adrianc
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Post by adrianc on Mar 4, 2015 8:22:37 GMT
HCBC1 didn't exactly fill my heart with glee, and it seems to have firmly stalled, only a quarter full.
Predictable? Or do you think it might have legs after all, and people are just waiting for the webinar?
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mikes1531
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Post by mikes1531 on Mar 6, 2015 4:17:27 GMT
HCBC1 didn't exactly fill my heart with glee, and it seems to have firmly stalled, only a quarter full. Predictable? Or do you think it might have legs after all, and people are just waiting for the webinar? I expect the webinar will help. (I didn't see it. Does anyone know whether it went well?) And with £274k raised already, the project is well on its way to the minimum funding level of £450k. I think they have a loan lined up already, but they probably can't commit to that until they reach their minimum funding level. Unless they've given themselves the option of proceeding with less than the stated minimum. (Does anyone know whether they've done that?) They still have plenty of time to raise funds -- they're only three weeks into their 90-day offering period, and they can extend that by a month if they wish to,
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j
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Penguins are very misunderstood!
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Post by j on Mar 11, 2015 14:20:19 GMT
Their offering is, unnecessarily, complicated. It is now 9% return, plus bonus (not specified) plus 50/50 share of profit (on extensions only). You must give 26 weeks notice to sell, fees involved, can only fully sell after 3 years. FGS, why not offer a straight forward option with say 10-12% flat fee depending on their fees& easier exit strategy like everybody else. Certainly won't go anywhere near when I get much simpler options & instant exit (if buyers available) & 2-5% points higher return!!
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shimself
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Post by shimself on Mar 11, 2015 17:23:44 GMT
Hmm Montello who are the connected company with lendinvest (they do bridging loans, bridging loans is what they do), have a fund, where they never ever go above 75%ltv (average 50-60%), and first charge only, largely London. They pay 6%.
This is offering double the return but will do second and even 3rd charges. The info packs says our bridging partners have lent £11M and completed 85 deals ... and never experienced bad debt. They have only had to instruct solicitors once to force a sale during this period (a 2nd charge which worked out OK)
As I understand it the share agreement includes that any profits beyond those needed to cover the 9% will be split at best 50-50 between THC and us. It'd be nice if somebody who is well versed in this guff can give the Infomation Memorandum a once over to establish if it's fair.
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mikes1531
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Post by mikes1531 on Mar 16, 2015 4:13:05 GMT
Their offering is, unnecessarily, complicated. It is now 9% return, plus bonus (not specified) plus 50/50 share of profit (on extensions only). As I understand it the share agreement includes that any profits beyond those needed to cover the 9% will be split at best 50-50 between THC and us. That's not quite the way I read it. I thought the bonus and the 50/50 split were the same thing. With the income to split being the extra interest and fees that become payable if the borrower doesn't repay on time. And I thought that if all the borrowers did repay on time, the lenders would get their 9% no matter what the borrowers were paying. The difference between 9% and what the borrowers pay would be the THC share. At first glance, I thought that might be a bit high, but lenders start earning their 9% at the end of the month they invest, while borrowers don't start paying interest until the loan draws down. And based on what I've seen at other platforms, that period of no earnings while waiting for drawdown could be months, so even if the borrowers are paying 12%, once 'dead' time is included the average earning rate might not be that much above 9%, so THC's share actually might be pretty small. The good news is that it's THC that's taking the drawdown timing risk, not the lenders.
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mikes1531
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Post by mikes1531 on Mar 16, 2015 4:18:01 GMT
HCBC1 didn't exactly fill my heart with glee, and it seems to have firmly stalled, only a quarter full. Predictable? Or do you think it might have legs after all, and people are just waiting for the webinar? At this point, the website is showing £435k invested, compared to an initial target of £1M, so the money is coming in -- no doubt helped by the improvement in returns for investors. An important point to note is that the minimum investment required to put the project into operation is only £450k, so they're within an eyelash of that. It wouldn't surprise me if they achieved their minimum later today.
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