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Post by Ton ⓉⓞⓃ on Feb 18, 2021 22:30:23 GMT
(DD=drawdown date)
#1342 New loan DD for March2021 -
First new loan in pipeline for quite some time; it's a small refurb in N.Ireland. No details beyond this except that it's
"9%, 9months, 70%LTV(?) £129.5k" to be drawn sometime in May2021 (Now set for DD 3/3/21)
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Post by Companion Cube on Feb 19, 2021 10:44:38 GMT
(DD=drawdown date)
First new loan in pipeline for quite some time; it's a small refurb in N.Ireland. No details beyond this except that it's
"9%, 9months, 70%LTV(?) £129.5k" to be drawn sometime in May2021
Hi Ton, You appear to have left out the "Candid RICS Adjustment Percentage" and the "Needless Administrator Finance Fees". Applying C.R.A.P. of 25% and N.A.F.F. of 50% puts the LTV to high for me 😆
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dave4
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Cynical is a hobby not a lifestyle
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Post by dave4 on Feb 19, 2021 11:33:18 GMT
What aproximate value do you give (loving your work Companion Cube) but serious question. "Candid RICS Adjustment Percentage" and "Needless Administrator Finance Fees" My guesstimate on my recent performance / update observations 25/35% less and 10% ?? ish extra.
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Post by Companion Cube on Feb 19, 2021 13:35:02 GMT
What aproximate value do you give (loving your work Companion Cube ) but serious question. "Candid RICS Adjustment Percentage" and "Needless Administrator Finance Fees" My guesstimate on my recent performance / update observations 25/35% less and 10% ?? ish extra. Hi dave4 , This was meant to be a bit of light hearted humour but there is a serious underlying point. My "finger in the air figures" are based on my experience with and perception of bad valuations and recovered amounts that I have experienced with Lendy & Moneything, no thought went into it. I have 3 Lendy loans DFL005, DFL012 and DFL019 and loans in Moneything based in Plymouth and Lytham St. Annes, so enough said there. The jokey figures were an estimate of reducing whatever the valuer says by 25% C.R.A.P. and then Reducing this 75% by 50% N.A.F.F. in the event of entering administration Giving an Asset Security (minus costs) of 37.5% of valuer's original estimate. They may be slightly exaggerated (only slightly exaggerated) to make a point and keep the maths kind. So for a property "worth" £100K, borrows £70K and if it goes south then £37.5K will be recovered. This is all a bit of therapeutic ranting in the form of humour on my part but I really do believe that there is an underlying truth to it. I just want to finish with saying that new loans in Assetz Capital are welcome and necessary but I will not be going near 70% LTV with a barge pole.
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dave4
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Cynical is a hobby not a lifestyle
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Post by dave4 on Feb 19, 2021 13:44:27 GMT
"This is all a bit of therapeutic ranting in the form of humor on my part but I really do believe that there is an underlying truth to it."
Truth in jest ? I think you may have hit the nail squarely on the head even in jest. Ill have a read of any new loan, and agree AC new loans are a welcome sigh, but 70% ltv at 9% dose sound like i may need to borrow your barge poll.
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ian
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Post by ian on Feb 19, 2021 15:04:46 GMT
I’ve avoided manual lending ever since
#330 Potential value upon completion - £1,800,000 - £1,950,000 • Current Market Value - £1,250,000 Loan £960,000 54% / 76.8% LTV
Returned to investors £583,000 32.4% / 46.6% LTV
That was a barn conversion that was being tarted up. Not a complex development project and the valuation was overstated in excess of 100%
In my limited experience ACs valuations have proven not to be trusted. I have invested Bridgecrowd/Somo who are yet to lose a penny of investors money, with something of this nature with the max 70% LTV offering 9.6 to 10.8%.
Even on that site where valuations have proven accurate; I’ve got nothing over 60% LTV (with capital in excess £200k to cover recovery fees) My average return is 9.2% coming from 1st charge loans ave LTV 54%
IMHO AC need to revisit their chosen valuers, then reduce their margin and pass a greater return on to investors, given their less than acceptable recent track record.
