m2btj
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Post by m2btj on Oct 23, 2017 15:28:37 GMT
I await Moneything's statement on this loan. I would like to think that it was withdrawn for sound commercial reasons & not through conjecture. Despite the rather colourful history of the borrower I believed that it was a good loan....assuming the loan details were accurate.
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hazellend
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Post by hazellend on Oct 23, 2017 15:30:05 GMT
I await Moneything's statement on this loan. I would like to think that it was withdrawn for sound commercial reasons & not through conjecture. Despite the rather colourful history of the borrower I believed that it was a good loan....assuming the loan details were accurate. They have given their statement already in the completed loans section
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m2btj
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Post by m2btj on Oct 23, 2017 15:39:31 GMT
I await Moneything's statement on this loan. I would like to think that it was withdrawn for sound commercial reasons & not through conjecture. Despite the rather colourful history of the borrower I believed that it was a good loan....assuming the loan details were accurate. They have given their statement already in the completed loans section Just read it & as stated earlier in this thread the chances of filling further tranches were unlikely. Lender comments also played a role in this self fulfilling prophecy.
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drgonzo
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Post by drgonzo on Oct 23, 2017 15:44:13 GMT
Wow, it's all happening today! Good to see a platform taking a long term view on funding based on the views expressed here... although I suspect that once the dust had settled on the first tranche the later tranches would have filled, albeit not as quickly as the borrower might require. Must have hurt a little to make that decision, but well done MT.
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am
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Post by am on Oct 23, 2017 15:47:31 GMT
1) The borrower doesn't have to give a second charge for development finance elsewhere; there was always the option of refinancing this bridging loan at the same time. (But it's more hassle for the borrower so if he can get the whole project financed elsewhere he might find that preferable.)
2) There's a difference between a bridging loan on a property without planning permission, and a development finance loan for a property with planning permission; it's conceivable that there would more demand for the latter. (My decision - before and after all the discussion - was to wait for planning permission to be granted and consider participating in a later tranche.) OTOH, a number of people expressed a lack of conviction in the project's viability, and £4.5m is stretching the platform's capacity, so perhaps it was the right decision.
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am
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Post by am on Oct 23, 2017 15:58:47 GMT
My name is Ivor Freedman and I am a director of F & P Sponsors Ltd. My company has sponsored over £100m of P2P loans. We sponsored this loan on MoneyThing and we would not sponsor a loan and nor would Moneything accept the listing, unless we were entirely satisfied in our due diligence both with the people concerned and with the security offered. We have sponsored a number of loans for companies controlled by Mr N***** P****** on other platforms which have always been fully supported by lenders and conducted properly within terms. Mr Priestley has provided a detailed background to his family history, which can be viewed on the documentation tab of the listing. As always , lenders must make their own judgement on whether to lend or not, but I hope that the issue of his father's misdemeanours and Mr N***** P******'s support of his father at that time, as a naive and loyal 17 year old son, should now effect lender's decisions in this case. He has more than proved his integrity in the successful creation of a dynamic property development business. I think it would be harsh to penalise him for the actions of his late father. I think you've had an attack of missing negative syndrome (or "should now" should read "would not"). The impression I have is that only a small fraction (I'm not among them) of potential lenders have held his history against him; I suspect more people were spooked by the inaccurate statement of the purchase price. An explanation of how the money spent on the property post-purchase was deployed would have been likely to have eased concerns. Update: I see from the related poll that more people held the borrower's history against him that I expected (I was expecting about 5%).
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Oct 23, 2017 16:04:53 GMT
Wow, it's all happening today! Good to see a platform taking a long term view on funding based on the views expressed here... although I suspect that once the dust had settled on the first tranche the later tranches would have filled, albeit not as quickly as the borrower might require. Must have hurt a little to make that decision, but well done MT. It will have hurt quite a bit I imagine, but for The Greater Good & Benefit of Investors & MT Alike, IMHO. Seems to me unfortunate that MT is short of The Lemmings that flock to some other sites. And I don't mean any of the informed investors on here are Lemmings, you know who/what I mean.
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Carter
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Post by Carter on Oct 23, 2017 17:16:38 GMT
A logical explanation from MT on the withdrawal of this loan. They had it filled, and at 11%, but paused to consider potential issues down the line for all parties and made a difficult call.
