littleoldlady
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Running down all platforms due to age
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Post by littleoldlady on Jul 16, 2017 19:02:30 GMT
Me; Iam into FS = excellent return %, secured loans, happy days I guess you are not holding the Scottish Boatyard, the NI Turbine or the South Wales property. That make you a better loan picker than me.
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Post by martin44 on Jul 16, 2017 19:37:53 GMT
Suggest you try Funding Circle SME = your money at risk not theirs = defaults waiting to happen or Zopa, good idea 4 yrs ago = plenty of hangers on have not moved on = pathetic return Me; Iam into FS = excellent return %, secured loans, happy days May i ask how long you have been lending with Fundingsecure?
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james21
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Post by james21 on Jul 16, 2017 19:54:02 GMT
Been investing with FS 9 months how about you?. I dont do; overvalued boatyards, train sets that are worth only what the owner thinks, cars that dont sell and depreciate from day one, so are put up to buy other stock that might, speedboats that are anyone's guess what they are worth, artworks and books that are in favour this year and out next, watches and and jewelry of questionable value
What I would say is all of these do have a value and if it comes to it some money will come back to the lender
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locutus
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Post by locutus on Jul 16, 2017 20:22:50 GMT
I avoid renewal loans like the plague unless there is a high interest rate/cash back. Even then no more than £100 loan part I have a formula for investing on FS. Renewals + 2nd or 3rd charges + development loans = barge poles Why avoid renewals? If the borrower is willing to pay the interest out of their own pocket, it reinforces confidence in the security. Or are you talking about renewals where interest is rolled up?
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lobster
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Post by lobster on Jul 16, 2017 20:25:22 GMT
Been investing with FS 9 months how about you?. I dont do; overvalued boatyards, train sets that are worth only what the owner thinks, cars that dont sell and depreciate from day one, so are put up to buy other stock that might, speedboats that are anyone's guess what they are worth, artworks and books that are in favour this year and out next, watches and and jewelry of questionable value What I would say is all of these do have a value and if it comes to it some money will come back to the lender Don't see a problem with artwork, especially if it's a piece with provenance and a valuation by a respected outfit, such as is the case for the Picasso print in loan 1612664655 with a 51% LTV . A 60 sec Google tells you how much it sold for at Sothebys in 2014. Don't see much of a problem to be honest.
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gibmike
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What is a cynic? A man who knows the price of everything and the value of nothing.
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Post by gibmike on Jul 16, 2017 21:46:19 GMT
Regarding the OP's post, I invest based on some simple rules as there are people with far more knowledge than me!
1) No more than 2% per loan per platform.
2) on FS it is currently running at 1.75% per loan
3) I also now avoid 70%+ LTV loans
4) Renewals are partially ignored depending on LTV
Following the above has held me in good stead over the last 18 months and so far I have had a few defaults (across AC/FS/Lendy etc.) which have all been repaid.
Would I recommend FS? Yes.
Would I recommend FS to someone who is not knowledgeable enough to invest in P2P? No.
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littleoldlady
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Running down all platforms due to age
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Post by littleoldlady on Jul 16, 2017 22:09:40 GMT
Regarding the OP's post, I invest based on some simple rules as there are people with far more knowledge than me! 1) No more than 2% per loan per platform.2) on FS it is currently running at 1.75% per loan 3) I also now avoid 70%+ LTV loans 4) Renewals are partially ignored depending on LTV Following the above has held me in good stead over the last 18 months and so far I have had a few defaults (across AC/FS/Lendy etc.) which have all been repaid. Would I recommend FS? Yes. Would I recommend FS to someone who is not knowledgeable enough to invest in P2P? No. It takes some time to get up to the required 50 loans and during that time you will be over 2%. I got 3 defaults long before 50 loans.
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gibmike
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What is a cynic? A man who knows the price of everything and the value of nothing.
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Post by gibmike on Jul 16, 2017 22:12:12 GMT
littleoldlady when I started out I purchased the majority from the SM at discount (if this helps).
