09dolphin
Member of DD Central
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Post by 09dolphin on May 19, 2016 16:48:14 GMT
Considering selling all my loans too.
Too little information re loan repayments that are overdue. Too little information re large loans (above 500K) on offer.
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Post by earthbound on May 19, 2016 17:38:58 GMT
I've sold everything ill take a look in few months to see if my gut feeling was correct  Doing the same now, and your guts look dispepsically OK to me.  Not even sure if that's a proper word.
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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 May 19, 2016 17:51:41 GMT
That is a blooming good question, I have looked at the valuations on FS and in my non-expert view most of the FS loans look ok. They are not flying off the shelf for all the reason's mentioned many times before why the SS model is favoured more than FS.
It would be good to hear from FS how they are winning so much business. But I don't see the risk on these FS loans being much worse than the SS ones. There may not be much difference between the types of loan but certainly on the usual metric of cost there is a significant one, FS charges a minimum of 2.4% per month before fees, giving a APR of upwards of 33%, Savings Stream charges 1.5% per month including costs. (although it doesn't explicitly say that the lender does not pay fees, merely that " a fair margin as the administration costs that are associated with sourcing new projects for investment, and ensuring all property is secured with a legal charge, are substantial.") So taking that as face value would give an APR of 19.5%. Therefore although it is fair to assume that anyone taking a FS loan probably does not have access to normal sources of finance, whereas the difference for SS borrowers is not as significant, although still fairly substantial. Make of that whatever you will in the general context of the platforms before looking at any specific loan. ISTM the 2.4% upwards applies to pawn loans, property starts from 1.5%, no upfront or exit fees (see property under what we lend against). SS have said they charge an average of 1.5% interest plus 4% fees and 2% exit fee, so I suspect FS are comparable or maybe cheaper.
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Jeepers
Member of DD Central
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Post by Jeepers on May 19, 2016 20:55:12 GMT
Considering selling all my loans too.
Too little information re loan repayments that are overdue. Too little information re large loans (above 500K) on offer.
To stop people pulling out and make FS more popular with lenders the business model needs a major overhaul to make it more similar to the much more successful platforms like MT and SS. Interest should be deducted upfront and interest paid on a monthly basis to stop people beingn stung with all of the tax liability on the SM. The main reason SS has been so popular is the simplicity of the site which is the key to success when targeting retail investors and the SM on FS is far too complicated to build confidence with newbies trying out the site.
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Post by earthbound on May 20, 2016 11:38:03 GMT
17% now available .... I'm recalling an old adage here, if it looks too good to be.... Etc etc. |
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ben
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Post by ben on May 20, 2016 11:59:46 GMT
FS must be making a fortune out of all these loans not so sure it be so rosey for them a few months down the line
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Post by earthbound on May 20, 2016 12:06:10 GMT
FS must be making a fortune out of all these loans not so sure it be so rosey for them a few months down the line IMO it won't be, that's why I'm heading down the emergency staircase as fast as, only just started my escape so don't envisage it being painless , I just hope I can reach the basement before the whole thing explodes in my face. 
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Post by Deleted on May 20, 2016 12:27:01 GMT
guys you do know there is the concept of "self re-enforcement", ah the animal spirits are loose.  |
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Post by earthbound on May 20, 2016 12:38:21 GMT
guys you do know there is the concept of "self re-enforcement", ah the animal spirits are loose. @bobo thanks, please remind me in 6 months time, I won't be bothered then whether I'm right or wrong.
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ben
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Post by ben on May 20, 2016 13:24:51 GMT
Personally I am only relly investing in the pawn items on FS now, still have a few property ones but very few and far between
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Jeepers
Member of DD Central
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Post by Jeepers on May 20, 2016 14:14:56 GMT
FS are being their own worst enemy with these CB deals... Investors are becoming nervous as all this CB creates a glut on the SM and everyone seems to be rushing for the fire exit.
IMO it would be much more effective to only offer CB on one loan at a time... CB is now expected rather than being an incentive.
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ben
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Post by ben on May 20, 2016 15:03:50 GMT
The big investers that put 5 figures plus in a loan will not invest until cash back is offered or they will only put a small amount in until cash back is offered, I think FS has got a bit greedy and basically just gone for whatever loan is put in front of them there is far to many for quality.
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huxs
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Post by huxs on May 20, 2016 15:10:09 GMT
Not a lot of positive comments above, I agree with the comments about the FS model not being as well suited as SS and MT for property deals and would love them to change. Saying that the quality of the loans don't seem too bad in most cases, for example to a layman like me the Newcastle Loan paying 13% +1% CB seem no more risking than the loans on SS.
Are people really worried about the quality of loans, specific examples would be interesting (not the Scottish Boatyard as too much has been written on that already), or more the FS business model?
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Jeepers
Member of DD Central
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Post by Jeepers on May 20, 2016 15:26:27 GMT
Not a lot of positive comments above, I agree with the comments about the FS model not being as well suited as SS and MT for property deals and would love them to change. Saying that the quality of the loans don't seem too bad in most cases, for example to a layman like me the Newcastle Loan paying 13% +1% CB seem no more risking than the loans on SS.
Are people really worried about the quality of loans, specific examples would be interesting (not the Scottish Boatyard as too much has been written on that already), or more the FS business model? I think it's a case of once bitten, twice shy! SS and MT haven't lost a penny and investors don't really appreciate the risks on those sites. With a few defaults and losses on FS it seems like it's much more of a possibility.
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ben
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Post by ben on May 20, 2016 16:37:56 GMT
Not a lot of positive comments above, I agree with the comments about the FS model not being as well suited as SS and MT for property deals and would love them to change. Saying that the quality of the loans don't seem too bad in most cases, for example to a layman like me the Newcastle Loan paying 13% +1% CB seem no more risking than the loans on SS.
Are people really worried about the quality of loans, specific examples would be interesting (not the Scottish Boatyard as too much has been written on that already), or more the FS business model? think it is a bit of everything, but with the amount of loans going through they really can't be doing much checking on them
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Not even sure if that's a proper word. 
