ben
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Post by ben on Mar 24, 2016 18:58:35 GMT
If you do your own research into each loan and only invest in the loans you fell are solid it does not really matter to much about the platform (except for fraud), if the platform goes under the asset and loan is still there. It makes no difference if the platform has 2 staff or 50 staff if you do your own research into each loan. How many staff did Lloyd, HSBC etc have and they still managed to lose billions, invest in the loan not that you are comftable keeping if for whatever reason the borrower can not pay back (and some you will lose on if it was guaranteed everyone would lend)
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brin
I am trying to stay calm.
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Post by brin on Mar 24, 2016 19:09:46 GMT
SS and FS have seen some substantial growth over a short period of time, is it good to grow that fast? This is an e-mail i got today from FS. Basically, loads of stuff not moving and their pipeline is packed full. They are now actively searching for investors. FundingSecure Earn "Eggs"tra Interest this Easter! Wishing you a Happy Easter from all at FundingSecure! We currently have a number of loans on offer on the platform. Many of the loans are already paying interest. If you invest now the interest will be paid from the dates shown, in many cases this will mean earning extra, backdated interest. The full details are available on the web site, but a summary is listed below to help you decide. As always we would recommend investing in multiple loans to diversify your holdings. PLEASE NOTE: OUR OFFICE WILL BE CLOSED ON THE 25TH AND THE 28TH OF MARCH. DEPOSITS AND WITHDRAWALS WILL BE PROCESSED HOWEVER THERE MAY BE SLIGHT DELAYS. Loans Currently Available Description Available LTV Interest Rate Interest paid from Link to Loan (must be logged in) Streatham Property £71,850 70% 12% 24th March 1443406119 Property in Hillingdon £480,000 48% 12% N/A 1181613562 Property in Knaresborough £85,975 70% 15% N/A 1223006016 Property in Whitehaven £15,350 70% 12% 22nd March 7168800792 Unsecured Loan £9,075 N/A 15% 9th March 1089233557 BTL in Derry £20,100 50% 12% 24th March 1799266330 Plymouth Hotel £109,275 68% 12% Base 13% £10K+ 14% £25k+ 15% £50k+ 16% £100k+ 22nd March 2918585401 Norfolk Farm £21,400 70% 12% Base 13% £10K+ 14% £25k+ 15% £50k+ 17th March 1659874045 Farm in Carmarthenshire £232,875 31% 11% N/A 5401447475 Property in Mark, Somerset £29,700 70% 12% 18th March 6712763837 Property in Wookey, Wells £160,000 69% 12% Available 25/03 1824403238 FUNDING SECURE. Who wold have thought six months ago that FS would be sending out begging letters.  |
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SteveT
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Post by SteveT on Mar 24, 2016 19:12:52 GMT
AC sent out something similar this afternoon, advertising availability across 60 different loans. There's a sector-wide glut of new loans at the moment!
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ben
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Post by ben on Mar 24, 2016 19:15:14 GMT
To many loans and probably quite a few people hanging around to see what happens in next few weeks
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brin
I am trying to stay calm.
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Post by brin on Mar 24, 2016 19:18:10 GMT
AC sent out something similar this afternoon, advertising availability across 60 different loans. There's a sector-wide glut of new loans at the moment! I agree, i mentioned as many others did in the funding (in) secure thread that i felt that FS's model was not suited to this type of market, and they would struggle to find investors who were willing to invest the large amounts they need and that coupled with a badly modeled and stagnant SM and no interest until the loan is repaid. Me thinks FS might have to do some restructuring in the VERY near future.
