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Post by savingstream on Feb 10, 2016 22:02:00 GMT
Its a farm, a very productive and highly considered one at that and that is how we have approached this loan not as some speculative planning game. We are lending to them on an agricultural valuation where the upside is potentially massive but that is of secondary consideration to the primary valuation - carrots and cabbages, lots of them...
Our risk is £7k per acre x 850+ of productive grade 2 arable land near Bedford/Cambridge etc. The reason we have split the loans into a number of tranches is to facilitate easier disposal if necessary.
At the moment, looking at pre-funding levels, everyone on here will be very surprised at the demand i.e it is very high. Luckily the Wolsey loans are coming through as well, probably towards the end of next week, possibly week after.
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Feb 10, 2016 22:03:55 GMT
Its a farm, a very productive and highly considered one at that and that is how we have approached this loan not as some speculative planning game. We are lending to them on an agricultural valuation where the upside is potentially massive but that is of secondary consideration to the primary valuation - carrots and cabbages, lots of them... Our risk is £7k per acre x 850+ of productive grade 2 arable land near Bedford/Cambridge etc. The reason we have split the loans into a number of tranches is to facilitate easier disposal if necessary. At the moment, looking at pre-funding levels, everyone on here will be very surprised at the demand i.e it is very high. Luckily the Wolsey loans are coming through as well, probably towards the end of next week, possibly week after. Thanks for the update savingstream ; you're really on the ball today!  Any chance of seeing the valuation documents before the loan goes live?
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ben
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Post by ben on Feb 10, 2016 22:07:50 GMT
Its a farm, a very productive and highly considered one at that and that is how we have approached this loan not as some speculative planning game. We are lending to them on an agricultural valuation where the upside is potentially massive but that is of secondary consideration to the primary valuation - carrots and cabbages, lots of them... Our risk is £7k per acre x 850+ of productive grade 2 arable land near Bedford/Cambridge etc. The reason we have split the loans into a number of tranches is to facilitate easier disposal if necessary. At the moment, looking at pre-funding levels, everyone on here will be very surprised at the demand i.e it is very high. Luckily the Wolsey loans are coming through as well, probably towards the end of next week, possibly week after. looking at the pre-funding levels do you think there is more then enough to cover it? if more approximately what percentage do you think we may get
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ilmoro
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'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 10, 2016 22:11:43 GMT
Its a farm, a very productive and highly considered one at that and that is how we have approached this loan not as some speculative planning game. We are lending to them on an agricultural valuation where the upside is potentially massive but that is of secondary consideration to the primary valuation - carrots and cabbages, lots of them... I await the section in the valuation on the risk of rabbits & slugs to the value of the security   
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Post by savingstream on Feb 10, 2016 22:19:02 GMT
Its a farm, a very productive and highly considered one at that and that is how we have approached this loan not as some speculative planning game. We are lending to them on an agricultural valuation where the upside is potentially massive but that is of secondary consideration to the primary valuation - carrots and cabbages, lots of them... Our risk is £7k per acre x 850+ of productive grade 2 arable land near Bedford/Cambridge etc. The reason we have split the loans into a number of tranches is to facilitate easier disposal if necessary. At the moment, looking at pre-funding levels, everyone on here will be very surprised at the demand i.e it is very high. Luckily the Wolsey loans are coming through as well, probably towards the end of next week, possibly week after. looking at the pre-funding levels do you think there is more then enough to cover it? if more approximately what percentage do you think we may get The risk of letting on how much is in the prefunding pot is that we will start to see games again. We are tempted to do the "bottom up" allocation over all the loans going forward which should be quite fair and stop people playing the system. Appreciate thoughts on that?
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ben
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Post by ben on Feb 10, 2016 22:21:57 GMT
looking at the pre-funding levels do you think there is more then enough to cover it? if more approximately what percentage do you think we may get The risk of letting on how much is in the prefunding pot is that we will start to see games again. We are tempted to do the "bottom up" allocation over all the loans going forward which should be quite fair and stop people playing the system. Appreciate thoughts on that? That would suit me but then I only plan on having about £1000 to £1500 in each loan and would guess this would not suit others who wanted more
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stevio
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Post by stevio on Feb 10, 2016 22:29:40 GMT
looking at the pre-funding levels do you think there is more then enough to cover it? if more approximately what percentage do you think we may get The risk of letting on how much is in the prefunding pot is that we will start to see games again. We are tempted to do the "bottom up" allocation over all the loans going forward which should be quite fair and stop people playing the system. Appreciate thoughts on that? I don't understand why you make a simple system, more complicated? Pre-funding used to be you ask for something and if not available, everyone gets equal percentage. Why should you bias that towards smaller investors? If people do 'overgame' it, the money normally ends up on the secondary market almost immediately anyway, so don't see the harm
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KoR_Wraith
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Post by KoR_Wraith on Feb 10, 2016 22:39:40 GMT
looking at the pre-funding levels do you think there is more then enough to cover it? if more approximately what percentage do you think we may get The risk of letting on how much is in the prefunding pot is that we will start to see games again. We are tempted to do the "bottom up" allocation over all the loans going forward which should be quite fair and stop people playing the system. Appreciate thoughts on that? I think it the fairest model. Have you considered a passive investment approach for the SM? I find Assetz Capital's system much preferable to the fastest-finger-first arrangement.
