bernard
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Post by bernard on Oct 17, 2017 21:08:41 GMT
The sort of scheme evisaged is well known to represent a huge uplift in property value, when looked at through an RV method assuming perfect execution onto a 30 year lease, historical tight cap rates, at the high rental rates asscoiated with this type of property for the moment. But it doesn't mean anyone would pay anywhere near the RV for that scheme as is. This loan could well by 100% LTV, when considering purchase price/OMV as of now. I do wonder why purchase prices are rarely disclosed in these situations ...
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Liz
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Post by Liz on Oct 17, 2017 21:28:11 GMT
The sort of scheme evisaged is well known to represent a huge uplift in property value, when looked at through an RV method assuming perfect execution onto a 30 year lease, historical tight cap rates, at the high rental rates asscoiated with this type of property for the moment. But it doesn't mean anyone would pay anywhere near the RV for that scheme as is. This loan could well by 100% LTV, when considering purchase price/OMV as of now. I do wonder why purchase prices are rarely disclosed in these situations ... I would find out the purchase price before you bid.
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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 17, 2017 22:03:43 GMT
The sort of scheme evisaged is well known to represent a huge uplift in property value, when looked at through an RV method assuming perfect execution onto a 30 year lease, historical tight cap rates, at the high rental rates asscoiated with this type of property for the moment. But it doesn't mean anyone would pay anywhere near the RV for that scheme as is. This loan could well by 100% LTV, when considering purchase price/OMV as of now. I do wonder why purchase prices are rarely disclosed in these situations ... I would find out the purchase price before you bid. No you don't (wonder). And neither do we!!!
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ben
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Post by ben on Oct 17, 2017 22:06:59 GMT
I do wonder why purchase prices are rarely disclosed in these situations ... I will give you one guess. But not to worry they will use the excuse that they had to act quickly to secure it at that super low price, as the original owners pet cat had just died so they had to off load it in a hurry and the security is worth the valuation honest.
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j1
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Post by j1 on Oct 17, 2017 22:45:27 GMT
I do wonder why purchase prices are rarely disclosed in these situations ... I will give you one guess. But not to worry they will use the excuse that they had to act quickly to secure it at that super low price, as the original owners pet cat had just died so they had to off load it in a hurry and the security is worth the valuation honest. I have never reached out to FS directly. What's the likelihood of them disclosing the purchase price? Surely it's a reasonable request?!
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ben
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Post by ben on Oct 17, 2017 22:52:49 GMT
I will give you one guess. But not to worry they will use the excuse that they had to act quickly to secure it at that super low price, as the original owners pet cat had just died so they had to off load it in a hurry and the security is worth the valuation honest. I have never reached out to FS directly. What's the likelihood of them disclosing the purchase price? Surely it's a reasonable request? There has been several loans where they have released that information and guess what they all were close to the valuation. So it depends what the purchase price was if it was close to the valuation then they will do if the loan struggles to fill, if it is nowhere near they will not.
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j1
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Post by j1 on Oct 18, 2017 8:52:47 GMT
I can't get my head around the idea that we are expected to invest without knowing the purchase price. If it's known (which I assume it is) then we should know it. Also I think the person doing the valuation should know it as well.
What's the rationale for withholding it from us other than the obvious?
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r00lish67
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Post by r00lish67 on Oct 18, 2017 8:58:08 GMT
I can't get my head around the idea that we are expected to invest without knowing the purchase price. If it's known (which I assume it is) then we should know it. Also I think the person doing the valuation should know it as well. What's the rationale for withholding it from us other than the obvious? If truly pressed, the rationale FS would give us would probably be some more professionally produced variant of "Actually the borrower bought it super-cheap because it was a distressed sale, and also he was the only one with any money at the time in the whole of the South-East, and also the seller really liked the borrower so much that he gave it at a ridiculously low price". In truth, it's nothing other than the obvious.
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ashtondav
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Post by ashtondav on Oct 18, 2017 9:08:53 GMT
Anyways, it looks a better bet than the power boat.
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SteveT
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Post by SteveT on Oct 18, 2017 10:01:17 GMT
FWIW, I was happy to take a piece of this one. I suspect the local authority (& HCC) must be rather supportive of expanding assisted living provision on the site, but the bigger picture IMO is that this is 2 acres of prime sea-front land with views across an open park to the Solent and IoW beyond, surrounded by rather expensive residential housing. I'd be more concerned (for the sake of those likely to benefit from living there eventually) if the developer was looking for change of use and to develop the site for market housing.
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rogerthat
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Post by rogerthat on Oct 18, 2017 10:51:04 GMT
I agree...and despite my earlier whingeing, ive decided to take a thin slice myself. I noticed a note clarifying the valuation appeared later yesterday which I didn't catch sight of till today and ive caught up on other posts. I suppose that informing prospective lenders what the borrower paid for a property is like trying to sell your own house and telling any prospective purchasers what you paid for it..ermm not the best strategy. So we come back to trusting a valuation and ive made my feelings already known on that score
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shimself
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Post by shimself on Oct 18, 2017 11:46:41 GMT
I will give you one guess. But not to worry they will use the excuse that they had to act quickly to secure it at that super low price, as the original owners pet cat had just died so they had to off load it in a hurry and the security is worth the valuation honest. I have never reached out to FS directly. What's the likelihood of them disclosing the purchase price? Surely it's a reasonable request?! Do try = if enough people ask they might get the message
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fp
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Post by fp on Oct 18, 2017 20:13:15 GMT
On the plus side, there’s plenty of scope within the current LTV for the loan to be renewed at least a couple of times, even with interest rolled up 😉 Which is the general trend with this borrower
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keith
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Post by keith on Oct 18, 2017 20:27:58 GMT
It seems to me that we have a classic "pricing" issue. Too many funds chasing too few decent opportunities means that there is scope for people assuming the best and punt on optimistic assumptions. Although the headline interest rate is the same the lender takes a lower risk adjusted return. I am not in this one and am progressively pulling my remaining funds from FS and LY unless I see significant evidence of tighter DD at a first instance (not socialising it 100% to here or similar), better monitoring and better/faster action on recoveries.
it looks like the benefit of the doubt is being handed to the borrower and until that balance redresses then my funds go elsewhere.
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duck
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Post by duck on Oct 19, 2017 4:25:32 GMT
On the plus side, there’s plenty of scope within the current LTV for the loan to be renewed at least a couple of times, even with interest rolled up 😉 Which is the general trend with this borrower That is of course because planning is so slow ........
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