daveb4
Member of DD Central
Posts: 220 
Likes: 116
|
Post by daveb4 on Jul 17, 2017 17:42:43 GMT
A recent update on a loan being funded with pictures, OK they are trying to desperately get it filled but is this an improvement, slowly but surely. Sorry if this was already there and if so I withdraw my comment
|
|
09dolphin
Member of DD Central
Posts: 638 
Likes: 866
|
Post by 09dolphin on Jul 17, 2017 21:36:53 GMT
I expect a return of between 6 to 8% on high risk investments. If the return is higher I'm delighted and if it's lower I'm disappointed - unless it's lower than the rate of inflation and then I'm gutted.
If the valuations of properties are reasonably accurate there are few problems, provided FS don't allow the borrower to extend their loan for very many months past the original date for repayment. It does seem to me (and I could be wrong) that FS will accept any excuse from the borrower to extend their loan for up to 12 or 18 months past the date where repayment should have been made. I honestly don't know why they are not more proactive but it does deter me from lending more on this platform.
|
|
|
|
Post by Harland Kearney on Jul 18, 2017 0:08:08 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. I agree with you, I was mimicing a typical FS response 
|
|
ashtondav
Member of DD Central
Posts: 1,814
Likes: 1,092
|
Post by ashtondav on Jul 18, 2017 7:45:48 GMT
I expect a return of between 6 to 8% on high risk investments. If the return is higher I'm delighted and if it's lower I'm disappointed - unless it's lower than the rate of inflation and then I'm gutted.
If the valuations of properties are reasonably accurate there are few problems, provided FS don't allow the borrower to extend their loan for very many months past the original date for repayment. It does seem to me (and I could be wrong) that FS will accept any excuse from the borrower to extend their loan for up to 12 or 18 months past the date where repayment should have been made. I honestly don't know why they are not more proactive but it does deter me from lending more on this platform. You mirror my thoughts entirely. I too expect 6% to 8% from FS. Some here just do not realise they are lending to the least credit worthy borrowers who cannot get loans ANYWHERE ELSE. i budget for 5% defaults. That's 5% where I get no return of capital or interest. And I always have at least 100 loans. Adopting any other approach on FS is VERY risky.
|
|
r1200gs
Member of DD Central
Posts: 1,336
Likes: 1,883
|
Post by r1200gs on Jul 18, 2017 8:41:26 GMT
I expect a return of between 6 to 8% on high risk investments. If the return is higher I'm delighted and if it's lower I'm disappointed - unless it's lower than the rate of inflation and then I'm gutted.
If the valuations of properties are reasonably accurate there are few problems, provided FS don't allow the borrower to extend their loan for very many months past the original date for repayment. It does seem to me (and I could be wrong) that FS will accept any excuse from the borrower to extend their loan for up to 12 or 18 months past the date where repayment should have been made. I honestly don't know why they are not more proactive but it does deter me from lending more on this platform. You mirror my thoughts entirely. I too expect 6% to 8% from FS. Some here just do not realise they are lending to the least credit worthy borrowers who cannot get loans ANYWHERE ELSE. i budget for 5% defaults. That's 5% where I get no return of capital or interest. And I always have at least 100 loans. Adopting any other approach on FS is VERY risky. It seems to me that some people think a post about the trustworthiness of the platform should be an opportunity to give a lesson on the kind of people we're lending to. I know the kind of people we're lending to, which is why I expect the platform to do their job of due diligence and monitoring, and it's the platform we are talking about here.
|
|
ashtondav
Member of DD Central
Posts: 1,814
Likes: 1,092
|
Post by ashtondav on Jul 18, 2017 12:45:41 GMT
There is no 'vetting' of borrowers or 'credit checks' of borrowers - that is the point of a pawn operation!
The value of the pawned asset is the only consideration in making a loan.
|
|
r1200gs
Member of DD Central
Posts: 1,336
Likes: 1,883
|
Post by r1200gs on Jul 18, 2017 12:58:06 GMT
There is no 'vetting' of borrowers or 'credit checks' of borrowers - that is the point of a pawn operation! The value of the pawned asset is the only consideration in making a loan. Does the funding and tranches of the Whitehaven site look like a pawn operation to you? It's clearly not. It's a development project and needs to be monitored. We DO need to vet borrowers of loans like this. It might well show why they could couldn't get a bank loan which is what we would expect, but it might also turn out that they are life long con-men leaving a trail of ruined lives in their wake, which is quite another thing. If one platform had run a simple google search on one borrower it would have discovered just that, and their list of defaults would have been two loans less if they had realised that dealing with such people never ends well, as it will prove. There is no excuse for the handling of the loan that lead to this post and thread. If FS want to be a pawn site then fine, stick to watches and put them in the safe and stop funding property development.
|
|
oldgrumpy
Member of DD Central
Posts: 5,087
Likes: 3,233
|
Post by oldgrumpy on Jul 18, 2017 13:10:53 GMT
There is no 'vetting' of borrowers or 'credit checks' of borrowers - that is the point of a pawn operation! The value of the pawned asset is the only consideration in making a loan. Does the funding and tranches of the Whitehaven site look like a pawn operation to you? It's clearly not. It's a development project and needs to be monitored. We DO need to vet borrowers of loans like this. It might well show why they could couldn't get a bank loan which is what we would expect, but it might also turn out that they are life long con-men leaving a trail of ruined lives in their wake, which is quite another thing. If one platform had run a simple google search on one borrower it would have discovered just that, and their list of defaults would have been two loans less if they had realised that dealing with such people never ends well, as it will prove. There is no excuse for the handling of the loan that lead to this post and thread.
