am
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Post by am on Jun 19, 2015 14:10:58 GMT
Someone made £2000 bid on it earlier; you don't see too many of those! At least 2 people made £2000 bids on it.
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coop
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Post by coop on Jun 19, 2015 14:54:14 GMT
£45,200 with 65 mins to go; doesn't stand a chance without help
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coop
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Post by coop on Jun 19, 2015 15:34:43 GMT
Yup reenforcements have arrived!
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am
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Post by am on Jun 19, 2015 16:43:15 GMT
Yup reenforcements have arrived! I make it £3,520, so the last minute rush got it fairly close. Another £260 were pushed out the FCPF bids. (I wonder if FC cancel some of their bids to let them back in.)
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am
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Post by am on Jun 20, 2015 8:38:29 GMT
I make it £3,520, so the last minute rush got it fairly close. Another £260 were pushed out the FCPF bids. (I wonder if FC cancel some of their bids to let them back in.) I reckon it was £39,520, or 9.88% of the total £400,000. I now see that I didn't look far enough down the list of bids - I didn't expect FCPF's bids to be intermittent. [IMHO, FCPF's bids should be added after the formal close, rather than going in with everyone else's - they're an underwriter, not a retail bidder.]
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baldpate
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Post by baldpate on Jun 21, 2015 13:36:57 GMT
13475 is shaping up to be a challenge for FC : still £180K short and only 22 hours to go.
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upland
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Post by upland on Jun 21, 2015 14:34:05 GMT
13475 is shaping up to be a challenge for FC : still £180K short and only 22 hours to go. Looking at the proposition it makes you think.
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SteveT
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Post by SteveT on Jun 21, 2015 17:10:58 GMT
13475 is shaping up to be a challenge for FC : still £180K short and only 22 hours to go. That's going to be a lot of Monday morning clicking for FCPF, even at £100 a time.
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upland
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Post by upland on Jun 21, 2015 20:19:50 GMT
13475 is shaping up to be a challenge for FC : still £180K short and only 22 hours to go. That's going to be a lot of Monday morning clicking for FCPF, even at £100 a time. Would anyone speculate why this is as short as it is ?
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SteveT
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Post by SteveT on Jun 21, 2015 20:32:52 GMT
That's going to be a lot of Monday morning clicking for FCPF, even at £100 a time. Would anyone speculate why this is as short as it is ? 8% + 2%CB doesn't cut it (any more) with a term as long as 19 months, it's a large 4th tranche loan that most Autobidders already own and there are 2 more attractive property loan auctions running in parallel with it. Not to mention the many better property lending opportunities available on other platforms.
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am
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Post by am on Jun 21, 2015 20:55:48 GMT
That's going to be a lot of Monday morning clicking for FCPF, even at £100 a time. Would anyone speculate why this is as short as it is ? They're raising £1,680,000 over a 6 week period. The reduces the availablity of money, from new participants, regular savers, loans repaid early, and maturing PDLs. The flippers may still be trying to sell off their holdings of the previous 3 tranches - at a rough estimate there's £150,000 of this on the secondary market. To repay the loan they plan to sell 2 5-bedroom houses of £2,600,000 each. That's a hefty price, and people may be concerned that they might have difficulty finding buyers. (With a project of 10 houses selling 7 or 8 is sufficient to repay the loan; with this one they have to sell the lot.) But the LTV is fairly low, and they've including a 6 month marketing period, so there's scope for them accepting a lower profit margin.
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blender
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Post by blender on Jun 21, 2015 21:52:44 GMT
Yes, these four tranches raise £1.785M to buy the land with one payment. People hold all they want. The bidders on this part look like buy to hold lenders. Looks like Frantic Clicking will be active tomorrow - but they might as well start early because this will not attract much more.
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upland
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Post by upland on Jun 22, 2015 6:21:58 GMT
Many thanks all , these reasons seem quite feasible to me and I guess a bit of them all will make FCs Monday morning a little less calm. A lot of this is new to me and I am learning a lot , the thing that made me think twice was I looked at the LTV and the cursory figures and wondered if that had a bit more risk attached to it. I agree that two 5 bed houses could have more to go wrong than some other arrangement and it could swing from good to bad easily. It will make me look a bit more into what is proposed. What does anyone suppose will happen if this tranche is not filled ?
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am
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Post by am on Jun 22, 2015 9:02:21 GMT
Many thanks all , these reasons seem quite feasible to me and I guess a bit of them all will make FCs Monday morning a little less calm. A lot of this is new to me and I am learning a lot , the thing that made me think twice was I looked at the LTV and the cursory figures and wondered if that had a bit more risk attached to it. I agree that two 5 bed houses could have more to go wrong than some other arrangement and it could swing from good to bad easily. It will make me look a bit more into what is proposed. What does anyone suppose will happen if this tranche is not filled ? If FC doesn't underwrite it (and the next 4 tranches) both borrowers and lenders are going to be unhappy - neither wants to be left high and dry with a partially funded project. If it's not filled (by FCPS) the demand (from both ends) for high value property loans could collapse. That would make a nasty hole in FC's expansion plans. So I predict that it will fill. If FC's underwriting capacity is being strained they have to come up with a plan B - for example, either 3rd party underwriters (rather than de facto underwriters in the form of flippers) or placing property tranches on the whole loan market. Even if it isn't FC could do to do something to increase market confidence in such loans. (It wasn't mentioned above, but another possible contribution to the insufficient demand is the self-fulfilling prophecy of people being afraid of the project not being fully financed.) PS: with one hour to go it's £141,000 short.
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blender
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Post by blender on Jun 22, 2015 9:25:30 GMT
The original first tranche for this property was 12530 and did not fully fund. Fulla Carp resurrected it as loan 12658 with the added incentive of a 2% CB and it proceeded to fill as tranche 1. As for tranche 4, FC continues to test the waters with such large loans for a single property in a short timeframe. I should know this but I forget; has FC has ever resorted to improving the terms to investors of post tranche 1 tranches? I believe that they have added cash back to a later tranche after failing to fill, or even during the auction (though that may have been first tranche). Please don't ask me for the numbers. The problem here is that they cannot increase the interest rate and they are already using maximum cash back - which is why they tried to start without cash back. They have no option but to use FCPF money. They will hope that the delay before the next tranche will make it go with 2%. I think I will lend £20 to see what happens.
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