Peer to peer property investment

eskbanker

Barry_Bear wrote: »

With both Funding Circle and Assetz Capital I select diversified and 'conversative' lending settings.

Does this involve lots of discussion before lending?

colalba

monaymadlol wrote: »

OK the administrator thing is worrying.. But the big ones still seem strong / well protected?!

When Lendy went under it had £150 million in loans, so pretty big.

The administrators estimated recovery at 57p in the pound before costs. Since then they have repeatedly highlighted unexpected costs so 57p is looking very optimistic now.

bostonerimus

P2P and property sounds like a marriage made in Hell, both have issues with liquidity.

Albermarle

P2P is referred to as the wild west for good reason

I think most of the real wild west ones have gone bust , the remainder are more in frontier territory .

But personally I would only put a small proportion of your total investments into P2P.

Whether you or pro or anti P2P - this is the key statement .

agent69

Barry_Bear wrote: »

I use Funding Circle. Last year they had problems and lenders wanting to withdraw money could wait up to 4 months. But recently they changed the way the secondary market works for selling loan parts and I was able to withdraw £2,000 in a week. .

Under the old system most people were unable to get any SM sales for 6 months. The new system cycles through all who want to sell, typically returning 1% every 5 - 10 days.


Look here for details http://p2pindependentforum.com/thread/14673/selling-loans-frame-updated-daily

Daniel54

EdGasketTheSecond wrote: »

Just buy some property shares like Grainger; much simpler and with likelyhood of a positive outcome.

I’ve had a very modest investment in Grainger since 2010 and with dividends reinvested my £300 original stake is now worth £1,050.

Of course,past results are no indicator for the future ....

sebtomato

Barry_Bear wrote: »

I use Funding Circle. Last year they had problems and lenders wanting to withdraw money could wait up to 4 months. But recently they changed the way the secondary market works for selling loan parts and I was able to withdraw £2,000 in a week.

I requested my £20K investment to be sold on the 1st Nov, and I have sold £3k so far (after 3 months), so a very different experience from what you describe.

Barry_Bear wrote: »

I have also used Assetz Capital. Never had any problems with them and their loans are backed by property assets..

Assetz Capital has many loans in default and that have been for years, without hardly any recovery.

masonic

monaymadlol wrote: »

With b2l less attractive/more hurdles/more money required, I thought this may be a good way to get a foot in/exposure :j

B2L investing involves owning a property (optionally borrowing against the value of that property) and renting it out to generate an income, and you benefit from any gain in value of your property while you own it.

Property-secured P2P lending involves lending money to a borrower (often a company) for interest income, with the loan secured on property owned by the borrower. You have no claim over any growth or income generated by the borrower's property while you are lending money to the borrower.

One is not a scaled down version of the other. P2P lending does not give you exposure to property as an asset class.

Perhaps you were referring to Property Crowdfunding?

monaymadlol

Perhaps. So with property crowd funding, you actually receive benefit from value growth xif there is some?

masonic

monaymadlol wrote: »

Perhaps. So with property crowd funding, you actually receive benefit from value growth xif there is some?

Property Crowdfunding involves actually buying a share of a house and having a management company let it out. You will receive a share of the rental income (after fees) while the property is let and the tenant is paying rent. Houses are typically revalued every 6-12 months and you would be able to sell your share based on the latest valuation price (subject to their being a buyer).

Property Partner would be one example of such a company (not a recommendation, I have no experience of this sector). Note that several P2P lending companies use the term "Property Crowdfunding" to describe investing in P2P loans, which is very different as described above.