adrianc
Member of DD Central
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Post by adrianc on Feb 27, 2016 8:21:02 GMT
I don't believe that the members on this forum make up the majority of SS investors. ...they also need to consistently demonstrate that they have their investors best interests at the forefront of their DD and decision making processes. Strikes me that they've done exactly that. We might not be the majority - but we are the ones whose feedback and thoughts are being heard, live. If others want their feedback and thoughts to be heard, then there's no official forum - a quick google will find here, though.
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webwiz
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Post by webwiz on Feb 27, 2016 8:50:54 GMT
If SS thought the loan was fine maybe they have lent the money from their own account. It would be interesting to know.
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warn
Member of DD Central
Curmudgeon
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Post by warn on Feb 27, 2016 16:04:27 GMT
Still in the pipeline as I type -- or do I need to eat some cookies?
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Feb 27, 2016 16:07:32 GMT
Still in the pipeline as I type -- or do I need to eat some cookies? No need to eat cookies... It is indeed still there; I think SS just need to do a bit of cleaning 
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mikes1531
Member of DD Central
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Post by mikes1531 on Feb 27, 2016 16:22:58 GMT
If SS thought the loan was fine maybe they have lent the money from their own account. It would be interesting to know. Still in the pipeline as I type -- or do I need to eat some cookies? It's still in my pipeline too. I suspect that means SS haven't given up on it completely. It's probably small enough that they could have funded it themselves already. And I suspect they'd still like to do it. If they can find underwriters to take it on, or they could contact their BHs and arrange for an 'off the record' loan, they might do that. Better still, if they could arrange for the PG to be backed by specific assets that the borrower would dedicate exclusively to back this loan, they could bring it back to us as a genuine 'asset-backed' loan and they'd probably have no problem funding it.
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spiral
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Post by spiral on Feb 27, 2016 19:49:15 GMT
they could bring it back to us as a genuine 'asset-backed' loan and they'd probably have no problem funding it. They didn't have any trouble funding it. It was 3x over subscribed!
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Post by sunspot on Feb 27, 2016 20:08:57 GMT
If the borrower is genuine, he'll endeavour to proceed by formally putting up sufficient "liquid assets" to cover the loan.
If it disappears completely from the pipeline, I know what conclusions I'll draw.
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trevor
Member of DD Central
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Post by trevor on Feb 27, 2016 22:02:35 GMT
If the borrower has liquid assets why does he need a loan?
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Post by sunspot on Feb 27, 2016 23:07:23 GMT
Borrowing against assets unrelated to a venture is often favourable to selling - were it not, a good chunk of Lendy's business simply would not exist.
However, when someone has genuinely liquid assets that are more than sufficient to cover a loan in full, as we have been led to believe in this case, they are usually able to borrow against those assets at rates far more favourable than bridging loans - perhaps 4% over base (plus fees).
In this case, however, a smart businessman would in the first instance look to minimize his risk by borrowing against the land in question. His investment is then minimal if it all goes wrong because he has offloaded the majority of the risk to the lenders.
It's actually worse than that though, because it's not unknown for buyer and seller to act as one, with the sole intention being to offload junk onto the unsuspecting lenders.
Now it's entirely possible this loan was above board, but even if that's so, it did not fit the SS business model, and should not have been offered.
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Monetus
Member of DD Central
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Post by Monetus on Feb 28, 2016 0:12:01 GMT
If the borrower has liquid assets why does he need a loan? Why use your own money and tie up all your capital in one single highly illiquid investment when you can use someone elses?
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adrianc
Member of DD Central
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Post by adrianc on Feb 28, 2016 9:07:58 GMT
If the borrower has liquid assets why does he need a loan? Why use your own money and tie up all your capital in one single highly illiquid investment when you can use someone elses? 18% APR.
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Monetus
Member of DD Central
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Post by Monetus on Feb 28, 2016 12:03:17 GMT
Why use your own money and tie up all your capital in one single highly illiquid investment when you can use someone elses? 18% APR. Perhaps he wants to use that money for something else or they have plans to invest it elsewhere. Debt can be cheaper than opportunity cost sometimes. They are also presumably developing this project through a company. Perhaps the cost of borrowing at 18%+ APR for 6-12 months may be already factored into the project proposal. Paying this interest may even help them reduce the overall tax burden on this or other projects. There are many reasons why someone would wish to borrow funds (even at this high rate) rather than tie up their own personal capital for these types of projects.
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webwiz
Posts: 1,133
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Post by webwiz on Feb 28, 2016 12:18:25 GMT
If the borrower is genuine, he'll endeavour to proceed by formally putting up sufficient "liquid assets" to cover the loan. If it disappears completely from the pipeline, I know what conclusions I'll draw. I will conclude that either 1) Lendy have lent the money themselves showing that the loan was sound, or 2) SS have pulled out of the deal completely showing that the loan was a dud.  
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cooling_dude
Bye Bye's for the PPI
Posts: 2,853
Likes: 4,298
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Post by cooling_dude on Feb 28, 2016 12:18:55 GMT
Why use your own money and tie up all your capital in one single highly illiquid investment when you can use someone elses? 18% APR. Believe it or not, it's not its a lot more than 18%. Once you take into account all of SS fees, you're looking at more than 30%.....
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cooling_dude
Bye Bye's for the PPI
Posts: 2,853
Likes: 4,298
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Post by cooling_dude on Feb 28, 2016 12:22:11 GMT
If the borrower is genuine, he'll endeavour to proceed by formally putting up sufficient "liquid assets" to cover the loan. If it disappears completely from the pipeline, I know what conclusions I'll draw. I will conclude that either 1) Lendy have lent the money themselves showing that the loan was sound, or 2) SS have pulled out of the deal completely showing that the loan was a dud. There is a third option.... Maybe they are looking at the borrowers other assets to see if there is anything that can be used as initial security, before PP is provided.... If you have a look at the pre-fund page the loan is still there......
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