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Post by elljay on Jan 20, 2015 7:24:24 GMT
I wasn't responding as 4thWay but just with my own view... No problem with you having a second, personal account if you want to post your personal views.
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Post by 4thway on Jan 21, 2015 16:17:28 GMT
This is just a question of semantics, shimself. The position between Saving Stream, Lendy, borrowers and lenders has been laid out in Saving Stream's forum a few times, and I don't think we need to repeat it all again. But whether we call that "P2P" is just our own preference of the English language. I personally don't think it's worth discussing language here. (Language is interesting, but it's not one of my reasons for being on this board.) Just like it's not important if steerpike call shares "potatoes". It's the assessment of the risks that matter. Otherwise, we will be discussing why a large number of us call Funding Circle peer-to-peer rather than peer-to-business too! As it happens, I am fond of a well turned Maris Piper, but I don't recall mentioning spuds here, or actually, anywhere recently. One thing I am sure of is that apples are not pears. Haha! Yes. I think that if you were to tell me two of your "apples" (aka two services that you would call "P2P lending") we would still, on breaking it down, end up saying that one was actually a banana. Or a banana skin. The point I'm making is that each individual investing opportunity is unique and needs separate evaluation (it's legal structure, borrower quality, security etc.) regardless of its category or the titles we give it. If one of your investing criteria is that your investments must meet your own specific definition of P2P lending, though, then I'm sure it certainly helps to have defined it the way you like it in advance! If we investors don't set out all our strategy in advance, and stick to it with a checklist type mentality, it's easy to trick ourselves into doing something more risky than we otherwise would like, just because it gets us excited perhaps.
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Post by wickedxuk on Oct 3, 2016 10:44:16 GMT
I would like to bump this topic (and get it back on track)... can someone give an up to date review of Lendinvest? The FAQ is pretty poor so far I'm not impressed.
Is interest paid monthly? Is it amortising or interest first then capital (as SS, MT, COL) or at maturity (FS)?
Can someone who has been investing for a decent amount of time give an indication of defaults experiences and overall yields?
Thanks in advance 😀🖒
Edit: having explored further the FAQ is actually ok and covers most subjects. I didn't realise it was split into different sections as the link at the end of each swt of FAQs didnt show on my phone. I thought it was limited to the first page at the time of the original post!
So for anyone who reads this in the future at least you can make a more informed decision.
So far I can only see two loans @ 7% and 6.5%. Low LTV's.
No Secondary Market though so locked in for the term of the loan. Which some people may see as a naturally higher risk. I'm OK with this personally as I only invest in loans I am willing to hold to maturity on any platform anyway.
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Steerpike
Member of DD Central
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Post by Steerpike on Oct 3, 2016 10:56:36 GMT
I would like to bump this topic (and get it back on track)... can someone give an up to date review of Lendinvest? The FAQ is pretty poor so far I'm not impressed. Is interest paid monthly? Is it amortising or interest first then capital (as SS, MT, COL) or at maturity (FS)? Can someone who has been investing for a decent amount of time give an indication of defaults experiences and overall yields? Thanks in advance 😀🖒 Interest is paid monthly. Loans are IO. No defaults in 2 years. XIRR 7.15%.
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Post by wickedxuk on Oct 3, 2016 11:02:21 GMT
Thanks Steerpike that's a good start! Is the forum less active because of the confidence in the DD and the loans themselves? Or a lack of investors active on this forum? |
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Steerpike
Member of DD Central
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Post by Steerpike on Oct 3, 2016 11:09:07 GMT
Thanks Steerpike that's a good start! Is the forum less active because of the confidence in the DD and the loans themselves? Or a lack of investors active on this forum? LI give a brief description of the loan and security but there is usually insufficient information to do proper DD and so there is not much to discuss other than, "I think I'll go for tranche A on this one", or "I don't like commercial much so I'll give this one a miss", or "crikey they have extended this 6 month loan for another 3 months and I don't even get a say", or "Is this proper P2P or are we just granted the right to receive payments from a LI company"?
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littleoldlady
Member of DD Central
Running down all platforms due to age
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Post by littleoldlady on Oct 3, 2016 11:35:54 GMT
Compared with the likes of SS, RS and MT, LI is boring. But boring can be good. I recommend it for platform diversification as it requires very little attention compared with the other 3, and (I hope) it is much lower risk. I expect/hope net returns to be comparable, with much less volatility.