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Post by highlandtiger on Feb 10, 2016 22:44:44 GMT
The risk of letting on how much is in the prefunding pot is that we will start to see games again. We are tempted to do the "bottom up" allocation over all the loans going forward which should be quite fair and stop people playing the system. Appreciate thoughts on that? I don't understand why you make a simple system, more complicated? Pre-funding used to be you ask for something and if not available, everyone gets equal percentage. Why should you bias that towards smaller investors? If people do 'overgame' it, the money normally ends up on the secondary market almost immediately anyway, so don't see the harm I expect that there are a great more smaller investors than big ones. It always pays to keep the majority happy. After all, a happy smaller investor may in time become a larger investor. On the other hand a large investor very rarely becomes a ginormous investor
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Monetus
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Post by Monetus on Feb 10, 2016 22:46:52 GMT
looking at the pre-funding levels do you think there is more then enough to cover it? if more approximately what percentage do you think we may get The risk of letting on how much is in the prefunding pot is that we will start to see games again. We are tempted to do the "bottom up" allocation over all the loans going forward which should be quite fair and stop people playing the system. Appreciate thoughts on that? As an (admittedly somewhat biased) fairly sizeable investor in SS I would be against this proposal. I think the pre-funding system works great currently and there is no need to add further complexity. The only reason demand is so crazy right now is just that the pipeline has been so dry for so long due to Xmas etc. The "bottom up" system certainly makes sense on the smaller loans but I think you also have to take into consideration the appeal of SS for currently for larger investors who are looking to lock away bigger sums. The ease of being able to invest substantial chunks at a time efficiently is the main appeal of the platform for me right now. If I constantly had difficulty investing larger sums then that would definitely take some of the shine off the platform - at least for me.
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dawn
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Post by dawn on Feb 10, 2016 23:06:31 GMT
looking at the pre-funding levels do you think there is more then enough to cover it? if more approximately what percentage do you think we may get The risk of letting on how much is in the prefunding pot is that we will start to see games again. We are tempted to do the "bottom up" allocation over all the loans going forward which should be quite fair and stop people playing the system. Appreciate thoughts on that? I think the system is fine as it is, I like the fact that is (in the main) simple - please don't make it any more complex that it needs to be. The introduction of bottom-up allocations for small loans was a good move to give everyone a fairer chance. I don't think it is necessary for the larger loans and will probably upset more people than it helps. I also think the introduction of bidding limits based on portfolio size (plus cash) was a sensible move - helping to reduce overgaming by some. If you have a large portfolio then you should be able to bid more than some-one with a smaller portfolio as you clearly have the assets to support your bid (albeit by selling things if necessary or bringing in extra cash from outside). I think these two steps are enough for now. The main problem over the last couple of months has been the blockage in the pipeline. Now that this is beginning to move things should ease both for pre-funding and on the SM. I suggest SS do nothing until after the pipeline is flowing freely again and then assess whether there is still a problem.
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ben
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Post by ben on Feb 10, 2016 23:07:58 GMT
I think if pipeline comes through we be all complaining that we can not sell on secondary market
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adrianc
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Post by adrianc on Feb 10, 2016 23:11:59 GMT
Which is "simpler"? Two systems for pre-funding, split at an arbitrary and fairly low value? Or one consistent system for pre-funding? Percentages got RIDICULOUSLY gamed - yet they're still in place for £1m+ loans. TBH, I wish that savingstream hadn't said there's plenty of PF in place for these - it just increases the likelihood of gaming. |
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Feb 10, 2016 23:12:59 GMT
I think if pipeline comes through we be all complaining that we can not sell on secondary market Inevitably, there will always be something to complain about; and if there is something to complain about, someone will complain! Seriously savingstream ; I think you should leave the system (SM & Pipeline) as it is. By changing it you will be pleasing the few, but risk upsetting the many! The system works just fine.
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jamesc
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Post by jamesc on Feb 10, 2016 23:21:10 GMT
To change now would be a mistake, the current system favours the smaller investors on the small loans the big players should be allowed to bid large on the larger loans and get big allocations because without them the £3mln plus loans would be difficult to shift. Only three months ago the pre fund was only £3mlnish and you would be adding CB to shift this loan. You clearly know more than we do and maybe there are some really massive bids possibly into the high six figures, frankly if people wish to take that sort of risk let them.
Have to agree with Adrian re I wish I did not know demand was so high I had assumed you would pretty much get what you bid for know have to rethink !
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