easylender
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Post by easylender on Jun 19, 2017 14:54:51 GMT
Ah, I think I see what's gone wrong for you, you've bought multiple tranches of the same loan and that has blown your diversification. It's so important not to ignore those little pie chart symbols on the loan requests panel. I too have these loans, but only one tranche of each, and TC still classifies them as "late", not "bad debt".
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c88dnf
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Post by c88dnf on Jun 19, 2017 16:07:55 GMT
Ah, I think I see what's gone wrong for you, you've bought multiple tranches of the same loan and that has blown your diversification. It's so important not to ignore those little pie chart symbols on the loan requests panel. I too have these loans, but only one tranche of each, and TC still classifies them as "late", not "bad debt". Wrong on all counts. My total exposure to the various tranches is what matters and that overall figure is in line with my diversification strategy. I'm well aware of the various symbols, thanks very much. Finally, if you go to "My Loan Parts" and look at the London loans (14978 et al), you'll find the loan status is "Bad Debt". Your defence of FC is quite remarkable. I'm assuming you have read the comments on this forum re the London, Borehamwood and Tewkesbury loans, plus the Administrator's report on the London loans, posted on Company House's website?
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easylender
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Post by easylender on Jun 19, 2017 19:30:19 GMT
Thanks, I stand corrected, the London loan has defaulted. However Borehamwood and Tewkesbury have not. Indeed Borehamwood may be being refinanced as we type.
I am not intending to defend FC. I'm very disappointed with the way SME loans have changed over the last year. As none of them now pass my dd criteria, and with the withdrawal of property loans they have nothing for me any more. I suspect it's because they are now more interested in the institutional investors. However I've been lending with them for 5 years and my results have consistently met expectations with an annualised return of over 7%. Your experience seems to be very different and I'm really curious as to why that may be. Are you? We've both invested in well over 100 of these loans and so the difference is unlikely to be down to chance.
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am
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Post by am on Jun 19, 2017 20:42:25 GMT
Strictly speaking Luton is not actually late yet - payment date is today and shown as "processing". BH (Cumbria) was due to pay last Friday but is still showing as 0 days late. I've noticed a strange phenomenon on the SM where my property loans are snapped up just after the third payment from the end. This is despite having the max premium applied and my having other more attractively priced parts for sale but half-way between payment dates (ie 1.5 or 2.5 months from final payment). I'm not sure if they don't realise how the interest works on parts bought on the SM? But, that aside, they are buying a two month loan paying around 4% with a high chance of not paying on time and being unsaleable. You could do better than that buying at a decent rate and selling at par, even after fees. Or are they actually hoping they go overdue, so they get 12% for an unknown period? It's a bit of a mystery. I'm quite sure that there are people who simply don't understand the SM properly. More than once I have had "E" band loans bought at +3% premium while parts from the same loan are available at around +0.5%. The size of the loan part also matters. I've occasionally looked at what's available at par/discount, and found £1000 loan parts, which would be all very well if I was willing to be more of diversity criminal than I already am. (I've had a policy of up to 2% into individual property loans.) But perhaps the loan parts you refer to were of comparable size.
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easylender
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Post by easylender on Aug 2, 2017 16:47:28 GMT
In case anyone's missed the joy of having a late FC property loan, three more went late on Friday. One hoping to refinance with FC and its investors (which certainly won't be including me), one seeking external refinance and the last because the expected sale has been delayed. Happily, investors are promised 2% interest over the loans' stated rates, payable when (if?) the loan is repaid. Has anyone got a chart showing the proportion of FC's property loans now overdue? Although the number of late property loans in my portfolio rose from a long term average of 6 to a high of 9, over the last few weeks it has fallen back to 6. So I am still of the opinion that the surge was a coincidence and nothing to worry about.
