r00lish67
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Post by r00lish67 on Dec 4, 2019 10:52:10 GMT
As reported in FS owners in FS DD company now insolvent - looks like yet another large capital loss to me... What makes you say LARGE capital loss? I would have thought that this was one of the "better" loans. I can field that one. Adrian rates all FS loan recoveries as somewhere between disastrous and catastrophic. 
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adrian77
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Post by adrian77 on Dec 4, 2019 11:41:54 GMT
good question
1) if the valuation is as accurate as the others then no way will it realise the loan
2) 4 flats empty
3) transient workforce viz high churn
4) how do we know the tenants are up to date with payment - if there are on-going legal disputes ref repossession etc then Goodnight Vienna
5) would I buy this one as a developer - would I hell!
6) looks a rough area
7) as stated in VR refurbishment work needed - has the council served an improvement notice?
8) if we take about £20K per unit that gives us about £200K which I reckon this one will realise after costs
That said a 30% capital loss is nowhere as bad as some of these other property loans are going to be! As I said I think the Welsh church will come good provided it is soon put to market.
That is what I think but as ever, happy to be proven wrong... wasn't very far out with flagging the Tower Block as a snaggette was I?
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Post by spareapennyor2 on Apr 27, 2020 8:23:52 GMT
repaid with 9.8% interest pa
not a flag waver expect to lose a chuck when it`s all done
both loans yes
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Post by overthehill on Apr 27, 2020 8:33:07 GMT
The flag wavers have just put another one up. Not quite the United Nations building yet though.
Not in this one but that's my outstanding unique loan count down to 217. Not sure how many loans are being completed without a mention on here.
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adrian77
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Post by adrian77 on Apr 27, 2020 10:10:53 GMT
I presume this is both loans ?
What a great result ! Defaulted and still 100% capital recovery plus a good interest return - well I really was not expecting that so called that one completely wrong.
We could do with a few more results like this - at the moment my zombie loan book has had a confirmed 100% loss and zero repayments.
Stay healthy all
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Post by charlata on Apr 27, 2020 19:48:35 GMT
Sadly it would appear that mathematical rigor is not the order of the day here. I had £2000 in the loan and got £1496 back, which is as I'm sure you'll agree, is not capital plus 9.8% interest.
They made and interim payment a couple of weeks back, meaning the loan total was reduced by ~35%. They've then used this reduced total as the denominator, but the combined interim and final repayments as the numerator. Duh!
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arby
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Post by arby on Apr 27, 2020 21:25:11 GMT
Sadly it would appear that mathematical rigor is not the order of the day here. I had £2000 in the loan and got £1496 back, which is as I'm sure you'll agree, is not capital plus 9.8% interest.
They made and interim payment a couple of weeks back, meaning the loan total was reduced by ~35%. They've then used this reduced total as the denominator, but the combined interim and final repayments as the numerator. Duh!
That is totally bonkers.
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Post by baseline on Apr 28, 2020 2:53:16 GMT
For what it's worth, I had the odd sum of £194.16 invested in this loan, and received this back in full plus £29.18 interest. 15.03% return - at that rate I wish I'd invested a lot more . |
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arby
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Post by arby on Apr 28, 2020 7:47:28 GMT
For what it's worth, I had the odd sum of £194.16 invested in this loan, and received this back in full plus £29.18 interest. 15.03% return - at that rate I wish I'd invested a lot more . From the above I'm guessing you originally had £300 invested with partial earlier payback. Is that right?
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Post by baseline on Apr 28, 2020 8:02:02 GMT
Exactly right arby, thanks for pointing that out! Which brings the interest rate down to the 9.8% figure stated upthread.
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