nummo
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Post by nummo on Jul 24, 2019 14:48:10 GMT
Any opinions on tomorrows new loan. I didn't take part in the original loan but presumably the exit plan was to refinance at a more competitive rate?
This has obviously not happened although the borrower seems to have executed his stated business plan and rent levels look good with excellent cover.
There is also exposure from the same borrower to several other loans - any thoughts?
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liso
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Post by liso on Jul 24, 2019 16:01:51 GMT
The loan is being refinanced at a slightly lower interest rate.
The borrower has a good track record with PL, but diversification is important. I will not be investing in this loan, but maybe on the one coming up later, when hopefully the delayed refinance of the S****h*** loan has completed.
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eeyore
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Post by eeyore on Jul 24, 2019 16:58:53 GMT
Any opinions on tomorrow's new loan. I'd suggest you look at the valuations for the security, in particular at the "Vacant possession" value which is less than the loan. If the borrower's business suffered catastrophic failure (agressive competitor undercutting rents, regulatory changes, buildings gutted by fire, etc) then sale of the security without a flow of tenant income might be forced. Even Tranche-A lenders would be at risk....
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nummo
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Post by nummo on Jul 24, 2019 17:24:32 GMT
Any opinions on tomorrow's new loan. I'd suggest you look at the valuations for the security, in particular at the "Vacant possession" value which is less than the loan. If the borrower's business suffered catastrophic failure (agressive competitor undercutting rents, regulatory changes, buildings gutted by fire, etc) then sale of the security without a flow of tenant income might be forced. Even Tranche-A lenders would be at risk.... Yes I noticed that and may explain why "more competitive" lenders are not taking this on.
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Post by proplend on Jul 25, 2019 10:13:25 GMT
I'd suggest you look at the valuations for the security, in particular at the "Vacant possession" value which is less than the loan. If the borrower's business suffered catastrophic failure (agressive competitor undercutting rents, regulatory changes, buildings gutted by fire, etc) then sale of the security without a flow of tenant income might be forced. Even Tranche-A lenders would be at risk.... Yes I noticed that and may explain why "more competitive" lenders are not taking this on. You are correct regarding the Vacant Possession value, which is why we have specifically highlighted it in the Full Loan Request. The valuation originally had the VP value at nearly double this amount, which may not have been questioned by Lenders. But we didn’t feel comfortable at that level and spent a lot of time engaged with the valuer discussing values - as we do with many of the valuers we use. We don't ever just take these figures at face value. If we don’t feel comfortable, understand how a valuation has been calculated or see like-for-like comparisons, we will discuss this directly with the valuer. The reason we got comfortable with this loan is a combination of the borrower's experience and the value of the property with standard AST’s being less than 75% LTV. This would be the borrower's backstop position. Hope this helps. Richard
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nummo
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Post by nummo on Jul 25, 2019 11:21:13 GMT
proplend Thanks Richard. Very helpful to hear your reasoning.
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nummo
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Post by nummo on Jul 26, 2019 7:38:37 GMT
Did anyone have a nibble on this one? I have resisted so far...
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Post by uksoul on Jul 26, 2019 10:54:31 GMT
Did anyone have a nibble on this one? I have resisted so far... The top tranche has been filled so over the weekend A tranche will be done. I invested in the original loan and will probably stay off this one and Join the London one. Could take a nibble though at the last minute.
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nummo
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Post by nummo on Jul 26, 2019 11:54:53 GMT
Did anyone have a nibble on this one? I have resisted so far... The top tranche has been filled so over the weekend A tranche will be done. I invested in the original loan and will probably stay off this one and Join the London one. Could take a nibble though at the last minute. Yes I'm probably going to hold off this for the London one also, would like to see some of this developers redemptions made first.
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rs
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Post by rs on Jul 26, 2019 11:58:07 GMT
The top tranche has been filled so over the weekend A tranche will be done. I invested in the original loan and will probably stay off this one and Join the London one. Could take a nibble though at the last minute. Yes I'm probably going to hold off this for the London one also, would like to see some of this developers redemptions made first. I had a nibble of tranche A.
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nummo
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Post by nummo on Jul 26, 2019 14:34:41 GMT
Did anyone have a nibble on this one? I have resisted so far... The top tranche has been filled so over the weekend A tranche will be done. I invested in the original loan and will probably stay off this one and Join the London one. Could take a nibble though at the last minute. Do you think Tranche A will be sold over the weekend? Would they normally sell faster at the weekend?
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Post by uksoul on Jul 26, 2019 14:43:53 GMT
The top tranche has been filled so over the weekend A tranche will be done. I invested in the original loan and will probably stay off this one and Join the London one. Could take a nibble though at the last minute. Do you think Tranche A will be sold over the weekend? Would they normally sell faster at the weekend? Well there's under 50% left so at this rate it should be gone by Monday. i dont think the day matters Proplend loans get filled pretty fast. You'll need to transfer money today if you want to nibble over the weekend.
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sapphire
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Post by sapphire on Jul 26, 2019 14:48:43 GMT
For LTV calcs, does Proplend usually consider a higher Market Value based on an existing tenancy rather than that on a lower vacant possession value or is this loan an exception?
(I note other factors like Borrowers experience etc. are also relevant depending on the circumstances.)
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nummo
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Post by nummo on Jul 26, 2019 15:05:06 GMT
Do you think Tranche A will be sold over the weekend? Would they normally sell faster at the weekend? Well there's under 50% left so at this rate it should be gone by Monday. i dont think the day matters Proplend loans get filled pretty fast. You'll need to transfer money today if you want to nibble over the weekend. Yes the rate of sale on tranche A increased today so you may be correct. I'm going to leave this one and look at the London one as previously discussed.
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Post by uksoul on Jul 26, 2019 15:56:55 GMT
The other option is to pick up nibbles sold on the PLE later on. That's a great way to invest in loans you've missed out on.I Often get the higher rate loans Tranche B and C from there.
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