bfish
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Post by bfish on Aug 1, 2017 23:40:30 GMT
This property is now on the market via Primelocation - unfinished . . . inviting offers over £140k !
Mmmmm... house looks nice + 'stunning views over the countryside' !!
Anybody local fancy taking the opportunity of finishing it to THEIR liking - please ??
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r1200gs
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Post by r1200gs on Aug 2, 2017 9:04:13 GMT
This property is now on the market via Primelocation - unfinished . . . inviting offers over £140k ! Mmmmm... house looks nice + 'stunning views over the countryside' !! Anybody local fancy taking the opportunity of finishing it to THEIR liking - please ?? Just got fed up and walked away by the look of it. Going to be interesting to see how the LTV turns out. Still, at least there's something here to sell rather than a demolition site. I did once buy a house very like this, sort of a bricks and mortar Marie Celeste. Nah, no thanks. 
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adrian77
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Post by adrian77 on Jan 2, 2018 18:13:15 GMT
What another one!
I am in this loan - higher then my normal 65% LTV rule but I read
Considering this loan went live in March 2017 I was not pleased to read that an update stated the completion was to be delayed (although higher end price)
we then read
but this has fallen through - I read the above to mean that the client was due to complete but he clearly wasn't! Then we had "delayed" and "delayed" in Nov and now talk about offering it to a developer - well this chap is clearly not going to offer the full market value is he!
Personally I wonder how well, if at all, FS has managed this loan - getting a load of porkies from a developer won't exactly be a first will it. I want this damn house immediately sent to auction/put up for sale at a discounted price - the developer can still make an offer. What I don't want is for this to drag on and on whilst clocking up expenses i.e. eating into the capital
note to self- 1000 lines "I am a slap-head for exceeding my LTV criterion!"
At least I ditched my Wimbledon and Knaresborough holdings...
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sqh
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Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
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Post by sqh on Jan 2, 2018 21:13:54 GMT
There is something strange about this loan. Last summer it was presented for sale as incomplete and untidy. It wouldn't cost much to tidy the site, and why stop when it's 95% complete. I wonder if the pp or building regs have been infringed, and the developer can't supply a NHBC.
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Post by herrbert on Oct 12, 2018 8:43:12 GMT
They just paid this back. It had an increased valuation of £165k-£200k due to the plans were modified to a 5 bed house. Then they paid back £75k!!! There is no documentation whatsoever uploaded. What prevents me thinking FundingSecure is a scam?
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paulb
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Post by paulb on Oct 12, 2018 10:48:56 GMT
It looks like this property sold for less than half of the as-is valuation, never mind the if-it's-finished valuation - over-optimistic valuation, or poor (or very expensive) selling? The supplemental loan, of course, gets nothing back at all - another reason for me to avoid anything other than first charge loans.
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cwah
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Post by cwah on Oct 12, 2018 11:38:43 GMT
Do you know how much it sold for? I wouldn't be surprised if administration fees (and fundingsecure fee?) had eaten the biggest chunck of the recovered fund
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kielbasa
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Post by kielbasa on Oct 12, 2018 12:01:53 GMT
Less than 46% of "valuation" paid back on this one.
The borrower apparently has no assets, so that's that then. Does he have income?
I wonder if FS checked whether he had assets before they lent the money.
Some of these FS loans seems like a game of pass the parcel. The trick seems to make sure you opt not to renew before the loan defaults.
I never like it when the loan increases on renewal to cover the interest.
I would be much more confident if the borrower actually pays the interest to renew. It is at least an indication that he has found some money from somewhere.
I wonder when FS had an idea that the borrower didn't have the money to complete the development. One hopes it was after the last renewal.
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Godanubis
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Anubis is known as the god of death and is the oldest and most popular of ancient Egyptian deities.
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Post by Godanubis on Oct 12, 2018 15:25:47 GMT
They just paid this back. It had an increased valuation of £165k-£200k due to the plans were modified to a 5 bed house. Then they paid back £75k!!! There is no documentation whatsoever uploaded. What prevents me thinking FundingSecure is a scam? I might suspect that if someone friend/family of a FS staff member bought themselves a bargain ??
Perhaps "We are Everyone" could investigate LOL
Will be offered as new loan next week on FS to finish it off "under new owner"
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Godanubis
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Anubis is known as the god of death and is the oldest and most popular of ancient Egyptian deities.
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Post by Godanubis on Oct 12, 2018 15:30:55 GMT
Perhaps FS should do as Lendy do and buy property like this themselves and finish it off.
More evedince for a provision (Screw up ) Fund a % of FS interest on each loan.
