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Post by MoneyThing on Jun 5, 2016 9:45:10 GMT
Hello MoneyThing the details mention another 450k potential loan ( I assume in smaller tranches) in 1-2 weeks time. Do you know the likely length of the terms for those? Morning, Yet to be finalised, however they will likely be aligned in much the same terms as the initial £500,000 drawdown. Will keep you posted. Regards, Ed
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Post by p2pinfo on Jun 8, 2016 7:33:05 GMT
I see there is still a lot of money for this available in the secondary market. I've eaten at P***** in the past and the problem is, barriers to entry in this market is low and it is hard to differentiate yourself. At those kind of prices it is hardly a recession proof business.
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SteveT
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Post by SteveT on Jun 8, 2016 7:47:33 GMT
I see there is still a lot of money for this available in the secondary market. I've eaten at P***** in the past and the problem is, barriers to entry in this market is low and it is hard to differentiate yourself. At those kind of prices it is hardly a recession proof business. At 33% LTV against the bricks & mortar value of the 4 premises, this is one of the few restaurant / bar company loans that I'm quite happy to take on. [certainly preferred over "A+ rated" restaurant / bar loans over on Frankly Crazy at 7.3% net after fees and backed by nothing more than a PG, which nonetheless are blindly filled by Autobiddies within hours!]
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Post by p2pinfo on Jun 8, 2016 9:40:01 GMT
I agree with that Steve. This seems a lot better than similar loans on FC which pay less.
Will the overall debt stand at £2m (£1.5m + £500,000)? Personally I think the location is good, but very vulnerable to competition especially with a load of eateries in the surrounding area, most of which are at cheaper prices. You have to wonder about the management of the company, been successful so far but the two key players as featured on their website appear to be above retirement age already, and would the business lose much of the personality if they were not to be around.
Really want to up my diversification on MT and this is the only thing that is available (apart from the B****, which I already have). Just wondering why this doesn't seem to be popular, is it a function of insufficient investors, or that people don't ike the loan for some reason?
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archie
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Post by archie on Jun 8, 2016 9:56:40 GMT
I agree with that Steve. This seems a lot better than similar loans on FC which pay less. Will the overall debt stand at £2m (£1.5m + £500,000)? Personally I think the location is good, but very vulnerable to competition especially with a load of eateries in the surrounding area, most of which are at cheaper prices. You have to wonder about the management of the company, been successful so far but the two key players as featured on their website appear to be above retirement age already, and would the business lose much of the personality if they were not to be around. Really want to up my diversification on MT and this is the only thing that is available (apart from the B****, which I already have). Just wondering why this doesn't seem to be popular, is it a function of insufficient investors, or that people don't ike the loan for some reason? With the B**** loan you could sell as soon as that part funded. With this loan all parts need to fund before selling (*). I guess people might be waiting until it looks to be running out or maybe if it's not 12% they pass. My personal preference is for shorter loans so I invested in part 1, it's the longer loan terms that are slow to fill. The low LTV should make this loan popular. * I thought that was the plan but just noticed my investment can be sold.
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oldgrumpy
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Post by oldgrumpy on Jun 8, 2016 10:11:04 GMT
I expect there is plenty of moneybags' money waiting to find a home at 4pm today when restrictions are lifted. edit...ooops! they already have! It was the day before yesterday not yesterday
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SteveT
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Post by SteveT on Jun 8, 2016 10:47:37 GMT
Just wondering why this doesn't seem to be popular, is it a function of insufficient investors, or that people don't ike the loan for some reason? There's currently only £190k left, so £310k filled in less than 48 hours. That sounds pretty popular to me given the lower 10% rate, especially with a large 13% loan (Cardiff) supposedly waiting in the wings. I doubt there will be much left after 7 days (until the follow-on £450k tranches are listed of course)
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Post by MoneyThing on Jun 8, 2016 11:04:39 GMT
I agree with that Steve. This seems a lot better than similar loans on FC which pay less. Will the overall debt stand at £2m (£1.5m + £500,000)? Personally I think the location is good, but very vulnerable to competition especially with a load of eateries in the surrounding area, most of which are at cheaper prices. You have to wonder about the management of the company, been successful so far but the two key players as featured on their website appear to be above retirement age already, and would the business lose much of the personality if they were not to be around. Really want to up my diversification on MT and this is the only thing that is available (apart from the B****, which I already have). Just wondering why this doesn't seem to be popular, is it a function of insufficient investors, or that people don't ike the loan for some reason? Just to clarify, the total debt with the borrower is £1.5, of which £500,000 (and a further £450,000 TBC), has been (will be), assigned to MT...not in addition to. Regards, Ed
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Post by p2pinfo on Jun 8, 2016 11:46:10 GMT
Thanks guys for the explanations. I'm in.
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Post by MoneyThing on Jun 8, 2016 14:37:54 GMT
Just wondering why this doesn't seem to be popular, is it a function of insufficient investors, or that people don't ike the loan for some reason? There's currently only £190k left, so £310k filled in less than 48 hours. That sounds pretty popular to me given the lower 10% rate, especially with a large 13% loan (Cardiff) supposedly waiting in the wings. I doubt there will be much left after 7 days (until the follow-on £450k tranches are listed of course) ...now only £81,226 left...
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Post by harvey on Jun 8, 2016 17:33:47 GMT
I'm in, I made an investment in a couple of these tranches today.
I'm upping my investments in Money Thing a bit at the moment because it all seems very efficient and the guys behind the scenes are as fast as greyhounds at dealing with any of the admin stuff like deposits and withdrawals and general communication.
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Post by MoneyThing on Jun 9, 2016 10:27:48 GMT
There's currently only £190k left, so £310k filled in less than 48 hours. That sounds pretty popular to me given the lower 10% rate, especially with a large 13% loan (Cardiff) supposedly waiting in the wings. I doubt there will be much left after 7 days (until the follow-on £450k tranches are listed of course) ...now only £81,226 left... ...now only £15k left...
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SteveT
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Post by SteveT on Jun 9, 2016 10:43:34 GMT
I'm surprised it's the longest-dated tranches that are the last to fill. I doubt we'll all be getting 10% on low LTV property-backed loans in 3-4 years' time and, by then, the LTV on the last couple of tranches of this one will be down to single digits.
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littleoldlady
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Post by littleoldlady on Jun 9, 2016 11:11:54 GMT
I'm surprised it's the longest-dated tranches that are the last to fill. I doubt we'll all be getting 10% on low LTV property-backed loans in 3-4 years' time and, by then, the LTV on the last couple of tranches of this one will be down to single digits. The reason I have only invested in the early tranches is because, at my age, I need reasonably quick access to my money. Once I am reasonably confident that I will be able to sell the longer dated tranches on the SM I will be interested, but quite likely there will then be none available.
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arbster
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Post by arbster on Jun 9, 2016 11:17:37 GMT
The other area of uncertainty is the structure of the additional facility of £450k. If it's also phased in a similar way, the rate at which the LTV reduces will be affected. Not a huge concern, but it might cause some to want to reduce their overall exposure until this becomes clear.
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