ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Dec 14, 2017 16:38:10 GMT
Hmmm, a VERY rough & ready bit of DD reveals that FS have possibly lent more than this bloody thing is worth. Situation normal then.
Date/Time: Thursday 14th December 2017 at 5pm
Interest: 10%
Loan amount: £75,000 LTV: 37.5%
Bonuses: No Cashback: No
Restrictions: £500
Overview:
This is a standard six-month loan secured against an extremely rare wax sculpture by M****** R**** titled "Xxxxxxxx Xxxxxxx"
The sculpture is being sold in a luxury art gallery in London and the loan is an advance on the sale.
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adrian77
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Post by adrian77 on Dec 14, 2017 17:04:29 GMT
well the owner must have a bit of a temporary cashflow problem if he can't wait for the sale - assuming of course it sells for over 75K plus 20% ish fees= £90K
looking at this chap's work it seems to fluctuate a lot in price so 50-50% as to whether it will achieve this? What happens if it does not sell - anybody feeling lucky!
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investibod
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Post by investibod on Dec 14, 2017 17:05:53 GMT
Listing says wax sculpture. When I google, I find a bronze by that name sold for ~75,000 Euros including a 22% surcharge. So around 59,000 Euros to the seller. About £52,000.
If this is the same piece, I make the LTV to be about 150%.
I normally like the art type loans, but this one will be skipped.
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copacetic
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Post by copacetic on Dec 14, 2017 19:03:08 GMT
The second circa 40% LTV loan by FS today that people have doubts over the probability of recovering capital if defaulted. Interesting!
This coupled with a very short time between the initial email and bidding start has got me slightly worried that FS are encouraging bidding without any DD based on the headline LTV. The Berkshire land near the railway last week had the same M.O. and at least some people have immediately listed their initial bids on the SM at a loss. My spidey sense is tingling.
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Dec 14, 2017 19:25:24 GMT
You're a fast learner copacetic  |
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sapphire
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Post by sapphire on Dec 22, 2017 5:10:38 GMT
fundingsecure The listing mentions that the lower end of the valuation range provided by a "well respected art gallery" has been used. If in the event of a default and sale it turns out that even this lower end is erroneous and the investors lose their capital and/or interest, can the gallery be held responsible for indemnifying them via their indemnity insurance or otherwise? (There is no valuation report provided to ascertain the terms of the valuation.)
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michaelc
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Say No To T.D.S.
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Post by michaelc on Jul 3, 2018 14:28:09 GMT
Borrower apparently doesn't have the money to repay the loan. I wonder if that was always his plan. I'll guess we'll see soon when we find out how much it is really worth.
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snowmobile
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Post by snowmobile on Jul 3, 2018 15:09:22 GMT
Borrower apparently doesn't have the money to repay the loan. I wonder if that was always his plan. I'll guess we'll see soon when we find out how much it is really worth. Very possibly. It seems either a naive or particularly brazen borrower to admit that so quickly though. It is usual to string FS along for a few months or years first  Then again if this is yet another of the connected loans perhaps FS already know that the borrower doesn't have any money....
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mjc
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Post by mjc on Jul 4, 2018 12:43:10 GMT
Borrower apparently doesn't have the money to repay the loan. I wonder if that was always his plan. I'll guess we'll see soon when we find out how much it is really worth. Very possibly. It seems either a naive or particularly brazen borrower to admit that so quickly though. It is usual to string FS along for a few months or years first Then again if this is yet another of the connected loans perhaps FS already know that the borrower doesn't have any money....And if we ask FS if this M... R.... borrower has other loans with them, they helpfully say “Unfortunately we are unable to disclose any information regarding our borrowers, unless the borrower has given permission in certain circumstances due to data protection.” This is not a request to identify, but a perfectly valid question to limit exposure to borrowers with no money to repay their commitments. Another issue the FCA should be looking at, if they authorise ISAs. So is this merely FS policy or an intent to withhold vital information on risk they, FS, are aware of, or an ICO edict?
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mjc
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Post by mjc on Jul 13, 2018 15:08:37 GMT
Sez I:-
‘How does this work, then? On another (Barnoldswick) loan you confirm “Please note - this loan is not connected to any other borrower or security on our platform.”
This seems a non sequitur with your reply?’
Reply from FS
“We are able to confirm borrower details if we have the consent of the borrower. In all other instances we will not disclose any borrower information in order to maintain borrower confidentiality.”
Therefore before any further significant investment I will simply ask for confirmation the borrower has no other extant loans on this platform.
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baz657
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Post by baz657 on Jul 13, 2018 17:03:37 GMT
<snip>Therefore before any further significant investment... <snip>  A lot of us can't wait to get any cash that may be left out of FS and I'm pretty sure that the way things stand now a lot of us wouldn't even consider a paltry investment.
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mjc
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Post by mjc on Jul 13, 2018 20:19:17 GMT
I’d like to report there was light at the end of the tunnel. But unfortunately it’s an oncoming express.
Would the last one out please turn off the lights.
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badersleg
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Post by badersleg on Aug 31, 2018 16:25:07 GMT
It's off to auction on Sept 12th. Estimate is £50k-£80K, which is quite a reduction on the gallery valuation of £250,000.
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arby
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Post by arby on Aug 31, 2018 16:35:28 GMT
It's off to auction on Sept 12th. Estimate is £50k-£80K, which is quite a reduction on the gallery valuation of £250,000. That would be truly shocking if the few minutes of research carried out at the beginning of the thread hadn't come up with almost that exact price range. Sad state of affairs when a quick internet research proves many times more accurate than a professional valuation.
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sapphire
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Post by sapphire on Aug 31, 2018 18:05:57 GMT
So fundingsecure , will the "well respected art gallery" who provided the valuation of between £200-250K indemnify if any losses are suffered by FS lenders? When you relied on their valuation, did you check that they had sufficient professional indemnity insurance? |
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