arby
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Post by arby on Aug 24, 2018 10:49:41 GMT
So, we all know that the stat given on the FS front page of ~£266m lent and less than £1m lost doesn't give the full picture, but reading most of the posts on here seems to give the impression that a lot of you have lost money overall. Is that the case?
I've been with FS for a year and am in the 'transition stage', where I've made a good return on a lot of loans, but there are a few outstanding which could swing it either way depending on if they get repaid/recovered.
So, for the people who have been here longer, what is the return rate you're assuming?
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james21
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Post by james21 on Aug 24, 2018 16:39:14 GMT
Quite a few defaults but only one actually concluded. If I assume a 50% return of capital on the defaults that I have (some will be nil eg Wimbledon others 80% so on average I am assuming 50%). After almost 2 years its looking like 7% to 8% interest per annum. In the first 12 months with FS all seems to be well with the prospect of 13% in mind however as time goes on the defaults roll in. I did invest in some lemons with hindsight eg Wimbledon 3rd charge through inexperience and quite a few seconds that have come back to bite me. There again FS should have had better judgement in putting up so many bad loans exposing their investors to unnecessary risk. Now I am more selective and expect about 10% but still have a legacy of the defaults to work through which will probably take 12 months
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arby
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Post by arby on Aug 24, 2018 16:56:59 GMT
Quite a few defaults but only one actually concluded. If I assume a 50% return of capital on the defaults that I have (some will be nil eg Wimbledon others 80% so on average I am assuming 50%). After almost 2 years its looking like 7% to 8% interest per annum. In the first 12 months with FS all seems to be well with the prospect of 13% in mind however as time goes on the defaults roll in. I did invest in some lemons with hindsight eg Wimbledon 3rd charge through inexperience and quite a few seconds that have come back to bite me. There again FS should have had better judgement in putting up so many bad loans exposing their investors to unnecessary risk. Now I am more selective and expect about 10% but still have a legacy of the defaults to work through which will probably take 12 months Thanks for the detailed response, exactly the type of detail I was hoping for! I got a bit excited in my first few weeks and started putting a little too much in properties that looked good, even when I'd set out with the mantra of placing smaller amounts in lots of properties (but still being selective). Most of them have turned out ok for me, but a lot of that is through luck. Then a few months later I got caught out when I started to realise that I had separate investments in Tranche 2, 4, 6, 7, 9 etc of the same property. Totally my mistake and I've learned from it. I managed to sell most of them to bring my exposure down to a level I'm happy with, however I still wish that FS would have a 'linked investment' tab where you can quickly view how much you've invested in other tranches or layers of that particular investment. Like you though, the actual return will be a bit of a surprise depending on the default situation, but would be good to hear from others too to get a wider sample of how we're all doing 
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