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Post by Ace on Jul 19, 2018 7:50:26 GMT
With regard to point 3. It is only correct to say that the borrower pays the costs in cases where there is a balance left from the funds realised after settling the outstanding debts. In other cases they may be theoretically liable for the costs but they don't pay them. If a developer goes bankrupt then these costs will be paid out of any funds realised, and so in effect it is the investor who pays them. Exactly, as was illustrated in Kuflink's own example Example 2 here, where 100% of the recovery costs were born by investors. The same example also directly contradicts Kuflink's statement "I t is only in the event that Kuflink Bridging Ltd is not able to recover more than than 55% of the value of the property that investors would be affected.". As I pointed out at the time, and was ignored by Kuflink, in that example 70% of the value of the property was recovered, but due to recovery costs being born by investors, investors would have suffered losses. Even if the recovery costs were accounted for in calculating the net value of the recovery, 55% of the property value was recovered, yet still investors would have suffered a loss. kuflink , I realize that you need to show your product in a good light for marketing purposes, and we all want you to be successful if only for selfish reasons. However, even in such a lightly regulated industry, you must ensure that your promotional statements are factually correct. I don't expect perfection, but I do expect you to correct your misleading statements when they are pointed out. I hope that you don't use this as an excuse for another point of lengthy silence. Your engagement on here does allow us all to learn from each other, and will hopefully lead, eventually, to a better understanding of your product.
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Post by Olivia on Jul 19, 2018 12:52:18 GMT
Hi p2pmark, Having reviewed jnm21 comment and our answer, I’d like to apologise for any confusion caused. We wanted to provide a thorough answer to the points he raised, and in doing so we seem to have missed the overall comment! You’re both completely correct in pointing out that our investments are affected by more than just the health of the UK property market, and we should have been clearer about this in our response. Olivia Hello jnm21 , No problem at all, you have every right to ask questions and I am more than happy to answer.
1) Mistakes/variations in valuations:Each of our deals is assessed by an independent surveyor, who must be RICS registered and fully qualified. As per the industry standard, a surveyors’ valuation is based on many factors including their knowledge, experience and property prices in the surrounding area. As with all independent valuations, there can be slight variations but outright mistakes are rarely made. We take these variations into account by allowing a measure of equity for each loan, to absorb any downward movement in property values. It’s worth remembering that property values can increase as well as decrease, therefore these variations can go both ways. 2) Local factors:Within the valuation report, you will notice that the surveyor takes into account all relevant factors affecting the local area, including how businesses and properties are faring in this part of the country. As you note in your question, specific incidents can affect property prices, and in this instance the surveyor would write a report. In turn, Kuflink would make this report/ the information it contains available to investors via the platform. 3) Costs:The costs involved with foreclosure will vary from deal to deal. Some may be costly, others much less so, depending on how the borrower conducts their accounts and what we need to conclude the deal (so that investors are paid out). These costs are paid by the borrower with no cost to the investor. Olivia. But you've completely missed jnm21 's (astute) point. Your wording states: "...so the UK property market value would have to drop by 25% before Kuflink’s 20% Guarantee were to ‘kick in’..." As you've noted above there are other factors that could cause the realised value to change other than "the UK property market" changing. That you are reasonably transparent about these points in the valuation etc is entirely irrelevant to jnm21's point. E.g., on item 2 it is not realistic to expect a surveyor to predict local crashes; even if the surveyor highlighted such risks in the valuation, it would still cause the valuation of the property in question to fall. Your current wording could mislead those who are less astute. Please correct it. |
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Post by Olivia on Jul 19, 2018 12:53:14 GMT
Hello jnm21 Please see the response we have tagged you in regarding us missing your point – we apologise for that. As with all investments, the worst-case scenario is that investor loses money. It’s prudent for investors such as yourself to consider all the risks (as you clearly do), and whilst your money is at risk in a Kuflink investment, we’re always keen to share our due diligence/ security procedures with investors. I hope that some of this information has been genuinely helpful to you and isn’t just repeating what you already know? As for the ‘soonest point’ comment, apologies, let me answer that now. This would be payable upon recovery, if there is a shortfall that we need to ‘top up’ to protect your investments. It is not uncommon for borrowers to miss one payment by a few days (or other short period), and it is better for investors, borrowers and us alike to give them a short period of grace to make the payment. This is obviously dependant on the situation at hand. If we started recovery proceedings instantly, we would be initiating a lengthy process when oftentimes, the borrower is able to resolve the situation in good time and without legal proceedings. We would also be paying out on a guarantee before investors have lost any money or missed out on any interest – remember our co-investment is on a first-loss basis, so that gives you an extra buffer in the first instance. Olivia p2pmark thanks - I was banging my head on the keyboard for how to reply & then realised you had done it for me! I never thought the P2P newbie would ever get to an astute compliment! I must admit I am only listening (isn't that an underrated skill) to some of the wise folk on here & applying their knowledge. Olivia you are missing the point - we are talking worst case here (as other sad P2P events encourage us to fear). Also you seem to have missed the "soonest point" point. |
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Post by Olivia on Jul 19, 2018 12:54:34 GMT
