andyp
Stubborn Yorkshireman from the rhubarb triangle
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Post by andyp on Jun 12, 2017 15:55:58 GMT
Possible good news, but we have been here before.
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kt
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Post by kt on Jun 12, 2017 16:15:33 GMT
They are going to list the loan based on a new valuation that shows the borrow doesn't need to inject equity?
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andyp
Stubborn Yorkshireman from the rhubarb triangle
Posts: 150
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Post by andyp on Jun 12, 2017 16:46:42 GMT
It would seem that way, but FC do tend to talk in riddles sometimes.
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pip
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Post by pip on Jun 12, 2017 18:47:42 GMT
Possible good news, but we have been here before. Why should a valuation alter based on the developers costs?
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metoo
Member of DD Central
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Post by metoo on Jun 12, 2017 21:27:51 GMT
Why should a valuation alter based on the developers costs? I don't know much about the Borehamwood project. Developer's costs wouldn't affect a Gross Development Value (GDV, market value of the finished properties), but they would affect the current valuation of an unbuilt or unfinished site in its present state, which is a residual value worked backwards from the GDV, taking into account all costs and a profit margin. That would give the value a site might be sold at to another developer as it is. Because the residual valuation depends on build costs, if the developer says the costs will be lower, the valuation goes up. Then more can be lent within the LTV. However, for the valuation to be valid, the costs should be the true costs to complete the build.
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andyp
Stubborn Yorkshireman from the rhubarb triangle
Posts: 150
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Post by andyp on Jun 16, 2017 11:48:57 GMT
Cue fanfare...
Only 255 days late we bring you
Short term loan in Borehamwood 1 Short term loan (38508) £490,000, 4 months, 10%, B, 77% LTV
There are also lots of updates on other delinquent property loans.
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acky
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Post by acky on Jun 16, 2017 11:52:39 GMT
So the refinance has finally been listed. Eventually FC got the "right" answer from the valuer. But this should be renamed Bargepolewood. 10% B loan for 4 months at an LTV of 77% (which will increase if and when this loan overruns) - so invest £100 with the prospect of getting a maximum return of £2.25, while taking on all the risk of an uncertain planning situation with a borrower whose previous "6 month" loan was allowed to over-run by 8 months. No prospect of flipping such a short loan at a positive margin. Autobid will fill, of course, but it won't get any help from me!
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pickles
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Post by pickles on Jun 16, 2017 17:19:54 GMT
LOL - I'm in!
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trevor
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Post by trevor on Jun 16, 2017 18:39:26 GMT
10% (9% really) at 77% LTV. bargepoll
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trevor
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Post by trevor on Jun 16, 2017 18:43:43 GMT
23% filled after 8 hours. It'll be interesting to see how quickly the 3rd loan fills.
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c88dnf
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Post by c88dnf on Jun 17, 2017 12:43:44 GMT
23% filled after 8 hours. It'll be interesting to see how quickly the 3rd loan fills. 32% filled as of 13.30 June 17th. Remarkable. I wouldn't now touch an FC property loan of any description.
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trevor
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Post by trevor on Jun 17, 2017 15:50:13 GMT
My P2P strategy is diversification, diversification, diversification. I am investing in FC property loans to varying degrees depending on LTV etc. 77% LTV is a definite no no. However there a quite a few I am in. I put larger sums in Ly, MT, FS and AC etc. because of the higher interest.
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Post by GSV3MIaC on Jun 17, 2017 16:49:56 GMT
23% filled after 8 hours. It'll be interesting to see how quickly the 3rd loan fills. 32% filled as of 13.30 June 17th. Remarkable. I wouldn't now touch an FC property loan of any description. 32% is actually rather pathetic, given that autobodge should have pretty much shot its bolt by now. One suspects this one might not fly?
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adrian77
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Post by adrian77 on Jun 18, 2017 14:09:47 GMT
REf---but they would affect the current valuation of an unbuilt or unfinished site in its present state, which is a residual value worked backwards from the GDV, taking into account all costs and a profit margin. That would give the value a site might be sold at to another developer as it is.---- I really don't agree and I am in this business. Taking over a development is fraught with problems - legal, financial, warranty/insurance issues etc also suppliers etc may well boycott the site unless paid in advance. I am currently buying a distressed development at over 35% discount and the one before was over 50%. Personally I think this developer has been dazzled by the golden smackers, he has other overdue developments and I would not touch this one with a barge-pole....
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easylender
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Post by easylender on Jun 18, 2017 16:49:37 GMT
Shhhhhh! I'm holding my breath and crossing all my digits.
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