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 Feb 13, 2016 23:59:29 GMT
Thanks to both beechside and ilmoro . So to carry on with sunspot 's example... Lendy makes £100k 12-month loan. Borrower receives £78k and repays £102k (because of the 2% exit fee). So the APR to the borrower looks like 24/78 = 30.8% p.a. I'm glad I'm not paying that, but the borrowers apparently are willing to. I wish them success. The Lendy Ltd rate to borrowers is up to 1.5% monthly; it’s not a fixed rate for all borrowers However with all the additional fees, it does seem rather excessive I would imagine that for the larger loans, Lendy Ltd would have to reduce or eliminate some of their fees to remain competitive; I mean, SS aren’t going to cut off their nose to spite their face. £1/2 million gross profit from one transaction suggests their might be some scope for a reduction or two 
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Feb 14, 2016 0:03:09 GMT
The Lendy Ltd rate to borrowers is up to 1.5% monthly; it’s not a fixed rate for all borrowers However with all the additional fees, it does seem rather excessive I would imagine that for the larger loans, Lendy Ltd would have to reduce or eliminate some of their fees to remain competitive; I mean, SS aren’t going to cut off their nose to spite their face. £1/2 million gross profit from one transaction suggests their might be some scope for a reduction or two Maybe for the larger loans they can offer free coffee & biscuits at the meetings...... that would seal the deal. The smaller loans; £1/ coffee. SS is no charity after all 
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Liz
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Post by Liz on Feb 14, 2016 0:43:25 GMT
Should we be demanding 15% pa return?
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Feb 14, 2016 0:49:48 GMT
Should we be demanding 15% pa return? No. You have to remember that we get 12% with no overheads; whereas Lendy Ltd have an office, staff, legal fees, advertising fees and numerous other overheads. Besides this, a healthy profit means that Lendy Ltd is healthy, which only adds to the our own investments security.
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Liz
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Post by Liz on Feb 14, 2016 0:56:14 GMT
Should we be demanding 15% pa return? No. You have to remember we get 12% with no overheads, whereas Lendy Ltd have an office, staff, legal fees, advertising fees and numerous other overheads. Besides this, a healthy profit means that Lendy Ltd is healthy. This adds security to our own investments. It would help fill the loans, make the SM more liquid PS I was joking about the 15%. #hijackedthread
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Feb 14, 2016 1:00:59 GMT
No. You have to remember we get 12% with no overheads, whereas Lendy Ltd have an office, staff, legal fees, advertising fees and numerous other overheads. Besides this, a healthy profit means that Lendy Ltd is healthy. This adds security to our own investments. It would help fill the loans, make the SM more liquid PS I was joking about the 15%. #hijackedthreadDamn.... I think I took the bait, and feel you reeled me in like the docile fish I am
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freddy
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Post by freddy on Feb 14, 2016 2:10:45 GMT
Advance apologies to all if I am going over old ground but I can't help feel that SS may have a challenging couple of weeks ahead. There is currently 38+ million in the pipeline (assuming all go live) with 18+ million at stage 2. It has been indicated by SS that as well as the 7 million Bedfordshire Land about to be launched, the Wolsey loan is also imminent requiring a further 8 million funding. Given that the Wolsey deal has a more attractive LTV, I think it likely that pre-funding may be more heavily weighted in that direction and creating a difficulty around the launch of Bedfordshire. Add to that the Leatherhead and Wales deals ( also at more favourable LTVs) I can't help but wonder if Bedfordshire is struggling. Hopefully I'm wrong and the volume of 'Big Hitters' is sufficient to support all .......but I wonder!
Another thing that I've been mulling over is the influence of MT. From many of the posts on this forum it is evident that investors with SS also invest with MT. I think it was pretty smart of MT to publish their anticipated 'Go Lives' for Feb, March and April allowing investors with both platforms to make decisions on where their money may be placed. If SS launch 18million of loans over the next couple of weeks I don't think that investors can rely on a quick SM sale to fund any MT launches.
