TitoPuente
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Post by TitoPuente on Oct 18, 2018 20:24:38 GMT
According to Lendy the leasehold was valued at £16,150,000 a few months ago. As far as I understand the development is complete and there was no property cataclysm that could have wiped 50% of the value in the last few weeks. The total loan is £7,846,884. Why is Lendy not appointing receivers immediately and selling the property? What is the issue? Lendy Support Paul64
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TitoPuente
Member of DD Central
Posts: 624
Likes: 655
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Post by TitoPuente on Oct 18, 2018 19:50:33 GMT
It is advisable to use generic email providers such us Gmail, Hotmail, Yahoo mail, etc. that can be kept for life with relative certainty. It is not wise to use email addresses provided by your ISP (BT, Sky, etc.) because the day you switch you lose it. It is a no-no to use one's employer address. One can get fired tomorrow (or the employer can end up like Carillion tomorrow).
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TitoPuente
Member of DD Central
Posts: 624
Likes: 655
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Post by TitoPuente on Oct 18, 2018 12:58:07 GMT
It is unrealistic to expect your capital back on a defaulted high risk loan. Occasionally 100% capital recovery may occur but for 12% interest loans I think you should expect 50 -75% I'm sorry, but I really have a problem with that statement. You are suggesting that one should expect to loose 50-70% capital recovery on all defaulted secured loans. That's half the entire loan book, so one should be expecting up to a 38% capital loss overall, after full capital & interest return on the "good loans" I don't think so. I'm assuming you haven't invested then, because on your figures there would be no way to avoid a significant loss? On an investment platform like this that uses secured assets, the interest should be the risk element, not the capital. The single value add that Lendy claim to bring to the party is due diligence i.e. the integrity of the borrower, their plans and the valuation. If they had got just the last element correct, then capital loses should be minimal. There will of course be the odd one that slips through the net, but to suggest that you should expect to loose 30 -50% on all defaulted loans is ridiculous. Just think about what you have written, "for a 12% interest loan, you should expect only a 50-75% recovery on defaulted loans" really? ?? Your figures suggest that if more than 12% of loans default you can't make money??? Even their own (badly) manipulated figures say that they have more than 12% of 6 month old defaulted loans. Lendy claim that they are experts in Due Diligence. They have proved to me that they are the worst platform I have used for this. They can't even get a valuation right. Lendy claim that the recovery process takes 2 - 6 months. Yea right. Lendy claim that LTV ratios never exceed 70%. Thats a lie. Don’t waste your keyboard. Some here don’t have the concept of what secured lending is and repeat “your capital is at risk” like a mantra. They are not happy until they get hit by big loses. It probably feels like a rite of passage to them.
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TitoPuente
Member of DD Central
Posts: 624
Likes: 655
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Post by TitoPuente on Oct 17, 2018 17:06:59 GMT
It is expected that the business valuation be higher than the empty property. In this case it is the opposite? It looks like the valuation ‘as is’ is now even lower than the third party business valuation? Otherwise the exit would be a sale.
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TitoPuente
Member of DD Central
Posts: 624
Likes: 655
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Post by TitoPuente on Oct 16, 2018 15:55:25 GMT
The pagan god seems to be all over the place projecting all types of parallel realities.
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TitoPuente
Member of DD Central
Posts: 624
Likes: 655
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Post by TitoPuente on Oct 15, 2018 5:00:23 GMT
Liquidity is only an issue if the platforms don’t have an active secondary market I sell at a profit 30% of my portfolio weekly and have nearly 500k for sale at any one time. I can sell most of my investments before they become even capable of being a problem. Liquidity at what cost ?? Over the last 5 years you would struggle to make 10% PA .My P2P has made averages above 15% tax free. I spend a lot of time managing small individual investments in P2P to give good returns this is impossible in S&S due to trading fees. I can sell £25 loan part and make 1% to sell £25 in shares costs 10-50% in fees the same again to re invest. Unless you are making hundreds of trades . Even then small trades are costly.. I do have several hundred thousand in S&S purely to have diversification. Fortunately I can wait for recovery and sell at appropriate times. What platforms can you buy and then sell large amounts at a profit on these days? I used to buy and sell quite a lot, but the ability to buy and then sell any quantity at sufficient profit to make it worth the effort seems to be slight now. He’s not answering that because it’s clearly BS.
