ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Dec 19, 2017 20:52:49 GMT
And two geezers or geezerettes each bunged in £200K!
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adrian77
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Post by adrian77 on Dec 19, 2017 21:08:21 GMT
wow ! To be fair to FS you can't expect 13% without any risk - I sure can't afford a £200K
punt on this one. There seems to be several potential issues with this development not least I don't expect the bought-out garden centre to sit back and do nothing! Also will the area support another large garden centre?
Well this is another interesting one to watch...
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sapphire
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Post by sapphire on Dec 19, 2017 21:49:18 GMT
And two geezers or geezerettes each bunged in £200K! Maybe they know something more? Hopefully they have done some appropriate due diligence to underpin this significant amount? So presumably a positive sign for the rest of us? Or am I being an irrational optimist?
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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 19, 2017 21:55:26 GMT
No, I don't think so sapphire, I too, rightly, wrongly, or stupidly, also take a degree of comfort when a whale/s whacks in such huge sums.
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morris
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Post by morris on Dec 19, 2017 22:04:27 GMT
I wish the BH's had moved earlier, I might have been tempted to increase my investment.
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sapphire
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Post by sapphire on Dec 19, 2017 22:07:14 GMT
I am wondering if past data has been analysed to support this hypothesis?
i.e. Has anyone analysed the loans which have had losses to date to ascertain what proportion had BHs / whales participating?
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adrian77
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Post by adrian77 on Dec 20, 2017 7:56:19 GMT
That would be very interesting- there were some biggish losses on the turbine and possibly the speedboat but I have never seen such large amounts take a mega hit (yet?) Even if this one defaults and 90% is recovered that is a £20K capital loss which may be small change to some of us although sadly not to me.
Warren Buffet took a mega hit on Tesco but he could afford it.....
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mikes1531
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Post by mikes1531 on Dec 21, 2017 4:50:01 GMT
Even if this one defaults and 90% is recovered that is a £20K capital loss which may be small change to some of us although sadly not to me. OTOH, if the loan goes according to plan, that £200k investment would be rewarded with £17k of interest.
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sapphire
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Post by sapphire on Dec 21, 2017 7:04:57 GMT
Even if this one defaults and 90% is recovered that is a £20K capital loss which may be small change to some of us although sadly not to me. OTOH, if the loan goes according to plan, that £200k investment would be rewarded with £17k of interest. Indeed. I think it boils down to one's assessment of the expected return, attitude to risk and capacity for loss. When the investment is assessed, if there is a 90% probability of a £17K return and a 10% probability of a £20K loss, mathematically this would mean a net expectation of £13.3K ((17*0.9) + (-20*0.1)) return on the £200K investment over 6 months. So with the appropriate attitude to risk and capacity for loss, a £200K investment may be worth making.
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Post by brightspark on Dec 21, 2017 10:18:09 GMT
wow ! To be fair to FS you can't expect 13% without any risk - I sure can't afford a £200K punt on this one. There seems to be several potential issues with this development not least I don't expect the bought-out garden centre to sit back and do nothing! Also will the area support another large garden centre? Well this is another interesting one to watch... Is not a retail park with a garden centre cloak being constructed?
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rogerthat
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Post by rogerthat on Dec 21, 2017 11:30:13 GMT
wow ! To be fair to FS you can't expect 13% without any risk - I sure can't afford a £200K punt on this one. There seems to be several potential issues with this development not least I don't expect the bought-out garden centre to sit back and do nothing! Also will the area support another large garden centre? Well this is another interesting one to watch... Is not a retail park with a garden centre cloak being constructed? The 'bought out' garden centre was owned, built and run by the very 'same' borrower for this new venture...something tells me they know what they're up to and with regards to it being somewhat like a retail park..I quite agree (I posted along those lines earlier in this thread) but the list of tenants already signed up suggests they wont be worrying too much about sentiment. Clearly, one or two high rollers agree.
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steve11523
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Post by steve11523 on Jul 18, 2018 14:50:04 GMT
Loan now up for renewal. Land to be sold for a local manufacturer.
"The sale is expected to comnplete within the term of this loan and sufficient to repay the debt."! Well, yes - that's the general idea of secured lending
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james21
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Post by james21 on Jul 18, 2018 15:38:11 GMT
Its a big loan and no planning for new use, the fellow may have a buyer lined up as stated but if that planning does not happen cant see the value standing up; will give it a miss
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SteveT
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Post by SteveT on Jul 18, 2018 15:44:12 GMT
The planning application appears to have strong support so far (follow the link provided). One of the (rare) better loans on FS, IMHO
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adrian77
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Post by adrian77 on Jul 18, 2018 15:52:29 GMT
I no longer deal with the planning authorties unless I really have to as they can be extremely slow and pedantic which may be a good thing in some cases. However I really can't see the planning being sown up within 6 months so , I think, that will be 2 x 6 month £910K loans at about 20% which is the best part of £200K. One for the big hitters in my book but for me too much of a gamble - I guess it all hinges on the final selling price and getting the planning permission. I wonder if the buyer knows he has the seller over a barrel - anwers on a digital postcard.
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