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Post by GSV3MIaC on Jan 24, 2017 14:58:07 GMT
/mod hat off
The valuation looks reasonable to me .. grazing land around here (1000 feet up) goes for anything up to 10k per acre, depending on size (cheaper by the square mile! Expensive in pony-paddock sized lots) and quality, so £5k/acre isn't insane. The 8% interest rate looks pretty unreasonable to me, but then they are pricing to the market - this is a very small loan, and there are sure to be enough mugs punters who will accept a mere 8% to get the loan away OK. I've long since set my global prefund to £0 .. rather miss some last minute 12%-ers than accidentally buy some 8% chod. I still fondly remember the days when the pipeline piped (with the occasional leak), rather than teleporting, though, and planning ahead (even if only a few days) was possible.
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Jan 24, 2017 14:58:07 GMT
8% seems rather low when you can get 13%+ elsewhere on Picasso paintings and alike. I'd also be concerned about the liquidity in take up of this on the Secondary Market beyond those who click too fast to see it's not 12%. Exactly, yet those 13 % plus loans sit stewing for days waiting for funding while this 8% interest and 73% LTV loan will likely be oversubscribed. Something tells me that is because of the differing Secondary Markets A less complex SM on fundingsecure could see a lot of investors making a move. I also note that larger loans on MT are filling a tad faster...
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Post by GSV3MIaC on Jan 24, 2017 15:01:06 GMT
I think, as you say CD, it's a combination of SM liquidity and the presence of the (untested) PF which is luring lenders in at rather low rates.
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r1200gs
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Post by r1200gs on Jan 24, 2017 15:05:16 GMT
Exactly, yet those 13 % plus loans sit stewing for days waiting for funding while this 8% interest and 73% LTV loan will likely be oversubscribed. Something tells me that is because of the differing Secondary Markets A less complex SM on fundingsecure could see a lot of investors making a move. I also note that larger loans on MT are filling a tad faster... I think you are bang on. The sheer simplicity and liquidity of the SS secondary market is hugely attractive, while FS is a bit more tricky and certainly less liquid. I simply don't use the secondary market there because I don't understand the tax implications. You're right, if they used the SS model, I'm sure they would see a lot more money flowing in faster. It will be interesting to see the take up at 8% for this loan, but I won't be one of them.
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Post by thetreasurer on Jan 24, 2017 15:07:43 GMT
I know it's only 8% but I will probably take £500 of it...
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r1200gs
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Post by r1200gs on Jan 24, 2017 15:19:15 GMT
I know it's only 8% but I will probably take £500 of it... Support your farmers! (Unlike one lender, who robbed them blind!).
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lobster
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Post by lobster on Jan 24, 2017 15:19:46 GMT
I know it's only 8% but I will probably take £500 of it... Well it will only take yourself and 365 others like you and this tiddler will be fully subscribed. However there are bound to be at least a few punters going in FAR larger than £500. 8% or not, this loan will be gone in a flash, if only because of its diminutive size.
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lobster
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Post by lobster on Jan 24, 2017 15:34:01 GMT
8% seems rather low when you can get 13%+ elsewhere on Picasso paintings and alike. In general terms is it anything more inherently risky lending on "Picasso paintings and alike..." than on property , as we are more used to ? In all honesty that Picasso loan over on FS doesn't look too bad to me at 13% and an LTV of 51.5% , although I have to confess that I don't know the first thing about the art market, and neither do many people, which is perhaps the whole point. I guess if the painting turns out to be a fake, then that could raise a tiny issue ....  , although that should surely be picked up during the valuation , ...... errrr .... shouldn't it ??
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Post by thetreasurer on Jan 24, 2017 15:39:19 GMT
8% seems rather low when you can get 13%+ elsewhere on Picasso paintings and alike. In general terms is it anything more inherently risky lending on "Picasso paintings and alike..." than on property , as we are more used to ? In all honesty that Picasso loan over on FS doesn't look too bad to me at 13% and an LTV of 51.5% , although I have to confess that I don't know the first thing about the art market, and neither do many people, which is perhaps the whole point. I guess if the painting turns out to be a fake, then that could raise a tiny issue .... , although that should surely be picked up during the valuation , ...... errrr .... shouldn't it ?? What happens if it gets nicked?
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Jan 24, 2017 15:42:12 GMT
In general terms is it anything more inherently risky lending on "Picasso paintings and alike..." than on property , as we are more used to ? In all honesty that Picasso loan over on FS doesn't look too bad to me at 13% and an LTV of 51.5% , although I have to confess that I don't know the first thing about the art market, and neither do many people, which is perhaps the whole point. I guess if the painting turns out to be a fake, then that could raise a tiny issue .... , although that should surely be picked up during the valuation , ...... errrr .... shouldn't it ?? What happens if it gets nicked? It will be (FS will insist... should insist) insured The same applies to property loans. "what if it burns down, gets flooded.... gets hit by a meteor". Lendy and others will only lend against property that is adequately insured.
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duck
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Post by duck on Jan 24, 2017 15:52:08 GMT
What happens if it gets nicked? Well it is an etching so one more nick probably won't matter ................... anyway, I'm appreciating the talk of liquidity in a dairy farm loan, please continue.
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oldgrumpy
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Post by oldgrumpy on Jan 24, 2017 15:58:28 GMT
What happens if it gets nicked? so one more nick probably won't matter ................... anyway, I'm appreciating the talk of liquidity in a dairy farm loan, please continue. No it isn't!  (technically - dual technique)
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Post by wickedxuk on Jan 24, 2017 16:17:02 GMT
8% seems rather low when you can get 13%+ elsewhere on Picasso paintings and alike. In general terms is it anything more inherently risky lending on "Picasso paintings and alike..." than on property , as we are more used to ? In all honesty that Picasso loan over on FS doesn't look too bad to me at 13% and an LTV of 51.5% , although I have to confess that I don't know the first thing about the art market, and neither do many people, which is perhaps the whole point. I guess if the painting turns out to be a fake, then that could raise a tiny issue .... , although that should surely be picked up during the valuation , ...... errrr .... shouldn't it ?? Nope - The valuation is based on the assumption it is real, they aren't authenticating the art they are presenting a value based on the assumptions and information they are presented. I haven't got time to quote from the VR but I read it and specifically remember a statement about this.
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duck
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Post by duck on Jan 24, 2017 16:22:20 GMT
Well it is an etching so one more nick probably won't matter ................... anyway, I'm appreciating the talk of liquidity in a dairy farm loan, please continue. No it isn't! (technically - dual technique) I bow to superior knowledge my 'artistic ability' stops at powder coating! ..... all I was going on was the loan title "Pablo Picasso Etching" 
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oldgrumpy
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Post by oldgrumpy on Jan 24, 2017 16:30:12 GMT
Well I've put a few p into it even though I don't "do" art loans.  There will always be some chink or oligarch willing to buy this one up if the borrower fails to repay. |
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, although that should surely be picked up during the valuation , ...... errrr .... shouldn't it ??
