e7
Posts: 29 
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Post by e7 on Sept 17, 2016 22:42:35 GMT
Hi, I'm new to saving stream and I'm thinking of investing a small amount to begin with, I was wondering how you guys decide on what loans you your going to lend too, any other pointers would be appreciated
I'm reading through the current loans available and I can see the information supplied by ss and as a inexperienced investor I can only base my desicion on what I read, is there any other way I can help myself make a sound decision
thanks in advance
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fp
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Post by fp on Sept 17, 2016 22:44:20 GMT
Hi, I'm new to saving stream and I'm thinking of investing a small amount to begin with, I was wondering how you guys decide on what loans you your going to lend too, any other pointers would be appreciated I'm reading through the current loans available and I can see the information supplied by ss and as a inexperienced investor I can only base my desicion on what I read, is there any other way I can help myself make a sound decision thanks in advance First tip* Take little notice of what SS choose to disclose 
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Sept 17, 2016 22:51:43 GMT
Hi, I'm new to saving stream and I'm thinking of investing a small amount to begin with, I was wondering how you guys decide on what loans you your going to lend too, any other pointers would be appreciated I'm reading through the current loans available and I can see the information supplied by ss and as a inexperienced investor I can only base my desicion on what I read, is there any other way I can help myself make a sound decision thanks in advance 1. Due diligence  The above includes reading the valuation report and your own research (including keeping one eye on this forum). For me, security is the number one factor when investing. Will SS be able to recover the full amount (capital + interest) if the loan defaults, and how long would recovery take.
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lobster
Member of DD Central
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Post by lobster on Sept 17, 2016 22:53:35 GMT
Hi, I'm new to saving stream and I'm thinking of investing a small amount to begin with, I was wondering how you guys decide on what loans you your going to lend too, any other pointers would be appreciated I'm reading through the current loans available and I can see the information supplied by ss and as a inexperienced investor I can only base my desicion on what I read, is there any other way I can help myself make a sound decision thanks in advance Have a good look at this list of FAQ's - this has a shedload of important and useful info p2pindependentforum.com/post/96270/thread
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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 Sept 17, 2016 22:56:51 GMT
Hi, I'm new to saving stream and I'm thinking of investing a small amount to begin with, I was wondering how you guys decide on what loans you your going to lend too, any other pointers would be appreciated I'm reading through the current loans available and I can see the information supplied by ss and as a inexperienced investor I can only base my desicion on what I read, is there any other way I can help myself make a sound decision thanks in advance Use the forum index to read lenders comments on each loan and more recently CD due dil summaries for loans that interest you. See also my list of loan updates for 'history of each loan. Both are pinned threads at top of this board or click the SS link in my signature below for updates list & links to other useful stuff incl Index. (NB updates list lacks latest updates as been busy but see recent post in the thread for those)
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e7
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Post by e7 on Sept 17, 2016 22:59:47 GMT
Hi thanks for replying, how do you know if they could recover monies due, and how would you know the timescale involved, aren't all the loans that default eventually recovered through the sale of the asset? ,
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ptr120
Member of DD Central
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Post by ptr120 on Sept 17, 2016 23:17:55 GMT
Hi thanks for replying, how do you know if they could recover monies due, and how would you know the timescale involved, aren't all the loans that default eventually recovered through the sale of the asset? , You don't. The asset may or may not turn out to be worth what had been indicated. In the event that an asset needs to be liquidated it may or may not achieve a sale price which is sufficient to repay the loan, plus any other creditor who may rank above us (such as HMRC, for example). If a (residential) property is let out, it may be that a sale isn't realistic until vacant possesion can be achieved. As you say you are an inexperienced investor, you may like to think again if P2P is right for you, but if it is I would suggest the following (in addition to what others have already mentioned) Diversify - spread your investment over several loans, and even several platforms With every loan that you invest in, assume that there could be a chance of 100% loss. Are you still happy to invest? Many advocate selling well before the loan ends to avoid repayment risk / delay Think about what LTV you are happy with - a higher LTV would suggest (by one measure) more risk Think about smaller loans, both in terms of your investment, but also overall loan size - if an asset needs to be liquidated it can sometimes be easier to find a buyer for a smaller asset
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Sept 17, 2016 23:19:20 GMT
Hi thanks for replying, how do you know if they could recover monies due, and how would you know the timescale involved, aren't all the loans that default eventually recovered through the sale of the asset? , > how do you know if they could recover monies due Generally, a lower LTV indicates it will be easier to recover. Always try to seek a worst case scenario; most valuation reports (not all) will indicate a 90day valuation where you can calculate a "worst case" LTV. Sometimes there can be a recent sale price where you can also base a 'genuine' LTV. > how would you know the timescale involved You don't. You simply have to use your own best judgment. For example; security with a 90 day 50% LTV is going to be quicker to fully recover than a loan with a 90 day 100% LTV. Sometimes the valuation report will give you some indication; PBL084 indicates "it could take a significant time to sell the property, maybe in excess of 12 months (at market value)". > aren't all the loans that default eventually recovered through the sale of the asset Not guaranteed (not 100% recovery). The current defaulted loan on SS (PBL020) was a loan amounting to £1,700,000. However, it is currently on the market for £1,500,000. There is the provision fund to consider, but we're not sure what that will cover ATM, and in any case should not be relied on when investing.
