adrian77
Member of DD Central
Posts: 3,895
Likes: 4,122
|
Post by adrian77 on Oct 19, 2017 11:21:01 GMT
I am not touching this one - if it is such a cash-cow then why is the developer not borrowing at a much cheaper rate from the banks etc? There also seems to be a lot of potential problems here and what happens if the developer runs out of money before completing the build after it has cost more than planned and wiped out the predicted profit....just my opinion
|
|
09dolphin
Member of DD Central
Posts: 630
Likes: 856
|
Post by 09dolphin on Oct 19, 2017 13:34:26 GMT
I've invested a really small sum in this as a punt (about 10% of my normal investment). If the loan goes belly up I'll only lose a small sum but my expectation is that it will get to a renewal and then, on the 2nd renewal, will become a problem for investors from FS.
In all honesty I hope the development proceeds as planned once planning is achieved but I think we should be very cautious until planning permission is confirmed + only a 30 year lease causes me real concerns.
My miniscule investment is unlikely to be renewed when this is due.
|
|
mikes1531
Member of DD Central
Posts: 6,452
Likes: 2,320
|
Post by mikes1531 on Oct 20, 2017 1:28:46 GMT
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. I don't think these are parallel situations. Lenders are not trying to buy the property from the borrower. They're trying to get an idea of the true value of the property so they don't lend at a huge LTV. I would hope that fundingsecure believe that their future success depends on investors receiving reasonable returns for the risks they are taking. Making overly risky loans based on overly generous valuations might produce near-term profits for FS but if the borrower defaults and recovery is needed then FS really need to build a track record of successful recoveries or their reputation, and their ability to continue to grow, will suffer.
|
|
rogerthat
Member of DD Central
Posts: 2,048
Likes: 1,994
|
Post by rogerthat on Feb 26, 2018 16:06:02 GMT
Heres the existing thread for the loan currently on the platform
|
|
rs
Member of DD Central
Posts: 467
Likes: 254
|
Post by rs on Feb 26, 2018 16:12:26 GMT
Plenty of this loan on SM market at 1% discount. Why would anyone invest in this loan when this new loan priority is lower than other loans at 1% discount!
|
|
r1200gs
Member of DD Central
Posts: 1,336
Likes: 1,883
|
Post by r1200gs on Feb 26, 2018 16:13:33 GMT
I'm wondering what happens when this goes belly up, legal fees and interest mount rapidly in the many months it may take to sell and when it does sell at a distressed price, what do the holders of this loan get seeing the first two get first dibs any proceeds? Possibly nothing.
Yup, I am deeply cynical but then after certain other FS loans, why would I not be.
And it looks like I'm not alone, even at 14 percent and a 52 percent LTV it's not exactly flying off the shelf.
I think too many of us have seen just how fast that supposed buffer in the case of having to sell the security can vanish.
No thank you.
|
|
stevio
Member of DD Central
Posts: 2,065
Likes: 894
|
Post by stevio on Feb 26, 2018 16:20:42 GMT
Plenty of this loan on SM market at 1% discount. Why would anyone invest in this loan when this new loan priority is lower than other loans at 1% discount! Yes, seems bit of a bargain really compared to the new loan with lower priority
|
|
r1200gs
Member of DD Central
Posts: 1,336
Likes: 1,883
|
Post by r1200gs on Feb 26, 2018 16:30:20 GMT
Plenty of this loan on SM market at 1% discount. Why would anyone invest in this loan when this new loan priority is lower than other loans at 1% discount! Yes, seems bit of a bargain really compared to the new loan with lower priority In fact, I think I might even have a nibble.
|
|
Liz
Member of DD Central
Posts: 2,426
Likes: 1,297
|
Post by Liz on Feb 26, 2018 16:36:59 GMT
Plenty of this loan on SM market at 1% discount. Why would anyone invest in this loan when this new loan priority is lower than other loans at 1% discount! Stupidity.
|
|
rogerthat
Member of DD Central
Posts: 2,048
Likes: 1,994
|
Post by rogerthat on Feb 26, 2018 16:46:50 GMT
Plenty of this loan on SM market at 1% discount. Why would anyone invest in this loan when this new loan priority is lower than other loans at 1% discount! Stupidity.
|
|
Liz
Member of DD Central
Posts: 2,426
Likes: 1,297
|
Post by Liz on Feb 26, 2018 18:18:41 GMT
Stupidity. 1% discount yes..but only 53 days left..and all the accrued interest to pay..though a senior loan to the one currently on the platform You are invading my box, pls respect my personal space 😉
|
|
rogerthat
Member of DD Central
Posts: 2,048
Likes: 1,994
|
Post by rogerthat on Feb 26, 2018 18:26:41 GMT
You are invading my box, pls respect my personal space 😉 Dear me...I'm just about to have my tea as well
|
|
mikes1531
Member of DD Central
Posts: 6,452
Likes: 2,320
|
Post by mikes1531 on Feb 26, 2018 19:19:48 GMT
1% discount yes..but only 53 days left..and all the accrued interest to pay..though a senior loan to the one currently on the platform The accrued interest is £4.74 per £100 loan part, so the discount would be more than enough to cover the tax payable by a basic-rate taxpayer -- and the buyer would have a part of the first-priority loan. Still looks like a no-brainer to me!
|
|
rogerthat
Member of DD Central
Posts: 2,048
Likes: 1,994
|
Post by rogerthat on Feb 26, 2018 19:49:21 GMT
1% discount yes..but only 53 days left..and all the accrued interest to pay..though a senior loan to the one currently on the platform The accrued interest is £4.74 per £100 loan part, so the discount would be more than enough to cover the tax payable by a basic-rate taxpayer -- and the buyer would have a part of the first-priority loan. Still looks like a no-brainer to me! Yes..I know its only £4.74..I looked..but ive got 4 figures in it already..I don't want any more thanks..as its a no brainer I'm assuming you bought some ?
|
|
mikes1531
Member of DD Central
Posts: 6,452
Likes: 2,320
|
Post by mikes1531 on Mar 3, 2018 21:06:20 GMT
The accrued interest is £4.74 per £100 loan part, so the discount would be more than enough to cover the tax payable by a basic-rate taxpayer -- and the buyer would have a part of the first-priority loan. Still looks like a no-brainer to me! Yes..I know its only £4.74..I looked..but ive got 4 figures in it already..I don't want any more thanks..as its a no brainer I'm assuming you bought some ? The only buying I do on the SM is for my ISA. If I had some uninvested funds there, I would buy. If something I hold in my ISA repays before the first-priority loan reached 30 days to go, then I will buy some of this.
|
|