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Post by mrclondon on Nov 19, 2019 13:16:21 GMT
Same borrower and tenant (operating company) as the earlier Birmingham H** loan.
I think the common tenant represents a potential "common mode failure", and from a risk concentration point of view I think these two loans should probably be considered as just one. As noted by PL, the tenant's balance sheet is modest, and the ownership of the company (tenant) appears to have changed in April 2019
The rent being paid by the tenant under the leases to our borrower on both of these sites equates to a high per room per calendar month sum, which will make it hard(er) to add any significant margin on when charging the room occupants (to cover managment costs, voids, and profit).
The lease for this latest site on a per room per calendar month basis (i.e. before tenant's own margin) is almost double what the valuer has used (VR para 4.4.5) when determining a vacant possession value. (Loan to vacant possession value is c. 92%).
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eeyore
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Post by eeyore on Nov 19, 2019 15:53:04 GMT
The exit strategy is simply a refinance at a lower interest rate - why not find such a loan now rather than later?
But what really puzzles me is the acquisition cost: purchase cost of £885k plus £300k refurbishment costs. Which is less than half the £2.45Million valuation with vacant possession. (I'd be inclined to sell immediately and walk away with a £1Million+ profit - but then I'm not a successful property developer!)
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tomp
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Post by tomp on Nov 20, 2019 7:45:32 GMT
Not sure about acquisition cost but if they will refinance to a commercial mortgage which is based on the income generated by property rather than bricks and mortar valuation they will need to purchase and renovate it first then rent all the rooms so they can demonstrate that is a working business
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p2pfan
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Full-Time Investor
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Post by p2pfan on Nov 21, 2019 11:27:25 GMT
Wise points made.
The fact that this loan has only had 19.91% funded 24 hours after launch, when other loans often get filled upon within minutes, speaks volumes. IMHO the interest is low for the risk profile this loan has.
The saving grace for me and reason I've invested a substantial amount is, among other factors, the following:
"£316,800 rental income is being received, with interest payments due of £163,125 p.a.
"
So there is a very healthy buffer even if, as is sometimes the case, there are issues with HMO tenants.
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sapphire
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Post by sapphire on Nov 29, 2019 13:30:23 GMT
proplend Is this loan underwritten? If so, when is the underwriting expected to be triggered and the loan drawn down? If not underwritten, is the loan planned to remain open indefinitely until fully subscribed or is there a max amount of time after which the issue would be cancelled if not fully subscribed and the amount refunded to those who have invested? I think the above questions are especially relevant for this loan where (unlike the previous loans) a significant part remains unsubscribed after 9 days and as no interest is paid to those who have subscribed until the loan is drawn down.
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liso
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Post by liso on Dec 10, 2019 12:34:18 GMT
proplend Is this loan underwritten? If so, when is the underwriting expected to be triggered and the loan drawn down? If not underwritten, is the loan planned to remain open indefinitely until fully subscribed or is there a max amount of time after which the issue would be cancelled if not fully subscribed and the amount refunded to those who have invested? I think the above questions are especially relevant for this loan where (unlike the previous loans) a significant part remains unsubscribed after 9 days and as no interest is paid to those who have subscribed until the loan is drawn down. ...to re-iterate sapphire's questions above This loan launched almost 3 weeks ago and is still only a little over 50% subscribed. Can we please have some clear information about when the loan will either be withdrawn, or drawn down? proplendThese questions are pertinent and reasonable. Failing to offer a reply is not a good way to treat your lenders.
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Post by uksoul on Dec 11, 2019 10:52:00 GMT
proplend Is this loan underwritten? If so, when is the underwriting expected to be triggered and the loan drawn down? If not underwritten, is the loan planned to remain open indefinitely until fully subscribed or is there a max amount of time after which the issue would be cancelled if not fully subscribed and the amount refunded to those who have invested? I think the above questions are especially relevant for this loan where (unlike the previous loans) a significant part remains unsubscribed after 9 days and as no interest is paid to those who have subscribed until the loan is drawn down. ...to re-iterate sapphire's questions above This loan launched almost 3 weeks ago and is still only a little over 50% subscribed. Can we please have some clear information about when the loan will either be withdrawn, or drawn down? proplendThese questions are pertinent and reasonable. Failing to offer a reply is not a good way to treat your lenders. The outstanding amount has significantly dropped to around 570k. Should be drawn down within a week or so. Seems Proplend no longer replying on this site.
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sapphire
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Post by sapphire on Dec 16, 2019 12:34:13 GMT
Last response from Proplend to this forum was on 16th Oct so looks like that they have stopped responding via this site.
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Post by uksoul on Dec 16, 2019 12:50:56 GMT
Last response from Proplend to this forum was on 16th Oct so looks like that they have stopped responding via this site. Yes, seems so.
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IFISAcava
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Post by IFISAcava on Jan 29, 2020 12:08:07 GMT
A chunk has appeared on the SM, so one would assume this was underwritten and is being released back gradually.
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rs
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Post by rs on Nov 27, 2020 18:19:55 GMT
Birmingham H** Refinance repaid in full today.
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Post by uksoul on Nov 28, 2020 0:33:42 GMT
Birmingham H** Refinance repaid in full today. Yes, nice and early too..
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eeyore
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Post by eeyore on Nov 28, 2020 9:45:13 GMT
Birmingham H** Refinance repaid in full today. Yes, the Birmingham H** Refinance loan did indeed repay, but this thread is for the Birmingham H** 2 loan!
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