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Post by Harland Kearney on Jul 16, 2017 23:17:05 GMT
"This is a 6 month loan" This usually translates to anywhere between 200-300 days in most cases  with FS . Jokes aside, risk comes with the higher rates that FS offer to investors (Nobody forces you to invest!) |
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r1200gs
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Post by r1200gs on Jul 17, 2017 7:00:24 GMT
"This is a 6 month loan" This usually translates to anywhere between 200-300 days in most cases with FS . Jokes aside, risk comes with the higher rates that FS offer to investors (Nobody forces you to invest!) We're all grown up on this forum and nobody likes to be talked down to. We're all well aware that we don't have to lend here, and I now don't. We are all well aware that higher rates generally bring higher risk, but that higher risk should come from borrowers, not from the shoddy way a platform is being run.
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peteuk
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Post by peteuk on Jul 17, 2017 8:24:56 GMT
James just to let you know as you are new to FS, car loans everybody so far has got there money back with interest the same with jewellry and gold also watches ,see how fast a watch loan takes to fill, the real problems come from valuations of land and buildings especially when they phone up local estate agents for a fag packet valuation, in the past they have had to withdraw loans after people from this forum who lived near some sites flagged up how worthless some valuations are. Things started to go wrong when a founding director left last november ,i hope you carry on picking winners but dont be fooled by these people a house they say is worth 100000 in liverpool may only be worth 70000 on the open market ,so then you are the only one taking the risk, dont rely on FS do your own DD
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Post by badboyyardy on Jul 17, 2017 10:13:44 GMT
Sound advice here - doing your own DD is the biggest thing. Don't trust valuations given and do your own legwork.
Whats everyone tactics on SM reselling? Sell before the 30 days mark at what discount?
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09dolphin
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Post by 09dolphin on Jul 17, 2017 10:46:18 GMT
My greatest problems are the very optomistic loan valuations combined with FS' propensity for believing whatever reasons the borrower chooses to use to defer paying the interest or renewing loans for up to 18+ months. I don't include the Whitehaven debacle although it does affect my sentiments relating to the care FS exercise about safeguarding lenders money.
For the past 9 months I've chosen to only lend on loans that are, according to FS, up to 65% lTV. For renewals I only lend once at 60% or less where the interest has resulted in an increase in the LTV and this has served me well.
I do have concerns about the classification of loans on the secondary market. Specifically that these loans are classed as not available as they are in the process of being redeemed or suspended. I have questioned this and have been told I need to "click" another button to activate the selling process. I do think that when FS change their processes they should tell investors but hay ho I'm only a small investor.
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bg
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Post by bg on Jul 17, 2017 10:53:13 GMT
4) Renewals are partially ignored depending on LTV If the borrower pays the interest in cash out of their own resources to renew it actually gives me more confidence in the loan (ie they are meeting their obligations and are keen to keep hold of the asset). If however, the loan size is increased to pay the interest (therefore increasing the LTV) then I will generally avoid unless the LTV is very low (ie <50%).
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littleoldlady
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Running down all platforms due to age
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Post by littleoldlady on Jul 17, 2017 15:06:53 GMT
Sound advice here - doing your own DD is the biggest thing. Don't trust valuations given and do your own legwork. Whats everyone tactics on SM reselling? Sell before the 30 days mark at what discount? The problem with this approach is that any DD will almost certainly raise lots of questions. The borrower is willing to pay upwards of 15% (typically well over 20% taking account of fees) when bank rate is a quarter on one percent and there are lots of lending institutions lending at low to mid single figures, but he has failed their DD and is desperate. If you uncover half of what they did you would not lend. I have 3 loans with FS in default and expect very low recovery now lots of bad news has come to light which was not available (to me, not sure about FS) when the loan was made. Those with no losses put it down to their superior DD ability. I put it down to luck. The alternative approach is to expect losses and to dilute them with diversification.
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with FS . Jokes aside, risk comes with the higher rates that FS offer to investors (Nobody forces you to invest!)