registerme
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Post by registerme on Aug 1, 2018 20:53:58 GMT
Illuminating for this particular loan but also interesting as a snapshot of what used to be. So many helpful contributors no longer present which is such a shame. Also interesting is one person who bargepoled this loan saying it was not the quality of a Broadoak loan and someone else bargepoled it to see what was on Collateral . I'm beginning to think of P2P as a casual walk through a field of landmines. The quality of the DD was good, and as you say very much lacking these days. Maybe it will come back at some point, though I suspect the ones who have the 'gift' see little point in a World where a good quoted LTV is taken as Gospel (I acknowledge the other obvious factors). And yes a minefield for sure. I don't think "p2p" is the issue, I think "speculative property development" is the issue - see much that I have commented on before about this. fwiw (with appropriate sensitivity to those who are in it), I have £1 in this loan......
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Post by sannytwist on Aug 1, 2018 22:14:51 GMT
I was one of the people that commented very negatively on this loan. Even saw the embarrassing language school website before it was pulled down. I didn't like this loan when it was first made available and disliked MT even more by allowing it to go through. If you go to the start of the thread u would see valuable comments which suggests this loan was fishy as hell.
Hopefully the loan LTV would mean that everyone gets their money back.
The quality of MT loans have noticeably dropped since last year, leading to my decision to pull all my investments for at least 6 months now. I would suggest those lenders that are still balls deep to play it safe as possible , money in the bank earning 1% is much better than lost money.
Good luck,
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cwah
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Post by cwah on Aug 1, 2018 23:37:01 GMT
What are the 87 reservation and 57 exchanges if it hasn't been developped already?
I thought it was at its final stage
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elliotn
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Post by elliotn on Aug 2, 2018 2:08:01 GMT
What are the 87 reservation and 57 exchanges if it hasn't been developped already? I thought it was at its final stage Off-plan.
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applets
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Post by applets on Aug 2, 2018 4:54:11 GMT
Given property expertise was one of the reasons MT gave for moving into property loans, the track record to date has been variable to say the least.
With continuing defaults, a reducing loan book, a pipeline that seldom sees anything reach the end, repeated warnings from lenders on this board that they are pulling out from MT..... I must admit to doubting the future of MT as a platform and wondering how long they will continue to survive (not withstanding Ed's previous assurances that the platform is well capitalised/ profitable).
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Post by GSV3MIaC on Aug 2, 2018 6:58:48 GMT
They have since decided to move out again, although whether there is enough cars, bling, pawn, etc to sustain a business is still to be proven. Most p2p companies tried to expand rapidly by getting into property, and most came unstuck, as cowboy developers took the money (somtimes including purchase deposits) and ran .. overseas if possible.
On this particular loan, Ed was well warned and ignored us, collecting some negative kudos along the way, imo.
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cwah
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Post by cwah on Aug 2, 2018 6:59:22 GMT
Why u say it looks like junk? -lowest LTV loan on moneything book at 42% - 10 years experience from développer - 87 reservations and 57 exchange on may. Almost enough to redeem the loan In my views it looked like a no brainer loan. What make you think otherwise?
Quoted LTV is based on a residual value valuation for a particular development scheme, and is only applicable if you have 100% confidence in the proposed scheme being built exactly as stated.
As cleared land the site is probably worth c. £600k for residential development (see earlier in the thread for assumptions on which this is based). However this is not a cleared site and has a listed building in situ which may be hard to get permission to demolish despite having been disfigured by modern(ish) extensions. Impossible to put a land value on the site with that it situ - I guessed £300k-£400k (i.e less than the loan value), but it could be like the FS Whitehaven land almost impossible to sell.
The principals of the borrowing company and others closely associated with the proposal have quite a lot of "interesting" background that can be easily discovered and considered. Personally I was unable to place my trust in the integrity of any of those involved to redeem the loan (via any/all possible routes), and viewed default as pretty much certain from the start.
The proposed residential language school was to be operated by associated companies (some offshore) and not by an established language school operator. The likely end demand for such a facility was/is uncertain at best.
The units were to be offered as leasehold, something that is VERY rare in Scotland.
It was IMO a no brainer to avoid completely.
How did you find out about the borrowing company and people associated? I couldn't see it anywhere???
