syalith
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Post by syalith on Mar 22, 2017 19:29:42 GMT
I like not having a bid restriction.
If you want to get your investment in, simply set an alarm for 10:58, and start refreshing the investments page, as soon as you see the loan, click invest, select your amount from the drop down list, click invest, click ok on the pop up.
That's exactly what I did and I was the third person invested in the loan, and have never missed out on any loans that I have wanted.
The ability to get a decent amount invested in quality loans is one of the main reasons why I mostly invest at fundingsecure rather than faffing about with the other sites where you can invest 50p maximum provided you pre-register six months in advance or whatever.
If you missed out you can easily go to the secondary market and find loans equal or better than the Tipton loan that are available with discounts.
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mikes1531
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Post by mikes1531 on Mar 22, 2017 20:50:32 GMT
I like not having a bid restriction. If you want to get your investment in, simply set an alarm for 10:58, and start refreshing the investments page, as soon as you see the loan, click invest, select your amount from the drop down list, click invest, click ok on the pop up. That's exactly what I did and I was the third person invested in the loan, and have never missed out on any loans that I have wanted. : Not everyone is as fortunate as you have been. This is fine for people who don't have anything else to do at the moment a loan is released, and who have a good internet connection. A lot of people aren't in both of those categories -- and one or the other is insufficient for success -- and therefore don't have a chance to invest in small unrestricted FS loans. If you missed out you can easily go to the secondary market and find loans equal or better than the Tipton loan that are available with discounts. I haven't done a detailed analysis of what's available on the SM, but what I have looked at does not support the above statement once the unusual tax situation that the FS SM presents is factored in. Yes, there are loan parts on offer at a discount but the discount is rarely, if ever, large enough to compensate adequately for the extra tax a SM buyer has to pay. The FS SM is ideal for non-taxpayers and companies, but basic-rate taxpayers generally lose out on SM purchases. And IMHO a higher-rate taxpayer buying on the SM doesn't fully understand the tax situation. Either that, or they know something that I don't!
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dzo
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Post by dzo on Mar 23, 2017 19:41:13 GMT
I like not having a bid restriction. If you want to get your investment in, simply set an alarm for 10:58, and start refreshing the investments page, as soon as you see the loan, click invest, select your amount from the drop down list, click invest, click ok on the pop up. That's exactly what I did and I was the third person invested in the loan, and have never missed out on any loans that I have wanted. The ability to get a decent amount invested in quality loans is one of the main reasons why I mostly invest at fundingsecure rather than faffing about with the other sites where you can invest 50p maximum provided you pre-register six months in advance or whatever. If you missed out you can easily go to the secondary market and find loans equal or better than the Tipton loan that are available with discounts. I wonder how you'll feel about it if enough people take your advice and you then miss out. On other platforms I've missed out on loans despite adopting this strategy.
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james21
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Post by james21 on Mar 24, 2017 7:45:16 GMT
Completely agree with comments. I have given up trying to invest in the smaller loans as I cant always be on the computer at release time and know they will fill within a minute. FS claim its all the same to them whether they do or dont put a restriction on. So why dont they do it? I think the most likely reasons are that either they cant be bothered or they forget
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elliotn
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Post by elliotn on Mar 24, 2017 8:29:54 GMT
FS claim its all the same to them whether they do or dont put a restriction on. So why dont they do it? I think the most likely reasons are that either they cant be bothered or they forget Stangely, I'd prob prefer that to a more conspiratorial assignation of certain attractive loans to keep BHs happy! 😷
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bg
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Post by bg on Mar 24, 2017 9:19:14 GMT
Completely agree with comments. I have given up trying to invest in the smaller loans as I cant always be on the computer at release time and know they will fill within a minute. FS claim its all the same to them whether they do or dont put a restriction on. So why dont they do it? I think the most likely reasons are that either they cant be bothered or they forget Because as they have clearly stated on this thread not everyone wants a bid restriction.
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mason
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Post by mason on Mar 24, 2017 20:17:03 GMT
Because as they have clearly stated on this thread not everyone wants a bid restriction. I'm sure everyone would like the freedom to be able to invest as much as they like in every loan. However, in the real world, loan supply is not limitless.
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bg
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Post by bg on Mar 24, 2017 20:31:26 GMT
Because as they have clearly stated on this thread not everyone wants a bid restriction. I'm sure everyone would like the freedom to be able to invest as much as they like in every loan. However, in the real world, loan supply is not limitless. Yes but I was replying to a poster who was questioning why bid restrictions weren't put on each loan and saying he thinks it's because they can't be bothered or forget - while in the same thread they have clearly pointed out why they do not (as not everyone is in favour of a bid restriction).
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mason
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Post by mason on Mar 25, 2017 6:28:47 GMT
I'm sure everyone would like the freedom to be able to invest as much as they like in every loan. However, in the real world, loan supply is not limitless. Yes but I was replying to a poster who was questioning why bid restrictions weren't put on each loan and saying he thinks it's because they can't be bothered or forget - while in the same thread they have clearly pointed out why they do not (as not everyone is in favour of a bid restriction). Sure, but FS's explanation is irrational and I do not think we should accept or believe it. They are suggesting that some investors want to invest large amounts into a small number of loans and that they don't want to diversify. Yet there are already plenty of loans that have no limit and take a long time to fill, so those investors who do not like diversification are already being well catered for. Failing to put limits on the smaller loans that are likely to fill in the blink of an eye is not going to help most of those who want to have a concentrated portfolio, because many of those people will not be quick enough to get a slice. If you take an extreme example, failure to put a limit on a loan secured on a small item of jewellery could result in the loan being completely filled by a single person. This is not a situation I can remember seeing until very recently, so I too wonder whether the real reason why a couple of recent loans have gone live without a limit is because FS can't be bothered.
