evidence whether the architects and planning consultants involved are in-house or external contractors. On the other hand work done to make the building safe sounds like something that could be done by the captive construction company, as could removing buddleias and birches and any other plants which have colonised the building. The building is newer that I'd assumed; it's reported on the web that construction was completed in 1902. Thanks am I was just wondering from a financial perspective after looking over the borrowing companies previous account records. I'm presuming that any charge against a property, in this case MT's charge, gets settled before the companies own debt in the event that there were issues and the expected value of the asset was not realised.
|
|
elliotn
Member of DD Central
Posts: 3,064
Likes: 2,681
|
Post by elliotn on Oct 18, 2017 15:08:32 GMT
I would have guessed that the asbestos removal was done by an outside specialist contractor. Beyond that you could study the planning application to see if there's any evidence whether the architects and planning consultants involved are in-house or external contractors. On the other hand work done to make the building safe sounds like something that could be done by the captive construction company, as could removing buddleias and birches and any other plants which have colonised the building. The building is newer that I'd assumed; it's reported on the web that construction was completed in 1902. Thanks am I was just wondering from a financial perspective after looking over the borrowing companies previous account records. I'm presuming that any charge against a property, in this case MT's charge, gets settled before the companies own debt in the event that there were issues and the expected value of the asset was not realised. MT 1C will be primary on the security (no UN1s to worry about here!) ahead of any inter-co loans ie all creditors regarding this property will sit behind the 1C (except for our future recovery costs).
|
|
|
Post by gooner on Oct 18, 2017 15:17:02 GMT
Someone has a bit of faith in this one - £52,000!!!
|
|
seeingred
Member of DD Central
Posts: 470
Likes: 664
|
Post by seeingred on Oct 18, 2017 15:17:12 GMT
Lots of 7000 investments, topping up to 10,000.
One investment of 52,000 just now.
|
|
madpierre
Member of DD Central
Posts: 303
Likes: 374
|
Post by madpierre on Oct 18, 2017 15:43:25 GMT
Someone has a bit of faith in this one - £52,000!!! Crikey, I hope that's not my pension fund
|
|