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Post by get2jaime on Apr 6, 2022 9:19:26 GMT
Anyone dipped their toe in the water with the new CP product the launched yesterday? Be good to get views on whether it’s a good investor proposition. www.cpcapital.com/user/registerIt’s described as a ‘second charge mezzanine finance product‘. Based on the mechanics of the main CP platform, looks good. They also invest in their own loans like the main CP setup. |
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Post by overthehill on Apr 6, 2022 9:57:35 GMT
Anyone dipped their toe in the water with the new CP product the launched yesterday? Be good to get views on whether it’s a good investor proposition. www.cpcapital.com/user/registerIt’s described as a ‘second charge mezzanine finance product‘. Based on the mechanics of the main CP platform, looks good. They also invest in their own loans like the main CP setup.
I think they will another CP loan in the near future based on an update I got yesterday !
I've not heard anything from CP about this new platform, only found out a few days ago and didn't realise it was open to retail funding.
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archie
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Post by archie on Apr 6, 2022 11:40:24 GMT
Anyone dipped their toe in the water with the new CP product the launched yesterday? Be good to get views on whether it’s a good investor proposition. www.cpcapital.com/user/registerIt’s described as a ‘second charge mezzanine finance product‘. Based on the mechanics of the main CP platform, looks good. They also invest in their own loans like the main CP setup. It didn't work when I tried to view it yesterday. Couldn't get past selecting the investor category screen. You can use your CrowdProperty login details to try.
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markyg61
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Post by markyg61 on Apr 6, 2022 12:21:44 GMT
I had same problem. There is a check box if I recall that needs ticking in order to progress to the 10 questions (Sophisticated Investor, High Net Worth Investor etc. etc.) If it doesn't show try a different browser.
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Ace
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Post by Ace on Apr 6, 2022 12:27:36 GMT
I don't think it's operational yet. I just get "Coming soon" for any pages of interest. Presumably we will be notified when they are ready for investors to actually start funding loans.
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markyg61
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Post by markyg61 on Apr 6, 2022 12:29:09 GMT
I don't think it's operational yet. I just get "Coming soon" for any pages of interest. Presumably we will be notified when they are ready for investors to actually start funding loans. Ace, so you must have got past the "Type of investor" quiz to get that far. yes, nothing available yet.
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archie
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Post by archie on Apr 6, 2022 12:31:58 GMT
I had same problem. There is a check box if I recall that needs ticking in order to progress to the 10 questions (Sophisticated Investor, High Net Worth Investor etc. etc.) If it doesn't show try a different browser.
Got it. Didn't notice the check box. 
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Ace
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Post by Ace on Apr 6, 2022 12:33:25 GMT
Yes, I did that last week. There are 4 sample projects all paying 15% for between 4 and 10 months, but nothing live to invest in.
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huxs
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Post by huxs on Apr 6, 2022 12:53:52 GMT
So what impact do we think this will have on the CP loans ? Will the Mezzanine loans just allow borrows to borrow more or will they use these loans to reduce the LTV and corresponding rate to make CP loans safer but less profitable ? or both ?
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Ace
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Post by Ace on Apr 6, 2022 13:06:02 GMT
So what impact do we think this will have on the CP loans ? Will the Mezzanine loans just allow borrows to borrow more or will they use these loans to reduce the LTV and corresponding rate to make CP loans safer but less profitable ? or both ? I don't think it will change what is offered on CP (though rates on there have been drifting down for some time now). It will make CP more attractive to borrowers as they will now be a one stop shop for those that require both senior and mezzanine finance. It will also allow CP to offer extra finance to their existing borrowers if they run into financial overspend situations.
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eeyore
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Post by eeyore on Apr 6, 2022 13:48:19 GMT
I'd expect these offerings to appeal to Proplend Self-Select lenders frustrated at the low availability of Proplend's Tranche C loans.
Too risky for me!
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zuluwarrior
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Post by zuluwarrior on Apr 13, 2022 19:54:35 GMT
Trying to understand the motivation behind CP Capital
1. Reduce risk on CP main
2. Allow investors (of which high demand) more opportunities to invest
3. Fill demand by CP borrowers to reduce their own equity.
Mezzanine is high risk, high reward for those that don't know.
