bg
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Post by bg on Oct 10, 2017 6:44:58 GMT
Also these "studos" are tiny at 353 ft2- (my office is bigger!) and I wonder if it will fetch £130K... As a developer myself I just would not sleep if I sold such studios to the public - money isn't everything although the chap who invested £300K has clearly got more money and bottle than I have! Yes but studios such as these are not sold to owner occupiers, they are sold to investors who will be investing on the basis of rental yield.
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adrian77
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Post by adrian77 on Oct 10, 2017 8:20:06 GMT
Fair point but with housing benefit capped and the (slight?) possibility of Marxist rent controls under comrade Corbyn are investors going to rush to buy them? Personally I am winding down my rental portfolio ready to completely exit the market.
I wonder if the local development will be funded by FS loans at 20%+
Interesting one to watch but it strikes me as a bit of a gamble....
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blender
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Post by blender on Oct 10, 2017 8:52:35 GMT
Only 'a bit of a gamble'? So you are suggesting this is one of the safer bets?
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adrian77
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Post by adrian77 on Oct 10, 2017 12:44:37 GMT
Not exactly - just being polite - personally I don't think we have enough information to make an informed decision and at such a high return rate with bonuses I say to myself "this is almost too good to be true"....my instinct is not to touch it - time will tell ?
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mikes1531
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Post by mikes1531 on Oct 10, 2017 19:35:12 GMT
I'm keeping my eye on the expected exchange of contracts on the sale. If that happens then the sale and repayment of this loan ought to be assured, and if it happens before the loan renews, I'd be willing to invest in the renewal. I'd guess I'm not the only one thinking like this, so I wouldn't expect fundingsecure to set the renewal live before the contracts are exchanged. It's a rather big loan, and without a completed exchange there could be a lot of investors who'd be eager to use the exit that a renewal would provide. That would leave FS with a renewal they'd struggle to fund, and I'm pretty certain they wouldn't want either a repeat of what happened with the Rishton loan or a having large underwriting bill to pay. |
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lobster
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Post by lobster on Nov 13, 2017 13:12:08 GMT
I'm keeping my eye on the expected exchange of contracts on the sale. If that happens then the sale and repayment of this loan ought to be assured, and if it happens before the loan renews, I'd be willing to invest in the renewal. I'd guess I'm not the only one thinking like this, so I wouldn't expect fundingsecure to set the renewal live before the contracts are exchanged. It's a rather big loan, and without a completed exchange there could be a lot of investors who'd be eager to use the exit that a renewal would provide. That would leave FS with a renewal they'd struggle to fund, and I'm pretty certain they wouldn't want either a repeat of what happened with the Rishton loan or a having large underwriting bill to pay. Well you are right - contracts have indeed been exchanged prior to renewal. I'm almost certain that this is a dumb question, but what security do FS have on this loan right now ?? I mean the security was the cinema - but is that still the case now that contracts have been exchanged ? In short I don't quite understand what's going on ! 
