syalith
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Post by syalith on Jul 3, 2019 13:15:08 GMT
The borrower is untrustworthy so his claim that he has spent £1 million on fire systems means nothing.
According to the update by Fundingsecure, the receivers report saw "costs to complete come in significantly higher than they were anticipating" and "the costs to complete the project will have significant bearing on current value".
If the costs they were anticipating were based on the prior valuation reports then we can dismiss those as nonsense.
It seems to me the only solid valuation we have to go on is the prior sale price in 2017 of £375k. The borrower has carried out some work, replacing the doors and windows and some internal decorating as can be seen in photos earlier in this thread. However, I can't see how this would have increased the value by much and as such my opinion is that this won't fetch more than £500k, receivers costs will come in at £50-100k+ leaving investors in the first loan with around 50% capital loss, and a total loss for anyone in the other loans.
Hopefully I'm being overly pessimistic.
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syalith
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Post by syalith on Jul 2, 2019 23:25:05 GMT
When you say first tranche, do you mean 2938283517 or 2637081380? 2938283517 is the only "safe" tranche at this point that should see a full recovery. Everyone else is royally buggered. I'm in 2938283517. You think this one will see a full recovery even though the property previously sold for £375k?
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syalith
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Post by syalith on Jul 2, 2019 20:20:02 GMT
Thank you for your post, petrichory.
I stupidly have £50k in the first tranch of this one. I've been lying to myself for months, telling myself it'll be fine and I'll surely at least get my capital back. Now I know that won't be the case.
If the property sold for £375k in 2017 and the borrower is a complete conman then I doubt any real work has been carried out on the property and it will still be worth about the same as it was back then. Once you factor in the receivers cut, it looks like I'll be lucky to get half my money back.
A costly lesson learned.
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syalith
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Post by syalith on Mar 1, 2019 18:10:32 GMT
I'm sure I read somewhere on this forum about a property on another P2P site which sold for £900k+ and the investors only got around £450k back after the receivers took their share.
I'm in the first loan for £50k, tempted in by the low LTV and 16% interest rate, usually I just stick to residential properties. This was by far my biggest P2P investment and also the first P2P loan I've ever had default.
If I get my capital back I'll consider that a fantastic result, but I'm expecting to lose some or all of it. It all depends on whether the money lent was really spent on the property, or if the borrower did a runner with it.
There is supposedly marketing taking place but I can't find it anywhere online, I asked fundingsecure for a link to the marketing and they would only promise to add it to the next update.
I expect anyone outside of the first tranch will get nothing, but I hope to be wrong about that.
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syalith
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FundingSecure (FS) in Administration
Bury 3170241424
Jul 17, 2018 16:43:12 GMT
Post by syalith on Jul 17, 2018 16:43:12 GMT
Ignoring the subsequent unpleasant exchange between one of those investors and a critic, I note that there is a residual £16,150 available on the SM at 0.9% premium (just enough to get ahead of the other two tiddlers). That is what is frustrating. There should have been a subscription limit on this loan to prevent this kind of tactic. It's me selling, I need the money for other purposes. It's not a "tactic". And notice there is no rush to take this loan now at an effective 8% interest, which proves my point that setting lower interest rates on popular loans is a better way to balance supply and demand than restricting everyone to £25 or some other paltry amount.
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syalith
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FundingSecure (FS) in Administration
Bury 3170241424
Jul 7, 2018 19:03:58 GMT
Post by syalith on Jul 7, 2018 19:03:58 GMT
Prior repayment is no garantee of later repayment. Thanks for your comments, very helpful to hear other points of view. I tend to ignore any comments by Fundingsecure and the surveyors valuations, and just look at the security. I ask myself if I would pay the loan amount plus say 25% to buy that security and if I would, then I invest. I've had no defaults following that method, some have been delayed a couple of months, but all repaid or renewed in the end. I don't see how I can lose on this one unless there is a huge economic crash, or fraud of some kind. If the borrower runs into difficulty financially then the property will be sold (admittedly it might take a while) and I will get my money back with the accrued interest.
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syalith
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FundingSecure (FS) in Administration
Bury 3170241424
Jul 7, 2018 15:38:35 GMT
Post by syalith on Jul 7, 2018 15:38:35 GMT
Not so sure this one is so under-priced - no need to throw insults and bad language around all over the place - due to the huge number of uber FS c*ck ups I just don't trust anything FS tells us. Maybe this one will come good and I am wrong - time will tell. The borrower had a loan for the £140k against this property and paid it back with interest, they are now borrowing half that amount. If they weren't going to pay back why would they repay the interest and half the loan amount back? The cheapest property within 1 mile is a 2 bed terrace for £150k. This is a 4 bed detached farmhouse so the security looks to be good enough. What negatives are there that I'm not seeing?