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madpierre
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Post by madpierre on Oct 23, 2017 17:26:39 GMT
Wow, it's all happening today! Good to see a platform taking a long term view on funding based on the views expressed here... although I suspect that once the dust had settled on the first tranche the later tranches would have filled, albeit not as quickly as the borrower might require. Must have hurt a little to make that decision, but well done MT. It will have hurt quite a bit I imagine, but for The Greater Good & Benefit of Investors & MT Alike, IMHO. Seems to me unfortunate that MT is short of The Lemmings that flock to some other sites. And I don't mean any of the informed investors on here are Lemmings, you know who/what I mean. These events are becoming increasingly common and so I am seriously considering becoming a lemming I am frequently not investing in loans through misgivings and then finding these loans are subsequently cancelled, yet the lemmings who did invest receive interest and I get nothing! So, employing a thinking man's technique I am considering becoming a lemming on the platforms that appear to 'care' and thus cancel, but not the raft of others I could mention who carry on regardless. Goodness me, this P2P lark is jolly complicated
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seeingred
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Post by seeingred on Oct 23, 2017 17:39:57 GMT
The issue of the borrower was foremost at the beginning but rapidly faded. Many would have supported the borrower and this loan if the basic economics had stood up - which they did not.
A rundown area of a decaying city, uncertainty around the type of accommodation to be constructed, and the market to be addressed, a 'missing ' £1.2m, optimistic selling prices year or more down the line, a derelict listed building - nothing felt right.
Mind you it couldn't have been such a disaster as the Isle of Wight on Lendy. They managed to mess up a mere building plot.
What an afternoon this has been.
I echo comments about the gathering storm for property based P2P. Too many duff valuations, too little proper DD by platforms. A time of reckoning may not be far away......
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GeorgeT
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Post by GeorgeT on Oct 23, 2017 17:51:04 GMT
Right decision by MT in my opinion. But I think it was the wrong decision to accept the business in the first place. I didn't think this was ever an 11% loan - too many negatives. Risk and reward were out of kilter. I don't think it did MT's reputation a lot of good by presenting it to investors. The kickback might have been anticipated.
I was put off by the borrower's past. Then the issue of the purchase price surfaced and the £1.2m of mysterious works. Too many alarm bells.
I believe the golden, low risk days of P2P lending have gone. To me it now feels an altogether riskier game requiring higher levels of DD than ever before, both pre loan launch and (importantly) throughout the duration of any loan that you retain a stake in. We've been through an upswing economic cycle with growth and rising property values (although many in society haven't benefited). Now we face interest rate rises, inflation outpacing pay rises, stagnating property values, rising debt levels, slowing growth etc, and bucketloads of economic and political uncertainty fuelling nervousness. The era we have entered is not conducive to this industry in my view, and I can only see more business and project failures and rising defaults across the P2P platforms as loans age. Also high quality new business feels now to be in very short supply and it seems perhaps there are now too many platforms chasing too little good new business for further, sustainable sector growth. I think that maybe only the strongest and best run will survive.
I'm on a P2P exposure reduction programme.
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dermot
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Post by dermot on Oct 23, 2017 18:06:14 GMT
My name is Ivor Freedman and I am a director of F & P Sponsors Ltd. My company has sponsored over £100m of P2P loans. We sponsored this loan on MoneyThing and we would not sponsor a loan and nor would Moneything accept the listing, unless we were entirely satisfied in our due diligence both with the people concerned and with the security offered. We have sponsored a number of loans for companies controlled by Mr N***** P****** on other platforms which have always been fully supported by lenders and conducted properly within terms. Mr Priestley has provided a detailed background to his family history, which can be viewed on the documentation tab of the listing. As always , lenders must make their own judgement on whether to lend or not, but I hope that the issue of his father's misdemeanours and Mr N***** P******'s support of his father at that time, as a naive and loyal 17 year old son, should now effect lender's decisions in this case. He has more than proved his integrity in the successful creation of a dynamic property development business. I think it would be harsh to penalise him for the actions of his late father. Put a reasonable chunk into this (now withdrawn) loan, but only after the letter of clarification became available. I think it would have been better to have revealed the slightly colourful history at the beginning, as it was bound to be found sooner or later. I would probably have doubled my investment overall as he seems to have remained on the straight and narrow since that little adventure and built a successful career. As several people have commented, the issue of how the £1.2M was spent in such a way as to enhance the value of the property remains a bit of a mystery.
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elliotn
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Post by elliotn on Oct 23, 2017 19:12:34 GMT
Yes, bad timing for me, have no funds left to invest and finding it hard to shift anything on the SM. I've trimmed lots of loans over the weekend in preparation for this loan. Selling hasn't been a problem, probably overdid it. Plenty on SM to reinvest the trimmings.
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Post by df on Oct 23, 2017 20:27:48 GMT
Very wise decision. Once again shows that MT is a responsible platform (unlike some others). Arguably, they shouldn't have offered it in the first place, but I received my capital+interest and I'm happy with this.
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hazellend
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Post by hazellend on Oct 23, 2017 20:49:42 GMT
Bit disappointed this loan didn’t go ahead. Collateral offered cashback initial first charge drawdowns then higher interest rates for second charge further drawdowns
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