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ton27
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Post by ton27 on Feb 19, 2021 16:06:28 GMT
AC, fortunately have not been in the same league as Lendy for (ludicrously low) net recoveries versus valuations but they have had some shockers. Also when questioned about low recoveries/high valuations they always protect the valuations and never give straight answers. I have made decent returns on AC but find this particular aspect of the platform difficult to accept. Apart from the "Wind Loans" they never admit fault or actively pursue/criticise valuers.
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ian
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Post by ian on Feb 19, 2021 20:25:44 GMT
AC, fortunately have not been in the same league as Lendy for (ludicrously low) net recoveries versus valuations but they have had some shockers. Also when questioned about low recoveries/high valuations they always protect the valuations and never give straight answers. I have made decent returns on AC but find this particular aspect of the platform difficult to accept. Apart from the "Wind Loans" they never admit fault or actively pursue/criticise valuers. Bang on ... The way lends investors are treated is nothing short of legalised extortion! AC are not in their league but their valuations leave a lot to be desired !
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Post by Ton ⓉⓞⓃ on Feb 27, 2021 23:11:31 GMT
This proposal has today it seems won all necessary underwriting via an auction and now moved into the "Upcoming Loans" section.
Estimated drawdown date03/03/2021
AC Risk Profile - Med High (So that's an Expected Loss 0.5% - 1.5%)
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dead-money
Rocket to the Moon
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Post by dead-money on Feb 28, 2021 12:09:25 GMT
Like the previous N.I. loan it's interest retained and no regular payments from the lender.
GDV is shall we say, 'optimistic' compared to recent sales on the road.
Exit is dependent on sale or refinancing. Term is only nine months.
AC's fees and margin on the lender / borrower rates are 'generous' ; AC will do just fine out of the deal.
Lenders will no doubt be tempted by 9% rate offered.
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dead-money
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Post by dead-money on Feb 28, 2021 16:50:07 GMT
"I’ve got no qualms with AC making healthy margins that keep the platform healthy."
Nor have I !
(As I'm an Assetz Capital Shareholder.)
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ton27
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Post by ton27 on Mar 1, 2021 10:34:35 GMT
Like the previous N.I. loan it's interest retained and no regular payments from the lender.
GDV is shall we say, 'optimistic' compared to recent sales on the road.
Exit is dependent on sale or refinancing. Term is only nine months.
AC's fees and margin on the lender / borrower rates are 'generous' ; AC will do just fine out of the deal.
Lenders will no doubt be tempted by 9% rate offered.
I generally take no notice of PGs but there is some comfort on this one, in so much as it is joint and several and the borrowers have some substance and have a successful track record with AC. I will be looking to take a small amount.
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warn
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Post by warn on Mar 1, 2021 15:42:11 GMT
My pulse certainly stirred at the siren call of 9%, but I have managed to convince myself that the combination of "Med High" and 70% LTV is too rich a cocktail at my age. No doubt I'll regret my timidity when all you stout-hearted youngsters reap the rewards. Nonetheless, how pleasing to see a new loan.
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p2pfan
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Post by p2pfan on Mar 1, 2021 19:15:50 GMT
It is certainly a higher risk loan and with AssetzCapital's valuers renowned for making ridiculously fraudulent overly-optimistic valuations and lenders not getting much of their money back in scenarios when loans default, 70% LTV is concerning.
However, my fingers are getting itchy waiting to make a loan to a new borrower via the MLA for diversification, so I'm interested.
With it having been such a long time since I tried to loan to a newly-launching MLA project, how will it work?
As with other P2P platforms, will there be frenzied activity at a specific time if/when it launches on 03/03/2021?
Or is there some other mechanism to try to get an allocation into this loan?
Thanks.
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ilmoro
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Post by ilmoro on Mar 1, 2021 19:31:15 GMT
It is certainly a higher risk loan and with AssetzCapital's valuers renowned for making ridiculously fraudulent overly-optimistic valuations and lenders not getting much of their money back in scenarios when loans default, 70% LTV is concerning. However, my fingers are getting itchy waiting to make a loan to a new borrower via the MLA for diversification, so I'm interested. With it having been such a long time since I tried to loan to a newly-launching MLA project, how will it work? As with other P2P platforms, will there be frenzied activity at a specific time if/when it launches on 03/03/2021? Or is there some other mechanism to try to get an allocation into this loan? Thanks. Works the same as any other loan, you put a buy order in and then the system will do its thing distributing the amount available amongst the buy orders.
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