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Post by supernumerary on Jun 18, 2020 8:46:08 GMT
Friday 19th June 2020 - Loan Launch Details:
• Borrower Sector: Property Development
• Loan Amount: £ 70,000
• Term: 11 months (6 months minimum term).
• Rate: 13% - Interest Only.
• LTV = 21%
• Security: Company Debenture, Corporate Guarantee,
• Assignment by Way of Security over Project Specific Security including First Ranking Legal Charge.
• Instant Returns: Enabled.
• Loan Launch: 11am – 19th June 2020 (READ ONLY).
• Loan Live: 2pm – 19th June 2020.
LENDER UPDATE 19 JUN: A £2,500 maximum bid limit has been placed on the loan for the first 7 hours of open pledging. This bid limit will be removed at 9pm this evening.
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Post by supernumerary on Jun 19, 2020 11:01:29 GMT
Just my own opinion here. With the maximum bid being £2,500, it will only take 28 lenders providing the maximum allocation to fill this. I think that is more than likely…  28 X £2,500 = £70,000 IMHO, if you want to invest in this one, it may go in a matter of minutes, from 2pm…  |
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TitoPuente
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Post by TitoPuente on Jun 19, 2020 11:30:39 GMT
Please correct me if I am wrong, but the underlying security for this loan is not directly the asset (house), but a "comprehensive security suite to be shared with all other loans" to the borrowing entity. If things go pear shaped in one or several of the other loans, this loans goes to. If this is correct, investing into this or any of the other loans to this borrower has basically the same risk. Perhaps I am reading this in a too simplistic way.
Edit: Similar to the Ferrari situation in the other place.
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p2pfan
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Full-Time Investor
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Post by p2pfan on Jun 19, 2020 12:03:51 GMT
Please correct me if I am wrong, but the underlying security for this loan is not directly the asset (house), but a "comprehensive security suite to be shared with all other loans" to the borrowing entity. If things go pear shaped in one or several of the other loans, this loans goes to. If this is correct, investing into this or any of the other loans to this borrower has basically the same risk. Perhaps I am reading this in a too simplistic way. Edit: Similar to the Ferrari situation in the other place. As far as I know, you are completely right. Ablrate are a more credible company than other P2P networks and P1 Investments look like a decent set-up, but such security configurations worry me hugely. With a first charge or even a second charge security on a property you usually know clearly where you stand. With these more "creatively"-constructed forms of security (fixed and floating charges blah blah blah), in 100% of cases where things have gone wrong my experience has been they were much more complicated and convoluted situations than I was led to believe, the security was much weaker than I was reassured of, the assets were much less valuable than I was repeatedly told they were and, of the money I was owed, I have received 13.5p in the £1 at the very best and zero at worst. A case in point is a company I lent a six figure sum to where I was categorically informed, probably over fifty times, the LTV across their portfolio of assets gave their borrowing a mere 25% LTV and I've just received an email from the Administrators this week stating: "Based on current information it is anticipated that there will be insufficient realisations to enable a payment to creditors". Having had my fingers severely burned too many times with less-than-clear securities, I will be sitting this one out.
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blender
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Post by blender on Jun 19, 2020 12:20:32 GMT
Please correct me if I am wrong, but the underlying security for this loan is not directly the asset (house), but a "comprehensive security suite to be shared with all other loans" to the borrowing entity. If things go pear shaped in one or several of the other loans, this loans goes to. If this is correct, investing into this or any of the other loans to this borrower has basically the same risk. Perhaps I am reading this in a too simplistic way.Edit: Similar to the Ferrari situation in the other place. Yes, I think so. The general security suite involves a debenture and a corporate guarantee, but not a charge on the development properties, except in as much as the properties provide value to the companies providing the security. My understanding is that there is a (complex) charge on the properties attached to other loans which is separate from this security. This loan seems to have no charge on any property, but the specific security is the right for Ablrate to be assigned the borrower's rights to receivables from this named property, if the borrower does not make the payments on this loan. But if their are no receivables, we do not get the house. It seems to me to be a short-term working capital loan for the borrower which gives some security without making a charge on a property. Handy at this time. But that may also be simplistic.
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macq
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Post by macq on Jun 19, 2020 12:42:12 GMT
google maps suggest it was a guest house so if anything goes wrong maybe the security is we all get a weeks stay
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Nomad
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Post by Nomad on Jun 19, 2020 13:02:20 GMT
All gone in a minute.
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Post by supernumerary on Jun 19, 2020 13:05:06 GMT
...by my reckoning, filled somewhere between the 2nd and 3rd minute, PAST 2pm... 
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Post by moneymagnet on Jun 19, 2020 13:08:11 GMT
It felt like the good old days. A piranha-esque FFF feeding frenzy, rarely seen recently.
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Post by Badly Drawn Stickman on Jun 19, 2020 13:09:24 GMT
Not a surprise, despite it being a repeat trick same smoke and mirrors as usual this one had two glamorous assistants to distract the public. A no brainer for me to get a piece of this particular action. Long while since I have had to use my fast finger skills.
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ptr120
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Post by ptr120 on Jun 19, 2020 13:49:37 GMT
A no brainer for me too. Unfortunately my conference call overran and I think I must have missed this by seconds. Frustrating that ablrate didn't impose lower bid limits so that long standing customers could get a slice of a smaller loan - this situation was entirely foreseeable. |
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Jun 19, 2020 15:46:06 GMT
Please correct me if I am wrong, but the underlying security for this loan is not directly the asset (house), but a "comprehensive security suite to be shared with all other loans" to the borrowing entity. If things go pear shaped in one or several of the other loans, this loans goes to. If this is correct, investing into this or any of the other loans to this borrower has basically the same risk. Perhaps I am reading this in a too simplistic way. Edit: Similar to the Ferrari situation in the other place. Ablrate are a more credible company than other P2P networks Interested to know on what that statement is based? I like Ablrate and David and comms are good but I don't see how they are more credible than other credible platforms. They have their share of issues. Several of us highlighted a number of flaws in their security packages, with debentures & charges being missed, and there are some complicated security structures. They have a fairly high number of problem loans even if they seem to make decent efforts at recovery, and there is an over reliance/concentration on a few borrowers & the introducer.
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criston
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Post by criston on Jun 19, 2020 17:33:16 GMT
Hand was shaking on the mouse a bit, knowing I had to be quick, but managed it, just, on two accounts.
However, with such an amazing LTV, why did Px not keep it to themselves ?
Must be something in it for Px surely, after 20% goes to lender & platform & fees.
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macq
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Post by macq on Jun 19, 2020 17:53:48 GMT
Hand was shaking on the mouse a bit, knowing I had to be quick, but managed it, just, on two accounts. However, with such an amazing LTV, why did Px not keep it to themselves ? Must be something in it for Px surely, after 20% goes to lender & platform & fees. was it the question about why P* let you in that made your hand shake?
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