11% over 3 years from Ablrate P2P

stoozie1

Ah right.

Even with 100% directorial liability?

See, I told you I was green!

Fatbritabroad

stoozie1 wrote: »

Thanks

I'm guessing as a newbie I should diversify across loans to start with, and start small?

There are 2 loans on the new loans tab, would I be best just taking a £200 punt on each until I'm more confident?

The secondary loans are a bit more worrying as I'm not sure why people are selling them!

From what I've written above you can see how 'green' I am!

What helped you stick a toe in?

Www.p2pforum.co.uk is a great area for info from people way better than me at due diligence etc.

For me I view p2p as high risk. Something akin to buying individual shares where risk of capital loss is very real so I will only out money in that I am happy to lose all of.

I just put a small amount in each loan generally 200 or less. You need to be careful as many are linked to the same company but it's fairly easy to find this using the other loans info on the due diligence and that will show what you have in that loan.

Re the secondary market don't be put off there at meany reason why people want to sell. Release of capital diversification or yes they may judt prefer the look of another loan. Doesn't mean they are right

The secondary market is your Friend as a new investor as you won't get any kind of sum invested without it for ages. It cost me about 45 quid in fees to get invested in every loan on the secondary market and ive made that back within 6 weeks. I'm now at a level where any of my major loans could default and I'm not oht of pocket.

For me it had great reviews the amount of info provided was good the asset security was good. It had an ifisa. The rate was worth the risk and as I say people way better at due diligence and obviously putting far more money in each loan than me rate it. I intend to keep this was about 10% of my non pension net worth so will be small. I did ratesetter for the 100 bonus as that gave an effective rate of 12% then put another 1000 in as you get it back within a month and the rest in ablrate where I just reinvest the interest and top up

firestone

stoozie1 wrote: »

Ah right.

Even with 100% directorial liability?

See, I told you I was green!

The best place to look for advice on Ablrate would probably be the P2P independent forum
where most big companies have their own board/threads and of which the Ablrate section is one of the strongest with each loan & the SM etc covered in depth and with people on there most of the day a bit like the MSE forum.

crossed with fatbritabroad

Fatbritabroad

Fatbritabroad wrote: »

Www.p2pforum.co.uk is a great area for info from people way better than me at due diligence etc.

For me I view p2p as high risk. Something akin to buying individual shares where risk of capital loss is very real so I will only out money in that I am happy to lose all of.

I just put a small amount in each loan generally 200 or less. You need to be careful as many are linked to the same company but it's fairly easy to find this using the other loans info on the due diligence and that will show what you have in that loan.

Re the secondary market don't be put off there at meany reason why people want to sell. Release of capital diversification or yes they may judt prefer the look of another loan. Doesn't mean they are right

The secondary market is your Friend as a new investor as you won't get any kind of sum invested without it for ages. It cost me about 45 quid in fees to get invested in every loan on the secondary market and ive made that back within 6 weeks. I'm now at a level where any of my major loans could default and I'm not oht of pocket.

For me it had great reviews the amount of info provided was good the asset security was good. It had an ifisa. The rate was worth the risk and as I say people way better at due diligence and obviously putting far more money in each loan than me rate it. I intend to keep this was about 10% of my non pension net worth so will be small. I did ratesetter for the 100 bonus as that gave an effective rate of 12% then put another 1000 in as you get it back within a month and the rest in ablrate where I just reinvest the interest and top up

firestone wrote: »

The best place to look for advice on Ablrate would probably be the P2P independent forum
where most big companies have their own board/threads and of which the Ablrate section is one of the strongest with each loan & the SM etc covered in depth and with people on there most of the day a bit like the MSE forum.

crossed with fatbritabroad

What he said p2p independent forum not p2p forum.

Do you understand the secondary market? Some people seem to find confusing but to me it'd fairly simple

msallen

Hi stoozie1 - a few random thoughts ...

Diversification is essential along with an appropriate level of due dilligence performed to establish whether you believe individual loans to be "reliable".

At one extreme you could put a few quid in every loan you could find on Ablrate and every other platform, and do no due dilligence. In this case you'd be playing the numbers, and accepting that a small percentage of your loans would default, but trusting that these losses would only make a small-ish dent in your overall returns.

At the other extreme you could put all your money in one loan that you had researched thoroughly. In this case you'd be trusting your ability to discern good loans from bad, and reaping the full headline interest rate for doing so.

In reality you have to pick your position somewhere between the two extremes.