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Post by bracknellboy on Aug 2, 2018 7:49:57 GMT
The quality of the DD was good, and as you say very much lacking these days. Maybe it will come back at some point, though I suspect the ones who have the 'gift' see little point in a World where a good quoted LTV is taken as Gospel (I acknowledge the other obvious factors). And yes a minefield for sure. I don't think "p2p" is the issue, I think "speculative property development" is the issue - see much that I have commented on before about this. fwiw (with appropriate sensitivity to those who are in it), I have £1 in this loan...... well for whatever reason I did not pick up on the warning signs on this one, and as a consequence have a reasonable lump: though thankfully only 400x registerme 's slice. 35% of my MT book is either defaulted or non-performing. To be fair, not far off 50% of that is in one loan, namely Birkenhead. And I thought taking the Tranche A only on that was fairly safe.......oh how to be disappointed.
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m2btj
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Post by m2btj on Aug 2, 2018 8:35:08 GMT
Why u say it looks like junk? -lowest LTV loan on moneything book at 42% - 10 years experience from développer - 87 reservations and 57 exchange on may. Almost enough to redeem the loan In my views it looked like a no brainer loan. What make you think otherwise?
Quoted LTV is based on a residual value valuation for a particular development scheme, and is only applicable if you have 100% confidence in the proposed scheme being built exactly as stated.
As cleared land the site is probably worth c. £600k for residential development (see earlier in the thread for assumptions on which this is based). However this is not a cleared site and has a listed building in situ which may be hard to get permission to demolish despite having been disfigured by modern(ish) extensions. Impossible to put a land value on the site with that it situ - I guessed £300k-£400k (i.e less than the loan value), but it could be like the FS Whitehaven land almost impossible to sell.
The principals of the borrowing company and others closely associated with the proposal have quite a lot of "interesting" background that can be easily discovered and considered. Personally I was unable to place my trust in the integrity of any of those involved to redeem the loan (via any/all possible routes), and viewed default as pretty much certain from the start.
The proposed residential language school was to be operated by associated companies (some offshore) and not by an established language school operator. The likely end demand for such a facility was/is uncertain at best.
The units were to be offered as leasehold, something that is VERY rare in Scotland.
It was IMO a no brainer to avoid completely.
I agree totally! I thought the original thread threw up enough contributions to cast doubt & serious concern over this loan. Despite the glossy packaging I gave this one a miss!
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jonno
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nil satis nisi optimum
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Post by jonno on Aug 2, 2018 9:03:36 GMT
Jeez, there are now so many wise and clever people who avoided this loan, I'm surprised it ever got funded in the first place
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Post by Badly Drawn Stickman on Aug 2, 2018 9:54:09 GMT
Jeez, there are now so many wise and clever people who avoided this loan, I'm surprised it ever got funded in the first place Probably less than you think, I parked there despite the double yellow lines, found it was clamped when I went to move it and now it's been towed away. Fortunately it is only a fairly small vehicle and I should at least get the wheels back. What I can't do is say I didn't know it was a clearway.
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oik
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Post by oik on Aug 2, 2018 9:56:05 GMT
On this particular loan, Ed was well warned and ignored us, collecting some negative kudos along the way, imo.
Indeed. Incompetent or non-existent DD by the platform is one thing, but in this case DD was done by the platform's clients themselves, clearly presented to the platform, and still they ignored it. Having read it, did MT expect a loan based on PP for student accomodation for non-existent students of a non-existent language school to a group with such a colourful trail of failure to go well? I don't understand the MT business plan. Selling any loan they can get as hard as they can might be tempting, but for how long did they expect to have lenders?
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Post by bracknellboy on Aug 2, 2018 10:04:47 GMT
Jeez, there are now so many wise and clever people who avoided this loan, I'm surprised it ever got funded in the first place Probably less than you think, I parked there despite the double yellow lines, found it was clamped when I went to move it and now it's been towed away. Fortunately it is only a fairly small vehicle and I should at least get the wheels back. What I can't do is say I didn't know it was a clearway. Badly Drawn Stickman with your moniker I don't think u can claim to be one of the wise and clever people who nonetheless failed to avoid the loan ;-)
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Post by Badly Drawn Stickman on Aug 2, 2018 10:14:24 GMT
Probably less than you think, I parked there despite the double yellow lines, found it was clamped when I went to move it and now it's been towed away. Fortunately it is only a fairly small vehicle and I should at least get the wheels back. What I can't do is say I didn't know it was a clearway. Badly Drawn Stickman with your moniker I don't think u can claim to be one of the wise and clever people who nonetheless failed to avoid the loan ;-) Good point. I have been getting way above my station of late, normal service will resume henceforth.
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cwah
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Post by cwah on Aug 2, 2018 10:19:53 GMT
I'm heavily invested in this one because I thought it would be a very solid and safe loan based of the figure and updates.
I could't think the figures could just be a list of made up numbers.
How likely it is to recover 100% of the money? And what's the most likely scenario?
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