adrianc
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Post by adrianc on Jan 16, 2016 13:39:18 GMT
Yes that would work but AIUI these are stockmarket type shares so it would mean having two classes of share which would seem an unnecessary complication. Except you're buying a share in just THAT one SPV. For the SPVs before the change, £500 shares. For the SPVs after the change, £10 shares. Each SPV just has one class of share.
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webwiz
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Post by webwiz on Jan 16, 2016 17:04:48 GMT
Yes, so that's probably how they will do it. We'll soon know.
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ben
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Post by ben on Jan 16, 2016 18:28:11 GMT
With the lower amount I think the larger ones might start to struggle to fill
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j
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Post by j on Jan 16, 2016 19:55:20 GMT
With the lower amount I think the larger ones might start to struggle to fill I wonder what the number of their investor base is & if they are at least breaking even (if not making a profit). Maybe propertymoose might be able to elaborate? I still like the business model. I hope any (possible) property correcton whne it happens will present opportunities rather than pause difficult questions.
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adrianc
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Post by adrianc on Jan 17, 2016 9:10:27 GMT
With the lower amount I think the larger ones might start to struggle to fill I think there's going to be a period between the established model - a small number of £500/1000 investors - and the desired end result - a large number of £10+ investors - where they will struggle, yes. Can't help feeling the dividend model will need to change, too, going annual, purely because of the trifling sizes of the dividends being distributed. 6% x £10 = 60p/yr = 5p/mo... Would £100 have been wiser?
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ben
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Post by ben on Jan 17, 2016 10:06:20 GMT
With the lower amount I think the larger ones might start to struggle to fill I think there's going to be a period between the established model - a small number of £500/1000 investors - and the desired end result - a large number of £10+ investors - where they will struggle, yes. Can't help feeling the dividend model will need to change, too, going annual, purely because of the trifling sizes of the dividends being distributed. 6% x £10 = 60p/yr = 5p/mo... Would £100 have been wiser? I assume they have been looking at the success off PP as they have easily filled a block of flats at about a million recently plus another at £500,000 and have another up at £500,000 and that is just this year. So I would think they would be hoping to copy their model a bit but not so sure it wil work such a big drop agree £100 would be better
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j
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Post by j on Jan 17, 2016 10:24:49 GMT
I see both points of argument in terms of £10 & £100 but I think pm were trying to be as inclusive & accessible to everybody as they could. £100 may not sound a lot to us but there are others out there who like/can only invest smaller than £100 chunks. Initially, as said, it will be slow but, only a matter of time (& maybe with a little advertising) & they will can increase their investor numbers to fill up projects as quickly as pp. imo.
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webwiz
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Post by webwiz on Jan 17, 2016 10:45:56 GMT
As of now they have a total portfolio of £3,171,500 and the average amount invested is £1595 (varies from £1043 to £2762 across the properties). Given this investment profile it is hard to see the reasoning behind the £10 move.
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ben
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Post by ben on Jan 17, 2016 10:57:13 GMT
I hope it works and they can bring more properties on the market but think it might be a case of too dropping to fast, with PP they buy the property and then sell it on, I can see PM having properties waiting for funding for quite awhile now and many properties will go in that time
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webwiz
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Post by webwiz on Jan 17, 2016 12:48:13 GMT
I hope it works and they can bring more properties on the market but think it might be a case of too dropping to fast, with PP they buy the property and then sell it on, I can see PM having properties waiting for funding for quite awhile now and many properties will go in that time I guess they won't be able to have more than one or two properties open for funding at any time as they are paying 3% and earning nothing. In fact I am surprised that they have as many as two. At present they have two both about 50% funded and slightly stalled. It might have been better to fill one of them first.
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ben
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Post by ben on Jan 17, 2016 13:10:23 GMT
A few times have had 2 or 3 on the go but as they have not taken that long to go was probably never to much of an issue but if they are going to take a month plus to fill could start to get quite expensive for them
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j
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Post by j on Jan 17, 2016 15:26:07 GMT
I think for bothto reach 50% in what I class as a short time (i think both haven't been on for more than 2 weeks) is not bad going. Again not too sure what their investor base is number-wise but even the likes of thc who I'm sure have a fairly bigger base sometimes take a while to fill projects up & that's a min of £1k a pop. Indeed a £100 might now have been more realisitc to start with then drop down to £50 then £10 once they had a much bigger base.
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ben
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Post by ben on Jan 17, 2016 15:54:31 GMT
I think for bothto reach 50% in what I class as a short time (i think both haven't been on for more than 2 weeks) is not bad going. Again not too sure what their investor base is number-wise but even the likes of thc who I'm sure have a fairly bigger base sometimes take a while to fill projects up & that's a min of £1k a pop. Indeed a £100 might now have been more realisitc to start with then drop down to £50 then £10 once they had a much bigger base. Neither have been up for long but the amount invested has not changed much since the lower amounts came in
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j
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Post by j on Jan 18, 2016 20:58:51 GMT
Both current props gainign a decent amount of momentum today, esp the 2-bed wigan house.
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webwiz
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Post by webwiz on Jan 18, 2016 22:41:13 GMT
The number of investors has leaped up from 47 to 73 (SPV37) and from 66 to 97 (SPV32) over the last day or two, but the amounts not so much so I guess that PM have rapidly found some small investors from somewhere.
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