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Post by buttchopf23 on Dec 8, 2016 12:35:46 GMT
any thoughts?
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Post by sayyestocress on Dec 8, 2016 12:58:59 GMT
I would have invested in the equity part but it sold out before I got a chance...
I would rather they didn't bother with the loan part though (which is nowhere close to selling out right now), surely this just dampens the return from the equity investment and reduces the number of people who can get a slice of equity?
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Steerpike
Member of DD Central
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Post by Steerpike on Dec 8, 2016 12:59:27 GMT
Was this rushed out?
I see no SPV72, however there is an SPV74 at 9% with either LTV 52% or 58% depending on which part of the offer you believe.
Will read blog and wait for updates.
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j
Member of DD Central
Penguins are very misunderstood!
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Post by j on Dec 8, 2016 13:22:44 GMT
PM really wind me up sometimes. They must have known it will fill very quickly at such possible returns. In less then 40 mins from reading email & logging it, it was gone. No one has full time access to email/internet (most of us have day jobs!) & considering it only took 38 investors to fill that £18k requirement, why not put a 24hr max limit to allow everyone interested to benefit from such possibly good offers. The site is impressively improving but, they need to refine some of the basics at times.
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littonowl
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Post by littonowl on Dec 8, 2016 13:27:44 GMT
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Post by sayyestocress on Dec 8, 2016 13:31:05 GMT
PM really wind me up sometimes. They must have known it will fill very quickly at such possible returns. In less then 40 mins from reading email & logging it, it was gone. No one has full time access to email/internet (most of us have day jobs!) & considering it only took 38 investors to fill that £18k requirement, why not put a 24hr max limit to allow everyone interested to benefit from such possibly good offers. The site is impressively improving but, they need to refine some of the basics at times. A pre-order system like PP or pre-funding like SS would be most appreciated if these kind of investments are going to get snapped up like this. Or at the very least some advanced warning on the date and time a property is going live. Maybe even a pipeline to have a look over the property details before the FFF action? As someone who currently uses none of their CGT allowance; some quick turnover capital (potential) gain is very appealing.
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Post by propertymoose on Dec 8, 2016 14:01:45 GMT
Hi all
Thanks for the comments and for all those people who have emailed in with great feedback - I'm pleased you like this new product.
To those that raise the issues with speed of funding, I appreciate where you're coming from. We do not have a "pre-order" function on our website but do intend to build one over the coming months. It takes a lot of time and resource to build technology on top of an existing stack and, as a small business, we only have limited amounts of both. We all do really take on board the feedback and want to make this work for everyone. The issue with these properties are the size. If we had a pre-order system, the equity would be very over-subscribed and then some people would be disappointed as, despite pre-ordering, we could only go down to the minimum share value of £10 so people would be let down. As we prove out the model, we intend to scale up the property sizes which should help.
Sayyestocress - we included the loan note to appeal to a different type of investor on the site who does want fixed rate, lower risk investments. To get a 9% p.a. return on a sub 60% LTV first charge loan is something that, we think, is pretty unique. It also enhances the equity returns due to the leveraging. With no debt, the return would be 7.55%. There are nearly 19,000 people on our database and everyone has their own preference as to types of investments - we're just trying to make sure we keep as many people happy as possible.
This was our first BTS product and we intend to do many more. There is one due to be launched tomorrow (subject to compliance sign off) so please keep an eye on the site. Many of our members also leave cash within their account ready to go when an opportunity arises. Again, I appreciate some people don't want to do this.
Kind regards
Andrew
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Post by buttchopf23 on Dec 8, 2016 14:29:32 GMT
Is this a goodbye to the BTL System?
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Post by propertymoose on Dec 8, 2016 14:32:34 GMT
Not at all. We'll continue to offer both products but, hopefully, this will open up more opportunities.
