coop
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Post by coop on Jun 18, 2015 11:20:45 GMT
...a truly worthwhile investment/flipping opportunity in weeks! Even the massive loans aren't ending with high enough rates to justify more than a token investment. Take 13428, £260k, A rated; 5 hours left and the top bid is already only 11%. There's 8 A rated loans on the SM for 11% or better; and if you want to flip it's even worse! One would need to offer a £20 loan part at 10.4% to be in the best 20 available loan rates in the A band; leaving a miniscule profit for the original buyer once seller fee is taken into account. And this is on a £260k loan! Anything less than £100k is completely unattractive and even the big loans offer nothing special in terms of rates anymore.  Rant over! |
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Post by GSV3MIaC on Jun 18, 2015 13:07:50 GMT
You're an optimist ... personally I'd expect to sell an A at 11%, although I might 'fly a kite' at 10.7 or 10.8%, so obviously buying one at 11% with a view to rapid resale is not going to work. There are still a (very) few early closers where you can score a good rate, but as you say, most auctions which run to completion are well down. A lot of the problem was the 'property loan' As offered at fixed rate 11% with CB or 12%, which definitely spiked the rate for As skyward some, and dragged the other rates along for the ride.
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coop
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Post by coop on Jun 18, 2015 13:15:21 GMT
Yeah I don't have the time/money/patience to fish for early closers. Only have a few hundred available and would want to be buying 5+ parts of each loan to make any success worthwhile; meaning ideally I would need £1000+ and a lot of time on my hands!
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am
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Post by am on Jun 18, 2015 14:01:47 GMT
I sold a couple of A loan parts for 6.9% recently, to free up a bit of money for a property loan. (Old parts with less than £10.00 outstanding, and 9 months to go, so I guess it was someone looking for a high-diversity, low duration, portfolio.)
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TitoPuente
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Post by TitoPuente on Jun 18, 2015 15:44:29 GMT
There is an ever increasing amount of dumb money coming in to P2P platforms seeking yield and low correlation with other asset classes. I say dumb money because I cannot get my head around how someone can bid 6-7% (after fees) for any unsecured loan, even if diversification is considered as the Holy Grail of downside protection.
It's a market and we'll see what happens when the results after fees and bad debt come in the sub 5% range and interest rates start to go up.
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coop
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Post by coop on Jun 18, 2015 15:47:27 GMT
Personally I think anything single-digit and unsecured is pish-poor.
I know MT hasn't got many loans at the moment but if I can get 12% secured there why would I settle for 7-9% for a company which could go bust tomorrow with no security? Makes no sense to me; even if they're A++++ rated or whatever; people lie cheat and steal all the time as many here have found to their detriment.
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Post by longjohn on Jun 18, 2015 17:44:13 GMT
Get your teeth into this one - 13616. £416,680 A+ All asset security. Wonder if they'll take the money as soon as it's filled?
John
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agent69
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Post by agent69 on Jun 18, 2015 18:24:07 GMT
Get your teeth into this one - 13616. £416,680 A+ All asset security. Wonder if they'll take the money as soon as it's filled? John Am I reading this one correctly? Turnover down by 1/3 in the last year. £416k loan with security as a second charge on a building last valued at £900k with a £440k prior charge. Doesn't appear to leave much room for manoeuvre
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am
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Post by am on Jun 18, 2015 19:41:55 GMT
Get your teeth into this one - 13616. £416,680 A+ All asset security. Wonder if they'll take the money as soon as it's filled? John Am I reading this one correctly? Turnover down by 1/3 in the last year. £416k loan with security as a second charge on a building last valued at £900k with a £440k prior charge. Doesn't appear to leave much room for manoeuvre According to the Q&A there's £700,000 in stocks (which raises the question as to why they want to increase their stocking levels) included in the security, as well as some vehicles and so on. In the event of corporate failure would we come in ahead of trade creditors?
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coop
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Post by coop on Jun 19, 2015 9:20:55 GMT
Am I reading this one correctly? Turnover down by 1/3 in the last year. £416k loan with security as a second charge on a building last valued at £900k with a £440k prior charge. Doesn't appear to leave much room for manoeuvre According to the Q&A there's £700,000 in stocks (which raises the question as to why they want to increase their stocking levels) included in the security, as well as some vehicles and so on. In the event of corporate failure would we come in ahead of trade creditors? Shift it after a few months and you'll never have to find out!
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coop
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Post by coop on Jun 19, 2015 9:47:50 GMT
Get your teeth into this one - 13616. £416,680 A+ All asset security. Wonder if they'll take the money as soon as it's filled? John Despite what I said about fishing for closers earlier; I'll take a punt on this one. Just about to fill at an average rate of 10.6%; don't think it would get past 9% avg if they left it the whole week and it seems like they might need the money! EDIT: Too late; the bidding war between the big digger and bazza has begun!
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Post by Deleted on Jun 19, 2015 10:03:45 GMT
too big a loan, the trick to this sort of business is cash and stock management and they are going the wrong way, walked away  |
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coop
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Post by coop on Jun 19, 2015 10:21:59 GMT
Closed early; got £200 in at 14.6%.
Anyone manage 14.7%??
Looks lik most of the 14.7% was Baz & the Russian. Poor digger didn't get a sniff in the end!
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oldgrumpy
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Post by oldgrumpy on Jun 19, 2015 10:29:53 GMT
My 14.8% speculations disappeared!  ..... maybe a good thing. It makes me wary when a so-called A+ (says Filigreed Crochet) company wants so much cash so urgently that it closes the auction almost immediately the loan is funded, at 10.7%, rather than wait a while for something nearer 9%. One to watch, methinks. |
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Post by goldservice on Jun 19, 2015 10:36:59 GMT
Get your teeth into this one - 13616. £416,680 A+ All asset security. Wonder if they'll take the money as soon as it's filled? John Did you know something? Should I be looking out for your future tips?!
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