ashtondav
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Post by ashtondav on Oct 18, 2017 7:27:32 GMT
Rule #1 of property lending: developers never pay up on time.
Rule #2 of property lending: see rule 1
Quality and valuation of the the asset is business critical.
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johns
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Post by johns on Oct 30, 2017 14:39:44 GMT
Yippee!! Folkestone property sold at auction today for £830k against guide of £700k. Perhaps getting (most of) our money back.
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c88dnf
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Post by c88dnf on Oct 30, 2017 21:35:13 GMT
Yippee!! Folkestone property sold at auction today for £830k against guide of £700k. Perhaps getting (most of) our money back. Loan amount total was stated as £572,240. I'll accept 100% of money plus all interest due.
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Nomad
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Post by Nomad on Nov 14, 2017 11:34:25 GMT
And this one? Property Development *U*****E *O** 4 (22074) — 122 days late, exposure £xxx Downgraded (No risk band - More info)
10 Aug 2017
The borrower has advised that completion of the external refinance has been delayed as the required documentation will not be signed until early next week. However the borrower has advised that funds should be received by next Friday. We will update investors next week.Now 210 days - 10 Nov 2017
The borrower has advised that the legal checks are still being undertaken by the external lender and so the refinance will be delayed further. The borrower has advised that completion of the refinance should occur by the end of November. We will continue to liaise with the borrower and update investors if this timescale changes.
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ton27
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Post by ton27 on Nov 14, 2017 12:50:47 GMT
Which November are they referring to - 2017 or probably 2018?
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Nomad
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Post by Nomad on Nov 14, 2017 13:03:06 GMT
Which November are they referring to - 2017 or probably 2018? They have no idea... It will be very surprising if it's sorted out this year.
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Nomad
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Post by Nomad on Dec 12, 2017 4:54:34 GMT
And this one? Property Development *U*****E *O** 4 (22074) — 122 days late, exposure £xxx Downgraded (No risk band - More info)
10 Aug 2017
The borrower has advised that completion of the external refinance has been delayed as the required documentation will not be signed until early next week. However the borrower has advised that funds should be received by next Friday. We will update investors next week.Now 210 days - 10 Nov 2017
The borrower has advised that the legal checks are still being undertaken by the external lender and so the refinance will be delayed further. The borrower has advised that completion of the refinance should occur by the end of November. We will continue to liaise with the borrower and update investors if this timescale changes." The borrower is confident that funds will be received to repay the remaining debt by 8 December 2017. " I'd imagine he was the only one feeling any confidence...
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ashtondav
Member of DD Central
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Post by ashtondav on Dec 12, 2017 8:18:58 GMT
All property loans go late. We're lending to dodgy developers who can't get credit anywhere else. LTV of 70% at this stage of a property cycle is additional lunacy.
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stub8535
Member of DD Central
personal opinions only. Not qualified to advise on investment products.
Posts: 1,447
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Post by stub8535 on Dec 12, 2017 9:32:30 GMT
If one reads p2pfinancenews today there is news. A bond fund p2p platform has just employed 2 fc staff from the property division to invest in fc property loans. Fixed, not target, 1 and 2 year bond rates. Much lower rates than direct investments but you are paying for internal expert knowledge.
Hopefully they will end up with late payers as well but will always pay bondholders on time in full.
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Post by GSV3MIaC on Dec 12, 2017 9:50:43 GMT
Please define 'guaranteed', preferably in close conference with my lawyers and accountants, and with due regard to counter-party risk(s).!!
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stub8535
Member of DD Central
personal opinions only. Not qualified to advise on investment products.
Posts: 1,447
Likes: 945
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Post by stub8535 on Dec 12, 2017 11:15:06 GMT
Please define 'guaranteed', preferably in close conference with my lawyers and accountants, and with due regard to counter-party risk(s).!! In terms of target returns elsewhere.
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Post by grahamreeds on Dec 13, 2017 4:26:07 GMT
My feed is filling up with
"We have posted this comment because this tranche of the loan to this borrower has missed its repayment date."
messages.
Too depressing to count.
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Post by mikeyp on Dec 13, 2017 8:06:10 GMT
I don't find late too depressing. In fact the extra 2% is cheering, _providing_ no more go the way of the London hotel.
FC has noticed that the first tranche of the cliff house in North Devon has not repaid. The comment includes 'because completion of the development has been set back due to delays with the adverse weather, but the contractors are working towards completing by end of January'. I think it will a while before we see our money on that one.
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adrian77
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Post by adrian77 on Dec 14, 2017 10:07:29 GMT
I was in this loan but sold up as I thought/knew this would happen. Could somebody tell me what the current situation is as I would be interested to know.
A similar sized development on another platform has gone horribly wrong with the end valuation being at least £1.7m below expectation-please email me if you want the details.
Are there going to be several more fiasco's such as London - Methinks Yes!
Thanks.
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Post by mikeyp on Dec 14, 2017 12:07:55 GMT
I limited my interest to £40 as it did seem one of the riskier developments. The note in the Financial Summary for the 23rd (and last, I think) tranche in August was
'The borrower has requested an additional £885,000 to complete this project given the high
level of finishes and quality of units to be installed at C***** C**** H****. Total costs for
completion amounts to £1.16m but the borrower only requires £885,000 from FC investors.
These costs have been confirmed and verified by the MS appointed to the project with
works expected to be completed by end of October. It is most likely the development will be
sold at practical completion given the intense interests shown by three prospective buyers.
As part of this additional loan increase request FC have requested a revised valuation of the
site. The valuer notes the finished development will hold an improved GDV value of £6m.'
The full comment on the first, late, tranche is
'We have posted this comment because this tranche of the loan to this borrower has missed its repayment date. The reason for this is because completion of the development has been set back due to delays with the adverse weather, but the contractors are working towards completing by end of January. The borrower intends on selling the property which will repay the loan, however will market the property and explore refinance options simultaneously in case a sale is not forthcoming. We will continue to liaise with the borrower and update investors mid-January.'
I was in the area in the summer and took a look. It's a nice spot but a bit out of the village with a rocky shore below.
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