m2btj
Member of DD Central
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Post by m2btj on Jul 19, 2018 12:15:16 GMT
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upland
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Post by upland on Jul 19, 2018 12:33:58 GMT
I heard it on the BBC this morning. On their website I noticed the returns were small/average and there were other costs/charges in order to participate. Shelved it for a while. Perhaps I am being unkind.
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macq
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Post by macq on Jul 19, 2018 12:51:40 GMT
its worth checking the fee's section as there are more then one in some cases
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Jul 19, 2018 13:13:40 GMT
Taken their time to launch as had authorisation for a while
Restricted investor types only as its shares as well as loans
Fund by bank transfer or debit card
IFISA is flexible, no additional fees, loans only
SM charge .5% loan/1% shares. Loans priority over shares for repayment. Success fee on shares of 20% tenanted/30% development on profit, also charged on SM exit. (complicated calc) Also fees on renewal.
Not a straightforward platform.
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macq
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Post by macq on Jul 19, 2018 13:57:14 GMT
with a 20% success fee(after your first 10% on resale) guess there will be a 20% cashback on shortfall
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Post by Iain - Orca on Jul 19, 2018 19:37:39 GMT
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m2btj
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Post by m2btj on Jul 20, 2018 9:33:37 GMT
An informative article from Orca.
I would be concerned with a cooling property market & the longer term value of property backed assets. A typical property cycle can be ten years plus & I believe prices will fall back over the next few years. The current economic outlook is mired in uncertainty & wage growth remains fairly static. LTV is still a huge problem for the P2P industry with property backed assets hugely overvalued. A RICS valuation is baseless & means nothing in a distressed scenario....as many platforms & investors have discovered to their cost!
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Post by Iain - Orca on Jul 20, 2018 14:55:50 GMT
An informative article from Orca. I would be concerned with a cooling property market & the longer term value of property backed assets. A typical property cycle can be ten years plus & I believe prices will fall back over the next few years. The current economic outlook is mired in uncertainty & wage growth remains fairly static. LTV is still a huge problem for the P2P industry with property backed assets hugely overvalued. A RICS valuation is baseless & means nothing in a distressed scenario....as many platforms & investors have discovered to their cost! Thanks. If British Pearl are managing the property/ investment on the behalf of equity investors and they are receiving a stable rental income they could delay a sale for a better price. The refinancing or sale is potentially not as time sensitive as development or bridging loans. That assumes that the rental income covers the loan repayments, without any issues. Only time will tell how it will work in practice as there seems to be a-lot of different, yet connected parties involved in each deal.
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 11,318
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Post by ilmoro on Jul 20, 2018 21:07:34 GMT
Property Moose have been doing it for a while (BP claim to be the first seems erroneous) albeit at higher rates. Hasn't really worked AIUI & I think at least one loan got converted into equity unfavourably and the rest are beyond term.
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Post by buttchopf23 on Jul 22, 2018 18:50:41 GMT
The marketing guy from homegrown joined bp, talked to him on the phone
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Post by df on Jul 22, 2018 19:57:05 GMT
Interest rate of up to 4.4% (I assume the average return will be lower) and 0.5% SM fees don't sound very attractive. If I had spare cash doing nothing I would spread it across 30Day, GS, LW and may be Rolling (RS rates seem to be on a rise again) and get better return for less risk.
"With Loan-To-Value ratios of between 50% and 70%, investors can expect a safe source of income." - well, recent experiences on other platforms suggest that LTV figures are not to be trusted.
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Post by britishpearl on Jul 25, 2018 8:52:20 GMT
Dear P2P forum, Thank you very much for all your comments and questions. British Pearl is different to many other platforms. We are not a P2P intermediary, we are an asset manager. With us, the borrower is an SPV that we incorporate that holds an individual property that we manage as a regulated Alternative Investment Manager. We source, secure and manage the property on behalf of our investors. The lender is only exposed to the credit/counterparty risk of that vehicle, which is managed by British Pearl, an FCA regulated company operated by property and investment professionals with a successful track record. There is no third party, such as a developer on the receiving side of the loan and the loan-providing investor holds a first charge over the property. This means that, unlike intermediary platforms where there may be less transparency as to the counterparty to the transaction for the investor, with British Pearl we provide complete visibility. Since we are managing the asset ourselves and have control, we are able to set the LTV and offer both Share and Loan investments in or against the same asset. We believe that this is a really important distinction to make about our business model. If there are any further questions or comments we would love to answer them, you can either post here or email us directly at: info@britishpearl.com. |
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Post by britishpearl on Jul 25, 2018 10:14:18 GMT
I heard it on the BBC this morning. On their website I noticed the returns were small/average and there were other costs/charges in order to participate. Shelved it for a while. Perhaps I am being unkind. We just wanted to clarify that the estimated returns we quote are net of all fees. For the currently listed Share Investments this is up to 13.4% p.a. On Loan Investments we aim for returns which are competitive with 5-year mortgage rates at similarly low LTV’s. The Loans are secured against a tenanted property with a first charge and as a result we are more conservative than traditional P2P loan business models, therefore our interest rates reflect the lower risks.
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Post by britishpearl on Jul 25, 2018 11:01:45 GMT
Taken their time to launch as had authorisation for a while
Restricted investor types only as its shares as well as loans
Fund by bank transfer or debit card
IFISA is flexible, no additional fees, loans only
SM charge .5% loan/1% shares. Loans priority over shares for repayment. Success fee on shares of 20% tenanted/30% development on profit, also charged on SM exit. (complicated calc) Also fees on renewal.
Not a straightforward platform.
Thank you so much for taking the time to look into our platform. You are right in saying that it has been quite a journey from our FCA authorisation date. It was important to us that we spent time building sound foundations to our business; as i am sure you know we are directly FCA authorised with broad permissions including client money management, we have also developed our own software (including a trading exchange) and implemented compliant operations, we did all of this to ensure a good and straight forward user experience. We are open to and will be listening to customer feedback to help improve our service further.
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Post by britishpearl on Jul 25, 2018 11:02:24 GMT
Property Moose have been doing it for a while (BP claim to be the first seems erroneous) albeit at higher rates. Hasn't really worked AIUI & I think at least one loan got converted into equity unfavourably and the rest are beyond term. We are the first platform to our knowledge that allows investment into either the Shares and/or Loan of the same property. We are able to do this because we are the asset manager of each investment. Please do let us know if you are aware of anyone else that does this.
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