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adrian77
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Post by adrian77 on Oct 13, 2018 11:40:43 GMT
To be fair I don't think we can accuse FS of this - as to whether they have handled this loan in a poor manner is a different question. I too would be interested to know what the developer paid
for it but it strikes me he got a pretty good deal - as I have said before a lot of developers won't touch partly finished properties so I think FS did the right thing in selling it to this chap albeit I would have preferred this done much earlier (I was in the prime loan). As to why FS advanced a futher loan when this one was clearly in trouble is a mystery to me.
So ,please correct me if I am wrong but the supplementary loan here (1291079105) is the second loan with 100% loss --how on earth can a company called Funding SECURE lose 100% in the property market ? I wonder just how short of funds this borrower and his wife actually were and how much DD was done prior to this additional loan being released.
I have said before - as a general rule, I don't think there is enough money in development to fund medium term projects with short-term funding at 20% or whatever...
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james21
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Post by james21 on Oct 13, 2018 13:48:17 GMT
To be fair I don't think we can accuse FS of this - as to whether they have handled this loan in a poor manner is a different question. I too would be interested to know what the developer paid for it but it strikes me he got a pretty good deal - as I have said before a lot of developers won't touch partly finished properties so I think FS did the right thing in selling it to this chap albeit I would have preferred this done much earlier (I was in the prime loan). As to why FS advanced a futher loan when this one was clearly in trouble is a mystery to me. So ,please correct me if I am wrong but the supplementary loan here (1291079105) is the second loan with 100% loss --how on earth can a company called Funding SECURE lose 100% in the property market ? I wonder just how short of funds this borrower and his wife actually were and how much DD was done prior to this additional loan being released. I have said before - as a general rule, I don't think there is enough money in development to fund medium term projects with short-term funding at 20% or whatever... 2 points; FS are in business to operate a profitable business, to do so they need turnover, many of these loans are v high risk eg seconds and supplementals, they run them for the income to them. The risk of loss is all with the lender not them, this is why I bang on about avoiding such loans, Neath is a case in point. Secondly developers only go to PtoP because they cant source loans at lower rates, they should have done the math as to whether they can turn a profit, unfortunately its an art rather than a science and many things can go wrong that erode any possibility of proft
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mjc
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Post by mjc on Oct 13, 2018 16:55:58 GMT
FS are soliciting “non-sophisticated” investors looking for a higher rate than the FSCS sub inflation accounts guaranteed to lose buying power. So the regulators are clearly considering (see Consultation) clamping down on the spin some platform put on minimising the risks, apparent lethargy in chasing re-payments, excessive spin on the (spasmodic) updates, overvaluations that can’t be relied upon, and loans that invariably overrun.
There is no guidance on what DD has to be done by novice investors to get anywhere near the advertised rate of return. Or how you have to offload dodgy loans to some other poor gullible investor before 5 months. There are, in my view, far easy platforms to get a safer return, the net rates being similar.
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adrian77
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Post by adrian77 on Oct 13, 2018 18:44:45 GMT
"only" is not true - I agree with another developer who said p2p can be useful for quick and simple short term financing in certain circumstances. But I agree the majority of developers can't get cheaper credit - and this worries me.
I would say FS should do the maths for all applicants and also determine how valid their business models are - e.g. are they genuine and comitted developers with a feasible project with a continengy plan or scam merchants e.g. chaps in Cumbria...
I agree about supplementary and second loans - in fact until I am convinced the very high number of defaulted loans (30% in my case) is not going to really drag the actual return down close to zero or worse in the long term my wallet is closed.
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mjc
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Post by mjc on Oct 14, 2018 9:54:43 GMT
I wonder why so many developers have difficulty in getting reasonable loans? Is our economic ethos flawed? Savers get 1% (much less after tax), developers may have to pay 20%. Inflation is say3%. Some disconnect there.
Are some borrowers taking on far bigger projects than they are competent to do?
If I’m told a project has 70%LTV, I would have assumed naively the developer was putting in 30% from their own funds! Ho Ho Ho. No way. Further, they don’t have adequate resources to ride out any storm/delay. Nor have a plan to pay the renewal interest without getting further in debt.
Surely greed may form a part. And heads I win, tails you lose. If they had a significant sum invested, took on smaller projects, one at a time, and built on a track record to grow profitably, and get sensible loan rates. ‘Polonius, he counsels his son Laertes “Neither a borrower nor a lender be; For loan oft loses both itself and friend.” = do not lend or borrow money from a friend, because if you do so, you will lose both your friend and your money”.
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