jsmill
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Post by jsmill on Jul 23, 2018 15:40:33 GMT
Update available now... I start being seriously upset with quite a number of platforms these days. Taking a financial risk is one thing, being fooled is another one... "23/11/17: The most recent valuation letter puts the value of the security at £2,870,000 (up from £2,750,000 at the previous valuation), giving a current LTV of 69.6%. A further drawdown of £125,000 (5th drawdown) will commence shortly." Today's offer : £750,000. That's a minor discrepancy, really... Makes you wonder if we are really sane to be in P2P? - Perhaps a 10% gain/yr VS 75% potential loss of capital Absolutely, it is astonishing that it went from; 23/11/17: The most recent valuation letter puts the value of the security at £2,870,000 (up from £2,750,000 at the previous valuation), giving a current LTV of 69.6%. A further drawdown of £125,000 (5th drawdown) will commence shortly. 04/11/17: Works on site are progressing and the client anticipates having phase 1 completed by Christmas. This accounts for 6 out the 10 units. All 6 units have been sold subject to contract and are progressing through conveyancing to exchange. As such, we expect a repayment equal to full net sales proceeds of around c£1.6m by the end of the year/early next. To: 23/07/18: Offer of £750,000!! Unless the developer has sneakily buried a couple of land mines on the site may I humbly suggest that the previous valuation was a steaming crock of excrement
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invester
P2P Blogger
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Post by invester on Jul 23, 2018 15:52:08 GMT
That really is poor. It sounds like some of these projects are really lacking in discipline, not least ably assisted by friendly valuations.
That said, I applaud MT for the stance taken, their decision has been carefully considered.
On Lendy this would have been put to a vote and no figures given for the build out option, trying to nudge people to get the liability off their books.
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jlend
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Post by jlend on Jul 23, 2018 16:11:10 GMT
That really is poor. It sounds like some of these projects are really lacking in discipline, not least ably assisted by friendly valuations. That said, I applaud MT for the stance taken, their decision has been carefully considered. On Lendy this would have been put to a vote and no figures given for the build out option, trying to nudge people to get the liability off their books. I now think for any future development drawdowns an independent QS report should be provided along with a revised valuation. A re valuation on its own just is not enough. Platforms should be catching these things earlier, whatever their T and Cs say about accountability.
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rick24
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Post by rick24 on Jul 23, 2018 16:41:08 GMT
Makes you wonder if we are really sane to be in P2P? - Perhaps a 10% gain/yr VS 75% potential loss of capital Absolutely, it is astonishing that it went from; 23/11/17: The most recent valuation letter puts the value of the security at £2,870,000 (up from £2,750,000 at the previous valuation), giving a current LTV of 69.6%. A further drawdown of £125,000 (5th drawdown) will commence shortly. 04/11/17: Works on site are progressing and the client anticipates having phase 1 completed by Christmas. This accounts for 6 out the 10 units. All 6 units have been sold subject to contract and are progressing through conveyancing to exchange. As such, we expect a repayment equal to full net sales proceeds of around c£1.6m by the end of the year/early next. To: 23/07/18: Offer of £750,000!! Unless the developer has sneakily buried a couple of land mines on the site may I humbly suggest that the previous valuation was a steaming crock of excrement 2 thoughts occur: I note that the developer was using substandard materials (perhaps as they got more desperate), which would detract from a valuation given on the basis of proper materials. The £750,000 could be a 'cheeky offer', which grossly undervalues the site.
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Post by df on Jul 23, 2018 16:53:24 GMT
That really is poor. It sounds like some of these projects are really lacking in discipline, not least ably assisted by friendly valuations. That said, I applaud MT for the stance taken, their decision has been carefully considered. On Lendy this would have been put to a vote and no figures given for the build out option, trying to nudge people to get the liability off their books. Combining experiences with similar loans on this and other platforms, It does feel like like most of these borrowers (often described as "experienced") don't really know what they are doing. I understand that property development is complex and nothing is straight forward, but I would expect professionals to know (at least approximately) how long it will take to build and sell and how much it will cost and valuers to provide the real value of assets. MT's update was very good, I think. Informative, concise and honest.
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hazellend
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Post by hazellend on Jul 23, 2018 17:30:28 GMT
Another nail in the coffin for any DFLs on any site.