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rogerthat
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Post by rogerthat on Nov 13, 2017 17:09:18 GMT
I'm keeping my eye on the expected exchange of contracts on the sale. If that happens then the sale and repayment of this loan ought to be assured, and if it happens before the loan renews, I'd be willing to invest in the renewal. I'd guess I'm not the only one thinking like this, so I wouldn't expect fundingsecure to set the renewal live before the contracts are exchanged. It's a rather big loan, and without a completed exchange there could be a lot of investors who'd be eager to use the exit that a renewal would provide. That would leave FS with a renewal they'd struggle to fund, and I'm pretty certain they wouldn't want either a repeat of what happened with the Rishton loan or a having large underwriting bill to pay. Well you are right - contracts have indeed been exchanged prior to renewal. I'm almost certain that this is a dumb question, but what security do FS have on this loan right now ?? I mean the security was the cinema - but is that still the case now that contracts have been exchanged ? In short I don't quite understand what's going on ! Q.so are you saying it hasn't been 'sold' only a contract to buy ? A Not yet, the contracts have been signed and it is going through the process but we will be repaid out of the funds once the sale goes through Q does that apply to all tranches in that cinema..I haven't had time yet to look at that particular tranche but I know ive got quite a wedge in it A Yes all loans on this property would be repaid as priority Q so in fact until every loan is cleared first...you have first dibs on the asset ? A Indeed ok..will stop panicking lol Leave it to me ..my tasty pink friend 
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lobster
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Post by lobster on Nov 17, 2017 11:19:05 GMT
OK, so it has renewed, and the renewal was only available for about a minute despite being a chunky 1.65m loan. One reason for this could be the first 3 investments which were as follows, and none of these are renewals : r*********g - £300,000.00 T***********g - £150,000.00 C**********d - £300,000.00 So there are over 500 investments in total in the renewal and the very first three are all massive, and earning 17% for the investors. I guess that these investors just have the fastest bots, but for all three to be the very first of all 500 ? Mmmm, I dunno, but something just doesn't smell pleasant  Edit - FS could easily have funded this without bonuses. So why didn't they ? |
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Nov 17, 2017 11:23:49 GMT
I think, after lifting your veil, we all know exactly what you are alluding to lobster.
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Steerpike
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Post by Steerpike on Nov 17, 2017 11:36:31 GMT
OK, so it has renewed, and the renewal was only available for about a minute despite being a chunky 1.65m loan. One reason for this could be the first 3 investments which were as follows, and none of these are renewals : r*********g - £300,000.00 T***********g - £150,000.00 C**********d - £300,000.00 So there are over 500 investments in total in the renewal and the very first three are all massive, and earning 17% for the investors. I guess that these investors just have the fastest bots, but for all three to be the very first of all 500 ? Mmmm, I dunno, but something just doesn't smell pleasant Edit - FS could easily have funded this without bonuses. So why didn't they ? I think I recall seeing those investors in this loan before and so I think that they are renewals.
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Post by angrykittens on Nov 17, 2017 12:00:35 GMT
They could be investors who bought up chunks overtime on the SM and have renewed the lot, in the original loan 3 people invested 300k apiece:
m****b - £300,000.00
P*******n - £300,000.00
l****l - £300,000.00
m****b is the only one who renewed so the other big pieces had to go somewhere.
Also in the original loan:
P******5 - £100,000.00 - Didn't renew
m****p - £100,000.00 - Renewed in full
It would not surprise me if FS gave preferential treatment (read pre-funding) to whales (and who can blame them) - if you're looking to get 300k into an investment you are not going to transfer it to FS on the off chance you can get FFF for a renewal.
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edward
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Post by edward on Nov 17, 2017 13:40:15 GMT
Surprised by the number of large investors who did not renew. There must have been large availability at outset which all disappeared very quickly. Anyone with any idea how much needed funding from outset?
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mikes1531
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Post by mikes1531 on Nov 18, 2017 0:31:17 GMT
Edit - FS could easily have funded this without bonuses. So why didn't they ? I'm not convinced FS could have funded the renewal without bonuses, and especially not easily. The original loan needed those BHs to contribute in the first place. ISTM that someone earning 17% on an investment is unlikely to want to roll their investment over at 13%, especially if they could put their money into other loans on the platform and earn 17%. And if those BHs didn't renew, FS would have had to find more than £1M of new investors for the renewal. I don't think they could do that easily -- possibly not at all. So IMHO the bonuses for the renewal were necessary.
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aj
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Post by aj on Feb 2, 2018 8:10:38 GMT
Lots of the renewal available on the SM at a good discount. Any thoughts?
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Post by brummiefred on Mar 12, 2018 13:12:40 GMT
Recently appeared in the updates section:................
The borrower is in the process of selling the property. The purchaser, who has exchanged contracts, continues to delay completion. In the meantime we have been approched (sic) by an alternative purchaser who have expressed a willingness to purchase the property. We have therefore instructed our solicitors to advise the purchaser's solicitors that, as the loan is technically in default, we can exercise our rights and force a sale to the alternative purchaser. We anticipate that this will force the current purchaser to complete the purchase in a more timely manner.
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