scooter
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Post by scooter on Feb 29, 2024 16:15:28 GMT
I purchased Tier 2 on 08/09/22. It was a 3 month term ending approx 08/12/22. Once again Kuflink is retrospectively changing the end dates.
The exit was from "personal funds".
The borrower was buying the property "for investment purposes". They borrowed £1.540m and bought the property on 08/09/22 for £2m.
Now here's what bothers me. It was valued professionally at an OMV of 2.7m in Aug 22. They also gave a 90 day marketing valuation of £2.2m. Surely this is the figure that Kuflink should have used as OMV on a 3 month loan?
It is possible it was sold at auction so the valuation firm did not know the sale agreed price, but something is always worth what it sells for. So on the day Kuflink took my money for this loan they would have known that the OMV was £2m.
The valuation used to calculate risk was wrong by 37%. The valuation report also mentioned "The value of the property is likely to remain static due to uncertain conditions of the market." They got that right as it is currently on the market at £2m.
Kuflink made no attempt to tell investors of the increased risk associated with the loan. I can accept that as an initial purchaser I might not be in a position to complain, but anyone who bought this on the secondary market did not know the true facts.
If investors are allowed to know that it will be paid back by "Personal Funds" surely we have a right to know why that didn't happen. Did Kuflink really verify these funds?
16/02/23 "no more re-terms"
01/10/23 "in possession of the property"
29/02/24 the property is still on the market.
So, with Receivers costs, eviction costs, insurance costs, back of a fag packet calculation of interest owing of approx £250k and the unknown amount of interest and fees paid to Kuflink, on a sale price of £2m (probably less) and agents fees, it will be very tight to pay every one back. And that is probably why it is not going into auction now.
kuflink should be telling us this, but perhaps they will in a months time. Thats another thing that bothers me. Reporting back in one months time is not the same as expected end date. That is unlikely to be less than another 3 months. I could go on....
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Post by scepticalinvestor on Mar 1, 2024 7:50:09 GMT
We’ve been let down by our no-skin-in-the-game agent (KF) who made this loan using our money, used ‘convenient’ valuation metrics, (seemingly) misrepresented key facts to us, moved the goalposts and (metaphorically) did their underwriting on a square of toilet paper while drunk off their ass.
Now THAT certainly fits the stereotype of how many P2P operators treat lender funds and dish it out willy nilly to borrowers who wouldn’t get a loan elsewhere based on security that wouldn’t cover a default.
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Post by overthehill on Mar 1, 2024 11:16:00 GMT
There has been a lot of Kuflink negative sentiment and loan bashing recently but the loan statistics to 31dec2023 state there has been no lender losses - unclear if this is capital and interest. Probably time to decide if this is an 'Assetzcapital strategy' to keep losses in limbo until they threw in the towel.
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scooter
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Post by scooter on Mar 1, 2024 12:03:27 GMT
There has been a lot of Kuflink negative sentiment and loan bashing recently but the loan statistics to 31dec2023 state there has been no lender losses - unclear if this is capital and interest. Probably time to decide if this is an 'Assetzcapital strategy' to keep losses in limbo until the threw in the towel.
There are no defaults simply because they are putting extra money in and extending everything and giving the borrower so many chances to complete a project to "pay the lender back in full". That could be the most positive statement a P2P lender ever had written about them, IF it came with transparency, regular honest communication, COBS compliance, new risk assessments and real timescales. Unfortunately it does not. I would not have looked at these loans if they had not kept repeating the same statement over and over. I would not have contacted the FCA if I felt they were within COBS guidelines. I would not have highlighted my concerns to a couple of web sites which praise Kuflink with cracking reviews if I thought it just best to hang in there and get my money back in 2-5 years time. I would not have sold my entire portfolio if I had not felt a "sense of Assetz"..... or "Assetz, Deje Vu". It will be a horror story what ever name we give it, if it happens and they are advertising so hard at the moment, if it happens it will have been a really cynical plan. To stop this they just need to respond...............
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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 Mar 1, 2024 12:41:57 GMT
There has been a lot of Kuflink negative sentiment and loan bashing recently but the loan statistics to 31dec2023 state there has been no lender losses - unclear if this is capital and interest. Probably time to decide if this is an 'Assetzcapital strategy' to keep losses in limbo until they threw in the towel.
But assetz have always declared losses when loans were called in. They had a default & losses statement before it was a requirement. Ok,plenty of can kicking, often by lenders themselves, and actually crystallising losses took an eternity but the losses were declared openly.
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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 Mar 1, 2024 12:45:14 GMT
There has been a lot of Kuflink negative sentiment and loan bashing recently but the loan statistics to 31dec2023 state there has been no lender losses - unclear if this is capital and interest. Probably time to decide if this is an 'Assetzcapital strategy' to keep losses in limbo until the threw in the towel.
There are no defaults simply because they are putting extra money in and extending everything and giving the borrower so many chances to complete a project to "pay the lender back in full". That could be the most positive statement a P2P lender ever had written about them, IF it came with transparency, regular honest communication, COBS compliance, new risk assessments and real timescales. Unfortunately it does not. I would not have looked at these loans if they had not kept repeating the same statement over and over. I would not have contacted the FCA if I felt they were within COBS guidelines. I would not have highlighted my concerns to a couple of web sites which praise Kuflink with cracking reviews if I thought it just best to hang in there and get my money back in 2-5 years time. I would not have sold my entire portfolio if I had not felt a "sense of Assetz"..... or "Assetz, Deje Vu". It will be a horror story what ever name we give it, if it happens and they are advertising so hard at the moment, if it happens it will have been a really cynical plan. To stop this they just need to respond............... Keep an eye out for Narinder poping up on FinancialThing livestream. I know Lawrence is looking to address these issues with a number of platforms honchos
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scooter
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Post by scooter on Mar 1, 2024 12:54:23 GMT
There has been a lot of Kuflink negative sentiment and loan bashing recently but the loan statistics to 31dec2023 state there has been no lender losses - unclear if this is capital and interest. Probably time to decide if this is an 'Assetzcapital strategy' to keep losses in limbo until they threw in the towel.
But assetz have always declared losses when loans were called in. They had a default & losses statement before it was a requirement. Ok,plenty of can kicking, often by lenders themselves, and actually crystallising losses took an eternity but the losses were declared openly. I think it depends on the product. In the 30 / 90 day accounts whilst the loans were noted regarding their status, you were always told that you could have your money out regardless after the notice period. Defaults did not matter, because your money was guaranteed..... Even the most skilled investor (and thats not me) learns more by going through the process than they could reading the T&Cs. Where kuflink is concerned, I hold my hands up to things i could have done differently, but when I wanted to check the risk on my portfolio i could not because they won't let me and they won't answer my questions. Maybe Assetz were cleverer in that they gave a good impression of open communication. Caught me out by about 2 days.... I will not be "Assetzed" again
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