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Post by MoneyThing on May 2, 2017 9:03:45 GMT
Morning,
As some of you have noticed, we have started to build up a healthy pipeline which we hope will shortly start to propagate into a strong deal flow.
Having just completed on our largest single loan advance of £1.56m within 30 hours (24hrs with bid restriction at 11% to lenders), I feel that at this time the c. £1m to £1.5m loan is achievable. (Note that MH is our largest in total - approaching £5m over 9 advances).
I am also mindful that we have a had a bit of a drought recently which would have skewed the rate of uptake of the recent loan. Although we seem to be attracting 150 to 200 new lenders per month of which typically two-thirds go on to invest.
Moving on from my preamble, we have just been approached to look at a c. 55% LTV cleared land with residential planning close to Leeds city centre. The loan looks strong with a good exit with someone lined up to undertake the development finance (GDV >£50m). The bridging opportunity is however £3.3m.
Without discussing the specifics of this loan, are we biting off more than we can chew at this stage with a loan of this size at the moment (at say 12% to lenders)?
Feedback gratefully received.
Many thanks,
Ed
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Post by dan1 on May 2, 2017 9:14:06 GMT
I'm a very small fish in the land of BHs but my initial reaction is that, assuming the security is good, rate is critical. Anything less than 12% will perhaps struggle.
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registerme
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Post by registerme on May 2, 2017 9:14:14 GMT
I think that's probably achievable (but you will likely know better). Depending on the details I would be willing to go over my normal allocation / loan amount if it would help get it across the line, perhaps by a lot of if there were additional incentives. I also suspect you have access to some fairly big hitters who might be willing to look at an underwriting role in some situations.
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archie
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Post by archie on May 2, 2017 9:17:00 GMT
I'm sure I can search down the back of my sofa to help MT out. If the timing could be aligned with a big repayment that would help, pity AE loans aren't repaying until July as there is a lot of funds tied up there. Plenty of notice will help too.
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Post by MoneyThing on May 2, 2017 9:17:06 GMT
Morning, ... Without discussing the specifics of this loan, are we biting off more than we can chew at this stage with a loan of this size t the moment (at say 12% to lenders)? Feedback gratefully received. ... At the risk of being obtuse, without the loan specifics, it's rather hard to say. Acknowledged. I suppose I am really asking whether it is worth us considering loans of this sort of magnitude at this stage (on the assumption that they are strong loans at the 12% mark). Regards, Ed.
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ben
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Post by ben on May 2, 2017 9:21:18 GMT
Do they need all the money on day 1? i.e can you launch it like you have with the Manchester loans, significant part to begin with and then loans every so often as the work progresses. I think if you could do it like that with your current lending base you would easily fill it. Or do different rates for different risk, they always seem quite popular, Lend Invest used to be the master of this although they seemed to have moved away from this.
However if the loan is good I could see a lot of people interested as there has been very few decent loans lately, as you just launced a 1.5 million loan and that filled fairly quickly I would think the demand is there if the quality is.
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n
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Yet another Nick
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Post by n on May 2, 2017 9:23:01 GMT
I would certainly be prepared to take double or treble my usual bite to aid the platform. I think to get a quantitative feel though you might consider sending out an email asking for tentative commitments.
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trevor
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Post by trevor on May 2, 2017 9:23:26 GMT
I believe at your indicated % and LTV you will fill it. I for one will move cash from other platforms to and lend an above average sum, but I am not a BH.
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oldgrumpy
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Post by oldgrumpy on May 2, 2017 9:23:31 GMT
I get the impression that there is disquiet (well there always is, isn't there) on the default positions and action on at least three platforms, one in particular , so there may be quite a bit of money being prepared for platform switching towards MT. We await MT/Broadoak's first signs of "difficulty" and what they do about it, so in the meantime these prospective mid-high value deals may prosper.
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Post by MoneyThing on May 2, 2017 9:31:56 GMT
Do they need all the money on day 1? i.e can you launch it like you have with the Manchester loans, significant part to begin with and then loans every so often as the work progresses. I think if you could do it like that with your current lending base you would easily fill it. Or do different rates for different risk, they always seem quite popular, Lend Invest used to be the master of this although they seemed to have moved away from this. However if the loan is good I could see a lot of people interested as there has been very few decent loans lately, as you just launced a 1.5 million loan and that filled fairly quickly I would think the demand is there if the quality is. Thanks - yes, they would need all the funds on day 1. Regards, Ed.
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star dust
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Post by star dust on May 2, 2017 9:46:03 GMT
If the borrower is credible and the security is reasonable by P2P standards, and you can manage 12% with the possible extra contingency for underwriters and/or cash-back I think it could fly. On a personal basis if it looks fairly sound I may go up to 50% above my loan limit as an initial investment. Perhaps also worth seeing if it can be split in any way (more than one title thus loans, or tranches etc). Perhaps it’s unfair for me to say as I am not a BH, but P2P is about risk, so I’d say go for it Ed MoneyThing (before someone else does ).
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gt94sss2
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Post by gt94sss2 on May 2, 2017 9:52:23 GMT
From your description of the loan, I would be tempted to say go for it. Of course, it would help if combined with a loan repayment and a >12% interest rate If you proceed, do you have an idea of timing/loan limits?
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Monetus
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Post by Monetus on May 2, 2017 9:52:50 GMT
Subject to this being a high quality loan, I believe that you can do it this time around at 12%.
I certainly have a fair bit looking for a home!
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Post by MoneyThing on May 2, 2017 9:57:22 GMT
From your description of the loan, I would be tempted to say go for it. Of course, it would help if combined with a loan repayment and a >12% interest rate If you proceed, do you have an idea of timing/loan limits? If we go ahead - probably within the next fortnight. Regards, Ed.
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Post by westcountry on May 2, 2017 10:00:27 GMT
Ed ( MoneyThing ), It sounds a good proposition, but I'd appreciate a couple bits more information please: 1) What is the rough 90-day LTV for this loan? 2) How long is the loan term expected to be? Regards, Christopher
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