ben
Posts: 2,020
Likes: 589
|
Post by ben on Apr 12, 2016 16:12:05 GMT
Let's be honest. SS undergoing "explosive growth" is probably not good news for us investors. More staff = more potential for things to go wrong. More loans = more chance of a default. When a business of any kind tries to expand, it is a risky time. I will be keeping a close eye on things. Alternatively, more staff equals more eyes to mitigate risk and ensure everything is double checked and more loans equals more profit for Lendy (economies of scale) which makes it easier for them to ensure the Provision Fund remains topped up. Or their cost base goes up so they take on more risky business in an attempt to pay the bills, just because more people does not necessarily mean there will be any more looking at each individual loan
They seem to have no shortage of managers
|
|
|
Post by savingstream on Apr 12, 2016 18:27:58 GMT
Let's be honest. SS undergoing "explosive growth" is probably not good news for us investors. More staff = more potential for things to go wrong. More loans = more chance of a default. When a business of any kind tries to expand, it is a risky time. I will be keeping a close eye on things. We see that as absolutely the opposite of reality - " More staff = more potential for things to go wrong"
|
|
|
Post by savingstream on Apr 12, 2016 18:30:06 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?
|
|
Monetus
Member of DD Central
Posts: 1,179
Likes: 2,961
|
Post by Monetus on Apr 12, 2016 18:32:05 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? Yes I would definitely be interested in some alternative asset types aside from the usual property.
|
|
adrianc
Member of DD Central
Posts: 9,669
Likes: 5,041
|
Post by adrianc on Apr 12, 2016 19:01:52 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 certainly wouldn't necessarily have run screaming from that. Is it really THAT different? It's a plot of land with a commercial use. OK, so it's mineral extraction rather than farming or building or...
|
|
SteveT
Member of DD Central
Posts: 6,874
Likes: 7,919
|
Post by SteveT on Apr 12, 2016 19:01:59 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? Yes, most definitely. Each deal has to stand on its own merits but most lenders are already overweight in commercial property and residential development loans, so highly exposed to correlated problems if / when we hit a major property market downturn. Quality loans secured against something other than another building will always be of interest; that's why I rather like the farmland loans. See also some of Ablrate's more unusual asset-backed loans.
|
|
jonah
Member of DD Central
Posts: 2,031
Likes: 1,113
|
Post by jonah on Apr 12, 2016 19:13:56 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? Whilst I can't comment on this loan specifically without more information, the idea of different variations is not without merit. The commercial property niche is a nice one, but there has to be a limit on the sector concentration risk the current set of investors have. Although there seems to be a growing number of new investors...
|
|
ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 11,231
Likes: 11,422
|
Post by ilmoro on Apr 12, 2016 19:26:28 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? The answer to that is yes but... I remember when you you first diversified from the boat loans there were a series of question asking what experience you had in dealing with property and was there a danger that a lack of experience would increase the risk. Your response was to highlight the experience in your team is this field. So the same queries apply to moving outside your norm I suspect. There certainly is an appetite - see the popularity of the containers, planes, capital equipment on Ablrate for example and indeed the original boats on SS, which at the time were a bit different to offerings elsewhere. The market is saturated with property as it seems to be the asset class that all platforms inevitably gravitate towards. At the end of the day it all comes down to risk v return and confidence in a platform to manage the loan to a successful repayment. Your have an established, successful and popular model and if you think you can replicate that then the demand from lenders will be there I believe
|
|
|
Post by GSV3MIaC on Apr 12, 2016 19:45:24 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? Can you get them back, I'd like a piece of that please?!. 8>. Eggs/baskets/diversification .. I mean I can go use AC/Ablrate, if you prefer (I'd probably not stick with just one platform anyway, but ideally I'd like a mix of assets across a mix of platforms). FC used to offer me drilling rigs and boring machines (the kind that make holes, not the kind that aren't interesting), but don't get me started on what FC used to be able to do ...
|
|
littleoldlady
Member of DD Central
Running down all platforms due to age
Posts: 3,035
Likes: 1,859
|
Post by littleoldlady on Apr 12, 2016 20:55:51 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? Yes, but not art. Almost anything except art.
|
|
ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 11,231
Likes: 11,422
|
Post by ilmoro on Apr 12, 2016 20:59:56 GMT
PBL060 - 29 Apartment block, Wolverhampton - Value has increased by c£800,000 we are providing another £200,000 tranche, expecting payment of this loan within 1-2 months. That's not terribly well-worded, is it? Are SS expecting to pay the £200k tranche to the borrower within 1-2mo? Have SS paid the tranche, and are expecting the borrower to pay the lot back within 1-2mo? savingstream - can you clarify, please? Had a reply , 200k will be released through SM. 6 months interest will be retained (not sure what that means) Unfortunately didnt answer the questions clarifying the loan term. My guess is repayment expected with 1-2m which would tie in with a 3 month extension.
|
|
adrianc
Member of DD Central
Posts: 9,669
Likes: 5,041
|
Post by adrianc on Apr 12, 2016 21:09:46 GMT
That's not terribly well-worded, is it? Are SS expecting to pay the £200k tranche to the borrower within 1-2mo? Have SS paid the tranche, and are expecting the borrower to pay the lot back within 1-2mo? savingstream - can you clarify, please? Had a reply , 200k will be released through SM. 6 months interest will be retained (not sure what that means) Unfortunately didnt answer the questions clarifying the loan term. My guess is repayment expected with 1-2m which would tie in with a 3 month extension. So the second tranche will be (or has been?) sold through the SM, and of the £200k, the borrower will get £200k less the 6mo interest. So far, so usual, except for the confusion over whether it will be or has been. But if the repayment's 1-2mo, on a 3mo extension, why retain 6mo interest...?
|
|
ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 11,231
Likes: 11,422
|
Post by ilmoro on Apr 12, 2016 21:24:28 GMT
Had a reply , 200k will be released through SM. 6 months interest will be retained (not sure what that means) Unfortunately didnt answer the questions clarifying the loan term. My guess is repayment expected with 1-2m which would tie in with a 3 month extension. So the second tranche will be (or has been?) sold through the SM, and of the £200k, the borrower will get £200k less the 6mo interest. So far, so usual, except for the confusion over whether it will be or has been. But if the repayment's 1-2mo, on a 3mo extension, why retain 6mo interest...? Email says 'will be added to existing loan' 'expecting payment' probably hedging their bets with the 6 months given the average overrun
|
|
|
Post by manxfinch on Apr 12, 2016 22:16:28 GMT
I'd invest in the quarry.
|
|
|
Post by bonfemme on Apr 13, 2016 6:19:32 GMT
I would definitely invest in the quarry - maybe it's not too late?
|
|