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c88dnf
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Post by c88dnf on Aug 2, 2017 19:02:52 GMT
In case anyone's missed the joy of having a late FC property loan, three more went late on Friday. One hoping to refinance with FC and its investors (which certainly won't be including me), one seeking external refinance and the last because the expected sale has been delayed. Happily, investors are promised 2% interest over the loans' stated rates, payable when (if?) the loan is repaid. Has anyone got a chart showing the proportion of FC's property loans now overdue? Although the number of late property loans in my portfolio rose from a long term average of 6 to a high of 9, over the last few weeks it has fallen back to 6. So I am still of the opinion that the surge was a coincidence and nothing to worry about. Let's see what happens to the Tewkesbury set of loans due to be put in default tomorrow (Aug 3rd) if not repaid in full, the Cumbria loans which FC are assured will be repaid in full by the end of this week and the development in SW11 due to repay in full on Aug 8th.
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c88dnf
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Post by c88dnf on Aug 3, 2017 18:37:45 GMT
Although the number of late property loans in my portfolio rose from a long term average of 6 to a high of 9, over the last few weeks it has fallen back to 6. So I am still of the opinion that the surge was a coincidence and nothing to worry about. Let's see what happens to the Tewkesbury set of loans due to be put in default tomorrow (Aug 3rd) if not repaid in full, the Cumbria loans which FC are assured will be repaid in full by the end of this week and the development in SW11 due to repay in full on Aug 8th. Update - Tewkesbury not repaid and no information from FC, despite a promise to update investors today. Presumably now in default. Cumbria loans due tomorrow......
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seabbs
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Post by seabbs on Aug 3, 2017 20:09:39 GMT
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c88dnf
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Post by c88dnf on Aug 4, 2017 10:19:45 GMT
Let's see what happens to the Tewkesbury set of loans due to be put in default tomorrow (Aug 3rd) if not repaid in full, the Cumbria loans which FC are assured will be repaid in full by the end of this week and the development in SW11 due to repay in full on Aug 8th. Update - Tewkesbury not repaid and no information from FC, despite a promise to update investors today. Presumably now in default. Cumbria loans due tomorrow...... UPDATE - Aug 4th 11.10 - Cumbria loans delayed another week. That's delay excuse no. 3, the original estimated (late) completion date being mid-July. SW11 loan will be late - the usual boilerplate text excuse has been posted Tewkesbury loans - still no information I suppose we should be grateful for 2 of 3 loans getting some form of update, even if that for SW11 has long been shown to have little basis in reality. Another week, same old story. 
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easylender
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Post by easylender on Aug 4, 2017 12:05:37 GMT
Many years ago I employed some builders to remodel my house. Before starting they said it would take 3 months. They finished in 9 months! Talking to others I find this is business-as-usual in that trade. There are many factors involved: weather, unexpected ground conditions, availability of subbies, availability of materials, working on multiple jobs, the list goes on.
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Post by GSV3MIaC on Aug 4, 2017 14:45:32 GMT
Building is just ('low grade') engineering, of which the first rule is that "it takes longer and costs more". The issue is, as always, that you can't figure in all the unknowns unknowns at the start (and OK, some of them have trouble with known-knowns, like the regular occurrence of Xmas, summer holidays, etc.). Late is not surprising, even 2x or 3x late .. however the poor communications and tracking of WTH is happening is really not acceptable .. someone needs to have gone out and looked at some point, and taken action(s) based on what they saw.
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adrian77
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Post by adrian77 on Aug 4, 2017 18:27:49 GMT
REf Talking to others I find this is business-as-usual in that trade
I am in this business and I accept things will overrun and cost more but only if you let them- hello FC! The Chinese often finish massive contracts under budget and early...
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registerme
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Post by registerme on Aug 5, 2017 7:17:59 GMT
The Chinese often finish massive contracts under budget and early... Even we managed to finish Crossrail on time and too budget!
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ceejay
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Post by ceejay on Aug 5, 2017 7:35:28 GMT
The Chinese often finish massive contracts under budget and early... Even we managed to finish Crossrail on time and too budget! It will only be finished when the trains are running ... plenty of time still for things to go wrong!
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Post by GSV3MIaC on Aug 5, 2017 13:41:40 GMT
The Chinese often finish massive contracts under budget and early... Even we managed to finish Crossrail on time and to o budget! Everyone is allowed to get lucky sometimes (the London Orbital Sewer was another one IIRC). West Coast mainline upgrade demonstrates this is not repeatable.
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