sirius
Member of DD Central
Posts: 161 
Likes: 141
|
Post by sirius on Dec 8, 2017 15:03:21 GMT
Hi westcountry , The borrower has owned the land for a number of years and is looking to refinance. Many thanks, Gordon It has the appearance and smell of an FS W********n to me.
|
|
hector
Member of DD Central
Posts: 122
Likes: 162
|
Post by hector on Dec 8, 2017 15:36:52 GMT
Hugh?  Way too subtle for me .......... |
|
kaya
Member of DD Central
Posts: 1,150
Likes: 718
|
Post by kaya on Dec 8, 2017 15:38:01 GMT
Yes, must agree @magenta14 . Trouble is, there isn't even a brick in sight, just the sea of mud. awk and if sell (instantly) after 1 month its 48% 60% annualised, correct? |
|
ingwer
Member of DD Central
Posts: 121
Likes: 47
|
Post by ingwer on Dec 8, 2017 15:38:19 GMT
A lot of 15% Bolton loans have now appeared on the SM as the 15% and CB is too tempting. I was too slow :-)
|
|
awk
Posts: 276
Likes: 147
|
Post by awk on Dec 8, 2017 16:05:01 GMT
Yes, must agree @magenta14 . Trouble is, there isn't even a brick in sight, just the sea of mud. awk and if sell (instantly) after 1 month its 48% 60% annualised, correct? Well more like 49.25% pa. Actually, it’s probably over 50% if you do it properly and include the upfront CB payment. I’ve got one of those weird HP calculators somewhere which does all that fancy stuff. Good luck with selling after 1 month !
|
|
|
|
Post by df on Dec 8, 2017 21:06:10 GMT
? Hi westcountry , The borrower has owned the land for a number of years and is looking to refinance. Many thanks, Gordon It has the appearance and smell of an FS W********n to me. FS W********n is a third charge and the properties were overvalued by Savills. What is the similarity between W********n and BL00079? |
|
hazellend
Member of DD Central
Posts: 2,363
Likes: 2,180
|
Post by hazellend on Dec 8, 2017 21:10:42 GMT
I am very tempted to go in large on this one (50k)
Seems like a desirable site, and Travelodge on board gives me some added confidence. Not sure if the student property company are looking at the residential bit or instead of the hotel.
Against going in:
- would need to undiversify by selling other loans
- already at platform limit on COL
- already have 10 x my usual loan amount in 2 seperate loans on COL.
- worried I'm being blinded by ££££ and am not seeing the high risk in this loan.
|
|
sarahcount
Member of DD Central
Posts: 359
Likes: 815
|
Post by sarahcount on Dec 8, 2017 21:10:55 GMT
? It has the appearance and smell of an FS W********n to me. FS W********n is a third charge and the properties were overvalued by Savills. What is the similarity between W********n and BL00079? I think you are confusing W*******n with W********n.
|
|
sirius
Member of DD Central
Posts: 161
Likes: 141
|
Post by sirius on Dec 8, 2017 22:40:52 GMT
?FS W********n is a third charge and the properties were overvalued by Savills. What is the similarity between W********n and BL00079? I think you are confusing W*******n with W********n. Yes, i am talking about Wh***h***n
|
|
|
|
Post by Badly Drawn Stickman on Dec 8, 2017 22:52:50 GMT
A bad investment is rarely improved by taking more money from an empty pot.
I am puzzled where the extra 3% is coming from, presumably not a cash injection from the borrower, possibly a contribution from Collateral taking a reduced cut? Any other scenario must be weakening the underlying asset in some form or other. Maybe somebody can explain it to me.
|
|
GeorgeT
Member of DD Central
Posts: 1,322
Likes: 1,576
|
Post by GeorgeT on Dec 8, 2017 23:14:37 GMT
15% + CB isn't enough to tempt me.
In fact it's a scary offering. You don't get 15% + cashback unless you're buying into some seriously high risk.
But I'm glad COL offered it because it flushed out some flippers who were selling much more liquid 14% and 15% loans in order to free up funds for this one. This enabled me to top up very nicely in better stock.
Big tranches and cashback just tempts cashback hunters and means the SM will be clogged up for weeks/months to come when they dump their big buys straight back on the SM after netting their cashback.
My investment strategy is built on remaining agile and liquid and I think people who invest in this one will end up carrying a lot of risk for a long time.
Cashback is a disincentive for me to invest because it impacts on liquidity and hence increases the risk. It attracts the big boys and I don't like mixing it with the giants. I'm a man of the people. I would rather see a higher rate and no cashback. I don't want to be left holding the baby and I think investors in this one may well find themselves locked in.
Not for me.
|
|
|
|
Post by martin44 on Dec 8, 2017 23:38:07 GMT
15% + CB isn't enough to tempt me. In fact it's a scary offering. You don't get 15% + cashback unless you're buying into some seriously high risk. But I'm glad COL offered it because it flushed out some flippers who were selling much more liquid 14% and 15% loans in order to free up funds for this one. This enabled me to top up very nicely in better stock. Big tranches and cashback just tempts cashback hunters and means the SM will be clogged up for weeks/months to come when they dump their big buys straight back on the SM after netting their cashback. My investment strategy is built on remaining agile and liquid and I think people who invest in this one will end up carrying a lot of risk for a long time. Cashback is a disincentive for me to invest because it impacts on liquidity and hence increases the risk. It attracts the big boys and I don't like mixing it with the giants. I'm a man of the people. I would rather see a higher rate and no cashback. I don't want to be left holding the baby and I think investors in this one may well find themselves locked in. Not for me. Agreed ... `15%.... something is amiss... 
|
|
hazellend
Member of DD Central
Posts: 2,363
Likes: 2,180
|
Post by hazellend on Dec 9, 2017 9:15:41 GMT
My main concern is that this loan will be used to refinance. Where is the developer going to get development finance from if the initial first charge PBL is struggling to fill at 15% with cash back?
Also we have a GDV but no indication of what the development is likely to cost to build out.
I think the LTV needs to be reduced by at least 10%
|
|
metoo
Member of DD Central
Posts: 555
Likes: 432
|
Post by metoo on Dec 11, 2017 6:03:24 GMT
" Post permission residential land value estimates" in 2015 for the Chesterfield LA were £900,000 per hectare - call it a round £1M today. This site is 0.15 hectares. OK - it's a pity a range of prices isn't given for each LA, as I expect this one would be at the upper end, but if there's no interest and nothing gets built, that's still indicative of what you may be looking at as a worst case come sale day. That may sound overly harsh, but consider that Chesterfield BC are themselves selling off land including, amongst other things, this semi-commercial plot - no PP but by their own suggestion: "a residential development proposal will be considered" - being 0.61 hectares in size with an asking price of OIEO £750,000. Again, this site is possibly worth more than the one just mentioned, but as I see it, there's your risk. To be fair, planning value per hectare for a pair of 7-storey buildings occupying c75% of a site near the town centre is probably significantly higher than the average value of land with planning for 2 storey houses and gardens. However, whether it would actually fetch the valuer's theoretical figure on the open market is another question. ... no indication of what the development is likely to cost to build out. Construction costs for the flats, but not the hotel, are given at the back of the Valuation Report, Appendix 6.
|
|
elliotn
Member of DD Central
Posts: 3,064
Likes: 2,681
|
Post by elliotn on Dec 11, 2017 15:38:32 GMT
Do Coll front the pre-drawdown interest, for example when the loans for other borrowers have been pulled?
|
|
Way too subtle for me ..........
