coop
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Post by coop on Feb 23, 2015 10:23:58 GMT
£218,000 borrowed against no asset security; some incredibly insightful commentary regarding the purpose of the loan ("The loan will be used for refurbishment of properties, which will then be sold at significant capital gain."). Over £17 million owed on property with the most recent accounts nearly 11 months old.
Even with all this; due to the turgid market on FC with 8 hours to go it's avg rate is 12.7%; with 89k invested at the MBR!
This loan sums up everything wrong with FC right now - obviously this is the level of dross that the institutions wouldn't touch with a barge pole!
Anyone been tempted?
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Post by GSV3MIaC on Feb 23, 2015 13:51:17 GMT
Nobody here is likely to admit it. 8>.
I would have bough some to flip, at 16% or more, but FC didn't offer the option (and there are seemingly lots of mugs who will lend cheaper).
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Post by davee39 on Feb 23, 2015 14:04:40 GMT
I put in £20 @ 14.5 This was to take out some of my uninvested cash and the part would have been shifted at par before the 1st payment was due. I am amazed by the current bids though. Since this was a C- the risks were well flagged. At current rates the property almost looks attractive (Spit!).
Lenders who take 4.5% after fees and defaults on the A+ loans clearly understand neither risk, taxation or alternative opportunities.
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am
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Post by am on Feb 23, 2015 14:44:11 GMT
1141 bids at minimum bid rate, and they seem to be mostly unique bidders.
Either there's getting to be more and more minimum-rate autobidders (I didn't think there were enough to bring down the rate on a C- loan of this size), or people think that in the end the money can be recovered from the £8,000,000 of equity in the portfolio. (From the point of view of retaining liquidity, I want to avoid defaults, even if the money would be recovered in the end.)
What I don't understand is why they didn't ask for, weren't offered, or refused, a commercial mortgage.
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coop
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Post by coop on Feb 23, 2015 16:31:55 GMT
Exactly ac - furthermore if the whole thing didn't totally stink and the numbers add up why wouldn't an institution be interested at approx 13.5%? If the risk/reward looks terrible for an institution it's not going to look terribly better for a PI.
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Post by loanstar on Feb 23, 2015 17:55:18 GMT
There is an estate agent with the same name in the same area as mentioned in the Q&A. If they are the same company then the online reviews say it all.
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am
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Post by am on Feb 23, 2015 18:41:01 GMT
There is an estate agent with the same name in the same area as mentioned in the Q&A. If they are the same company then the online reviews say it all. As far as I can tell they're not connected. The estate agents were bought by a national chain in 2000.
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Post by GSV3MIaC on Feb 23, 2015 20:43:25 GMT
1141 bids at minimum bid rate, and they seem to be mostly unique bidders. Either there's getting to be more and more minimum-rate autobidders (I didn't think there were enough to bring down the rate on a C- loan of this size), or people think that in the end the money can be recovered from the £8,000,000 of equity in the portfolio. (From the point of view of retaining liquidity, I want to avoid defaults, even if the money would be recovered in the end.) What I don't understand is why they didn't ask for, weren't offered, or refused, a commercial mortgage. Most autobid ('autobuy') users seem to be in 'fire and forget' mode, so when C- MBRs have drifted up, their set autobid rates have probably been dragged up to conform to the minimum (remember they started at 10.5% iirc, and are now up to 12.2% .. anyone setting anything <=12.2% in the last 18 months, and not subsequently changing it, is now bidding at 12.2%, and buying on the SM at whatever they originally set). I can't imagine too many manual bidders piling in at minimum. Autobid also likes, if you recall, to bid on unpopular / unfilled auctions, which this must have been a shining example of.
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blender
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Post by blender on Feb 23, 2015 21:11:36 GMT
C- started at 11.5%. Otherwise agreed.
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am
Posts: 1,495
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Post by am on Feb 23, 2015 21:19:13 GMT
1141 bids at minimum bid rate, and they seem to be mostly unique bidders. Either there's getting to be more and more minimum-rate autobidders (I didn't think there were enough to bring down the rate on a C- loan of this size), or people think that in the end the money can be recovered from the £8,000,000 of equity in the portfolio. (From the point of view of retaining liquidity, I want to avoid defaults, even if the money would be recovered in the end.) What I don't understand is why they didn't ask for, weren't offered, or refused, a commercial mortgage. Most autobid ('autobuy') users seem to be in 'fire and forget' mode, so when C- MBRs have drifted up, their set autobid rates have probably been dragged up to conform to the minimum (remember they started at 10.5% iirc, and are now up to 12.2% .. anyone setting anything <=12.2% in the last 18 months, and not subsequently changing it, is now bidding at 12.2%, and buying on the SM at whatever they originally set). I can't imagine too many manual bidders piling in at minimum. Autobid also likes, if you recall, to bid on unpopular / unfilled auctions, which this must have been a shining example of. I'm hypothesising that not all autobidders set a rate for C- loans.
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sl75
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Post by sl75 on Feb 23, 2015 21:49:37 GMT
I'm hypothesising that not all autobidders set a rate for C- loans. Agreed for both possible interpretations I'm thinking of (1: not all autobidders set any rate - they just go with whatever the default settings for autobid were at the time they first enabled it; 2: not all autobidders have left any rate set in C-, some have got into the advanced settings and manually disabled that risk band).
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blender
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Post by blender on Feb 23, 2015 23:51:58 GMT
I believe that the majority of Autobidders will just use the slider. 'Advanced' is a big step up.
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Post by GSV3MIaC on Feb 24, 2015 17:44:49 GMT
Used it 'one time' probably. 8<. Muppets.
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