manue
Posts: 25 
Likes: 12
|
Post by manue on Mar 9, 2015 22:43:16 GMT
Is there such a thing?
Hi all I've been reading all your posts for the last couple of months and I have to say you take no prisoners you say it as it is.. so I have signed up to participate and maybe contribute sometimes with my limited knowledge.
I have been investing in FS & SS platforms for the last month. I started with FC to test their platform but after trying to get fifty £20 loans half automated half of my own choosing I gave up and sold everything in the SM I decided that I didn't really want to lend small amounts of cash to hundreds of businesses at mainly 3yr loan terms to companies with bad balance sheets, directors who can't be bothered to reply to investors questions and single line loan requests that get fully funded and with no real tangible assets.
I can't bring myself to invest in non asset based loans, and for no longer than 12 months which somewhat restricts the platforms I can invest in, I know the risks I know there will be defaults but at least the assets are tangible open only to market forces and the trust we place in the directors carrying out the DD on the asset, Company or Person.
I would like to diversify into other asset classes other than PBL & Pawn broker trinkets, any input from you guys would be invaluable. (better than the biased opinions gathered by Lending Mag) or do I need to change my mind set.
Bring it on,
manue.
|
|
|
|
Post by ranjeb on Mar 9, 2015 23:09:09 GMT
The problem for new starters is trying to diversify quickly, you know you need to do it but loans available don't always allow it to happen. Building up my FC investment has taken a long time, but I've stuck to my plan, not been greedy and currently doing very well there. <shrug> maybe try assetz capital for more security. Afaik there is no perfect platform, best to try a few of them  |
|
Investor
Member of DD Central
Posts: 662
Likes: 590
|
Post by Investor on Mar 9, 2015 23:20:38 GMT
Would suggest you take a look at Ablrate, certainly meets your 'other classes' criteria. Will take some time and patience to built up a portfolio however they are promising a significant number of new loans very soon as well as the launch of the new website. Similar opportunities to Saving Stream but diversifies away from PBL's. Maybe either Andy ablrateandy or David ablrate might be able to give us a pipeline update. If you are looking for the 'perfect' p2p platform, you will of course find them just behind the rainbow coloured unicorn next to the 2nd fairy house on the left. |
|
|
|
Post by ablrateandy on Mar 9, 2015 23:31:42 GMT
Hello Always happy to field questions and thanks for the tag investor . Feel free to have a look around the site and drop us a line with any questions. What could be more diversified than investing in aircraft? . As alluded to, there is a new site en route and we have a decent pipeline of things over the next few months - boats, planes, property and some other unmentionables... As said above - there is no perfect platform and to be honest there never will be, because perfect to one person is not perfect to another. Prioritise what you want (liquidity, deal flow, security, secondary market etc) and then go from there! |
|
bigfoot12
Member of DD Central
Posts: 1,817
Likes: 816
|
Post by bigfoot12 on Mar 10, 2015 8:33:46 GMT
I can't bring myself to invest in non asset based loans, and for no longer than 12 months which somewhat restricts the platforms I can invest in, I know the risks I know there will be defaults but at least the assets are tangible open only to market forces and the trust we place in the directors carrying out the DD on the asset, Company or Person.
I would like to diversify into other asset classes other than PBL & Pawn broker trinkets, any input from you guys would be invaluable. (better than the biased opinions gathered by Lending Mag) or do I need to change my mind set. One thing to consider is that taking security on large assets such as property can take time. On many platforms your money is tied up earning nothing for this time period. The impact of one or two months earning nothing on a 6 or 12 month loan is much more significant than it is on a 24 or 36 month loan. Having said that I don't disagree with want you want, just make sure you understand that you are probably paying for it. Another thing to consider is that many of the platforms were the security is already taken in advance it is unclear if they are true P2P. I am not a P2P zealot, but I am concerned about the failure of the platform. I am worried that in some cases you are lending to the platform rather than the ultimate borrower.
|
|
bugs4me
Member of DD Central
Posts: 1,845
Likes: 1,478
|
Post by bugs4me on Mar 10, 2015 9:03:16 GMT
Is there such a thing?
Hi all I've been reading all your posts for the last couple of months and I have to say you take no prisoners you say it as it is.. so I have signed up to participate and maybe contribute sometimes with my limited knowledge.
I have been investing in FS & SS platforms for the last month. I started with FC to test their platform but after trying to get fifty £20 loans half automated half of my own choosing I gave up and sold everything in the SM I decided that I didn't really want to lend small amounts of cash to hundreds of businesses at mainly 3yr loan terms to companies with bad balance sheets, directors who can't be bothered to reply to investors questions and single line loan requests that get fully funded and with no real tangible assets.
I can't bring myself to invest in non asset based loans, and for no longer than 12 months which somewhat restricts the platforms I can invest in, I know the risks I know there will be defaults but at least the assets are tangible open only to market forces and the trust we place in the directors carrying out the DD on the asset, Company or Person.
I would like to diversify into other asset classes other than PBL & Pawn broker trinkets, any input from you guys would be invaluable. (better than the biased opinions gathered by Lending Mag) or do I need to change my mind set.
Bring it on,
manue.
