GeorgeT
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Post by GeorgeT on Nov 3, 2017 21:35:38 GMT
I'm sorry to say that despite this being 12% I am not even looking into it so will be unable to chip in with any personal DD findings. Unless and until there is a big turnaround in platform performance I will not be investing any money in LY loans.
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hazellend
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Post by hazellend on Nov 3, 2017 21:45:48 GMT
The borrower is buying the property for 1.5 million, which supports the valuation. 90d Valuation is 1.35million, so security should be reasonable cover.
Not sure how easy this type of property is to shift even at fire sale prices.
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elliotn
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Post by elliotn on Nov 4, 2017 3:50:53 GMT
I'm sorry to say that despite this being 12% I am not even looking into it so will be unable to chip in with any personal DD findings. Unless and until there is a big turnaround in platform performance I will not be investing any money in LY loans. We know this from many different threads (despite your self-publicised exit from the platform). I shall update you despite the irrelevance of your post to our security - 66% ltPv, new/profitable borrower, established industrial area - this will be high class for quater of a year and perhaps worthy of a hold to term amount too. There, I've said it.
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hazellend
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Post by hazellend on Nov 4, 2017 15:55:22 GMT
Why would Lendy feel the need to guage appetite for this loan? It would clearly have no problem getting I funded.
Maybe they want to lower the interest rate to lenders?
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mikes1531
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Post by mikes1531 on Nov 4, 2017 16:17:45 GMT
Why would Lendy feel the need to guage appetite for this loan? It would clearly have no problem getting I funded. : Why do you say that? You might be right, but with all the overdue and suspended loans investor support as shown on this forum seems to be less enthusiastic than it had been in the past. The Lendy loan book has stopped growing, which isn't a good sign either. The fact that Lendy felt it appropriate to offer cashback on a couple of recent DFL tranches, suggests to me that they're concerned about investor support for some loans. No doubt Lendy have been watching as investors have withdrawn large chunks of cash from the platform over the past month rather than using the funds from repayments to buy parts on the SM or sit in their accounts in preparation for future investment opportunities. In the circumstances, it makes sense to me for Lendy to put this loan in the pipeline early and see how well it is pre-funded -- though much of the pre-funding they see could come from default settings that investors don't pay much attention to until the 'going live tomorrow, check your pre-funding level' email is sent, and therefore might not be very reliable.
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bloodycat
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Post by bloodycat on Nov 4, 2017 16:42:59 GMT
Whilst the valuation looks realistic, there's a couple of potential points for consideration.
Firstly the valuation is on the basis of vacant possession, which at the end of the 6 month term unlikely since the borrower is purchasing it to move their business into.
Also, if they are expecting to get refinance based on their financials for the year ending September, why not just wait an extra few weeks and go direct for the commercial mortgage rather than paying twice for all the legals.
It may be that there is significant other interest in the property, but if that were the case I would expect that the purchase price would be a little higher than the 'offers in excess of' figure.
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Post by supernumerary on Nov 4, 2017 20:29:51 GMT
DUDE, Thanks for posting. You used to post regular new pipeline loan threads as clock work...  So it is nice to see you post a 12%er again... Just like old times.  As it is a 12% loan, I will be funding it, if it goes live. |
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Liz
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Post by Liz on Nov 4, 2017 21:50:21 GMT
DUDE, Thanks for posting. You used to post regular new pipeline loan threads as clock work... So it is nice to see you post a 12%er again... Just like old times. As it is a 12% loan, I will be funding it, if it goes live. Will you be holding to term or flipping the loan-part?
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Post by supernumerary on Nov 9, 2017 9:25:23 GMT
DUDE, Thanks for posting. You used to post regular new pipeline loan threads as clock work... So it is nice to see you post a 12%er again... Just like old times. As it is a 12% loan, I will be funding it, if it goes live. Will you be holding to term or flipping the loan-part? Probably not to term, but investing in it, will spread the overall risk of my holdings in loans on Lendy Saving Stream.
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1stwaz
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Post by 1stwaz on Nov 11, 2017 23:08:00 GMT
I will be investing, the valuation seems reasonable and the the exit plan plausible!
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zlb
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Post by zlb on Nov 13, 2017 22:49:53 GMT
Is it niaive to think there is less at stake with a PBL than one dependent on something based on (future/never happens/over-valued) GDV?
Is the issue its valuation?
If the borrower buys it at the valuation amount, is there a potential for this to be a ruse?
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copacetic
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Post by copacetic on Nov 14, 2017 0:18:58 GMT
Is it niaive to think there is less at stake with a PBL than one dependent on something based on (future/never happens/over-valued) GDV? Is the issue its valuation? If the borrower buys it at the valuation amount, is there a potential for this to be a ruse? GDV residual valuations tend to make me nervous because there are a lot of assumptions made in which relatively small uncertainties can drastically affect the market value of the site. Also if the borrower turns out to be unscrupulous then you can end up with the money spent but the site no where near completed. A PBL on the other hand tends to be a bit more straightforward (as long as there isn't hope value included for planning applications imo). This valuation report was probably written after the sales price was agreed. As long as this is an open market transaction (i.e. the buyer and seller were unconnected) then the price paid seems a fair way to value the property in conjunction with looking into comparable sales in the area. If the buyer and seller were connected I'd be immediately sceptical of the price paid as a method of valuation and I'd hope that Lendy would consider it essential to disclose the connection to investors if they were aware of it.
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mikes1531
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Post by mikes1531 on Nov 14, 2017 2:50:13 GMT
If the buyer and seller were connected I'd be immediately sceptical of the price paid as a method of valuation and I'd hope that Lendy would consider it essential to disclose the connection to investors if they were aware of it. If Lendy were to fail to uncover such a connection then their multi-step DD that they keep telling us is so thorough isn't good enough!
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zlb
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Post by zlb on Nov 14, 2017 8:08:18 GMT
There is some 'probably' in my estimations of Ly and because they write to their investors in a tone as if Ly were like investors' claims defense lawyers, I feel less assured. I hope that their lawyer-like tone of communication is part-way accidental.
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zlb
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Post by zlb on Nov 24, 2017 12:39:16 GMT
Whilst the valuation looks realistic, there's a couple of potential points for consideration. Firstly the valuation is on the basis of vacant possession, which at the end of the 6 month term unlikely since the borrower is purchasing it to move their business into. Also, if they are expecting to get refinance based on their financials for the year ending September, why not just wait an extra few weeks and go direct for the commercial mortgage rather than paying twice for all the legals. It may be that there is significant other interest in the property, but if that were the case I would expect that the purchase price would be a little higher than the 'offers in excess of' figure. I'm new to this. This seems like a reasonable point to me - if finance can't be sought now, will it be granted in the future? It could be an issue of timing now - competition for site - but L haven't finished their DD, so it looks like this sale isn't happening that quickly... I've often wondered about why particular borrowers end up at L and not the bank.
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