SPV 84

My basic calculations:

Final Purchase Price: £163k
Less Sales Fees and Legals (£1.5k)

Less Equity Investment (£148.6k - this includes all costs: financing and PM purchase fees, legal, valuation, auction, accounting fees, stamp duty & renovation costs)
--------------------------------------------------------
Net Return before PM Profit Share £12.9k

Less PM Profit Share of 15% (£1.9k)

Total Net Return to Investors: £11k
Total Equity: £148.6k

Net Return % to Investors = £11k/£148.6k = 7.4% (Over ~6months, NOT the annualised figure)

Have I made any obvious mistakes in this calculation, since it is far from the 3.46% from PM?

Yes, @jnm21, that's more or less my assumption. I've been on LC to try and find out where the difference has come from, but got the standard "investment team will be in touch", which I presume won't be until some time next week. I expect that you're right though and it's that the renovation costs exceeded the amount raised and so they've generously taken it out of our profits.

I also notice that the line about the purchaser paying more than the bank valued it at suggests that the true value was less than PM's estimated price.

Finally I'd note that PM's incentives for this sort of deal don't actually seem to be aligned with ours - the majority of their take seems to come from the "PM fee" on purchasing the property, rather than the profit share at the end. Unless I've significantly misunderstood, then for them the optimal strategy is really to buy the most expensive property they can crowdfund and then sell it for whatever price they can (do they take any of the hit if the property were to sell for a loss?).

EDIT: Have they really still not fixed the "furniture" field on the website as they promised >6 months ago?

It takes them over 1 full working day (closer to 2) to divvy out the money for SPV81 (even when it is 2 weeks late); would make you wonder do they even have a database?  Then again companies could reprint stationery in 6 months (surely more like 12+). 

It's already been 11 days since funds appeared online on PM portal, however a proper disclosure and calculation to investors to be provided yet. ROI much lower than anticipated and marketed by PM. Surely disappointed. 

I've just had a response to a query of mine from when this paid out. I'd asked which aspect of their original budget had been incorrect leading to the reduced return on increased sale price. PM confirm that there was a fee charged during the sale that was erroneously passed on to the SPV, and that they will be reimbursing this amount to lenders as soon as possible.

It will be interesting to see how this changes the overall return - if it takes it up to more respectable levels (and above the predicted return) then I might be tempted to continue dipping my toe into buy to sell opportunities that come up in future, despite withdrawing from the BTLs.

This does of course raise the question of how this got past PM in the first place and what process it was that caught it.

That was rather my concern! I'd like to think they noticed it whilst producing a nice final summary of the SPV for us, but I fear not.