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Post by reeknralf on Mar 25, 2017 7:38:13 GMT
They are suggesting that some investors want to invest large amounts into a small number of loans and that they don't want to diversify. Yet there are already plenty of loans that have no limit and take a long time to fill, so those investors who do not like diversification are already being well catered for. You seem to think that investing in loans is like roulette, you either make a lot of small bets, or you put the whole lot on 13 and pray to lady-luck. Perhaps you're right, but the opportunity to put large stakes on less-popular loans is not catering for active investors at all. Quite the opposite.
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bg
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Post by bg on Mar 25, 2017 7:47:27 GMT
Yes but I was replying to a poster who was questioning why bid restrictions weren't put on each loan and saying he thinks it's because they can't be bothered or forget - while in the same thread they have clearly pointed out why they do not (as not everyone is in favour of a bid restriction). Sure, but FS's explanation is irrational and I do not think we should accept or believe it. They are suggesting that some investors want to invest large amounts into a small number of loans and that they don't want to diversify. Yet there are already plenty of loans that have no limit and take a long time to fill, so those investors who do not like diversification are already being well catered for. Failing to put limits on the smaller loans that are likely to fill in the blink of an eye is not going to help most of those who want to have a concentrated portfolio, because many of those people will not be quick enough to get a slice. If you take an extreme example, failure to put a limit on a loan secured on a small item of jewellery could result in the loan being completely filled by a single person. This is not a situation I can remember seeing until very recently, so I too wonder whether the real reason why a couple of recent loans have gone live without a limit is because FS can't be bothered. But it's not irrational at all. They aren't suggesting some investors don't want to diversify. What they are saying is some investors want to invest in a variety of different sized loans, myself included. I want diversification but I don't want to be exclusively in the large illiquid loans. You may disagree but there are a number of people who feel the same, many of whom have a large sum invested in FS. As FS state they are trying to cater for their entire investor base. You can't please all the people all the time on every loan. This has been happening for as long as I can remember. It is not a new thing.
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mason
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Post by mason on Mar 25, 2017 8:33:15 GMT
You seem to think that investing in loans is like roulette, you either make a lot of small bets, or you put the whole lot on 13 and pray to lady-luck. Perhaps you're right, but the opportunity to put large stakes on less-popular loans is not catering for active investors at all. Quite the opposite. I wouldn't liken it to gambling at all, but the choice is either to put a lot of money into a few loans, or a smaller amount of money into a larger number of loans. There are some unpopular loans, yes, but there are also some large loans that are popular and big enough for everyone to get their fill. For small loans, FS typically seems to set limits of smaller loans at about 1% of the loan value IIRC, sometimes a bit less if the loan is large enough. Perhaps those big hitters who want those loans all to themselves could form a syndicate and approach FS privately so that they don't need to go to the trouble of bringing them to the platform at all.  Edit: I didn't pick up on your use of the term "active investors" initially, but I wonder if you are referring to investors who want to put large sums of money into loans for the express purpose of selling them on to others at a premium in the secondary market. If so, I don't think FS should be catering to their needs at all. But it's not irrational at all. They aren't suggesting some investors don't want to diversify. If you read what they wrote, that's precisely what they are suggesting: "some like to put one bid on an individual loan, rather than spreading it across multiple loans" Yes, you, as I, sit in the other camp. The solution for us is for there to be limits to give us the opportunity to diversify. Those who want to invest in just one or two loans have plenty of options. Removing limits from the smallest loans is not going to make things much better for them, while it makes things a lot worse for everyone else. Well I've been investing here since late 2015 and almost all of the loans in which I've invested have had limits set. I don't recall any that have not, except the big ones that have taken several days (or weeks) to fill. Am I misremembering?
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Post by reeknralf on Mar 25, 2017 8:52:32 GMT
"...but the choice is either to put a lot of money into a few loans, or a smaller amount of money into a larger number of loans..." You don't understand active investment.
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mason
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Post by mason on Mar 25, 2017 9:00:31 GMT
...but the choice is either to put a lot of money into a few loans, or a smaller amount of money into a larger number of loans... You don't understand active investment. I'll admit I was a bit slow off the mark, but I did pick up on the term "active investment" and edited my post just moments before you made this one. So, essentially what you are saying is that "active" investors - presumably those who do not just "buy and hold" - want to be able to hoover up large portions of small loans because they can profit from selling them on the secondary market. A bit like ticket touts, right? I'll refrain from sharing my views on that with you.
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bg
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Post by bg on Mar 25, 2017 9:15:58 GMT
I have read it but I don't interpret it like that. I interpret along the lines of how I actually think:- I would rather have £2.5k in one loan than £25 in 100 loans. It doesn't mean I don't diversify by having £2.5k in lots of loans because I do.
I think this on the basis that I just don't see the point (other than when you are first testing a platform) in manually putting £25 in a loan. I understand people are investing variable sums (depending on how much you have to invest) but if you invest £25 you are looking at making around a quid of interest in the 6 month period (less if you sell early). For me I do not think it is worth logging in to invest, the reading of the details, along with the monitoring updates over a 6 month period - it probably works out as a return of about 50p per hour.
Yes but if all small loans had small bidding limits than I (and others) would effectively be excluded from the smaller loans. I think the current solution of having no bidding restrictions on the odd smaller loan work by allowing everyone the opportunity to access a variety of loans. You can't say there aren't enough loans for people to diversify. 95% of them are big enough or have a bidding restriction (and if not you can actually log on at 11am like I do to bid if you are that bothered).
Well maybe it's because the small loans without limits you haven't invested in because the filled quickly (I've been investing since 2014)!
FYG the small 33k park homes loan yesterday took over a minute to fill by 89 investors.
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