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Post by sayyestocress on Dec 8, 2016 14:38:35 GMT
Hi all Thanks for the comments and for all those people who have emailed in with great feedback - I'm pleased you like this new product. To those that raise the issues with speed of funding, I appreciate where you're coming from. We do not have a "pre-order" function on our website but do intend to build one over the coming months. It takes a lot of time and resource to build technology on top of an existing stack and, as a small business, we only have limited amounts of both. We all do really take on board the feedback and want to make this work for everyone. The issue with these properties are the size. If we had a pre-order system, the equity would be very over-subscribed and then some people would be disappointed as, despite pre-ordering, we could only go down to the minimum share value of £10 so people would be let down. As we prove out the model, we intend to scale up the property sizes which should help. Sayyestocress - we included the loan note to appeal to a different type of investor on the site who does want fixed rate, lower risk investments. To get a 9% p.a. return on a sub 60% LTV first charge loan is something that, we think, is pretty unique. It also enhances the equity returns due to the leveraging. With no debt, the return would be 7.55%. There are nearly 19,000 people on our database and everyone has their own preference as to types of investments - we're just trying to make sure we keep as many people happy as possible. This was our first BTS product and we intend to do many more. There is one due to be launched tomorrow (subject to compliance sign off) so please keep an eye on the site. Many of our members also leave cash within their account ready to go when an opportunity arises. Again, I appreciate some people don't want to do this. Kind regards Andrew Thanks for the response and explanation. Whilst I would prefer the gearing/leveraging to come at a lower cost than 9%, I can appreciate you are trying to appeal to two different customers with one property. Can I ask if you have a planned ratio of BTS to BTL properties? Will the introduction of the BTS properties reduce the number of BTL properties listed? How often can we expect BTS properties to be listed? I appreciate some of these answers can't be given definitive answers as no one can predict the future but if there's a rough plan it would be good to know for my own monthly investment budget plans. Will there be advanced warning for the potential property tommorow or will it be an e-mail as it goes live? Thanks.
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Neil_P2PBlog
P2P Blogger
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Post by Neil_P2PBlog on Dec 8, 2016 15:24:59 GMT
9% loan secured at 60% LTV is pretty good, like what I would expect to see on SS nowadays for a small property like this. For me the best thing about this is that you have more transparency over the borrower and can clearly see their plans and a clear financial breakdown (on the equity page). You are not worried that it is a dodgy borrower trying to pull a fast one!
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Post by propertymoose on Dec 8, 2016 15:58:17 GMT
Thank you, Neil. I agree!
Sayyestocress -
Can I ask if you have a planned ratio of BTS to BTL properties?
Not at the moment - we're just seeing how some of them go and how popular they are. We are working on some larger opportunities as well. I would hope that we could keep the ratio to 50:50. Although, we see more opportunity in the BTS market at the moment due to the increasing house prices and static rents impacting on yields. There will now be a lead in to build up a pipeline of deals to allow us to have them on a continued basis.
Will the introduction of the BTS properties reduce the number of BTL properties listed?
At present, no. But see above. There is a real issue in finding deals that keep our investors happy as it appears that members only want higher headline yielding properties which means we're limited in what we can focus on. Realistically, 3 - 5% net yield is achievable in the BTL world across the country with yields depressing the further south you go. Our experience to date shows that members want more than 5% which does affect what we can do. If anyone has any feedback here it would be great to hear.
How often can we expect BTS properties to be listed?
I'm not able to say at the moment but we have several in the pipeline that are going through our DD process. I'd hope we could have several a month when we're up and running.
I appreciate some of these answers can't be given definitive answers as no one can predict the future but if there's a rough plan it would be good to know for my own monthly investment budget plans.
Will there be advanced warning for the potential property tommorow or will it be an e-mail as it goes live?
We have just reviewed the property that we are preparing to go on tomorrow and the current tenant has indicated that he is willing to sign a new 3 year tenancy. As such, this is ideal to keep as a BTL investment as there will, hopefully, be no voids. It appears to be a good property with a healthy discount and tenant in place so hopefully will be popular.
Thanks.
Thanks.
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Post by sayyestocress on Dec 8, 2016 16:28:35 GMT
...Our experience to date shows that members want more than 5% which does affect what we can do. If anyone has any feedback here it would be great to hear. Thanks for those responses, I don't think I could ask for more at this stage! Much appreciated. Personally I am fine with less than 5% dividend, and would consider less than 3% if there was reasonable scope for some decent capital gain for a cheeky punt. For a higher rate tax payer that maxes out their savings allowance but won't max out their dividend allowance (that's my scenario but how typical am I?) then 3% yield is still attractive to my eyes, though I guess it's probably not worth it for basic or non-tax payers.
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Post by buttchopf23 on Dec 8, 2016 16:40:49 GMT
Not at all. We'll continue to offer both products but, hopefully, this will open up more opportunities. Well your last answer in red says the opposite. I just liked the BTL so I joined. I can invest in property loans elsewhere. I can life with BTS as addition. Without BTL I will leave. looking forward to our skype.
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ben
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Post by ben on Dec 8, 2016 19:25:26 GMT
Personally I like variety so I am all for it, I am guessing the interest will be paid upon completion rather then monthly.
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