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Post by wonder on Apr 13, 2016 6:59:56 GMT
We had a deal for a Sand/Gravel quarry in Scotland today at c 30% LTV which we decided not to pursue as it was too far off from our norm. Is there a demand for alternative but secured assets? I like the potential idea of alternative secured assets. But first on my list of 'wants' for SS is open disclosure of each borrower's name and track record of success. This would allow us to make more informed decisions when deciding to lend or not, whether in property or alternative assets. Hmm. Would *you* borrow from a firm that posts the names and financial details of borrowers, so that they can be seen by thousands of people, all over the internet?
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Post by meledor on Apr 13, 2016 7:06:36 GMT
We had a deal for a Sand/Gravel quarry in Scotland today at c 30% LTV which we decided not to pursue as it was too far off from our norm. Is there a demand for alternative but secured assets?
Absolutely - yes please.
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Post by jackpease on Apr 13, 2016 7:15:18 GMT
I like the potential idea of alternative secured assets. But first on my list of 'wants' for SS is open disclosure of each borrower's name and track record of success. This would allow us to make more informed decisions when deciding to lend or not, whether in property or alternative assets. Hmm. Would *you* borrow from a firm that posts the names and financial details of borrowers, so that they can be seen by thousands of people, all over the internet? Or indeed are then phoned up by p2p borrowers (this happened on Rebs recently and the borrower pulled out as a result). I think a lot of quality borrowing opportunities would be lost to p2p if full transparency led to a witch hunt. I'm happy to trust the platform and i'd love SS to give us some non-property assets to diversify into Jack P
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pom
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Post by pom on Apr 13, 2016 8:36:31 GMT
Yep, there are only two things a business can do - grow, or die .. anything else is unstable. You just have to hope that 'grow' can be accomplished without changing the business model so much that it destroys the original ethos / intent / feel, to where it becomes a business you no longer wish to deal with (hey Zopa, FC, yes I'm talking about you guys!!). SS already morphed from small boat loans to large property / bridging loans, but I can live with that, as long as it isn't 100% of my portfolio .. would be nice to see some bridging loans on other assets though (planes, boats, shipping containers, toll bridges .. I don't care as long as here is a valuable/saleable asset, and it spreads the systemic risks). We had a deal for a Sand/Gravel quarry in Scotland today at c 30% LTV which we decided not to pursue as it was too far off from our norm. Is there a demand for alternative but secured assets? Like many others I'd definitely be interested in trying something a little different, and the LTV wouldn't hurt my interest either. Bigger question might be how big would the loan be (no idea how valuable quarries are but guess they don't come cheap)? If it would fit in the existing loan range quite comfortably then there should easily be enough people interested in taking a risk on something new to fill it. If it's suddenly going to be the biggest loan on the platform and would therefore need people to be considering larger amounts than their norm in order to fill it AND it's something new then you may struggle.
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Post by GSV3MIaC on Apr 13, 2016 8:46:25 GMT
And anyway, as we know, quarries can be filled in with unknown toxic waste materials and then morph into prime building sites, which'd put them back in the SS comfort zone. 8>. Just kidding. I agree 'not art' (and no fine wines, thanks) .. as for anything else, it depends on the LTV and the asset. We have seen the value of an oil well collapse dramatically recently, so I'd hate to be lending against those at 70% LTV, but at 10% LTV I'd surely have some (or maybe even 25%, after the collapse). And yeah, it needs to be clean (no leverage thanks) and professionally valued, and not too easy to put in your pocket and run with. Apart from that, I'm relaxed .. more relaxed than about getting ever deeper into commercial property (with ever bigger loans) at 70% LTV.
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ben
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Post by ben on Apr 13, 2016 13:12:45 GMT
How easy is a quarry to sell I would have thought rather limited appeal if the loan went bad
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Post by pepperpot on Apr 13, 2016 13:35:18 GMT
For me, my interest in it would depend greatly on if it's a working quarry, with an income stream, or disused and cultivating weeds.
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littleoldlady
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Running down all platforms due to age
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Post by littleoldlady on Apr 13, 2016 18:03:21 GMT
We had a deal for a Sand/Gravel quarry in Scotland today at c 30% LTV which we decided not to pursue as it was too far off from our norm. Is there a demand for alternative but secured assets? Hey I have an idea! How about boats?
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Post by nanniema on Apr 13, 2016 18:24:34 GMT
For me, my interest in it would depend greatly on if it's a working quarry, with an income stream, or disused and cultivating weeds. Even disused and cultivating weeds a quarry would have a value. I live along the Nene Valley in Northampton shire where there must be a dozen or more ex quarries now used as marinas, sailing clubs, fishing venues and one is being incorporated in a major shopping area with lakeside hotel etc. A hole in the ground may be worthless but fill it with water and it becomes a gold mine.
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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 Apr 13, 2016 18:37:32 GMT
For me, my interest in it would depend greatly on if it's a working quarry, with an income stream, or disused and cultivating weeds. A hole in the ground may be worthless but fill it with water and it becomes a gold mine. Ill get my spade and a bucket of water. Clearly Ive been going about this get rich quick lark all wrong
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Liz
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Post by Liz on Apr 13, 2016 18:44:12 GMT
I would definitely invest in the quarry - maybe it's not too late? Me too, 30% LTV looks juicy.
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greenslime
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Post by greenslime on Apr 13, 2016 18:44:58 GMT
We had a deal for a Sand/Gravel quarry in Scotland today at c 30% LTV which we decided not to pursue as it was too far off from our norm. Is there a demand for alternative but secured assets? I would have a punt on that.
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Post by bracknellboy on Apr 13, 2016 18:49:43 GMT
A hole in the ground may be worthless but fill it with water and it becomes a gold mine. Why would you fill a goldmine with water ? Oh perhaps this is a case of hydraulic mining....
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star dust
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Post by star dust on Apr 13, 2016 18:50:14 GMT
Don't know if this has been noted elsewhere, but an update for PBL 062 is on site "We have received a copy of the valuation from the new lender. We cannot publish this nor can we change the value that we have lent on as the valuation is not in the name of Lendy Ltd or SSSH Ltd. However, we can reveal that the flat now has a Market Value of £650,000 versus our original valuation of £500,000." good job it's being refinanced then
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Post by loanstar on Apr 13, 2016 22:15:38 GMT
A quarry would certainly a first. The LTV is attractive. So yes I too would be very interested.
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