adrian77
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Post by adrian77 on Jul 17, 2018 7:41:26 GMT
Me too - I think it is totally unsubstainable. All FS seem to care about is turnover. The Pawn model is well-proven - junk bond trading in property schemes is not! As I have said before the overall margins in property development just don't justify borrowing money at 20% on a 6 month pawn loan.
Looks to me as if FS don't give a monkey's about safeguarding OUR money and it loans go pop then so what (in the short term) as they still have their fee and we lenders take the hit.
FC pulled out of property and I suspect the reason was some accountant rightly pointed out it was a dead duck. Mega development funding is a highly specialised field for companies with very large pockets and I think FS are just blinded by the golden smackers and completely and utterly out of their depth. Personally if they don't immediately change their business model I can't see them being in business in 2 years time.
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Post by brightspark on Jul 17, 2018 8:13:00 GMT
Answer - the wind turbine enthusiast
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jcb208
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Post by jcb208 on Jul 17, 2018 9:38:03 GMT
I'm out except for 20% of my loans are unredeemed or late,just hoping one day some of these will be paid back.FS is by far my worst performing P2P
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adrian77
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Post by adrian77 on Jul 17, 2018 11:13:56 GMT
can I just ask - which loan is this as it sounds a candidate for my FA league - thanks
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r00lish67
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Post by r00lish67 on Jul 17, 2018 11:26:53 GMT
can I just ask - which loan is this as it sounds a candidate for my FA league - thanks Dar****ds Green 1061605921
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james21
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Post by james21 on Jul 17, 2018 12:16:20 GMT
can I just ask - which loan is this as it sounds a candidate for my FA league - thanks Dar****ds Green 1061605921 Not seeing this a problem as of now but would point out that development loans fall behind the first one for £235k which I am in so being in that one is rock solid which is not a term I think of in the context of FS, and you can still buy some at a premium on the secondary
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spyrogyra
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Post by spyrogyra on Jul 17, 2018 14:23:00 GMT
Oh yeah? So you won't mind if it gets stuck like the high tower? And if it stays that way for ages? How many half-filled loans would make FS happy? And when are they going to realise how big the huge black hole called late unredeemed and defaulted is?
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james21
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Post by james21 on Jul 17, 2018 14:44:01 GMT
Oh yeah? So you won't mind if it gets stuck like the high tower? And if it stays that way for ages? How many half-filled loans would make FS happy? And when are they going to realise how big the huge black hole called late unredeemed and defaulted is? If it defaults I am in the senior loan which means I get my capital and interest back, the other investors in the development loan can share the rest. As I am invested for the longer term I dont mind if it overruns, the other questions I dont have a comment on
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trium
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Post by trium on Jul 17, 2018 14:50:58 GMT
If it defaults I am in the senior loan which means I get my capital and interest back, the other investors in the development loan can share the rest. As I am invested for the longer term I dont mind if it overruns So you don't see overunning as a warning that the borrower is unreliable, uncommitted and untrustworthy?
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james21
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Post by james21 on Jul 17, 2018 14:57:30 GMT
If it defaults I am in the senior loan which means I get my capital and interest back, the other investors in the development loan can share the rest. As I am invested for the longer term I dont mind if it overruns So you don't see overunning as a warning that the borrower is unreliable, uncommitted and untrustworthy? Not without more information that these things are the case; development loans often overun for many genuine reasons especially big projects
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spyrogyra
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Post by spyrogyra on Jul 17, 2018 16:06:05 GMT
And you rule out any chance of capital lose just because there are lower ranking tranches. See what happened to Sunbeam, a project that most investors thought to be very good, now will bring 16-18% capital loses. There are so many possible failure factors. But if the fact some other investors will lose 100% of their capital makes you more confident, then you are ok.
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james21
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Post by james21 on Jul 17, 2018 16:34:48 GMT
And you rule out any chance of capital lose just because there are lower ranking tranches. See what happened to Sunbeam, a project that most investors thought to be very good, now will bring 16-18% capital loses. There are so many possible failure factors. But if the fact some other investors will lose 100% of their capital makes you more confident, then you are ok. I am in the Sunbeam and think a potential 84% return of capital is a good outcome for a defaulted loan. As far as I am aware all tranches rank equal whereas in this one the original as I have mentioned is senior, therefore secure if it goes badly; you have to decide whats best for you in any loan. Me, I am in plenty of defaulted loans from FS, Col, L, MT, and another 4 or 5 platforms, so dont mean to come across cocky if thats what you think. I dont want anyone to lose anything in ptop
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spyrogyra
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Post by spyrogyra on Jul 17, 2018 17:43:53 GMT
James, I wish I can be such an optimist. No hard feelings.
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michaelc
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Say No To T.D.S.
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Post by michaelc on Jul 19, 2018 17:37:22 GMT
Now 20.
I do hope I don't need to post on this thread again !
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Post by beepbeepimajeep on Jul 19, 2018 17:49:01 GMT
To me, they are getting what they deserve and I hope it forces them to take action on some of the ancient loans.
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