If FS want to be a pawn site then fine, stick to watches and put them in the safe and stop funding property development.I await the day that the directors of FS realise and act upon that realisation that running a pawn shop (the workings of which we all - I hope- understand) is not the same as administering hundreds of thousands of pounds (even millions) of loans for building development. When that day comes (which I doubt, because of director arrogance or obstinacy) FS will need to totally rethink their lending platform for non pawn activity. Having said all that, I do retain a very moderate stake in loans I hope will be repaid without too much fuss. Nuff said about Whitehaven*, boatyard, Londonderry, and power boat!  ) Maybe FS would like me to up my investment through them. Well, they know what to do. PS. I wonder how many outstanding loans will now be kicked forward to September with the excuse, "it's the summer holidays - for everybody!!  ). * not in it!
|
|
stub8535
Member of DD Central
personal opinions only. Not qualified to advise on investment products.
Posts: 1,447
Likes: 945
|
Post by stub8535 on Jul 18, 2017 13:10:57 GMT
There is no 'vetting' of borrowers or 'credit checks' of borrowers - that is the point of a pawn operation! The value of the pawned asset is the only consideration in making a loan. Does the funding and tranches of the Whitehaven site look like a pawn operation to you? It's clearly not. It's a development project and needs to be monitored. We DO need to vet borrowers of loans like this. It might well show why they could couldn't get a bank loan which is what we would expect, but it might also turn out that they are life long con-men leaving a trail of ruined lives in their wake, which is quite another thing. If one platform had run a simple google search on one borrower it would have discovered just that, and their list of defaults would have been two loans less if they had realised that dealing with such people never ends well, as it will prove. There is no excuse for the handling of the loan that lead to this post and thread. If FS want to be a pawn site then fine, stick to watches and put them in the safe and stop funding property development. Or, like another revently much talked about platform, introduce several types of loan contract terms and conditions for the borrowers situation and, for the fourth time, stop misleading unseasoned investors, into thinking you are a pawn site model only, by refusing to change your information pages. As for platform trust it is really down to how effective, if existent, the due dilligence process is before presentation and also how robust ownership is formulated in the legal contracts that create trust. We are seeing neither in a good light atm in my opinion.
|
|
ozboy
Member of DD Central
Mine's a Large One! (Snigger, snigger .......)
Posts: 3,168
Likes: 4,859
|
Post by ozboy on Jul 18, 2017 13:26:01 GMT
There is no 'vetting' of borrowers or 'credit checks' of borrowers - that is the point of a pawn operation! The value of the pawned asset is the only consideration in making a loan.Yes, and it is also bleedin' obvious that Lenders should be utterly confident that the Value of the pawned asset should be accurate & honest, and greatly exceed the Loaned Amount by such a clear Margin as to easily cover both The Loan Amount and Interest upon Default. Keeping a transportable Asset in a secure location should also be bleedin' obvious and a given This has NOT been the case. So it's not really a pawn operation, is it?
|
|
markr
Member of DD Central
Posts: 766
Likes: 426
|
Post by markr on Jul 18, 2017 13:37:43 GMT
Rumour has it there'll be an Experienced Property Team available for hire soon, maybe FS could bring them in to clean up their loan book.
|
|
oldgrumpy
Member of DD Central
Posts: 5,087
Likes: 3,233
|
Post by oldgrumpy on Jul 18, 2017 13:42:16 GMT
Rumour has it there'll be an Experienced Property Team available for hire soon, maybe FS could bring them in to clean up their loan book. Only " highly experienced property teams" need apply. 
|
|
|
|
Post by martin44 on Jul 18, 2017 16:52:34 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 Only 9 months? Plenty of time yet. Me, Just coming up to 3 years, i registered back in the good old days of train sets, cars, jewelry and artwork and never had a single default, Those were the days Property however is much harder to value correctly. and even harder to move on in a forced sale, and the SM is not always the easy way out. Good luck and stay lucky. 
|
|
daveb4
Member of DD Central
Posts: 220
Likes: 116
|
Post by daveb4 on Jul 18, 2017 20:00:56 GMT
A's an ex 'highly' experienced property manager getting the deal done is the hardest bit. Managing the development is not too difficult, you just need to 'manage' and that takes time/resources/money. If they can't afford it then an alternative would be charge more, doubtful or reduce investors interest? If we received say 1% less they can afford a property manager?
Secondly and obviously if you spot problems early something can usually be done if you just accept excuses it usually is far too late.
They just need at the moment to take some small steps to provide us with more confidence. Easily sorted with loan facility letters.
|
|
with FS . Jokes aside, risk comes with the higher rates that FS offer to investors (Nobody forces you to invest!)
)
).
