sqh
Member of DD Central
Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
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Post by sqh on Jul 7, 2015 11:18:53 GMT
Dear fundingsecureI would like to invest in this loan but the lack of information is deafening. Can we please have some details. What is the loan for ? What is the exit plan ? Is the Inn currently trading ? |
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merlin
Minor shareholder in Assetz and many other companies.
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Post by merlin on Jul 7, 2015 11:25:09 GMT
Having had a close look at the valuation and taking into account the current state of the pub trade and an LTV of around 75%, I might just put a £100 put into this one but not a penny more. A further problem here is the lack of a secondary market which allows one to dump and run if one gets nervous!
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bugs4me
Member of DD Central
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Post by bugs4me on Jul 7, 2015 12:13:45 GMT
Dear fundingsecureI would like to invest in this loan but the lack of information is deafening. Can we please have some details. What is the loan for ? What is the exit plan ? Is the Inn currently trading ? 25.3 in the valuation report - '....trading had ceased some weeks prior to our inspection....' So I suppose you're just looking at a bricks and mortar value rather than a going concern ATM
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mikes1531
Member of DD Central
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Post by mikes1531 on Jul 7, 2015 14:43:39 GMT
What is the loan for ? What is the exit plan ? I think the intention is to refurbish the pub and reopen it. According to the VR, someone -- borrower? introducer? -- has indicated that £50k would be needed for that, but the valuer has indicated they think that amount would be insufficient. I haven't a clue whether the borrower has any experience in such endeavours. Or why the pub stopped trading. Or whether the borrower has a business plan. I don't think the seemingly rural location will make creating a successful pub easy. As for exiting the bridging loan, the borrower would need either to sell the property once it's done up and operating again, or refinance it. Both of those ideas probably require it to be a going concern, and I haven't a clue how much operating history would be needed before those options might become possible. (A six-month loan doesn't seem to me to be long enough to accomplish that.) Until the borrower has a successful business operating, IMHO they'll struggle to sell it for even the bricks & mortar value because if a re-opening hasn't been a success then it probably would need planning permission for a change of use, and that tends to be a long drawn-out process. In view of the above, 12% interest on a 75% LTV loan doesn't look particularly attractive.
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SteveT
Member of DD Central
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Post by SteveT on Jul 7, 2015 15:10:31 GMT
Section 28.2 in the VR says "The letting rooms on the first floor will also be refurbished with bookings being handled by your customer's other property, [redacted]".
Has there perhaps been another FS loan previously to a pub or hotel operator in that part of the world?
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ilmoro
Member of DD Central
'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 Jul 7, 2015 17:11:22 GMT
Section 28.2 in the VR says "The letting rooms on the first floor will also be refurbished with bookings being handled by your customer's other property, [redacted]". Has there perhaps been another FS loan previously to a pub or hotel operator in that part of the world? Wasnt there a pub in Bristol a month or so back. Dont have access to my list of FS loans (dont hold)
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mikes1531
Member of DD Central
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Post by mikes1531 on Jul 7, 2015 20:53:49 GMT
Section 28.2 in the VR says "The letting rooms on the first floor will also be refurbished with bookings being handled by your customer's other property, [redacted]". Has there perhaps been another FS loan previously to a pub or hotel operator in that part of the world? Wasnt there a pub in Bristol a month or so back. Dont have access to my list of FS loans (dont hold) I may be jumping to unwarranted conclusions, but my reading of the VR made me think that the 'requester' wasn't FS but an intermediary -- why redact the FS name? -- such as an introducer or broker. I took the 'customer' to be the borrower, so I presumed the borrower had another property. But I saw nothing to suggest that the borrower had a previous relationship with FS. If they did, then I would have expected FS to mention it in the loan particulars -- I believe they've done that on other occasions where the borrower had previously had a loan from FS, whether it still was outstanding or already had been paid off.
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SteveT
Member of DD Central
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Post by SteveT on Sept 15, 2015 16:32:15 GMT
The first of the Somerset public house loans appears to have been repaid early.
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paulgul
Member of DD Central
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Post by paulgul on Sept 15, 2015 17:07:12 GMT
The first of the Somerset public house loans appears to have been repaid early. Thanks, I hadn't noticed that - funds now re-invested 
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mikes1531
Member of DD Central
Posts: 6,453
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Post by mikes1531 on Sept 15, 2015 17:17:42 GMT
The first of the Somerset public house loans appears to have been repaid early. Thanks, I hadn't noticed that - funds now re-invested With £490k coming back into FS lenders' accounts from this early repayment, it won't take much reinvestment -- about 30% -- to completely fill all of the FS loans currently available. Not to mention the piano auction we're expecting on Thursday. If anyone is dithering over whether or not to invest in any of the available loans... the decision time is here and now! 
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