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Post by df on Feb 17, 2019 15:32:02 GMT
Facility Amount: £8,700,000
Interest Rate: 14%
LTV Day 1: 80.00%
Day 1 Value: £6,500,000
LTGDV: 54.30%
GDV: £16,000,000
Legal Charge: 1st* (ranking behind the institutional backer)
Investment Term: 12 months
Additional Security: HNWI Personal liability
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Post by dan1 on Feb 17, 2019 16:02:55 GMT
77% filled already! one investment for £6.7m  |
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baldpate
Member of DD Central
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Post by baldpate on Feb 17, 2019 17:56:19 GMT
I think the £6.7M just represents the institutional investor's stake (land loan £3.5M + dev loan £3.2M).
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Post by bracknellboy on Feb 17, 2019 18:09:31 GMT
77% filled already! one investment for £6.7m gotta stick my hand up - that was me.
[meanwhile back on planet earth....]
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adrian77
Member of DD Central
Posts: 3,920
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Post by adrian77 on Feb 17, 2019 19:37:09 GMT
you what ?
The £2m loan at say 20% would be £400K...and that is before the £5m loan which hopefully will be around 4%
This chap is clearly a high roller with companies and loans all over the place although I can see nothing to indicate £400m in net assets. I guess the institutional lender has hit his limit and FS is a second top-up loan as the recent market is going against him. Sadly I don't develop at this level but this still strikes me as ambitious - if we take £3k per m2 that is well over £1m and although should give a fantastic house but what happens if he goes over budget ...Even in this area £16m seems a tad high at it is 40K per m2 - you could buy most of Burnley for that!
This one may come good but I am not risking it - in a years time the market may well be flat or decreasing due to Brexit or it could be taking off...
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Post by mrclondon on Feb 17, 2019 21:00:13 GMT
The VR is dated 11th April 2018, and has presumably been re-addressed to FS. Section 11 states "Tenure - Unencumbered freehold with vacant possession on completion", and was presumably commissioned by the borrower prior to the purchase as evidence when negotiating the price to be paid.*
According to land registry records the price paid for both titles in May 2018 was marginally under the VR figure (and hence £250k+ lower than stated by FS in the listing, which may therefore include some costs.)
Marketing of these appeared to start off with an asking price in 8 figures ( ! ) ... but seems to have ended at c. £1m above the price paid, a 14% discount on asking price.
EDIT to add:
* = being charitable ! Otherwise the VR figure is conveniently the same as the price the borrower agreed to pay ....
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cwah
Member of DD Central
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Post by cwah on Feb 17, 2019 21:45:39 GMT
I was interested in this loan when it was under "opportunities"...
Now I read that out of a £8.7M loans, FS is ranking behind the £6.7M from institution?
It really reads like a 2nd charge out of 80% LTV???
It feels like a very risky loan with high chance of not getting any money back.
I'm out.
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Post by mrclondon on Feb 17, 2019 22:08:06 GMT
This chap is clearly a high roller with companies and loans all over the place although I can see nothing to indicate £400m in net assets. I'm guessing much of that is the paper wealth of shareholdings, which themselves may well be predominately in (tech) startup companies / unquoted equity. Now I read that out of a £8.7M loans, FS is ranking behind the £6.7M from institution? [...] It feels like a very risky loan with high chance of not getting any money back. Or put another way ... it doesn't feel like a loan that should really be on offer to retail investors (or at least not without some enhanced risk warning.)
And yet of the bids made in the first 6.5 hrs there is 1 x £5k, 1 x £3k and 3 x £1k (totalling £11k) with all the rest (totalling £14k) sub £1k bids.
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Post by df on Feb 17, 2019 22:11:51 GMT
I was interested in this loan when it was under "opportunities"... Now I read that out of a £8.7M loans, FS is ranking behind the £6.7M from institution? It really reads like a 2nd charge out of 80% LTV??? It feels like a very risky loan with high chance of not getting any money back. I'm out. Reads 2nd charge to me too. Also 12 months without monthly interest run is not a good model for risky loans like this.
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Post by mrclondon on Feb 17, 2019 22:51:24 GMT
fundingsecure - it would be helpful if you could clarify the repayment ranking for accrued interest. i.e. does the institution's accruing interest (& fees etc) rank ahead of, or behind the FS capital (of £1.7m-£2m)
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r1200gs
Member of DD Central
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Post by r1200gs on Feb 18, 2019 14:16:02 GMT
Looks like a nice safe bet to me, for the "first charge" holder and the HNW borrower who would be magically skint if it came down to it.For lenders, not so much. Yea, I truly am cynical these days.
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Post by hammertime on Feb 18, 2019 14:41:03 GMT
Hi everyone. I am thinking of maybe making a investment in F/S how are they doing. I was with F/C but got out in time . I am with A/C at the moment.
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arby
Member of DD Central
Posts: 910
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Post by arby on Feb 18, 2019 14:43:17 GMT
Hi everyone. I am thinking of maybe making a investment in F/S how are they doing. I was with F/C but got out in time . I am with A/C at the moment. They seem to be making a concerted effort recently to get tougher with overdue loans, but the fruits of those labours (if any) will likely take a while to materialise.
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Post by hammertime on Feb 18, 2019 15:32:15 GMT
Thanks for that what are the actual returns like. And default process.
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michaelc
Member of DD Central
Say No To T.D.S.
Posts: 5,722
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Post by michaelc on Feb 19, 2019 9:12:56 GMT
Hi everyone. I am thinking of maybe making a investment in F/S how are they doing. I was with F/C but got out in time . I am with A/C at the moment. Perhaps you should ask in a new thread?
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