Senior lenders usually have to approve when a mezzanine lender is going to take a second charge and in CP's case they could refuse borrowers with other mezz lending.
If CP main loan defaults, there is developers equity in the deal which can be used in repaying investors. I am thinking that CP capital is launched to offer a mezz product which can be converted to equity and finish the project if the developer defaults therefore allowing CP main to continue 100% payback.
First charge lending at circa 50-60% LTGDV could be considered relatively safe and even drops in GDV or cost increases and the project should be able to return capital. Second charge will need deeper project due diligence particularly due to the relatively uncertain property and construction market we find ourselves in.
What do you think is the motivation behind it?
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ilmoro
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Post by ilmoro on Apr 13, 2022 20:05:38 GMT
Trying to understand the motivation behind CP Capital 1. Reduce risk on CP main 2. Allow investors (of which high demand) more opportunities to invest 3. Fill demand by CP borrowers to reduce their own equity. Mezzanine is high risk, high reward for those that don't know. Senior lenders usually have to approve when a mezzanine lender is going to take a second charge and in CP's case they could refuse borrowers with other mezz lending. If CP main loan defaults, there is developers equity in the deal which can be used in repaying investors. I am thinking that CP capital is launched to offer a mezz product which can be converted to equity and finish the project if the developer defaults therefore allowing CP main to continue 100% payback. First charge lending at circa 50-60% LTGDV could be considered relatively safe and even drops in GDV or cost increases and the project should be able to return capital. Second charge will need deeper project due diligence particularly due to the relatively uncertain property and construction market we find ourselves in. What do you think is the motivation behind it? I would assume it is to enable additional finance to be available to projects that cant raise extra finance through the existing loans without breaching acceptable LTV levels. Benefit to CP lenders is less risk of projects failing due to lack of cash. CP would have step in rights on the standard loans already I would suspect, pretty standard in charges, nothing to do with equity
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dave4
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Post by dave4 on Apr 13, 2022 20:09:35 GMT
Trying to understand the motivation behind CP Capital 1. Reduce risk on CP main 2. Allow investors (of which high demand) more opportunities to invest 3. Fill demand by CP borrowers to reduce their own equity. Mezzanine is high risk, high reward for those that don't know. Senior lenders usually have to approve when a mezzanine lender is going to take a second charge and in CP's case they could refuse borrowers with other mezz lending. If CP main loan defaults, there is developers equity in the deal which can be used in repaying investors. I am thinking that CP capital is launched to offer a mezz product which can be converted to equity and finish the project if the developer defaults therefore allowing CP main to continue 100% payback. First charge lending at circa 50-60% LTGDV could be considered relatively safe and even drops in GDV or cost increases and the project should be able to return capital. Second charge will need deeper project due diligence particularly due to the relatively uncertain property and construction market we find ourselves in. What do you think is the motivation behind it? my guess.Initally A in house (but separate ) way of dealing with cp loans with covid (and other) related cost and or time overruns.
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zuluwarrior
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Post by zuluwarrior on Apr 13, 2022 20:23:04 GMT
Trying to understand the motivation behind CP Capital 1. Reduce risk on CP main 2. Allow investors (of which high demand) more opportunities to invest 3. Fill demand by CP borrowers to reduce their own equity. Mezzanine is high risk, high reward for those that don't know. Senior lenders usually have to approve when a mezzanine lender is going to take a second charge and in CP's case they could refuse borrowers with other mezz lending. If CP main loan defaults, there is developers equity in the deal which can be used in repaying investors. I am thinking that CP capital is launched to offer a mezz product which can be converted to equity and finish the project if the developer defaults therefore allowing CP main to continue 100% payback. First charge lending at circa 50-60% LTGDV could be considered relatively safe and even drops in GDV or cost increases and the project should be able to return capital. Second charge will need deeper project due diligence particularly due to the relatively uncertain property and construction market we find ourselves in. What do you think is the motivation behind it? I would assume it is to enable additional finance to be available to projects that cant raise extra finance through the existing loans without breaching acceptable LTV levels. Benefit to CP lenders is less risk of projects failing due to lack of cash. CP would have step in rights on the standard loans already I would suspect, pretty standard in charges, nothing to do with equity CP may have step in rights but would struggle to justify triggering that in the early stages when a project is going belly up. By controlling the mezz element, the ability to step-in comes sooner.
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