A commonly mentioned strategy is to have no more than say 1% (or maybe 0.5% or 2%) of your entire P2P portfolio in any one loan (or to any one borrower). This is very roughly what I do, and with that amount of diversification I am comfortable that I only need to do minimal due diligence (often nothing more than looking what other people have found out on http://p2pindependentforum.com/).

Obviously you can't diversify that much straight away on just Ablrate, but I would suggest you make use of the secondary market to get your eggs into at least a few baskets. You don't need to be overly concerned about why people are selling - its quite an active/liquid market on ABL, but if you are, just check that the spread between buy/sell prices is not too wide for reassurance. I would also advise you to think carefully about buying anything that is trading too far above par (say over 102) bearing in mind that loans can be repaid early.

You might like to look on the forum I linked to to see what has been said about the two loans currently on offer. Personally I am only in one of them (for a smaller than usual amount), and the fact that they have taken this long to partially fill (a good loan can fill in from a few minutes to a few hours) would indicate many others are unsure.

firestone

while as others have said you may not need to worry about why loans are on the SM as people may be raising funds (happens when a new loan comes up) or they have bought more of a new loan then they needed or are flipping for a quick profit.
But you need to watch for the final date on a loan as people try to sell as the end date comes up as they could be more likely be the ones to repay early.Also as mentioned previous some find the SM complicated with its discount/premium prices but you also have to pay the accrued interest so the closer you are to the monthly repayment date the more it will cost you(but you can put a price in the box and it will work out the deal before you pay)

Fatbritabroad

firestone wrote: »

while as others have said you may not need to worry about why loans are on the SM as people may be raising funds (happens when a new loan comes up) or they have bought more of a new loan then they needed or are flipping for a quick profit.
But you need to watch for the final date on a loan as people try to sell as the end date comes up as they could be more likely be the ones to repay early.Also as mentioned previous some find the SM complicated with its discount/premium prices but you also have to pay the accrued interest so the closer you are to the monthly repayment date the more it will cost you(but you can put a price in the box and it will work out the deal before you pay)

Again very good advice. This is what I do as basic due diligence. Have I got more than a couple of hundred in any one loans. And say 400 in one company (vast majority are 100 or less) and when's the payment date if secondary. What's the premium? Is it amortising if higher risk. What are people saying in the forum? (I put a whole 7 quid in the new yacht loan). I simply am not educated enough in valuing businesses to do more than that so go with the herd. At some point if I'm putting larger amounts in I'll get myself edumacated. In terms of my p2p investment there's 10% in one company over several loans as I wanted to get invested. In terms of non pension it's 10% of 10% and in terms of total net wealth it's minimal. This is as high up the risk scale as I wanted to go

TheShape

If you're comfortable with the risks of p2p, this is probably a good time to start investing with Ablrate. Lots of availability on the Secondary Market at par or slight discount which means you don't have the early repayment risk on those loans.

I don't do much of my own due diligence on the loans as I don't know enough about property development, aviation, commercial fishing, brewing, vehicle finance etc to do it with confidence although I do avoid loans if they don't 'feel right' (the new Yacht Company Finance Loan doesn't 'feel right' although it's probably a very safe loan for the next 7 days as it probably won't fill and investors will probably get their capital returned) or if the p2p independent forum highlights many areas of concern.

I diversify in many loans, not too much in any one loan and not too much to any one borrower.

Edited: I'm not recommending the yacht loan.

Fatbritabroad

TheShape wrote: »

If you're comfortable with the risks of p2p, this is probably a good time to start investing with Ablrate. Lots of availability on the Secondary Market at par or slight discount which means you don't have the early repayment risk on those loans.

I don't do much of my own due diligence on the loans as I don't know enough about property development, aviation, commercial fishing, brewing, vehicle finance etc to do it with confidence although I do avoid loans if they don't 'feel right' (the new Yacht Company Finance Loan doesn't 'feel right' although it's probably a very safe loan for the next 7 days as it probably won't fill and investors will get their capital returned) or if the p2p independent forum highlights many areas of concern.

I diversify in many loans, not too much in any one loan and not too much to any one borrower.

Yes I did briefly think about sticking a larger amount in that for the 28 dY period but knowing my luck some oligarchs would have bought the rest of the loan to get a discount on the bloody tub and I'd have been stuck with it :rotfl:

stoozie1

Many thanks all.

I'll have a look at the p2p forum, learn a bit more abd pop back if I get stuck!