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Post by Ton ⓉⓞⓃ on Jul 25, 2014 20:23:28 GMT
When a loan is fully amortizing it can be because AC recognize that there are 'difficulties' with the proposal that can be got round by giving our money back quicker as is happening here. i.e they seem to produce a reasonable amount of cash.
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mikes1531
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Post by mikes1531 on Jul 25, 2014 21:30:51 GMT
When a loan is fully amortizing it can be because AC recognize that there are 'difficulties' with the proposal that can be got round by giving our money back quicker as is happening here. i.e they seem to produce a reasonable amount of cash. It's true that a self-amortising loan has reduced exposure with every payment received. But my concern here is that if AC ever have to enforce the security by selling the property there's still a huge first charge that would be in front of AC lenders in the queue for the proceeds. If a 6-month sale is required -- and the valuer is correct about how big a markdown would be needed in order to accomplish a sale in that timeframe -- then costs/fees and the first charge will use up an awful lot of the proceeds, leaving the crumbs for the AC lenders. Those crumbs might be enough to allow full recovery to AC, but ISTM that it could be a tight situation.
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Post by Ton ⓉⓞⓃ on Jul 25, 2014 22:01:25 GMT
When a loan is fully amortizing it can be because AC recognize that there are 'difficulties' with the proposal that can be got round by giving our money back quicker as is happening here. i.e they seem to produce a reasonable amount of cash. It's true that a self-amortising loan has reduced exposure with every payment received. But my concern here is that if AC ever have to enforce the security by selling the property there's still a huge first charge that would be in front of AC lenders in the queue for the proceeds. If a 6-month sale is required -- and the valuer is correct about how big a markdown would be needed in order to accomplish a sale in that timeframe -- then costs/fees and the first charge will use up an awful lot of the proceeds, leaving the crumbs for the AC lenders. Those crumbs might be enough to allow full recovery to AC, but ISTM that it could be a tight situation. It's the kind of deal that mustn't falter early on, or the Lenders might be toast.
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mikes1531
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Post by mikes1531 on Jul 25, 2014 22:15:40 GMT
It's true that a self-amortising loan has reduced exposure with every payment received. But my concern here is that if AC ever have to enforce the security by selling the property there's still a huge first charge that would be in front of AC lenders in the queue for the proceeds. If a 6-month sale is required -- and the valuer is correct about how big a markdown would be needed in order to accomplish a sale in that timeframe -- then costs/fees and the first charge will use up an awful lot of the proceeds, leaving the crumbs for the AC lenders. Those crumbs might be enough to allow full recovery to AC, but ISTM that it could be a tight situation. It's the kind of deal that mustn't falter early on, or the Lenders might be toast. All it might take is a few TripAdviser reviews saying how noisy the place is because of the refurbishment activity. Or a competitor deciding to have a room 'sale' special offer so as to increase their occupancy level. Or...
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Post by Ton ⓉⓞⓃ on Jul 25, 2014 22:22:15 GMT
I've just noticed the new shorter loan names with Auction no's. I think I can get used to that very nicely. Thanks chris and Jack Barlow |
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pikestaff
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Post by pikestaff on Jul 25, 2014 22:51:49 GMT
pikestaff: The most important difference between this loan and C****** C****** Hotel (auction 36) is that the former is a second charge behind a 67% LTV first charge, and the latter is a first charge that started at less than 50% and is amortising (albeit very slowly). I take your point, but I am more comfortable with the valuation of this one. The main reason being management. All hotel valuations are rather circular and are liable to shrink if the business is poorly managed. Just my perception perhaps, but I did not like CC at all. Sounds like I am in a minority of one on this one, though.
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mikes1531
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Post by mikes1531 on Jul 26, 2014 1:15:46 GMT
Sounds like I am in a minority of one on this one, though. Not necessarily. There are enough others who like this loan that it's already 19% funded -- and the maximum investment per lender restriction is still in place. With 13 days left, this one might not even need underwriting!
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Post by jevans4949 on Jul 27, 2014 13:45:50 GMT
Most of the tripadvisor comments were about the need for a refurb, so the borrowers are responding to this need. If they have a viable business at 60% capacity, then they should be able to carry on - provided the builders don't create havoc elsewhere. On the whole, it seems to me like they know what they are doing.
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Post by Ton ⓉⓞⓃ on Mar 17, 2016 19:24:04 GMT
With this loan, Manchester Hotel Loan #116, I see that @2.17pm I received my principal monthly repayment but I've not been given the interest at all. Is it just me?
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kermie
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Post by kermie on Mar 17, 2016 19:33:47 GMT
With this loan, Manchester Hotel Loan #116, I see that @2.17pm I received my principal monthly repayment but I've not been given the interest at all. Is it just me? Snap, me too. But this matches the repayments page for the loan - it seems the borrower has paid the principal but not the interest (or perhaps AC have not distributed the interest - dunno). Unusual - this loan has been pretty smooth sailing so far.
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Post by pepperpot on Mar 17, 2016 19:33:53 GMT
With this loan, Manchester Hotel Loan #116, @2.17pm I received my principal but I've not been given the interest at all. Is it just me? I think everyone is in the same boat, there is an entry for capital repayment today but nothing for interest. Also I think the trading figures that were promised on the afternoon of the 9th Mar still haven't materialised. (latest Q&A entry) edit; crossed with kermie
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Post by Ton ⓉⓞⓃ on Mar 17, 2016 19:47:27 GMT
With this loan, Manchester Hotel Loan #116, I see that @2.17pm I received my principal monthly repayment but I've not been given the interest at all. Is it just me? Snap, me too. But this matches the repayments page for the loan - it seems the borrower has paid the principal but not the interest (or perhaps AC have not distributed the interest - dunno). Unusual - this loan has been pretty smooth sailing so far. Yes and I like it too, I'd have thought that the Borrower pays a standard amount each month without really knowing how much is Cap & how much is Int, so I'm thinking this is more an AC glitch as exactly the correct capital has been paid, but anything is possible...
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Post by chris on Mar 17, 2016 19:57:02 GMT
Probably an AC glitch or we would have notified lenders.
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