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Post by wickedxuk on Oct 3, 2016 14:06:04 GMT
Compared with the likes of SS, RS and MT, LI is boring. But boring can be good. I recommend it for platform diversification as it requires very little attention compared with the other 3, and (I hope) it is much lower risk. I expect/hope net returns to be comparable, with much less volatility. Thanks littleoldlady I don't mind boring if it works and returns are there. I want some more passive platforms (like BM) that I don't have to monitor quite as much so thanks for your post. The LTV of the loans available definitely seem much lower then everywhere else. But I haven't done enough digging to get a feel for how accurate they are. However I think I will be confirmed dipping small toes for now. Thanks
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Post by cautious on Oct 3, 2016 14:17:19 GMT
Just started lending with Li.
I picked it as it is (I believe) a profitable platform and also has secured lending.
My average return is 6.5%, (two months in) paid monthly direct into my bank account on the first....capital is re-paid on maturity.
I avoid the commercial loans, and look at LTV, security and exit/repayment plan before investing.
Very much pick and forget....although when I looked this morning there were no new loans.......maybe a sign of the times ?
Regards
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Post by wickedxuk on Oct 3, 2016 14:22:45 GMT
I like that auto payment to bank option cautious! A nice feature! As more loans come I will begin dipping get my toe in here and there. Thanks all. Any plans for a secondary market? Out of curiosity more then anything. |
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ben
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Post by ben on Oct 3, 2016 14:38:37 GMT
LI generally list loans in batches so have none for a few days then about 7 or 8 all at once. LI is currently my biggest p2p site, the information you get is usualy sufficent to do work out which loans to invest in. I personally do not mind the commercial ones but having a quick look my biggest investments have been on in a few of the ones that need a bit of work doing.
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archie
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Post by archie on Oct 3, 2016 14:39:43 GMT
Second market is planned (was a survey a while ago) and a new website too. Platform is profitable and they are looking to float at some point. Loans tend to go live towards the end of the week, you can get an email when they do. My current return is 7.91% but rates have been lower recently as they have concentrated on more property outside London. I've been investing here for 2.5 years and it's still my largest platform although MT is catching up quickly.  |
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Steerpike
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Post by Steerpike on Oct 3, 2016 15:09:57 GMT
Although LI pay 6-8% they charge the borrower 10-14% and most of the recent ones have I think been towards the upper end of that, and LTV can be 70% on resi.
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bababill
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Post by bababill on Oct 4, 2016 1:54:31 GMT
Steerpike said virtually everything there is to say.
Forget the dream of a secondary market... i have been investing from when the initial investment was 10k and nothing has changed.
I have several issues with LI however it is still my to go platform when I have excess cash to invest, willing to commit to a year and can't find any better options.
Another member Samford71 would probably disagree... He has written some good pieces on how its better to invest directly into their funds... (think Montello etc..) Can earn a few percentage points extra....
Search his name.. worth valuable information.
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quidco
Member of DD Central
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Post by quidco on Oct 24, 2016 15:02:53 GMT
I would like to bump this topic (and get it back on track)... can someone give an up to date review of Lendinvest? The FAQ is pretty poor so far I'm not impressed. I've been investing in LendInvest for 2.5 years. Never had any defaults (I think they've still not had any). Compared to, for example, Funding Circle where you end up with a legion of zombie loans that may or may not drip drab a bit of your money back over the coming decades, that seems pretty good. The rates are lower and seem to be getting lower still. Unlike some of the other platforms as far as I'm aware, e.g. Saving Stream, the tranches do have a significance as Tranche A receives preference over recovery in case of default which is why tranche B has a higher rate. My average rate is 7.5% but I've increasingly gone for Tranche B over Tranche A. I've expressed a few criticisms of the website to them none of which seem to have been incorporated into the new version other than you can now see how much you have already invested in available loans. I try to diversify as a form of risk management but it is not clearly shown how many loans are to the same developer / property manager. If a borrower gets into difficulties then it will probably affect all their properties so suddenly you have several distressed loans that you didn't know were connected. Having the interest paid monthly into your bank account is a good feature. Especially attractive to retirees I imagine. I think it's been mentioned that strictly speaking LendInvest is a secondary market as these are loans that Montello have already made and feed through to their hungry but tame retail clients. They don't seem to have made any move towards letting lenders sell to each other. Apparently they've moved their web development in house. I wonder if this is a classic business mistake - their core competency is presumably loan origination and debt management not software development. the new version has less functionality in areas than the previous version which is also a classic mistake likely to put off your users, e.g. you can't generate a tax statement anymore.
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