hazellend
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Post by hazellend on Dec 16, 2017 14:21:30 GMT
3rd Tranche just added to pipeline for this. It states:
"The third tranche of development funding of £329,472 is now required to cover initial costs of this development, including professional fees, surveys and specialist reports. The Independent Monitoring Surveyor has been appointed. A full breakdown of costs spent to date has been provided."
Now, forgive me but I thought that was what the first tranche was used for??
"The first development tranche was drawn last week to assist with set up costs and commencement of the development. "
I have fallen out of love with this DFL already  Our borrower seems to be pretty competent at completing developments and the market in Glasgow student property seems to be hot so I think this one will be okay.
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Post by skint4achange on Dec 16, 2017 14:42:52 GMT
Our borrower seems to be pretty competent at completing developments and the market in Glasgow student property seems to be hot so I think this one will be okay. Very true, but even experienced developers can struggle to get final tranches filled. Take DFL012. Looking at that one I would bet a small fortune on that development going to completion (In fact, I AM!!), but it still struggles to get funds at 12%. DF008 is similar. People do not like investing to the bitter end which is one downfall of P2P lending. Fickle investors who are not prepared to back investments in the final stages.
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sirius
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Post by sirius on Dec 16, 2017 15:16:56 GMT
Our borrower seems to be pretty competent at completing developments and the market in Glasgow student property seems to be hot so I think this one will be okay. Very true, but even experienced developers can struggle to get final tranches filled. Take DFL012. Looking at that one I would bet a small fortune on that development going to completion (In fact, I AM!!), but it still struggles to get funds at 12%. DF008 is similar. People do not like investing to the bitter end which is one downfall of P2P lending. Fickle investors who are not prepared to back investments in the final stages. The only reason I took a small bite on the last H.......n Q... tranche was that I, like many others I suspect, were already way over my comfort zone with it.
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Post by brightspark on Dec 16, 2017 17:17:37 GMT
Our borrower seems to be pretty competent at completing developments and the market in Glasgow student property seems to be hot so I think this one will be okay. Very true, but even experienced developers can struggle to get final tranches filled. Take DFL012. Looking at that one I would bet a small fortune on that development going to completion (In fact, I AM!!), but it still struggles to get funds at 12%. DF008 is similar. People do not like investing to the bitter end which is one downfall of P2P lending. Fickle investors who are not prepared to back investments in the final stages. Some (me included) do not enjoy investing to the bitter end. Too often for comfort in P to P it is a bitter end - months or even years of waiting for resolution/endless excuses/loss of capital/loss of interest/receivership. If this were not the case I would hang on in there with the rest of them. Early sale when feasible avoids these scenarios albeit with some potential interest not accruing. My grateful thanks to all bitter enders who I hope enjoy investment successes.
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mary
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Post by mary on Dec 19, 2017 20:20:08 GMT
While I think that the developer is (mostly) competent, I do like to see evidence of progress.
DFL03/22 meet this criteria, but DFL6/13/20 show zero evidence of any actual progress. These are all the same borrower!
Is he over-extending himself? I hope not given I'm in 03 and 22!
Edit - Oh yes, he also has another loan in the pipeline!
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mary
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Post by mary on Dec 20, 2017 15:15:59 GMT
The rate change successfully ensured the tranche filled. I'm hoping the money is used to extend DFL06, which is again overdue.
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rogerbu
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Post by rogerbu on Dec 20, 2017 15:25:30 GMT
I'm confused again.
From DFL020 T3's blurb
'Please note that the rate for this loan has increased to 12% for new and existing investors alike.'
I read that to mean that ALL DFL020 tranches are being increased to 12% (from 10%)?
If so, from what date are earlier DFL020 tranches increasing their rate from?
or is it only T3 that is 12% with T1 & T2 left at 10%?