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syalith
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Post by syalith on Jul 7, 2018 12:58:51 GMT
Wow!! what a pro. So sound financial investment strategy is down to minimising keystrokes and mouseclicks. Tell you what mate, Gordon Gekko you ARE NOT. Jeez, I really do despair.
On the stock market, investments are made within fractions of a second after news is announced. This is no different, the investment has been mispriced and people have competed for it. The interest rate should have been lower to reflect the lower risk on the loan, but then you don't want that do you? You want 10% interest or more, with no risk and no effort, handed to you on a silver platter. You would rather throw insults around and blame "evil greedy assholes" than put any effort in and get rewarded for it.
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syalith
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FundingSecure (FS) in Administration
Bury 3170241424
Jul 6, 2018 16:59:22 GMT
Post by syalith on Jul 6, 2018 16:59:22 GMT
Me too; and FS stupidity allowed greedy bast*rd g.....A to take £20,000. Greedy bast*rd here! You don't have anything to moan about. If there was a restriction in place you would only have gotten to invest a small amount. You can now take that small amount to the secondary market and buy into a similar low LTV loan such as italian library at a small premium and earn the same 10% that you would have earned in this loan. I planned ahead to get this investment, worked out beforehand the quickest way to get the investment submitted with the minimum amount of keystrokes and mouse clicks but even then I was far from being the first to invest. That means there are people that have worked out a faster method than I have, perhaps using bots or some other clever method. If I had not succeeded in getting my slice of this loan, would I have b*tched and moaned about it? No! I would figure out a way to be faster than the others or have to take my money somewhere else. It's competition, capitalism, and it is a GOOD THING. If every decent loan was shared out equally then we would all get a couple quid invested and earn our 25p interest but then what's the point. The mistake fundingsecure made was not in failing to put a restriction on the loan, but in setting the rate of interest far too high at 10%. They should reduce the rate on good loans which would reduce demand for them and allow more investors such as yourself to invest.
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syalith
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Post by syalith on Apr 17, 2018 12:21:00 GMT
I don't know for sure, but the way I see it, fundingsecure use the term "underwritten" to mean they have a gentleman's agreement with someone who will purchase the item for enough to cover the capital and interest on the loan, making it risk free to investors.
I seem to remember an underwritten loan a while back which was defaulted and fundingsecure were not able to sell it for some reason. They paid back the investors' capital and interest in full from their own pocket.
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syalith
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Post by syalith on Apr 5, 2018 14:54:52 GMT
Really annoying V2.
Borrower increases loan to pay for roof repairs so FS decide to pay off the old loan and start a new one.
My efforts picking up scraps at a premium all gone to waste.
Then they release the new loan without any restrictions.
All on a website that throws you out if more than 5 people at the same time are even thinking about the loan.
Thanks for nothing FS.
I did the same as you, Sarah. I even bought some this morning at a premium before I noticed the email about the new loan. Fundingsecure should allow investors to roll over their investments into the new loan, even when the size of the loan is increasing. They have done so in the past and anyone who is not happy with the increase can just opt out of the renewal.
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syalith
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Post by syalith on Apr 5, 2018 14:47:30 GMT
it came - it went - in about 3 seconds and there was I nibbleless! Are you suggesting that FS operate a level playing field?
If I was a BH - which I'm not - I wouldn't expect to be sitting there playing the FFF game.
All obvious conjecture IMO - so not based on proof.
The big hitters really do sit there playing the FFF game. I know because I have beaten them to it before, being the second investor in a loan that went in seconds. If these people were getting guaranteed investment in the loan they would be first in the investor list, but they are not. So whilst it is a level playing field, only those who are quick enough (or whose internet connection is quick enough) are allowed to play.
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syalith
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Post by syalith on Apr 5, 2018 11:21:51 GMT
Bought some of the previous loan at a premium on the secondary market five minutes before it was closed because I didn't see the email about it. Not sure why they still allow it to be sold when it is being replaced the same day. Well done to those who nicked my few quid there! In the past they have locked out loans from the secondary market when they are due to be replaced, not consistent at all.
Add to that you cannot roll over your investment in the previous loan to the new one even though they have allowed that in the past when the loan has increased in size. Again, not consistent, and again costing me money.
To top it all off the people on the live chat don't have a clue when you try to explain these inconsistencies to them.
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syalith
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Post by syalith on Feb 26, 2018 13:57:45 GMT
Really disappointed with fundingsecure here.
Built up a decent slice buying at a premium on the secondary market and now they are not allowing renewals when they have done in the past on increased loans.
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syalith
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Post by syalith on Feb 13, 2018 13:06:31 GMT
Contrary to FS email, the previous loans were not closed before this loan went live, so those funds could not be used on the new loan . Thanks FS. Yes, I had £8000 in the old loans which I wanted to reinvest. Very annoying.
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