j1
Posts: 61 
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Post by j1 on Jun 9, 2017 11:03:12 GMT
What bare people's opinion on 2nd and 3rd legal charges? Do you ever invest in them? What is your criteria?
Thanks!!
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ozboy
Member of DD Central
Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Jun 9, 2017 11:11:28 GMT
What bare people's opinion on 2nd and 3rd legal charges? Do you ever invest in them? What is your criteria? Thanks!! Personally I use my extra long & industrial strength bargepole on 2nd Charges, let alone 3rds.Some more learned than me however have pointed out that if FS holds the 1st, 2nd, 3rd, (4th, 5th?) Charges then there is some degree of "comfort", but I know not enough to comment further. 
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oldgrumpy
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Post by oldgrumpy on Jun 9, 2017 11:32:00 GMT
What bare people's opinion on 2nd and 3rd legal charges? Do you ever invest in them? What is your criteria? Thanks!! I try hard to ignore bare people, but will sometimes take a look at their opinions.   (Ahem!) ... and yes, I rarely invest in 2nd charges. There is plenty of first charge opportunity about, and some of that is dodgy enough (or too dodgy, even) for me!
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ozboy
Member of DD Central
Mine's a Large One! (Snigger, snigger .......)
Posts: 3,168
Likes: 4,859
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Post by ozboy on Jun 9, 2017 11:41:44 GMT
What bare people's opinion on 2nd and 3rd legal charges? Do you ever invest in them? What is your criteria? Thanks!! I try hard to ignore bare people, but will sometimes take a look at their opinions. (Ahem!) ... and yes, I rarely invest in 2nd charges. There is plenty of first charge opportunity about, and some of that is dodgy enough (or too dodgy, even) for me! Yes, mucho dodging going on with P2P! 
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stokeloans
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Post by stokeloans on Jun 9, 2017 15:16:40 GMT
Barge pole usually....especially when the security is a personal guarantee  |
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rs
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Post by rs on Jun 9, 2017 16:16:00 GMT
The property value won't decrease by 10% over the year and is likely to renew as borrowing is for business. So looks like an ok investment.
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09dolphin
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Post by 09dolphin on Jun 24, 2017 9:06:25 GMT
I'm quite happy with a 2nd legal charge if FS hold the 1st legal charge, the total LTV is low ( below 50%) and it doesn't involve art or boats. I invested in the Italian library when it was 1st offered and I also invested in the 2nd loan as the LTV remained very low (but when this loan was 1st issued I don't think FS used "tranches"). I did not invest in the later loans.
Where another lender holds the 1st charge I never lend as, if there is a default, you are dependant on the 1st charge holder also acting in the interests of FS lenders rather than just their own interests - which wouldn't make business sense.
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