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Post by GSV3MIaC on Nov 15, 2018 9:28:26 GMT
I find the relaunched version a lot more appealing and will throw a bit if cash in, if something else sells/repays shortly. Just sold off a few bits, as I needed some cash for a new central heating boiler. Bloody hell, four and a half grand fitted is a bit steep, almost felt like trying to raise cash on P2P to fund it ... Gosh, don't you get the phone calls offering you a free one, or did you opt for the pressurised water reactor version?
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invester
P2P Blogger
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Post by invester on Nov 15, 2018 11:04:37 GMT
Think the tranches give it a better chance of filling, but still have some concerns over the figures. Let us not forget that refinance is a problem if some of the assumptions do not come true.
Is £230k profit after tax for a 15-room aparthotel that realistic? Liverpool isn't the most expensive place in the country for hotels, arguably suffering from oversupply. A lot of solid 4-star chains in the city can be had for £60/night, and the budget brands even cheaper.
Even if we want to be generous and say that £600,000 turnover produces this figure that means that each apartment needs to make £40k a year, or £109 a night. Accept that these apartments may be better specced than a hotel room, but from what I have seen these attract relatively slim premiums.
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dermot
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Post by dermot on Nov 15, 2018 13:32:52 GMT
I find the relaunched version a lot more appealing and will throw a bit if cash in, if something else sells/repays shortly. Just sold off a few bits, as I needed some cash for a new central heating boiler. Bloody hell, four and a half grand fitted is a bit steep, almost felt like trying to raise cash on P2P to fund it ... Gosh, don't you get the phone calls offering you a free one, or did you opt for the pressurised water reactor version? Getting rid of the waste from a PWR is a pest, I held out for the Boron Neutron Capture aneutrinic fusion reactor from TAE, with direct magnetic flux extraction for hybrid production of electricity. Promised delivery still of the order of 30 years, for a single low low upfront payment. In the meantime, I'm thinking of a biomass boiler running on old maroon passports.
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cwah
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Post by cwah on Nov 15, 2018 13:50:38 GMT
Having been burned in the past when current value is actually residual value.... Does anyone know what current value means here? If tomorrow the property default and goes into open market sales: - would the property be marketed for 2,700k as written or likely much lower? - would a discount of 10-20% allow for a quick sale? Current value is as you read in the valuation report. It is based on the revenues of a successful pizza parlour and room lettings at c90%. (The bar is open so hopefully those revenues are realistic.) The value now for an incomplete development without those forecast revenues would be substantially different. You could try purchase price + capex + some goodwill for the bar but who knows what that might get in auction - not us and certainly not RICS. How can that be called current value when the business doesn't exist? If I were to buy the property now, i'd base it on what is happening currently and not in a potential future?? I'm confused..
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elliotn
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Post by elliotn on Nov 15, 2018 13:53:16 GMT
Current value is as you read in the valuation report. It is based on the revenues of a successful pizza parlour and room lettings at c90%. (The bar is open so hopefully those revenues are realistic.) The value now for an incomplete development without those forecast revenues would be substantially different. You could try purchase price + capex + some goodwill for the bar but who knows what that might get in auction - not us and certainly not RICS. How can that be called current value when the business doesn't exist? If I were to buy the property now, i'd base it on what is happening currently and not in a potential future?? I'm confused.. It’s a valid RICS methodology and one that I ignore. A more current value would be purchase price + cost of improvements + some recognition for the bar business, I do not know what that valuation is. If you don’t understand a business or a valuation one rule of thumb is don’t invest too much.
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cwah
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Post by cwah on Nov 15, 2018 21:20:37 GMT
I'm going to wait until my default recover before investing more. Got defaulted an enormous amount on a previous loan supposed to be 42% LTV "current" value.
Too bad there can't be more certainty on what "current value" mean.
I just want it to be what would be advertised on open market and with offers closer to valuation when in default....
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Post by GSV3MIaC on Nov 16, 2018 8:27:48 GMT
This is still only about half filled, so maybe it is going to fail again. I was in for a bit more this time, but it's going to need some bigger hitters than me to get it over the line. Or one of the promised repayments happening, maybe.
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cedarcourtcapital
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Listening is not the same as understanding
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Post by cedarcourtcapital on Nov 16, 2018 13:29:56 GMT
This is still only about half filled, so maybe it is going to fail again. I was in for a bit more this time, but it's going to need some bigger hitters than me to get it over the line. Or one of the promised repayments happening, maybe. I wonder if the wine merchants read your post! If this now does not get across the line now it never will, and I do not mean it is a certainty.
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Post by GSV3MIaC on Nov 16, 2018 14:12:34 GMT
Rats, that was not one of the ones I was waiting for. If (some of) the cars goes to, I will be left over invested in the very stuff I don't want at the moment ...
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cedarcourtcapital
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Listening is not the same as understanding
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Post by cedarcourtcapital on Nov 16, 2018 15:22:54 GMT
Rats, that was not one of the ones I was waiting for. If (some of) the cars goes to, I will be left over invested in the very stuff I don't want at the moment ... Would you care to understand your thinking, because I must be missing something? I can see how if some loans pay back, on your new platform total you might think you were overweight in one or a particular type of loan, but are you really? What I mean is how does one unassociated loan affect the risk liability of another. If you were happy with a particular loan before another's repayment, what changes? Maybe you mean all the good/reliable stuff is going, leaving a lot of possible smelly stuff! Is that in a nutshell the whole problem Moneything is facing.... Not enough good loans!
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Post by thingy on Nov 16, 2018 18:15:30 GMT
It will be interesting to see how much repaid money actually ends up in this loan.
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Post by Badly Drawn Stickman on Nov 16, 2018 19:01:27 GMT
It will be interesting to see how much repaid money actually ends up in this loan. I'm not sure the wine money will be that good a clue, I suspect a fair amount of the investors who had been hoarding that would not by nature head for this type of loan with that money. More likely to sit on it in the hope of a more traditional pawn type offering. There is a sound logic to like for like assets with different cash piles. Newcastle may be a nearer match, but that is a while away yet.
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Post by GSV3MIaC on Nov 16, 2018 19:21:05 GMT
Rats, that was not one of the ones I was waiting for. If (some of) the cars goes to, I will be left over invested in the very stuff I don't want at the moment ... Would you care to understand your thinking, because I must be missing something? I can see how if some loans pay back, on your new platform total you might think you were overweight in one or a particular type of loan, but are you really? What I mean is how does one unassociated loan affect the risk liability of another. If you were happy with a particular loan before another's repayment, what changes? Maybe you mean all the good/reliable stuff is going, leaving a lot of possible smelly stuff! Is that in a nutshell the whole problem Moneything is facing.... Not enough good loans! I meant not enoigh left which are not property, so I either sit on cash, or go over in property. Extracting money is not an easy option in an Isa account.
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cedarcourtcapital
Member of DD Central
Listening is not the same as understanding
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Post by cedarcourtcapital on Nov 16, 2018 19:33:04 GMT
An important point to consider.... Funds being repaid from Moneything's traditional type loans, if these are from ISA accounts, are unlikely to be able to be reinvested in the like, because there are just not enough of these coming in.
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mason
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Post by mason on Nov 16, 2018 20:26:22 GMT
I meant not enoigh left which are not property, so I either sit on cash, or go over in property. Extracting money is not an easy option in an Isa account. I suppose I should consider myself fortunate that my ISA didn't end up getting opened until this tax year. Although you too could flexibly withdraw, just as long as the money is available to be returned for a short time as the tax year rolls over.
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