djpix99
Member of DD Central
Posts: 115 
Likes: 62
|
Post by djpix99 on Mar 2, 2017 12:37:07 GMT
Think I've got it now, just re-read the whole description in financials.
|
|
ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 11,315
Likes: 11,523
|
Post by ilmoro on Mar 2, 2017 13:02:49 GMT
Erm, I think Im being really stupid here.
If as the write up says the projected return (I assume based on valuation) is 7.84% over 6 months, giving an annualised return of 15.68%, why then does selling it for 95% value result in a predicted 6 month return of 13.88% and an annualised return of 6.94%. Somewhere theyve got their numbers swapped.
Looking at SPV75, the write up says projected return 4.71%, annualised 9.42%, but figures at bottom reverse these two figures.
Somebody explain it to me please, as it makes no sense to my brain
|
|
Steerpike
Member of DD Central
Posts: 1,977
Likes: 1,687
|
Post by Steerpike on Nov 2, 2017 21:03:53 GMT
Hi all <snip> 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. <snip> Kind regards Andrew Investor vote - PMF SPV75 Loan As someone attracted to the fixed rate lower risk I do not feel inclined to vote on converting my loan to SPV75 to equity with an unknown return and term. However, clearly all of the lenders holding the 25% equity will vote to change from buy to sell to buy to let, so unless every single one of the lenders holding the 75% loan notes votes with me to auction the property, my vote will be overridden. The change will take place unless 75% of shareholders (across debt and equity) vote to put the property in an auction.
Stacked deck.
|
|
carolus
Member of DD Central
Posts: 204
Likes: 191
|
Post by carolus on Nov 2, 2017 22:48:34 GMT
Hi all <snip> 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. <snip> Kind regards Andrew Investor vote - PMF SPV75 Loan As someone attracted to the fixed rate lower risk I do not feel inclined to vote on converting my loan to SPV75 to equity with an unknown return and term. However, clearly all of the lenders holding the 25% equity will vote to change from buy to sell to buy to let, so unless every single one of the lenders holding the 75% loan notes votes with me to auction the property, my vote will be overridden. The change will take place unless 75% of shareholders (across debt and equity) vote to put the property in an auction.
Stacked deck. Well, you may be better off than you think. I'm in the equity part of this and have received no update and no notification of any vote (including on the platform). EDIT: Just realised I misunderstood the terms you quote - since it's 25% of all shareholders, I imagine even the chances of that many voting for *anything* are pretty slim.
|
|
Steerpike
Member of DD Central
Posts: 1,977
Likes: 1,687
|
Post by Steerpike on Nov 3, 2017 7:45:08 GMT
SPV75 buy to sell failed to sell and so it is morphing in to buy to let with effectively no chance for investors to win a vote for the alternative option of auctioning the property.
|
|
Neil_P2PBlog
P2P Blogger
Use @p2pblog to tag me :-)
Posts: 355
Likes: 209
|
Post by Neil_P2PBlog on Nov 3, 2017 8:09:41 GMT
On the investment descriptions on all of the 'flipping' properties it has "If the property has not been sold or a sale has not been agreed within 12 months, the property will be advertised for rent and move to a yearly buy-to-let investment, unless 75% of the equity investors vote that it should be auctioned."
|
|
|
|
Post by sayyestocress on Nov 3, 2017 8:35:45 GMT
...clearly all of the lenders holding the 25% equity will vote to change from buy to sell to buy to let... As one of the equity holders I actually voted to auction the property; I want to test how good/bad PM's buying nous is. I've gradually reduced my equity in this one for small gains over the months as there seemed to be no sniff of a buyer. I'll potentially lose a small amount of capital but it'll inform future investment decisions. Though as you say, it's stacked heavily in favour of converting to BTL so I doubt the auction will happen. I would have expected that those holding the debt side of the listing would be paid off by listing of the property as a BTL opportunity on the platform. SPV75 has been a disappointment so far but 77 has been completed (investors awaiting funds) and 84 is due to complete in the "next few weeks". I'm not in the first BTS they launched so don't know how that one's going.
|
|
Steerpike
Member of DD Central
Posts: 1,977
Likes: 1,687
|
Post by Steerpike on Nov 3, 2017 9:20:47 GMT
...The average time it takes to sell a property in the North East is 10 weeks and, for the purposes of the calculations, we have assumed a total deal period of 6 months from completion up until the sale ... RICS survey carried out on the 23rd January 2017, values the property at £100,000...
It has been on sale for months and didn't sell even when it was reduced to £92.5k, any lower and equity holders lose capital.
|
|