IMO there is no such thing as the perfect etc, etc. There's a wealth of knowledge and experience floating around this forum. Best thing to do is simply read the advice and see whether the personal thoughts fit in with what you are comfortable with and if they're not, then just ignore them. Many platforms start off with the best intentions and for a while they may live up to their aspirations. I always keep an eye on them to make sure they haven't changed direction in the background which is affecting my personal acceptable risk level. Like yourself I restricted myself to 12 month maximum investments but found out I was missing out on some good investments which exceeded that 12 month self imposed limit. If the platform has a healthy SM then there's no reason why you should not jump into the 3 year loans and then offload them within your 12 month period. IMO though you do need to exercise caution with some of the more passive platforms - Z, RS, W as they can have some hefty exit charges for 'cashing in' before the term has expired. One of the most important 'rules' in my book is not to panic over idle money. Sure it would be nice to see funds always earning but sometimes it's best looking at that idle money rather than simply parking it in an investment which you're not comfortable with. Rather like any auction, set your parameters and do not exceed them. Many an individual (including myself) has gone above the personal maximum bid limit in an auction room. It often wasn't a wise thing to do. More importantly - ask questions. As I read somewhere the most stupid question is the one that is never asked in the first place. So anything you're not sure of then simply fire away. Good luck.
|
|
mikes1531
Member of DD Central
Posts: 6,453
Likes: 2,320
|
Post by mikes1531 on Mar 10, 2015 15:25:51 GMT
IMO though you do need to exercise caution with some of the more passive platforms - Z, RS, W as they can have some hefty exit charges for 'cashing in' before the term has expired. AIUI, Zopa's exit fee is a noticeably lower than the other two platforms mentioned. The Z fee is 1% of outstanding capital, so if you exit from a 5-year loan after three years the fee would be less than 0.5% of the original investment because most of the capital had been repaid already. However, there's another unquantifiable factor in that if interest rates have risen since you invested then you might have to pay the buyer something to compensate for that. With RS and W -- again, AIUI -- the fee depends on the rate you would have earned if you had invested for the appropriate term in the first place. Using RS numbers as an example, right now 5-year loans are offering 6.2% while 3-year loans are offering 5.5%. If you invest for five years and then want to exit after three years, the fee would be something like the difference in rates times the number of years invested, or 0.7% x 3 = 2.1%. Put another way, you earned 6.2% for three years (a total of 18.6%) but you only were entitled to three years at 5.5% (= 16.5%) so you forfeit the extra 2.1%. I don't know how the RS and W fees are affected by interest rate changes that occur while you've been invested. If there's anything wrong with the above explanation, I'd appreciate it if someone who knows more about this than I do would set the matter straight.
|
|
shimself
Member of DD Central
Posts: 2,563
Likes: 1,171
|
Post by shimself on Mar 10, 2015 15:37:06 GMT
Any cash you have in the bank (at 1% a year - ish) is effectively idle money already, so worrying to much about drawdown delay seems to me like a counsel of perfection diverting you from the real point. A rock solid 10% delayed so it becomes effectively 8% is still very nice.
TC has a decent aftermarket and also some diversified packages (TLCs they're called) which bundle 10ish investments into a single loan.
|
|
unmadem
Member of DD Central
Posts: 377
Likes: 181
|
Post by unmadem on Mar 10, 2015 15:56:45 GMT
I'd second bugs4me view, "One of the most important 'rules' in my book is not to panic over idle money." I made that mistake. Keep Calm |
|
manue
Posts: 25
Likes: 12
|
Post by manue on Mar 10, 2015 21:20:22 GMT
Thank you all for your comments I shall take all of them on board and utilize a strategic plan that suits my investing criteria, I do have laying idle but am in no rush to commit it just for the sake of earning 12/13% interest fast, I shall drip feed it across numerous loans as they become available.
investor.. I will look at ablrate Andy & Dave at the "2nd fairy house on the left by the coloured unicorn behind that rainbow" hee hee hee!!
bigfoot12.. good advice.. I to am worried that I'm lending to the platform not the borrower, but sometimes you just have to trust.
bugs4me.. your post makes very good sense, I agree with all you've said your advice is simple and wise especially your last sentence, thanks
mikes1531.. the maths are quite complicated but do need considering, I don't like exit fees but understand the principal of reduced interest.
I think I'm going to gain a lot of good information from this forum, I apologise now for any stupid questions I post in the coming weeks.
Thanks for having me..
|
|
gc
Member of DD Central
Posts: 152
Likes: 141
|
Post by gc on Mar 10, 2015 22:04:37 GMT
NEVER apologise for your questions, manue. Always better to ask and learn than make a mistake, especially when it comes to ones hard earned money.
|
|
bugs4me
Member of DD Central
Posts: 1,845
Likes: 1,478
|
Post by bugs4me on Mar 10, 2015 22:08:41 GMT
<snip> I apologise now for any stupid questions I post in the coming weeks.
- the only stupid question is the one that's never asked. There's a wealth of experience floating round this forum so please use it.
|
|
gc
Member of DD Central
Posts: 152
Likes: 141
|
Post by gc on Mar 16, 2015 19:33:37 GMT
Mods, I apologise if this is not the right place as I know this is a p2p forum but I thought it may also be worth mentioning.. (please delete if this is the case) Remember that if you are new to this and looking to trickle money in, plus a safe investment, don't just look at the p2p platform. Whilst you are researching where to invest in, you can also look at high interest regular savers accounts as there are some pretty good ones out there where you can get 6% (FIXED for first year) and can put in £25 to £300 per month and that takes some beating, especially as it is secure... For example First DirectAlso new customers switching to it get a £100 bonus, though you must pay in at least £1,000 a month.. And no, I don't work for them ;-) Just thought i'd mention as there seem to be some folk with extra money and looking to get better interest on it. |
|
duck
Member of DD Central
Posts: 2,884
Likes: 6,979
|
Post by duck on Mar 17, 2015 7:06:03 GMT
Just one point to your original post @manue, you mention 1 year max, it is always worth considering your tax position and the time that interest arises/is paid.
|
|
shimself
Member of DD Central
Posts: 2,563
Likes: 1,171
|
Post by shimself on Mar 17, 2015 9:39:52 GMT
I should have mentioned that 4thway.co.uk do comparisons, and they reckon lendingworks
|
|