Im pretty much a novice when it comes to investment and acknowledge that many members here have far more experience and understanding that I have. What are your thoughts on the above?
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SteveT
Member of DD Central
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Post by SteveT on Feb 14, 2016 2:18:59 GMT
Advance apologies to all if I am going over old ground but I can't help feel that SS may have a challenging couple of weeks ahead. There is currently 38+ million in the pipeline (assuming all go live) with 18+ million at stage 2. It has been indicated by SS that as well as the 7 million Bedfordshire Land about to be launched, the Wolsey loan is also imminent requiring a further 8 million funding. Given that the Wolsey deal has a more attractive LTV, I think it likely that pre-funding may be more heavily weighted in that direction and creating a difficulty around the launch of Bedfordshire. Add to that the Leatherhead and Wales deals ( also at more favourable LTVs) I can't help but wonder if Bedfordshire is struggling. Hopefully I'm wrong and the volume of 'Big Hitters' is sufficient to support all .......but I wonder! Another thing that I've been mulling over is the influence of MT. From many of the posts on this forum it is evident that investors with SS also invest with MT. I think it was pretty smart of MT to publish their anticipated 'Go Lives' for Feb, March and April allowing investors with both platforms to make decisions on where their money may be placed. If SS launch 18million of loans over the next couple of weeks I don't think that investors can rely on a quick SM sale to fund any MT launches. Im pretty much a novice when it comes to investment and acknowledge that many members here have far more experience and understanding that I have. What are your thoughts on the above? Well the feedback from SS earlier in the week suggested the farmland loans were heavily oversubscribed, but there could have been some adjustments in recent days. I see it as a welcome diversification of asset class: not just another commercial unit or residential block. Hopefully arable land prices would be rather more stable in a crunch scenario (carrots and beets may be all we can afford to eat!) In terms of the upcoming pipeline, the tap can always be turned down a bit if needed or, more likely, if several big loans hit at once then we may see a welcome return of our old chum Mr C Ash-Back!
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Feb 14, 2016 2:36:56 GMT
Advance apologies to all if I am going over old ground but I can't help feel that SS may have a challenging couple of weeks ahead. There is currently 38+ million in the pipeline (assuming all go live) with 18+ million at stage 2. It has been indicated by SS that as well as the 7 million Bedfordshire Land about to be launched, the Wolsey loan is also imminent requiring a further 8 million funding. Given that the Wolsey deal has a more attractive LTV, I think it likely that pre-funding may be more heavily weighted in that direction and creating a difficulty around the launch of Bedfordshire. Add to that the Leatherhead and Wales deals ( also at more favourable LTVs) I can't help but wonder if Bedfordshire is struggling. Hopefully I'm wrong and the volume of 'Big Hitters' is sufficient to support all .......but I wonder! Another thing that I've been mulling over is the influence of MT. From many of the posts on this forum it is evident that investors with SS also invest with MT. I think it was pretty smart of MT to publish their anticipated 'Go Lives' for Feb, March and April allowing investors with both platforms to make decisions on where their money may be placed. If SS launch 18million of loans over the next couple of weeks I don't think that investors can rely on a quick SM sale to fund any MT launches. Im pretty much a novice when it comes to investment and acknowledge that many members here have far more experience and understanding that I have. What are your thoughts on the above? I think that the following quote from savingstream earlier on this thread will go some way in addressing the first part of your post And I think you have addressed your own thought in the second part of your post; users of SS may have one hand in MT, but they will still have the other hand in SS. When pipeline loans pop up on SS, I’m sure all SS will take note, whether or not they have delved into MT or not. Furthermore; what with further loans due to be paid back in the next month, it's not SS that will have a challenging couple of weeks ahead, it's us users trying to reinvest our money   !
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Post by sunspot on Feb 14, 2016 2:38:14 GMT
Predicting the future is tricky, doubly so where money is concerned. In fact...
