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Post by watter on Mar 10, 2017 22:43:06 GMT
For anyone new to this platform (me included!), is there a set of steps you would usually carry out before deciding whether to invest in a loan.
Thanks
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cooling_dude
Bye Bye's for the PPI
Posts: 2,853 
Likes: 4,298
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Post by cooling_dude on Mar 10, 2017 22:53:51 GMT
For anyone new to this platform (me included!), is there a set of steps you would usually carry out before deciding whether to invest in a loan. Thanks Some basics here - p2pindependentforum.com/thread/7821/due-diligence1. Read The Overview 2. Read Ther VR 3. Google (Borrower + Security) - Also, Land Registry, Companies House & The Gazette are all good sites for research 4. Serch the localised planning sites to confirm any indicated PP is present and accurate Notes - > LTVs can be misleading - VRs provide the misleading LTV. Any recent sales (estate agents/ land registry) are the best indication of true value (i.e. what somebody is prepared to pay) > SS indicated LTGV are very misleading (try to find ultimate LTGV, which is "Total Loan"/ "GDV" (not always available on SS) > Remeber that the security is the most important concern in the event of a default, so concentrate most of your DD towards it
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GeorgeT
Member of DD Central
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Post by GeorgeT on Mar 10, 2017 22:57:54 GMT
Never underestimate the value and importance of your gut instinct.
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ben
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Post by ben on Mar 11, 2017 9:21:55 GMT
Never underestimate the value and importance of your gut instinct. You instinct will probably get you to ignore the majority of the offerings and then to me the most import aspect is do the sums add up (ie is there actually profit to be made for the borrower on real figures rather then hope) and does the borrower have a good track record, which unfortuntly on most loans on SS the answer is no to both. I also like loans where the borrower has a real risk of a loss but they are practically none existant on SS.
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