elliotn
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Post by elliotn on Nov 10, 2016 4:58:25 GMT
After a month+ crash course on SS I've taken the plunge on FS. However, as a(n impatient) non-taxpayer I've torn up my SS rule book and bottom fed @c20% on 2 Bristols, Leyburn, NI, Liverpool business centre reading the supplied docs. I will make a point of continued platform DD on here but for first use I've tried the search function for these loans and come up with almost zilch. Am I using the forum properly or have I just been spoilt by cooling_dude on the ****** ****** forum? #CDDDRIP |
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SteveT
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Post by SteveT on Nov 10, 2016 7:10:16 GMT
Loan-specific DD discussion on the FS board tends to be the exception rather than the rule.
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elliotn
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Post by elliotn on Nov 10, 2016 7:12:18 GMT
Ok ty, will delve a bit deeper while dipping my toes.
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elliotn
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Post by elliotn on Nov 10, 2016 7:25:48 GMT
Loan-specific DD discussion on the FS board tends to be the exception rather than the rule. ST, as someone whose posts I always read on SS, if you had to bottom-feed here would my hors d'oeuvres seem palatable? I normally try to steer clear of redemptions on SS but I couldn't resist some nominal nibbles given my tax & FS structure. I've historically auto-diversified on more conservative platforms but I'm trying to get up to speed on 100s of loans on new platforms as RS plummets!  Edit - 1st rookie mistake would appear to be Loan 3 of the Liverpool business centre seeming akin to a 3rd charge but one lives and learns  .
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SteveT
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Post by SteveT on Nov 10, 2016 7:50:00 GMT
I invest mainly as a company lender so I too mainly focus on the SM offers these days. You do need to watch the tranche priority closely as some loans are ranked equally whilst others rank sequentially; the NI loan is a good example of this.
I won't be buying more of the Bristols loan as I have a little already from months back (PM) and it's huge (by FS standards) so could be a long drawn-out renewal process (see current Rishton and Warminster loans!).
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Post by Deleted on Nov 10, 2016 9:43:41 GMT
Well the Leyburn should be good, but... Leyburn is at the arse end of a road into the hills so is unlikely to see any sales until the daffs come out. (March) in the meantime I hope they have the roof and windows in as the snows hit yesterday.
If I was following an impatient strategy I might over invest at the start and then sell up as more deals became available, but since FS PM is massive, why not start there.
DD would be nice in FS but generally you have gold and watches, art, boats (normally avoid), and then property (with or without planning permission and in various tranches or in places no one wants live). Generally I avoid ones without planning permission, places where no one wants to live and tranche above 1 (no matter what this turns out to mean, 'cause i can't be arsed). My own view is use the info to reject deals, not to accept deals, you should reject at least half the deals.
Hope this at least interests.
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mikes1531
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Post by mikes1531 on Nov 10, 2016 16:09:41 GMT
Edit - 1st rookie mistake would appear to be Loan 3 of the Liverpool business centre seeming akin to a 3rd charge but one lives and learns . The good news is that the total LTV is only 60%, so even the lowest priority loans ought to be relatively safe. Having said that, though, I do tend to avoid second (and later) charges when there are other loans available to choose from. Another thing to keep your eye on is updates and exit plans. There's a comment in the Liverpool 3 loan that says "The two apartments are in the process of being sold which will repay this loan, the prior loan of £20,000 and a substantial part of the £420k loan." That sounds quite encouraging until you realise it was written about five months ago. Are the flats still for sale? If so, why is it taking so long to sell them? It's unfortunate that fundingsecure don't provide periodic updates to let us know what's happening in situations such as this.
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michaelc
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Post by michaelc on Nov 11, 2016 14:08:47 GMT
Loan-specific DD discussion on the FS board tends to be the exception rather than the rule. That's true - I hope it changes.
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stub8535
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personal opinions only. Not qualified to advise on investment products.
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Post by stub8535 on Nov 18, 2016 10:23:44 GMT
Edit - 1st rookie mistake would appear to be Loan 3 of the Liverpool business centre seeming akin to a 3rd charge but one lives and learns . The good news is that the total LTV is only 60%, so even the lowest priority loans ought to be relatively safe. Having said that, though, I do tend to avoid second (and later) charges when there are other loans available to choose from. Another thing to keep your eye on is updates and exit plans. There's a comment in the Liverpool 3 loan that says "The two apartments are in the process of being sold which will repay this loan, the prior loan of £20,000 and a substantial part of the £420k loan." That sounds quite encouraging until you realise it was written about five months ago. Are the flats still for sale? If so, why is it taking so long to sell them? It's unfortunate that fundingsecure don't provide periodic updates to let us know what's happening in situations such as this. Don't hold your breath waiting for fs comms to improve. Many have commented to them before and still no improvement.
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Post by clive205 on Nov 21, 2016 13:48:23 GMT
Having just been paid the interest on loan 2956600180 which TBH I took a punt on, I'm just wondering about re-investing in the renewal loan - 3076549633 which only offers a 3rd charge. The sums involved seem pretty huge and I've no idea about how marketable the assets are, though they seem rare enough.
Anyone any thoughts?
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mikes1531
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Post by mikes1531 on Nov 21, 2016 14:26:09 GMT
Having just been paid the interest on loan 2956600180 which TBH I took a punt on, I'm just wondering about re-investing in the renewal loan - 3076549633 which only offers a 3rd charge. The sums involved seem pretty huge and I've no idea about how marketable the assets are, though they seem rare enough. Anyone any thoughts? : ISTM that the security is pretty solid, especially if you believe the second valuer's £5M opinion. However, with items as specialised as this if the borrower were to default and it were to become necessary for FS to arrange a sale of the security then I would expect that to be a very long, drawn out, process -- possibly taking years. FS and/or any receivers brought in to manage the sale are obligated to obtain a fair price and it would take a fair amount of marketing to ensure that happens. Comments in FS's description of the borrower suggest that they really don't want to dispose of this collection, so you could expect them to obstruct the sale as much as they can. And the size of the project they're working on suggests to me that they'd have plenty of resources to apply to that job. I have an investment in the second charge loan against this collection. I fell comfortable that my money is safe, but I accept that it may be some time before I get it back. You have to weigh the 14% interest rate of this loan against the possibility that this investment might not be liquid -- and then make your own decision.
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