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hazellend
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Post by hazellend on Jul 23, 2018 17:31:07 GMT
Another nail in the coffin for any DFLs on any site.
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stevio
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Post by stevio on Jul 23, 2018 18:01:26 GMT
Another nail in the coffin for any DFLs on any site. How many nails are you giving?
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jlend
Member of DD Central
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Post by jlend on Jul 23, 2018 18:10:31 GMT
Another nail in the coffin for any DFLs on any site. How many nails are you giving? A nail gun perhaps.... lent from one of the borrowers...
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averageguy
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Post by averageguy on Jul 23, 2018 18:42:32 GMT
Another nail in the coffin for any DFLs on any site. How many nails are you giving? Its all a bit nail biting
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averageguy
Member of DD Central
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Post by averageguy on Jul 23, 2018 18:44:06 GMT
That really is poor. It sounds like some of these projects are really lacking in discipline, not least ably assisted by friendly valuations. That said, I applaud MT for the stance taken, their decision has been carefully considered. On Lendy this would have been put to a vote and no figures given for the build out option, trying to nudge people to get the liability off their books. Combining experiences with similar loans on this and other platforms, It does feel like like most of these borrowers (often described as "experienced") don't really know what they are doing. I understand that property development is complex and nothing is straight forward, but I would expect professionals to know (at least approximately) how long it will take to build and sell and how much it will cost and valuers to provide the real value of assets. MT's update was very good, I think. Informative, concise and honest. I can think of a certain company that could take that on board...name escapes me for the mo ......
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jlend
Member of DD Central
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Post by jlend on Jul 23, 2018 19:16:19 GMT
That really is poor. It sounds like some of these projects are really lacking in discipline, not least ably assisted by friendly valuations. That said, I applaud MT for the stance taken, their decision has been carefully considered. On Lendy this would have been put to a vote and no figures given for the build out option, trying to nudge people to get the liability off their books. Combining experiences with similar loans on this and other platforms, It does feel like like most of these borrowers (often described as "experienced") don't really know what they are doing. I understand that property development is complex and nothing is straight forward, but I would expect professionals to know (at least approximately) how long it will take to build and sell and how much it will cost and valuers to provide the real value of assets. MT's update was very good, I think. Informative, concise and honest. Just wondering if this would be better worded... Administrator's update was...... rather than MT's update was....
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madpierre
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Post by madpierre on Jul 23, 2018 19:32:22 GMT
Another nail in the coffin for any DFLs on any site. I think you've hit the nail on the head
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Post by df on Jul 23, 2018 20:07:19 GMT
Combining experiences with similar loans on this and other platforms, It does feel like like most of these borrowers (often described as "experienced") don't really know what they are doing. I understand that property development is complex and nothing is straight forward, but I would expect professionals to know (at least approximately) how long it will take to build and sell and how much it will cost and valuers to provide the real value of assets. MT's update was very good, I think. Informative, concise and honest. I can think of a certain company that could take that on board...name escapes me for the mo ...... I have to say "certain company's" communication has improved. It is detectable if you scroll down the updates ("no change" were very common). Introducing voting was a good move, considering growing number of disgruntled lenders. Ability to vote helps to improve sense of ownership and belonging
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james21
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Post by james21 on Jul 23, 2018 20:13:48 GMT
That really is poor. It sounds like some of these projects are really lacking in discipline, not least ably assisted by friendly valuations. That said, I applaud MT for the stance taken, their decision has been carefully considered. On Lendy this would have been put to a vote and no figures given for the build out option, trying to nudge people to get the liability off their books. Combining experiences with similar loans on this and other platforms, It does feel like like most of these borrowers (often described as "experienced") don't really know what they are doing. I understand that property development is complex and nothing is straight forward, but I would expect professionals to know (at least approximately) how long it will take to build and sell and how much it will cost and valuers to provide the real value of assets. MT's update was very good, I think. Informative, concise and honest. Give us a break; "MT's update was very good, I think. Informative, concise and honest" they have lost you 30% at best of your investment by their own incompetence in not managing the loan from the start, is it that difficult? nor able to provide regular, concise updates. The borrower for this one is the same for the south coast student accommodation, the administrator the same, the first option was speculative designed to make the others attractive; a better solution would have been a tender for the purchase of the site as is. Me; I am disgusted with MT and yes we know you read this forum;........clueless.........avoid
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