The earlier tranches currently show 10% whilst T3 shows 12%
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mary
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Post by mary on Dec 20, 2017 16:38:24 GMT
The rate change successfully ensured the tranche filled. I'm hoping the money is used to extend DFL06, which is again overdue. I really don't think using funds from one loan to support another is the right way to go. I don't see how it squares will lenders in the 'donor' loan seeing their security diluted. (By all means release equity from an asset but make it a separate loan being a second charge ranking behind the DFL lenders.) And why not just raise another Tranche on DFL006? It's currently only at 25% GDV I agree completely, however it is stated that the funding is to be used for other purposes hence I was just stating my preference. NB. The 25% is of the finished building, as far as I am aware not a sod has been turned yet. 
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elliotn
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Post by elliotn on Dec 21, 2017 2:12:19 GMT
I really don't think using funds from one loan to support another is the right way to go. I don't see how it squares will lenders in the 'donor' loan seeing their security diluted. (By all means release equity from an asset but make it a separate loan being a second charge ranking behind the DFL lenders.) And why not just raise another Tranche on DFL006? It's currently only at 25% GDV I agree completely, however it is stated that the funding is to be used for other purposes hence I was just stating my preference. NB. The 25% is of the finished building, as far as I am aware not a sod has been turned yet. Tranche was fully subscribed so can't see the particulars now but think this was reverting to pre-development costs on this loan, guessing it might pop up as tomorrow's update though. (But yes DFL6 would be my choice too!)
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rocky1
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Post by rocky1 on Dec 21, 2017 19:47:36 GMT
hi there GDV has increased by over £3 million in just afew months.i am in quite big in first tranche at 10% but dont like the look of this now but will probably be stuck into the end with the only way out being SM with 36 loans being available at moment with a few hundred thousand available it seems you need to try to sell at over 150 days now to get anywhere.
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withnell
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Post by withnell on Dec 22, 2017 13:09:59 GMT
hi there GDV has increased by over £3 million in just afew months.i am in quite big in first tranche at 10% but dont like the look of this now but will probably be stuck into the end with the only way out being SM with 36 loans being available at moment with a few hundred thousand available it seems you need to try to sell at over 150 days now to get anywhere. It's a liquid loan - you'll sell it within the hour if you list it! it was only the new tranche plus Lendy cancelling parts and dumping on the market that gave the glut yesterday/this morning
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Post by picanto on Jan 6, 2018 10:35:41 GMT
I may be missing something But how on Earth can it be realistic to hope that this development will reach completion given that atm Only 169 days remain and no ground works have begun yet? . They can get an extension on the loan like other DFL's have done. As long as they keep paying interest than I am happy to keep money invested in the project.
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Post by skint4achange on Jan 6, 2018 10:52:14 GMT
I may be missing something But how on Earth can it be realistic to hope that this development will reach completion given that atm Only 169 days remain and no ground works have begun yet? . They can get an extension on the loan like other DFL's have done. As long as they keep paying interest than I am happy to keep money invested in the project. As long as they don't keep extending the LTV using OUR funds and then end up with a piece of land worth less than the loan and no chance of completing the development within budget. When you look at the market valuation of the land with vacant possession for a 90 day sale, the LTV is at almost 64% and rising.
There are a few assumptions though with the valuation, the biggest one being that the RICS valuation expert actually has a clue what he/she is talking about and they haven't just given a valuation based on what the borrower needs! But surely no valuation from an expert could be wrong? 
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elliotn
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Post by elliotn on Jan 6, 2018 11:40:29 GMT
I may be missing something But how on Earth can it be realistic to hope that this development will reach completion given that atm Only 169 days remain and no ground works have begun yet? If you go back a month or two there's mention of a (significant, iirc) extension being required once the borrower decided to develop in response to the increase in Glasgow property prices, so might hear this again when shovel ready (or they've got the reddies together).
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Post by loftankerman on Jan 6, 2018 11:46:47 GMT
I may be missing something But how on Earth can it be realistic to hope that this development will reach completion given that atm Only 169 days remain and no ground works have begun yet? How can it need more than a couple of cm of tarmac spread over it and gallons of white paint? Someone offered to do my drive for me last week and said he'd have it done within a couple of hours. 
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