acky
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Post by acky on Dec 16, 2015 15:57:00 GMT
How do these Faltering Chimpanzee A+ property development loans offering 7% (after fee) + varying cashback, compare with AC loans in the same sector? I ask, because some people are very critical, possibly unfairly, when AC "only" offer 9-10% for similar deals. Opinions? Probably about 50% of the loans I invested in with AC when I dipped my toe in their bath of acid earlier this year had some sort of problem. I'm optimistic about getting my investment back (any net interest would be a bonus), but I can't wait to get out of that platform. I also found their website much harder to use than FC and they had far fewer loans available. Not worth the effort really.
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bigfoot12
Member of DD Central
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Post by bigfoot12 on Dec 16, 2015 16:01:16 GMT
How do these Faltering Chimpanzee A+ property development loans offering 7% (after fee) + varying cashback, compare with AC loans in the same sector? I ask, because some people are very critical, possibly unfairly, when AC "only" offer 9-10% for similar deals. Opinions? Probably badly, but there are lots of them! It doesn't matter how secure AC is if your maximum allocation is £39.40. Whilst AC is my favourite platform in many ways, about three months ago I got fed up with the lack of new loans. I have removed a significant fraction of my investment from AC. Some of that has gone to FC. In less than three months I have rejected many property loans, but I have invested in 55. Some are as low as you suggest, but some are as high as 9% after fees with 2% cashback. Regarding the 7% (after fees) plus cashback, my plan is to sell my holding after an average of about 6 months thus if all goes well my interest rate should be somewhere close to 9% (after fees). Nothing I have seen makes me think that FC do a particularly good job with security or documentation or anything (other than volume) but I don't have any evidence that they do a poor job either. I think AC do a particularly good job regarding most of that. But neither have been tested. It is hard to know if the borrower risks are higher or lower with either. If in the new year I see that AC has multiple new loans each week I will return. Crossed with acky
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acky
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Post by acky on Dec 16, 2015 16:06:51 GMT
18304 (Peterborough 3) 1% Cashback added Funny call by Fiddling Cashbacks. The loan would have easily filled without. They must want to draw down quickly but the CB's not made much difference yet, which is unsurprising as 1% is not enough to attract many flippers on a loan that's got more than a million quid out there. I think my daughter's inheritance will stay in greenbacks for a little longer.
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jayjay
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Post by jayjay on Dec 16, 2015 16:37:38 GMT
18304 (Peterborough 3) 1% Cashback added Funny call by Fiddling Cashbacks. The loan would have easily filled without. They must want to draw down quickly but the CB's not made much difference yet, which is unsurprising as 1% is not enough to attract many flippers on a loan that's got more than a million quid out there. I think my daughter's inheritance will stay in greenbacks for a little longer.
Sorry crossed on the other thread. What was the point of that CB? It has barely budged. £2675 well spent I should say.
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acky
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Post by acky on Dec 29, 2015 15:17:57 GMT
How about a sweep for when the first 2% CB of 2016 will appear? I'll put a defaulted £20 A+ loan part on Property Development in Southampton Essex 2 on January 26th.
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SteveT
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Post by SteveT on Jan 6, 2016 11:49:09 GMT
Here's one to test how much post-Xmas Autobinge cash is stacked up in Fat Chests currently: 18755 A+ £486k, 18 months at 8% with no CB (1st tranche of £1.65m)
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sl75
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Post by sl75 on Jan 6, 2016 12:47:35 GMT
Here's one to test how much post-Xmas Autobinge cash is stacked up in Fat Chests currently: 18755 A+ £486k, 18 months at 8% with no CB (1st tranche of £1.65m) If autobid has been working "properly" there'll not be a huge amount of capacity, as the loan is linked on the platform to 3 tranches of another property development totalling over £1.1M, parts of which remain widely available at or below par on the SM, so most autobid users will have had an opportunity to get a slice of exposure to that borrower already, either in the original auctions or in subsequent loan part sales. Still, given the traditional new year glut of funds looking for a home, you can't blame them for trying - it might even work!
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bigfoot12
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Post by bigfoot12 on Jan 6, 2016 12:59:12 GMT
Here's one to test how much post-Xmas Autobinge cash is stacked up in Fat Chests currently: 18755 A+ £486k, 18 months at 8% with no CB (1st tranche of £1.65m) I got very excited when I saw this thread pop up. 6% of loan sold in less than 1% of the time. Not looking good; hopefully law of diminishing returns will kick in.
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sl75
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Post by sl75 on Jan 8, 2016 12:39:32 GMT
Still, given the traditional new year glut of funds looking for a home, you can't blame them for trying - it might even work! ... and indeed given that it's 70% funded already, with nearly 5 days on the clock, it seems that it has worked. Another statistic I've been vaguely tracking over the last few days has been the number of loan parts visible on the marketplace and offered at or below par. This has been rapidly falling, and as of right now, I see 600 pages (at 50 per page) of them. This compares to about 770 pages of them on Monday, and I vaguely recall seeing a number in excess of 1500 last month. If the current trend continues, there'll soon be none left. In past years (before there became a market expectation of more cashback), it had been the "normal" case that the secondary market had only the least attractive loan parts remaining for sale at par, and discounts were practically unheard of (even a 0.5% discount would result in a near instant sale to someone willing to hold it until it sold at par). It seems to me that if this "normality" returns, it'll also pretty much make sure that autobid users don't get fully invested the moment they add funds, thereby creating further available funds trying to get invested in the PM. I suspect that going forwards, FC should be able to avoid the need for cashbacks, as there'll be hundreds (or thousands) of autobid users all waiting to get a piece of the next loan as soon as they are permitted to do so (subject to 50% rule during first 2 days).
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