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ben
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Post by ben on Mar 24, 2016 19:24:20 GMT
AC sent out something similar this afternoon, advertising availability across 60 different loans. There's a sector-wide glut of new loans at the moment! I agree, i mentioned as many others did in the funding (in) secure thread that i felt that FS's model was not suited to this type of market, and they would struggle to find investors who were willing to invest the large amounts they need and that coupled with a badly modeled and stagnant SM and no interest until the loan is repaid. Me thinks FS might have to do some restructuring in the VERY near future. I agree that I do not like the model at the moment but they did not struggle to begin with I think at the moment it has been too many some days there has been 4 and lets be honest how much research can they and others do on that amount. I have only put small amounts into each one as I do not have time to look at them all, I have gone for the diversify option but I would not be willing to put large amounts like I do in some loans on other sites after I have had a proper read of the documents
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bob76
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Post by bob76 on Mar 24, 2016 19:39:16 GMT
It makes no difference if the platform has 2 staff or 50 staff I think it does, in term of legal due diligence, proper review and assessment of the borrowers and securities, and IT, for instance. At least, the difference between having 3 people working from home, and a team of 20 permanent people in a proper office. If the main database of loan parts gets corrupted/hacked, and they don't have reliable backups, or if they lose your personal details/data, you will soon know the difference it makes to you as an individual... Apart from what is displayed on the various websites, do you have proof/paperwork of the loan parts you own? That's the difference between having a proper IT team in place and processes, or having one guy trying to do it all (who can't be expected to have expertise in all fields)...
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ben
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Post by ben on Mar 24, 2016 19:49:14 GMT
It makes no difference if the platform has 2 staff or 50 staff I think it does, in term of legal due diligence, proper review and assessment of the borrowers and securities, and IT, for instance. If the main database of loan parts gets corrupted/hacked, and they don't have reliable backups, or if they lose your personal details/data, you will soon know the difference it makes to you as an individual... Apart from what is displayed on the various websites, do you have proof/paperwork of the loan parts you own? That's the difference between having a proper IT team in place and processes, or having one guy trying to do it all (who can't be expected to have expertise in all fields)... There is countless examples of large companies losing personal details unfortunately if someone wants to hack a system they will or of people being careless with it and losing it anyway
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bob76
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Post by bob76 on Mar 24, 2016 20:17:02 GMT
Well, I think it's quite obvious that having a team of specialist resources in various areas would be better than having a few people trying to do everything.
I am assuming your GP always has the answer you need, and he/she never refers you to a specialist for medical issues? Fewer people with many broader skills is better, right?
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jonah
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Post by jonah on Mar 24, 2016 20:22:56 GMT
I think it does, in term of legal due diligence, proper review and assessment of the borrowers and securities, and IT, for instance. If the main database of loan parts gets corrupted/hacked, and they don't have reliable backups, or if they lose your personal details/data, you will soon know the difference it makes to you as an individual... Apart from what is displayed on the various websites, do you have proof/paperwork of the loan parts you own? That's the difference between having a proper IT team in place and processes, or having one guy trying to do it all (who can't be expected to have expertise in all fields)... There is countless examples of large companies losing personal details unfortunately if someone wants to hack a system they will or of people being careless with it and losing it anyway Whilst I agree with both of the above... I do think that having some resilience in terms of personnel is a good thing. I've recently increased my investment in MT for example, but only to a specific platform limit. When I considered what that limit was I took into account the apparent size of the work force including the IT department. Excellent people there from what I've seen and experienced, but limited in numbers. So I tweaked down my platform limit accordingly. If and when the platform continues its impressive growth and matches that with (sensible, as needed) personnel growth, I'll tweak up that platform limit.
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homes119
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Post by homes119 on Mar 24, 2016 20:28:31 GMT
It makes no difference if the platform has 2 staff or 50 staff I think it does, in term of legal due diligence, proper review and assessment of the borrowers and securities, and IT, for instance. At least, the difference between having 3 people working from home, and a team of 20 permanent people in a proper office. If the main database of loan parts gets corrupted/hacked, and they don't have reliable backups, or if they lose your personal details/data, you will soon know the difference it makes to you as an individual... Apart from what is displayed on the various websites, do you have proof/paperwork of the loan parts you own? That's the difference between having a proper IT team in place and processes, or having one guy trying to do it all (who can't be expected to have expertise in all fields)... I agree, loan choice is very important but so is the platform. I am quite concerned that some platforms (relatively big ones as well) don't even give you access to the contracts between you and the borrowers. That's a potential risk. What happends if the website goes down? How do you prove you've got a stake in the loan when you have never even seen the contract? Good luck with those Excel exports! (if you regularly download and file them)
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brin
I am trying to stay calm.