There's a joke told at the Treasury, that far from being able to predict borrowing requirements years ahead, they cannot even predict the past, because all sorts of figures have to be reviewed several times before they're considered final - which typically takes at least three months.
As for SS, their track record on predictions during my time has been shocking! That's not a criticism, merely an observation. Indeed, they're caught somewhere between the devil and the deep blue sea, for on the one hand, investors are hungry for information, and on the other, they are dependant on other people (lawyers and surveyors to name but two). They also rely on potential borrowers being realistic, and I suspect some rate more highly than others in this regard.
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Feb 14, 2016 3:00:02 GMT
Predicting the future is tricky, doubly so where money is concerned. In fact... There's a joke told at the Treasury, that far from being able to predict borrowing requirements years ahead, they cannot even predict the past, because all sorts of figures have to be reviewed several times before they're considered final - which typically takes at least three months. As for SS, their track record on predictions during my time has been shocking! That's not a criticism, merely an observation. Indeed, they're caught somewhere between the devil and the deep blue sea, for on the one hand, investors are hungry for information, and on the other, they are dependant on other people (lawyers and surveyors to name but two). They also rely on potential borrowers being realistic, and I suspect some rate more highly than others in this regard. I think this is a tad harsh SS provide what information they feel is required to keep us, the investor, in the know. This includes a summery and a valuation report which enables us to do some amateur DD. The information on the pipeline loans could certainly be improved, however in the last couple of weeks (from listening to advice from us via this forum) the pipeline loans information has been vastly improved. Although we would always like more information to do our own DD; SS earn their money by doing all their own DD for us, and their professional opinion (backed up by all the legal measures that goes on behind the background) is worth far more than our amateur DD that we chuck about here! Remember that SS has only had a single default with every penny reclaimed; after 3 years of trading this would lead me to believe that SS own DD is pretty sound. Think about it; before P2P, to earn 12% we would have had to hand our money to a broker to invest, trusting their professional diligence to serve us well. No valuation documents, forums, SM or our own DD; we would have just left it to the broker.
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Post by savingstream on Feb 14, 2016 12:54:49 GMT
The val doc should be with us before '9am Monday morning'; painful this!
So, val comes in Monday morning, we put it up on the platform and release the 48 hours notice to go live, so we are looking at c Weds go live and hopefully simultaneous completion.
The loans are filled according to the prefunding data.
Wolsey valuation coming through, completion aiming for end of the week. Fully funded as well.
Leatherhead Surry detached house. End of the week or beginning of following. FF'd.
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Post by highlandtiger on Feb 14, 2016 14:09:28 GMT
The val doc should be with us before '9am Monday morning'; painful this! So, val comes in Monday morning, we put it up on the platform and release the 48 hours notice to go live, so we are looking at c Weds go live and hopefully simultaneous completion. The loans are filled according to the prefunding data. Wolsey valuation coming through, completion aiming for end of the week. Fully funded as well. Leatherhead Surry detached house. End of the week or beginning of following. FF'd. I had a feeling there was a lot of money out there waiting for loans to appear. It seems the prefunding data bears this out
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Feb 14, 2016 14:13:32 GMT
The val doc should be with us before '9am Monday morning'; painful this! So, val comes in Monday morning, we put it up on the platform and release the 48 hours notice to go live, so we are looking at c Weds go live and hopefully simultaneous completion. The loans are filled according to the prefunding data. Wolsey valuation coming through, completion aiming for end of the week. Fully funded as well. Leatherhead Surry detached house. End of the week or beginning of following. FF'd. Thanks for the update savingstream  Say; I hope you get some overtime pay, working on a Sunday !
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Investor
Member of DD Central
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Post by Investor on Feb 14, 2016 14:18:15 GMT
Or that too many people are still gaming the system and betting on SM liquidity to assist them in shifting any over commitment or making up the loss. Could be a very interesting week to see how savingstream deal with the 'players'. |
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