ali
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Post by ali on Sept 27, 2016 20:12:23 GMT
It's worth noting that the valuation gives a market rent of £56,840. A MV of £800,000 represents a yield of 14% which seems rather high... 14%? I work it out at about 7% (or are my sums wrong?) No, you're quite right. Ignore me. Half a brain on the job!
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ali
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Post by ali on Sept 27, 2016 20:05:01 GMT
The borrower (who is purchasing the property) applied to remove the present B1 restriction so that they could repurpose the building from offices to residential. The reason the application was refused was... Thanks. Which suggests the original market price of £800k was probably nearer the mark as this is likely to be a long drawn out process to persuade the powers that be to agree to change of use. Money will have to be spent on a superficial redecorate and cleaning the grounds, as the council will legitamately be able to claim the lack of office tenants is not evidence of no demand for office space only of a grotty uncared for building. It would be interesting to know if the borrower has negotiated a reduction in the £1m plus he offered, following the planning refusal. It's worth noting that the valuation gives a market rent of £56,840. A MV of £800,000 represents a yield of 14% which seems rather high...
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ali
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Post by ali on Sept 24, 2016 14:10:24 GMT
Ha ! I also run an account in my missus name and long ago turned off the notifications for SM activity to give my ears a rest I thought of turning them off but I already get a fair amount of grief for the amount of time I spend in front of the screen so I like to show that I'm doing something 'constructive' There again I don't suppose a response of 'looking at pawn sites' was the most sensible answer to an earlier question ......... I just spent the morning walking with my wife, during the course of which I was trying to explain about needing to be around at 10 for the COL loans. She was quite confused as to why I was investing in 'porn'. Cue much talking at cross purposes.
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ali
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Post by ali on Sept 22, 2016 13:45:50 GMT
It seems to work well for loans that would otherwise come in at 11%, certainly. I don't know how well it would work at higher, or lower, risk loans (ie., those which would otherwise come in at 10% or 12%). It should work for 10% or 12% loans by appropriately adjusting A and B tranch sizes and respective interest rates. Mathematically, yes of course. I'm too lazy to work out what rates you'd end up with but a nominal 10% would clearly produce a tranche less than 10% (9% at a guess) and a nominal 12% would produce a tranche greater than 12% (14% perhaps). My suggestion was that both of those extremes are outside of the normal range that MT offer and so might be outside of the risk/reward range that their lenders would be comfortable with. Personally, I'd think long and hard about such a tranche and would, I suspect, always tend to go for the "other" tranche (that's in the 10-13% range). Doesn't mean that MT shouldn't try it.
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ali
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Post by ali on Sept 22, 2016 12:08:00 GMT
Yep, true, scratch that... But I would definitely vote for MT to consider A/B tranches for all new property loans whenever possible. It seems to work well for loans that would otherwise come in at 11%, certainly. I don't know how well it would work at higher, or lower, risk loans (ie., those which would otherwise come in at 10% or 12%).
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ali
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Post by ali on Sept 21, 2016 16:11:34 GMT
I say 'well done' MoneyThing Whilst all three accounts that I run all had repayments from Cardiff larger than the total allowed for the 2 tranches I'm happy with the end result. I fully accept that not everybody will be happy with the way that limits appeared a little later than the initial Email but the way that the Cardiff money appeared 2 hours before the launch of the new loans has to be applauded. What we don't see at 'this end' is the hard work that must have been put in to make a difficult situation easily workable for the investors. Now Ed how about something to soak up the remaining cash I was thinking about a bit of bubbly to celebrate with
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ali
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Post by ali on Sept 21, 2016 14:07:23 GMT
What delay have people experienced between receiving the confirmation email that the withdrawal has been processed and actually seeing funds at the bank? This is my first withdrawal. Just checked and it's arrived.
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ali
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Post by ali on Sept 21, 2016 12:43:03 GMT
Adding my thanks.... Done my withdrawal but left enough in to fund this afternoons..... Likewise. Poor things! Never a moment's rest.
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ali
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Post by ali on Sept 21, 2016 8:25:22 GMT
Same for me. Funds sent yesterday afternoon (Lloyds), chasing email received first thing this morning, deposit still not processed by SS. def sounds like the problem is at the SS end then.... doesn't bode well for getting the cash back to MT before their new loan this afternoon... I sent mine this morning (from Barclays) which was credited at 8:02. Perhaps it's a Barclays issue?
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ali
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Post by ali on Sept 21, 2016 7:36:38 GMT
I tried opening it, but Excel said it was unrecoverable content (i.e. unreadable). Just by glancing at the recent auction data, though, it is clear there is lots of money in search of yield and this has pushed a lot of auctions to close at 8%. We've also signed up a lot of new customers (8 new customers have sold their invoice this month). The recent increase in available invoices has been larger than the increase in investor funds, which is a positive sign for investors looking for higher yields going forward. When analysing the bids across insolvency probabilities and credit ratings, it makes more sense to look at the debtors' rates first and only then the sellers' rates. The seller's rate is important for recovery in case of a default and recourse. Excel's support for ODS is a little patchy. Here's an (updated) version converted to XLS. Perhaps it will work better for you. yield.xls (30 KB) Thanks for taking the time to look at this.
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ali
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Post by ali on Sept 19, 2016 21:52:14 GMT
My theory is that MT is wanting to encourage the ex-Cardiff money to say on the platform and this trumps their normal desire to support the smaller investor. Of course, I could easily be completely wrong. Will Cardiff be repaid in time? SS are launching it tomorrow, so that means the cash has got to be with MT within 24 hours. There's probably some legal stuff to be done in between. I'd say they're cutting it a bit fine. bengilbert has explained their thought process, so my theory was wrong. To answer your point however, there is already ex-Cardiff money on MT; quite sizeable amounts of Cardiff have been sold (which pretty much must mean that a number of people have moved money into MT short-term to take advantage of a few days of 13% low-risk loans). The money that has been released so far may be small compared with what is to come, but I'm sure MT would rather none of it went elsewhere. I haven't seen much non-Cardiff loans being bought.
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ali
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Post by ali on Sept 19, 2016 20:34:22 GMT
I reckon there needs to be, at least on the 13% tranche My theory is that MT is wanting to encourage the ex-Cardiff money to say on the platform and this trumps their normal desire to support the smaller investor. Of course, I could easily be completely wrong.
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ali
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Post by ali on Sept 19, 2016 20:17:45 GMT
MoneyThing , any bid limits on the Birkenhead loans? Thanks None set on the pending loans page, so presumably not.
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ali
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Post by ali on Sept 19, 2016 16:01:09 GMT
I'm not sure I do. It's the same security, which is a very important part of it, but it's not the same loan. 13% vs. 12% and a higher LTV on SS (MT has a slice at 19% which I was very pleased to be holding). If the loan had remained on MT like I would guess was orginally planned except for the parts at 13% the LTV would have gone up during the loan. Ah, well. Now that's a different question. I've got very little idea what our borrower and MT had originally planned. My hunch is that if MT had sufficient loan diversity to take on the development funding, we would have ended up with a better deal than the SS one, but that's obviously a moot point.
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ali
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Post by ali on Sept 19, 2016 15:48:57 GMT
ben, I roughly agree, but, I have a different much larger limit on total MT loans to total SS loans, so while it may not make a difference in general, I quiet like getting the MT seal of approval on a SS loan. I'm not sure I do. It's the same security, which is a very important part of it, but it's not the same loan. 13% vs. 12% and a higher LTV on SS (MT has a slice at 19% which I was very pleased to be holding).
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