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Post by Badly Drawn Stickman on Jul 9, 2018 20:33:40 GMT
The renewal of Tranche 5 is already over 80% subscribed. The loan looks ok and this renewal was on on time. However would have liked to seen an update on progress. The last update was end May and the photographs look to predate this. I had a fairly brief look, seemed to be a lot of moving (or possibly not moving) parts that seemed unexplained. I think they are also involved in another loan somewhere, but lost interest before following that avenue. I'm happy to wait for something a bit more promising to turn up really don't see the point in speculating on this kind of loan. You might want to check the secondary market, previous tranches are currently slightly discounted. Never a big plus point in my book.
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Post by df on Jul 10, 2018 21:00:46 GMT
The renewal of Tranche 5 is already over 80% subscribed. The loan looks ok and this renewal was on on time. However would have liked to seen an update on progress. The last update was end May and the photographs look to predate this. I had a fairly brief look, seemed to be a lot of moving (or possibly not moving) parts that seemed unexplained. I think they are also involved in another loan somewhere, but lost interest before following that avenue. I'm happy to wait for something a bit more promising to turn up really don't see the point in speculating on this kind of loan. You might want to check the secondary market, previous tranches are currently slightly discounted. Never a big plus point in my book. "Discounted" is not necessarily an alarm. I sell all property loans at discount when they reach certain age - and it's not because I think something is wrong with the loan, I'm just happy to reduce my return rate in exchange for less risk. I'm probably not alone doing this? Also when investors want to withdraw large amount of cash quickly, they have use discount option.
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Post by Badly Drawn Stickman on Jul 10, 2018 21:53:09 GMT
I had a fairly brief look, seemed to be a lot of moving (or possibly not moving) parts that seemed unexplained. I think they are also involved in another loan somewhere, but lost interest before following that avenue. I'm happy to wait for something a bit more promising to turn up really don't see the point in speculating on this kind of loan. You might want to check the secondary market, previous tranches are currently slightly discounted. Never a big plus point in my book. "Discounted" is not necessarily an alarm. I sell all property loans at discount when they reach certain age - and it's not because I think something is wrong with the loan, I'm just happy to reduce my return rate in exchange for less risk. I'm probably not alone doing this? Also when investors want to withdraw large amount of cash quickly, they have use discount option. You are not alone, I have sold at a discount on loans I consider Ok (which in truth is probably the highest rank available on any loan) in my case it is that I am only interested in capital gain as opposed to interest with my FS account. Having said that I would much prefer to sell at par or better still above par, so a loans ability to hold value is always a factor in my selection. My investment on the platform is pretty trivial, and mostly experimental so I have no great need to 'buy to sustain investment'. I also always work on the theory that it might be my plan to always sell, but that always depends on a buyer being available. So I do enough DD to be content to hold to term if necessary.
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Post by brummiefred on Jul 12, 2018 17:52:22 GMT
For those that are interested in the progress on site here is today's image, and since my last visit the roof trusses, covering, fascia and gutters have been completed to the high level roof. Some progress but not as much as I would expect.  |
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Post by mrclondon on Aug 29, 2018 21:40:59 GMT
I'm currently on a slow road trip visiting family and friends and will be posting quite a few photos over the next couple of weeks, starting with a couple west of Birmingham - this and Oldbury. First a reminder of recent FS updates Photos taken 5pm yesterday (28th Aug). No windows in the entire building, but the van and a sole worker from a local double glazing company were on site, and the double glazing company has advertising hoardings dotted around the perimeter. Whilst the main building is indeed roofed, the annex (?) on the left hand side (as viewed from the front across the roundabout) is as yet unroofed. Not a lot of building materials visible.   
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rogerthat
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Post by rogerthat on Aug 29, 2018 21:54:13 GMT
Outrageous..and FS wonder why confidence is non existent
"Update 23/05/18
Development continues with the roofing complete and windows due to be installed this week."
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mjc
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Post by mjc on Aug 29, 2018 22:37:38 GMT
Judging by the lack of progress, and the weeds growing above window height, one could be forgiven for thinking it had been abandoned. Why didn’t FundingSecure say “the borrower claims that....” re the windows and the roof.
Do they even believe the twaddle they give to us suckers lenders. Soon they will realise people do visit some of these sites as we don’t trust them to report accurately.
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nyneil
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Post by nyneil on Feb 15, 2019 17:05:20 GMT
Has anyone been by this site recently? Just wondering if Ground Force will be needed to control the vegetation.
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moist
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Post by moist on Feb 15, 2019 20:18:45 GMT
Has anyone been by this site recently? Just wondering if Ground Force will be needed to control the vegetation. Further Supplement just issued...with up to date pictures
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trium
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Post by trium on Apr 9, 2019 10:34:32 GMT
Tranche 3 of further supp went up this morning - all gone within 15 mins. ISTM better value on the SM - tranche 1 with 126 days left at -0.8%. Not sure the small step from 13% to 14% compensates for the risk of a third-ranking loan but at least now the loan description draws attention to the ranking by placing an asterisk against mentions of "1st charge".