Hello Ace I have queried example 2 internally, as it doesn’t sit well with the information given in other posts. This example was intended for illustrative purposes only and I’m sorry to say that it is not an accurate reflection of our operations at all, nor are the figures stated accurate to the situation. I can only apologise for the poor logic at play here – it’s been strongly raised by myself with the directors. In the first instance, we would be highly unlikely to lend this LTV against such a small amount given the risks it poses should the borrower default. The only time we would consider it would be if the borrower had an extensive portfolio which, although we may not take a formal charge over, leaves them with enough assets that we could get a court order against to recover the debt. I fully appreciate your last point. There have been too many instances where we have been slow to respond, not responded fully or responded inaccurately of late. We know that we must do better and are continually working on how we can structure things internally to ensure that this happens. In the meantime, your feedback is helping us to achieve that and we truly appreciate your patience whilst we work towards being more effective and helpful on here. Olivia With regard to point 3. It is only correct to say that the borrower pays the costs in cases where there is a balance left from the funds realised after settling the outstanding debts. In other cases they may be theoretically liable for the costs but they don't pay them. If a developer goes bankrupt then these costs will be paid out of any funds realised, and so in effect it is the investor who pays them. Exactly, as was illustrated in Kuflink's own example Example 2 here, where 100% of the recovery costs were born by investors. The same example also directly contradicts Kuflink's statement "I t is only in the event that Kuflink Bridging Ltd is not able to recover more than than 55% of the value of the property that investors would be affected.". As I pointed out at the time, and was ignored by Kuflink, in that example 70% of the value of the property was recovered, but due to recovery costs being born by investors, investors would have suffered losses. Even if the recovery costs were accounted for in calculating the net value of the recovery, 55% of the property value was recovered, yet still investors would have suffered a loss. kuflink , I realize that you need to show your product in a good light for marketing purposes, and we all want you to be successful if only for selfish reasons. However, even in such a lightly regulated industry, you must ensure that your promotional statements are factually correct. I don't expect perfection, but I do expect you to correct your misleading statements when they are pointed out. I hope that you don't use this as an excuse for another point of lengthy silence. Your engagement on here does allow us all to learn from each other, and will hopefully lead, eventually, to a better understanding of your product. |
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Post by Olivia on Aug 22, 2018 14:35:23 GMT
Good afternoon all,
We know a few of you have expressed preference for deals with a shorter term, there are now three 6-month deals available on Select-Invest offering up to 7.2% interest pa gross*.
Derby Road - DE4
Crossley Street - DE5
Cromford Court - DE4
Let me know if you have any questions!
Olivia
*Capital is at risk
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oldtimer
Member of DD Central
Posts: 211 
Likes: 156
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Post by oldtimer on Aug 22, 2018 15:03:23 GMT
All the same borrower by the look of it.
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upland
Member of DD Central
Posts: 479
Likes: 175
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Post by upland on Aug 23, 2018 6:07:53 GMT
Security was a bit lower on two of them.
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r00lish67
Member of DD Central
Posts: 2,692
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Post by r00lish67 on Sept 6, 2018 8:57:09 GMT
Dear Investors & P2P Independent Forum, ....<snip> "We are also excited to share some big news with you – in line with your feedback, we have been working on setting up a secondary market and will be launching this in the coming weeks!" 8 weeks down the line, how is this coming along Olivia kuflink davidjones? Is there an SM go-live date yet?
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upland
Member of DD Central
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Post by upland on Sept 6, 2018 15:42:53 GMT
Or even the PM , there are 10 loans in the "still available" category at present and I have most of them , it must be quite a cash drag as I believe that only some of them are paying out !
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Post by kuflink on Sept 7, 2018 13:17:10 GMT
Hi r00lish67 , We are still working on setting up our secondary market, you should expect an announcement regarding the live date in the near future. Olivia Dear Investors & P2P Independent Forum, ....<snip> "We are also excited to share some big news with you – in line with your feedback, we have been working on setting up a secondary market and will be launching this in the coming weeks!" 8 weeks down the line, how is this coming along Olivia kuflink davidjones ? Is there an SM go-live date yet? |
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r00lish67
Member of DD Central
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Post by r00lish67 on Sept 14, 2018 17:40:12 GMT
Kuflink have just posted what on the face of it appears to be a 15% LTV loan - ME16. I haven't looked into it properly, but might be worth looking into if you have spare funds on the platform.
If you've not signed up, you can also be referred and get £100 cashback on a £500 minimum investment (welcome to PM me) You'd have to be pretty quick about it for this deal though as I suspect it won't last long (17% filled at the moment).
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jcb208
Member of DD Central
Posts: 838
Likes: 638
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Post by jcb208 on Sept 14, 2018 18:29:32 GMT
Your right did not last long looks like 1 person took the last 60% as it went in seconds,just as well I had a small amount on account so got a small part
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sd2
Member of DD Central
Posts: 621
Likes: 224
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Post by sd2 on Sept 17, 2018 22:10:06 GMT
Anyone having a problem login on to Kuflink?
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sd2
Member of DD Central
Posts: 621
Likes: 224
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Post by sd2 on Sept 17, 2018 22:19:52 GMT
Opps didnt mean to quote anyone.
working now
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sussexlender
Member of DD Central
Cheat seeking missile
Posts: 550
Likes: 916
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Post by sussexlender on Sept 19, 2018 14:27:56 GMT
Has anyone else had the "Currently off line for maintaince" response when trying to gain access to the accounts today?
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