ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Jan 31, 2017 21:33:18 GMT
Just posted this on another Board/Thread and thought it helpful to also post here. Not at all completely encompassing I imagine however it's a good start:-
(Feel free to add and embellish!)
With FULL Acknowledgement and Thanks to Cooling_Dude :-
DUE DILIGENCE
USE common sense.
READ the overview/loan description very carefully
READ and INTERPRET the Valuation Report, looking for inconsistencies
SEARCH OUT the Company / Borrower at Companies House
GOOGLE your t**s off on the Company/Borrower and The Security
ALSO utilise other useful sites such as Local Authority Planning Sites & The Land Registry
REMEMBER – The SECURITY is the most important factor when carrying out DD.
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ilmoro
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'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 Jan 31, 2017 21:50:56 GMT
Id just add. Due diligence is for life of the loan, not just for launch. Check up on them occasionally, something might have changed. Unfortunately you cant rely on the platform to keep you promptly informed.
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Jan 31, 2017 21:57:32 GMT
Id just add. Due diligence is for life of the loan, not just for launch. Check up on them occasionally, something might have changed. Unfortunately you cant rely on the platform to keep you promptly informed. ... and likewise for the platform. DD on the platform before investing and regularly while you have money invested.
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Jan 31, 2017 22:11:15 GMT
OK, DUDE DILIGENCE / Mark II :-
DUE DILIGENCE
USE common sense.
READ the overview/loan description very carefully
READ and INTERPRET the Valuation Report, looking for any inconsistencies
SEARCH OUT the Company / Borrower (& Platform as necessary) at Companies House
GOOGLE your t**s off on the Company/Borrower (& Platform as necessary) and The Security
ALSO utilise other useful sites such as Local Authority Planning Sites & The Land Registry
REVIEW your Loans as regularly as you can and throughout the life of the Loan
REMEMBER – The SECURITY is the most important factor when carrying out DD.
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Jan 31, 2017 22:14:06 GMT
ozboy You don't need to post a new set of rules every time you update it - just edit your 'original post' and place a post noting it has been updated 
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ozboy
Member of DD Central
Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Jan 31, 2017 23:24:33 GMT
Thanks Dude, just thought reposting incorporating the additions illustrated (when compared to the original) the "improvements", but yerright. Anyway, all simple stuff as you say, and having it listed in a Format will hopefully assist others and we can build an Army of Due Diligencers, sharing an increasing wealth of intelligence and regularly expose the dodgier Loans more quickly. .......................... EDIT: and the dodgier Platforms |
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bg
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Post by bg on Feb 1, 2017 5:30:29 GMT
I'd add that unless you're making a significant investment DD is a complete waste of time and effort.
If you think a simple google search will show up something a platforms credit team has missed then you really shouldn't be investing on that platform.
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adrianc
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Post by adrianc on Feb 1, 2017 8:22:39 GMT
I'd add that unless you're making a significant investment DD is a complete waste of time and effort. If you think a simple google search will show up something a platforms credit team has missed then you really shouldn't be investing on that platform. Turn the lights off, savingstream, we're all going home.
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james
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Post by james on Feb 1, 2017 21:31:35 GMT
If you think a simple google search will show up something a platforms credit team has missed then you really shouldn't be investing on that platform. Sometimes people don't want to write off the platform as a whole. Some examples of possible issues: 1. Ablrate: borrower was asked if they had breached any covenants, borrower replied that they had made all payments on time (not what covenants means) and borrower ended up adding more equity. Was a good question, don't know if the platform asked. 2. MoneyThing: introducer was asked about some lender protections mentioned in the loan documents before loan went live, didn't reply, after loan fully funded said they weren't as described without ever replying to the original questions. 3. SavingStream: wrote about borrower being an individual, turned out to be a limited liability company that SavingStream's parent was taking a ten percent ownership in and the individual only had a thirty percent ownership. 4. SavingStream: didn't know or didn't choose to mention that the apparent borrowing individual faced sentencing for a crime a few days after the loan was due to complete and could have spent some time in prison - they didn't, fortunately - and presented a valuation giving residential use value when it seems that the planning inspector had said that use must not be allowed to lapse into residential. Platforms as well as borrowers do miss or choose not to mention material things. I agree with you to some extent that there comes a point when you should just give up on a platform and avoid it. I did for SavingStream.
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ozboy
Member of DD Central
Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Feb 2, 2017 0:06:27 GMT
SS get continually bashed, quite rightly & deservedly, and for all the right reasons, and they seem to take not a blind bit of notice.
It was some serious, deep Googling by cooling_dude which uncovered the s**tstorm that was the riverside Loan you refer to.
I too am leaving and selling my positions with SS for reasons we all know from dealing with them.
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