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TitoPuente
Member of DD Central
Posts: 624
Likes: 655
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Post by TitoPuente on Oct 13, 2018 6:08:27 GMT
The thing is that sharpe ratio needs a standard deviation which is only meaningful when pricing is set in a market. Using 0 as standard deviation massively distorts the result. This is Finanace 101.
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TitoPuente
Member of DD Central
Posts: 624
Likes: 655
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Post by TitoPuente on Oct 11, 2018 20:52:26 GMT
My carefully managed and highly diversified P2P investments have returned >15% That sounds very interesting. I wonder if you could provide a bit more colour. There were 21% loans at FC and 15% loans at Collateral. However keeping a >15% return in P2P is very impressive.
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TitoPuente
Member of DD Central
Posts: 624
Likes: 655
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Post by TitoPuente on Oct 5, 2018 17:22:09 GMT
Now I understand why these borrowers can get away with this. Lenders that accept that getting screwed is expected. In any professional investment environment a 30% safety margin means that markets need to fall 30% to be in the red. In this case it can be argued that the student housing market has been soft lately, but it is nowhere near a 30% crash situation. Capital is being lost here because development funds were poorly administrated by a mediocre (to say the least) developer. The market may need to fall by 30% to make a loss. But this is not a sale at market value. This is the sale of an incomplete, sabotaged development, a distressed sale from a company in administration for which a capital loss should be expected to be a more than likely outcome (as indeed our borrower picked it up for a song). Or am I totally missing something here? You got it totally right. If borrowers/developers were really professional and experienced as they are described in the borrowing proposals, these situations would be extremely rare. That is why this fiasco cannot be accepted as normality. Sadly, a majority of the borrowers that resort to P2P are cowboys and gamblers.
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TitoPuente
Member of DD Central
Posts: 624
Likes: 655
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Post by TitoPuente on Oct 5, 2018 7:20:22 GMT
My congratulations to all that knew. My interpretation of the previous updates was that the building was almost finished and little extra work was needed. It is acceptable to suffer delays and defaults. It is not acceptable to have capital loss on secured loans with a 30% safety margin. It is acceptable. What is unacceptable is that a lot of people investing don’t seem to realise this Now I understand why these borrowers can get away with this. Lenders that accept that getting screwed is expected. In any professional investment environment a 30% safety margin means that markets need to fall 30% to be in the red. In this case it can be argued that the student housing market has been soft lately, but it is nowhere near a 30% crash situation. Capital is being lost here because development funds were poorly administrated by a mediocre (to say the least) developer.
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TitoPuente
Member of DD Central
Posts: 624
Likes: 655
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Post by TitoPuente on Oct 4, 2018 16:59:49 GMT
My congratulations to all that knew. My interpretation of the previous updates was that the building was almost finished and little extra work was needed. It is acceptable to suffer delays and defaults. It is not acceptable to have capital loss on secured loans with a 30% safety margin. Was this the one where the pipe work was sabotaged and flooded the rooms? Yes.
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TitoPuente
Member of DD Central
Posts: 624
Likes: 655
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Post by TitoPuente on Oct 4, 2018 12:21:43 GMT
My congratulations to all that knew. My interpretation of the previous updates was that the building was almost finished and little extra work was needed. It is acceptable to suffer delays and defaults. It is not acceptable to have capital loss on secured loans with a 30% safety margin.
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TitoPuente
Member of DD Central
Posts: 624
Likes: 655
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Post by TitoPuente on Oct 4, 2018 7:29:00 GMT
Without getting into the details of the Administrator's report, it looks like this is going to end up in another shortfall?
Appalling.
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TitoPuente
Member of DD Central
Posts: 624
Likes: 655
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Post by TitoPuente on Oct 3, 2018 20:42:33 GMT
The 18% headline seems to be attracting some interest. I used to have this one and feel for the ones that bought from me.
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TitoPuente
Member of DD Central
Posts: 624
Likes: 655
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Post by TitoPuente on Oct 3, 2018 20:32:48 GMT
Looks like the apartments within this development are back on the market. Would you mind posting a link in DD central or pointing out how to get to the offering though google? There are many off-plan buyers that lost their deposits.
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