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Post by brin on Mar 24, 2016 20:35:19 GMT
There is countless examples of large companies losing personal details unfortunately if someone wants to hack a system they will or of people being careless with it and losing it anyway Whilst I agree with both of the above... I do think that having some resilience in terms of personnel is a good thing. I've recently increased my investment in MT for example, but only to a specific platform limit. When I considered what that limit was I took into account the apparent size of the work force including the IT department. Excellent people there from what I've seen and experienced, but limited in numbers. So I tweaked down my platform limit accordingly. If and when the platform continues its impressive growth and matches that with (sensible, as needed) personnel growth, I'll tweak up that platform limit. I fully agree with this analogy, at the moment i invest fairly heavily on three platforms, MT, FS and SS in that order, where the weight of investment lies also in that order. My opinion on the three at the moment is MT are looking like a good company and growing slow enough to be able expand as needed with regards to staffing. FS on the other hand are expanding at a rapid rate with major tweaks needed to its model, and SS seem to be where the rest should aspire to be.
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rookey123
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Post by rookey123 on Mar 24, 2016 21:27:44 GMT
I'm starting to put more into FS. Interest being paid at the end doesn't bother me so much as they are only 6mth loans. For the same reason the secondary mkt is not so important for me as I look to hold to maturity. Their interest spread of 10-15% holds in my view some very interesting opportunities from wildly risky to very low LTV first charge loans. I'm happy with the flow as they have had to take the max investment away from the majority of new loans. I see nowhere else at the moment where I can get 10-12% with an LTV of 50% or lower with no cap.
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shimself
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Post by shimself on Mar 25, 2016 10:20:26 GMT
Well, I think it's quite obvious that having a team of specialist resources in various areas would be better than having a few people trying to do everything. I am assuming your GP always has the answer you need, and he/she never refers you to a specialist for medical issues? Fewer people with many broader skills is better, right? Far better to have one GP than having to explain everything yet again to the other other partner or locum. Then get passed on to specialists when required In the same way software is better done by a very small team who know everything as long as they are suitably skilful of course. Taking MT as an example, fixes happen same day sometimes. Try doing that in a team when you need 10 signatures to change anything, and where the main driver is holding on to your job as opposed to identifying and delivering customer benefits. TC had three(?) external developers, an in house tidier upper and a supposedly savvy director. Changes were very slow in coming and the website is still monstrously unhelpful and sometimes s l o w. AC have probably the best website now (though I do think Chris is not alone)
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Post by Deleted on Mar 25, 2016 11:07:43 GMT
my concern with SS is that in the new contracts they don't have any skin in the game.
I guess our real focus should be on business model and balance sheet/resilience to a downturn. FC's model seems to be charge the lender and is too near a banker's charges for me hence I'm rolling out of there. SS has a clear model and experience, FS has struggled to find a niche but is settling down into smaller/medium sized property, MT likes to find new niches on a regular basis and has a history in the lending business, I dislike AC's business model but they have all the wind farms so will probably withdraw but only in the next 3 years
My concerns on cost management are pretty simple. Keep your IT simple and your IT costs will not be an issue. When you look at how clumsy two of these sites are you can put it down to just too much complexity and that will bite them in the a### one day. On the other hand if you keep IT small you have to keep it simple and you can be agile in the market place.
I have a lovely model somewhere about how "bureaucracy is a fungus" that grows where ever it can so you have to kill it all the time. Some of these portals have already grown a good mold (they will argue that they haven't but any good lean manager will be startled how our money is being wasted).
Too many loans! I don't see that as a problem, I'm not here for the short term, I have filled my limit and find having loads of choice perfect to keep my "loan efficiency up", today for example I had <£3 un-invested across a 6 figure sum and have achieved that consistently for the past 3 months.
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