mikes1531
Member of DD Central
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Post by mikes1531 on Apr 10, 2014 20:26:20 GMT
Borrowing £650k against £1.07M OMV of security (a London BtL and development land in northern England). The valuation reports aren't up yet so it isn't clear whether the OMV is based on a restricted/short marketing period. If it isn't, then the LTV won't be quite as attractive as the initial numbers suggest.
£500k of underwriting has been arranged.
More info on the SS website.
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Post by savingstream on Apr 10, 2014 21:23:41 GMT
We are delighted to offer our investors our second Property Bridging Loan on the platform. This is larger than our first loan at £660,000, but a lower LTV and already has the required underwriting in place to fully fund the loan. Here is a link to the Bridging loan particulars. Investors will earn 12%pa immediately upon commitment to this loan. As before, if the loan does not fully fund, Lendy Ltd will cover the interest owed to all committed investors. We would kindly ask that any £5k+ deposits be made via BACS rather than GoCardless. As a thank you to our Saving Stream investors we would like to invite you to enter our Facebook draw to win a £1,000 investment on the Saving Stream platform. Enter Facebook £1,000 Prize Draw |
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mikes1531
Member of DD Central
Posts: 6,453
Likes: 2,320
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Post by mikes1531 on Apr 11, 2014 3:23:19 GMT
We are delighted to offer our investors our second Property Bridging Loan on the platform. I'd be happy to invest in this one, but I'm a bit concerned about locking too much money away without any means of access. I think I've heard that SS are working towards setting up a secondary market for loan parts, but haven't a clue whether that's a very long-term goal or is imminent. Could SS please give us an update on those plans?
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Post by elljay on Apr 11, 2014 17:15:59 GMT
At mikes1531's good suggestion I've moved the secondary market posts into their own thread here. |
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Post by westcountryfunder on Apr 11, 2014 19:28:45 GMT
We are delighted to offer our investors our second Property Bridging Loan on the platform. I'd be happy to invest in this one, but I'm a bit concerned about locking too much money away without any means of access. I think I've heard that SS are working towards setting up a secondary market for loan parts, but haven't a clue whether that's a very long-term goal or is imminent. Could SS please give us an update on those plans? This is unlike AC, for example, where arguably there is so much information it becomes exhausting. But I would rather have it that way and there is the opportunity to ask questions; both questions and answers are available to all lenders, not just those using this forum. Mike, everything may be fine in fact, but how many other regular contributors here are content with what they see from SS and are happy to lend on property with such limited detail?
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mikes1531
Member of DD Central
Posts: 6,453
Likes: 2,320
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Post by mikes1531 on Apr 11, 2014 21:34:06 GMT
I'd be happy to invest in this one, but I'm a bit concerned about locking too much money away without any means of access. This is unlike AC, for example, where arguably there is so much information it becomes exhausting. But I would rather have it that way and there is the opportunity to ask questions; both questions and answers are available to all lenders, not just those using this forum. Mike, everything may be fine in fact, but how many other regular contributors here are content with what they see from SS and are happy to lend on property with such limited detail? These are valid points, so perhaps I am letting my enthusiasm cloud my best judgement. I agree that AC do provide a lot more info than SS do. And I really do value the Q&A opportunity that AC provide. But are SS providing any less info on the bridging loans than they have on their yacht loans? And I do wonder how much info I really need. If there's sufficient value in the security, should I care about the soundness of the underlying business plan? If the plan is unsuccessful, and the borrower defaults. then as long as the security can be sold for enough that I receive my capital and interest, should I care that the borrower has lost nearly all of their equity in the project? Isn't that their concern rather than mine? I accept that's a rather callous attitude. I'd certainly rather that the borrower were to be successful and the loan was repaid at maturity without any hitches. If there's a default then I'm sure there would be headaches as the attempt to convert the security into cash progresses, and uncertainty whether or not the liquidation of the security would provide the necessary funds to satisfy SS and the lenders -- and the borrower. And I expect that process would drag on for months, with my money tied up throughout. So there definitely is risk, and that's why I wouldn't be so keen if the return were to be less than 12%. I have put some money towards Bridging Loan #1, but no more than I've put into a single yacht loan, so I don't think I'm going overboard. And I might put a similar amount into Bridging Loan #2, but I also might decide to wait a bit and see how things progress, and perhaps pick up some parts on the secondary market once that gets started.
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Post by westcountryfunder on Apr 12, 2014 14:22:27 GMT
Yes, you are quite right that the details about both property and boat loans are sketchy. If the latter had more detail I am not sure how much it would mean to me - not so for property. So for the time being in the interests of diversification I shall continue with SS for the boaty deals, but give them a miss for property.
However, good luck with your loans, property or boats, or anyting else for that matter, and on whatever platform!
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