While looking at this updates suddenly appeared on senior loan tranches to the effect that FS are to "use our discretion" to leave earlier tranches open, ie they won't be renewing (my tranches are already 48 and 56 days late)
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Post by brummiefred on Apr 16, 2019 16:15:48 GMT
Called in earlier today and whilst there does not appear to be any change to the building, which is structurally complete, from that shown in the latest images I have seen on the latest tranche. However the ground around one side appears to have been tidied and a workman let me know that 2 Showflats are to be opened on 27th April
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r00lish67
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Post by r00lish67 on Apr 17, 2019 8:37:52 GMT
So how does this latest tranche opportunity work for investors? It's part of a 2nd supplemental facility ranking behind existing loans of £1,139,250. The stated LTGDV is 68.4% although as the LTV is 71.4% it's presumably all but finished. However, given the higher ranking tranches are apparently not going to be renewed at all (judging by their updates), this means that all of their interest is going to have be paid from the sale of the flats before this tranche sees a penny to return to it. If we make the generous assumption that all 14 apartments are sold, exchanged, and completed by the end of this new loan then that means the amount owed on the previous facilities will be (roughly): 1st ranking: £809,250 capital, will have run for about 16 months @ 14% interest (incl. bonuses) = £151k interest 2nd ranking: £330,000 capital, will have run for about 12 months @ 14% interest = £46k interest So, the amount owed prior to this loan will be roughly £1.34m if all goes perfectly. If this facility is to be repaid with all interest then a further £176k needs to be found, so total of £1.51m. So, actually this is really looking more like an 80% LTGDV loan as I see it. Further, there's some pretty chunky assumptions/risks here to arrive at that: 1) Valuation: Over the course of this project, GDV has increased from £1.245m to £1.8975m. Moreover, the most recent increase from £1.755m appears to be based solely upon an estate agent best price guide. I won't comment on how realistic the valuation is I've no idea about such things, but I do know an estate agent valuation is not the same as a surveyor's valuation. 2) Completion of build: I haven't included the last £90k remaining of the second facility, which will worsen the LTGDV further (unless FS raise the GDV again  ). The 2 showhomes, presumably the most advanced, aren't yet finished. Presumably plenty of other work to do on the other 12, enough budget? 3) Sales time. I made the assumption above of 6 months. There's obviously a big risk as always that this won't happen and that interest will roll up significantly on preceding facilities. If sales 'drip through' then the higher ranking loans should see their money returned first. Will this one? TLDR, or to sum up, I'd think mighty hard before investing in this second supplemental loan/facility. I'm personally of the opinion that 14% is nowhere near enough for the risk. |
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sarahcount
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Post by sarahcount on Apr 17, 2019 8:47:47 GMT
So how does this latest tranche opportunity work for investors? It's part of a 2nd supplemental facility ranking behind existing loans of £1,139,250. The stated LTGDV is 68.4% although as the LTV is 71.4% it's presumably all but finished. However, given the higher ranking tranches are apparently not going to be renewed at all (judging by their updates), this means that all of their interest is going to have be paid from the sale of the flats before this tranche sees a penny to return to it. If we make the generous assumption that all 14 apartments are sold, exchanged, and completed by the end of this new loan then that means the amount owed on the previous facilities will be (roughly): 1st ranking: £809,250 capital, will have run for about 16 months @ 14% interest (incl. bonuses) = £151k interest 2nd ranking: £330,000 capital, will have run for about 12 months @ 14% interest = £46k interest So, the amount owed prior to this loan will be roughly £1.34m if all goes perfectly. If this facility is to be repaid with all interest then a further £176k needs to be found, so total of £1.51m. So, actually this is really looking more like an 80% LTGDV loan as I see it. Further, there's some pretty chunky assumptions/risks here to arrive at that: 1) Valuation: Over the course of this project, GDV has increased from £1.245m to £1.8975m. Moreover, the most recent increase from £1.755m appears to be based solely upon an estate agent best price guide. I won't comment on how realistic the valuation is I've no idea about such things, but I do know an estate agent valuation is not the same as a surveyor's valuation. 2) Completion of build: I haven't included the last £90k remaining of the second facility, which will worsen the LTGDV further (unless FS raise the GDV again ). The 2 showhomes, presumably the most advanced, aren't yet finished. Presumably plenty of other work to do on the other 12, enough budget? 3) Sales time. I made the assumption above of 6 months. There's obviously a big risk as always that this won't happen and that interest will roll up significantly on preceding facilities. If sales 'drip through' then the higher ranking loans should see their money returned first. Will this one? TLDR, or to sum up, I'd think mighty hard before investing in this second supplemental loan/facility. I'm personally of the opinion that 14% is nowhere near enough for the risk. Very good analysis.
However you've up against all the vested interests that have money in the earlier loans so want to see the project finished - and all those people that tell you to diversify across all loans regardless of their quality.
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r00lish67
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Post by r00lish67 on Apr 17, 2019 8:56:06 GMT
Very good analysis.
However you've up against all the vested interests that have money in the earlier loans so want to see the project finished - and all those people that tell you to diversify across all loans regardless of their quality.
The first ranking facility looks like a cosy warm place to be at the moment. Maybe they could just offer these latest investors 25% interest? I mean, if it runs for only 6 months then that's not that much money in absolute terms, and if it doesn't then it's irrelevant anyway as all of the money will be gone 
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Post by mrclondon on Apr 17, 2019 9:17:07 GMT
Very good analysis.
However you've up against all the vested interests that have money in the earlier loans so want to see the project finished - and all those people that tell you to diversify across all loans regardless of their quality.
The first ranking facility looks like a cosy warm place to be at the moment. However remember FS only take into account the ranking if the loan defaults. Partial repayments from unit sales are applied to the longest outstanding tranche(s) - see Stretford - so in this case some of the 2nd ranking tranches will be repaid before some the 1st ranking tranches.
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). The 2 showhomes, presumably the most advanced, aren't yet finished. Presumably plenty of other work to do on the other 12, enough budget?