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e7
Posts: 29
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Post by e7 on Sept 17, 2016 23:26:46 GMT
Thanks to you all for the comments and advice
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arbster
Member of DD Central
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Post by arbster on Sept 18, 2016 5:34:27 GMT
> how would you know the timescale involved You don't. You simply have to use your own best judgment. For example; security with a 90 day 50% LTV is going to be quicker to fully recover than a loan with a 90 day 100% LTV. Sometimes the valuation report will give you some indication; PBL084 indicates "it could take a significant time to sell the property, maybe in excess of 12 months (at market value)". I'm not sure this is necessarily the case, or shouldn't be. Even when selling the asset to recover funds owed to the first charge holder, the administrator (or whomever) is required to consider the interests of the borrower. Therefore, unless the additional interest incurred by a longer sale process would result in a disproportionately greater debt, the administrator won't just leap at the first offer that covers the first charge debts. My view is that the time for recovery is related both to the LTV and the nature of the asset. A residential property is likely to have more potential buyers than, say, a garden centre, under normal market conditions.
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james
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Post by james on Sept 18, 2016 20:10:09 GMT
I'm reading through the current loans available and I can see the information supplied by ss and as a inexperienced investor I can only base my desicion on what I read, is there any other way I can help myself make a sound decision Read these two posts: 1, 2 then add a bucket full of salt to any valuations or other statements you read while evaluating a deal, and not just here. Notice particularly the difference between recent purchase prices actually paid and valuations given as well as the planning permission issues and minimal if any hint there might be that planning permission hasn't been granted yet (which happened in one of those two cases, for green belt land). In one of them the borrower was apparently described as an individual when it was apparently really to be to a limited company with four owners, one to be Saving Stream's owner, with apparently no disclosure of that ownership interest, which I expect was taken as deferred remuneration for the loan. In valuations look particularly for the current value of the security if sold on 90 day marketing period terms. And to help with that, find out what the buyer/borrower actually paid and when. You may instead be offered values for the completed project - gross development value (GDV) certainly the most prominent one - and unlimited marketing time value either for that and/or a current or some other future value. Be sure you know the actual value today of your security if it has to be sold quickly. Before you lend. If you don't get those values, walk away. There's always another deal, here or somewhere else. Just be patient. There's so much deal flow around on the various platform that unless you have many millions to invest there's no need to accept anything less than the best and best checked and documented deals. My view was that the sound decision to make at this point in the evolution of the Saving Stream business was to cancel my plans to invest £80-100k via Saving Stream and walk away and that remains my view. If the apparent facts ever change I'll of course adjust my opinion. You may not agree with my opinion on this but do take great care with the points I mentioned when evaluating deals here and elsewhere.
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0risk
Member of DD Central
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Post by 0risk on Sept 18, 2016 20:59:41 GMT
Hi, I'm new to saving stream and I'm thinking of investing a small amount to begin with, I was wondering how you guys decide on what loans you your going to lend too, any other pointers would be appreciated ... I'm new to p2p too. I started last week with SS. Check this great video on the youtube, called saving stream how it works. Lots of good info (one or two things outdated; so check the FAQ here too) For small amount invested, that's a good start. As you put more money into it, you may want to devote more time to DD.
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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 Sept 18, 2016 22:15:39 GMT
Hi, I'm new to saving stream and I'm thinking investing a small amount to begin with, I was wondering how you guys decide on what loans you your going to lend too, any other pointers would be appreciated ... I'm new to p2p too. I started last week with SS. Check this great video on the youtube, called saving stream how it works. Lots of good info (one or two things outdated; so check the FAQ here too) For small amount invested, that's a good start. As you put more money into it, you may want to devote more time to DD. Extreme caution. ive just watched that video & in my opinion it contains a significant number of inaccuracies.
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cooling_dude
Bye Bye's for the PPI
Posts: 2,853
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Post by cooling_dude on Sept 18, 2016 22:19:53 GMT
I'm new to p2p too. I started last week with SS. Check this great video on the youtube, called saving stream how it works. Lots of good info (one or two things outdated; so check the FAQ here too) For small amount invested, that's a good start. As you put more money into it, you may want to devote more time to DD. Extreme caution. ive just watched that video & in my opinion it contains a significant number of inaccuracies. One of the worst ones being that all he believes that a negative term indicates that that loan is in default... and it results in him saying "even with a loan in default, it gets snapped up in seconds"  The "tutorial" is full of errors, and that is not because it is outdated, it's simply misleading. SS should look at having this video removed TBH
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dovap
Member of DD Central
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Post by dovap on Sept 18, 2016 22:45:41 GMT
tbf if misleading info isn't your thing then SS probably isn't the platform for you
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