Loanpad P2P - Reviews, experiences, info or updates, post them here. I'm having a dabble.

Thrugelmir

Sea_Shell said:

Thrugelmir said:

Sea_Shell said:

I might have a couple of grand that could find a home here...assuming it is all at is seems.....is it??!

Given the overall size of your portfolio is such a small sum worth the bother?  Not going to add significantly to overall returns. Yet will absorb a disportinate amount of time. 

Maybe, maybe not.

It seems less bother than chasing round after regular savings accounts!😉

Time is a commodity I have plenty of. (Hopefully that bus will miss me!)

Comparing P2P to regular savings accounts suggests to me you've some homework to do. 

Sea_Shell

Thrugelmir said:

Sea_Shell said:

Thrugelmir said:

Sea_Shell said:

I might have a couple of grand that could find a home here...assuming it is all at is seems.....is it??!

Given the overall size of your portfolio is such a small sum worth the bother?  Not going to add significantly to overall returns. Yet will absorb a disportinate amount of time. 

Maybe, maybe not.

It seems less bother than chasing round after regular savings accounts!😉

Time is a commodity I have plenty of. (Hopefully that bus will miss me!)

Comparing P2P to regular savings accounts suggests to me you've some homework to do. 

I am well aware of the difference.😉

It was the time v. reward that I was alluding to!!

It appears that their offering can be a complete "fire and forget" if one chooses to.   

Thrugelmir

Sea_Shell said:

Thrugelmir said:

Sea_Shell said:

Thrugelmir said:

Sea_Shell said:

I might have a couple of grand that could find a home here...assuming it is all at is seems.....is it??!

Given the overall size of your portfolio is such a small sum worth the bother?  Not going to add significantly to overall returns. Yet will absorb a disportinate amount of time. 

Maybe, maybe not.

It seems less bother than chasing round after regular savings accounts!😉

Time is a commodity I have plenty of. (Hopefully that bus will miss me!)

Comparing P2P to regular savings accounts suggests to me you've some homework to do. 

I am well aware of the difference.😉

It was the time v. reward that I was alluding to!!

It appears that their offering can be a complete "fire and forget" if one chooses to.   

You'll achieve more by returning an additional .001% on your main investments than on a couple of grand in P2P.  No investment is ever fire and forget. As the economy goes through various cycles there'll be collateral damage and outcomes. 

Sea_Shell

One thing I think I understand, is that in a normal S&S (fund) investment there is the risk of a drop in fund value, so your £5000 investment may only be worth, say, £4000 when you need the money.

With this P2P, you still (theoretically) have £5000, on paper, but the risk is you may be delayed (stopped) from withdrawing it, so it is "lost" to you.

Lost forever??



Maybe I should just stick it in my 7IM Balanced C Acc and be done with it...it historically has similar returns.


At the end of the day, this thread was more about checking this company was genuine, not a scam or in any way dodgy.   NOT about my wider portfolio.

I've not had any "don't touch them with a bargepole" replies, so thank you all for your input.

masonic

Sea_Shell said:

One thing I think I understand, is that in a normal S&S (fund) investment there is the risk of a drop in fund value, so your £5000 investment may only be worth, say, £4000 when you need the money.

With this P2P, you still (theoretically) have £5000, on paper, but the risk is you may be delayed (stopped) from withdrawing it, so it is "lost" to you.

Lost forever??

If you are referring to a liquidity problem, it is more like a property fund freezing withdrawals temporarily, which occasionally happens. If you need the money you may simply have to wait, but that doesn't necessarily mean your investment is decreasing in value. That is a separate issue to some of the underlying loans defaulting, where there might be some final capital loss for lenders to bear.

Thrugelmir

Sea_Shell said:

With this P2P, you still (theoretically) have £5000, on paper, but the risk is you may be delayed (stopped) from withdrawing it, so it is "lost" to you.

Lost forever??

This platform specialises in lending to property developers with a close tie to a company called Handf for loan origination.  The land/property provides a degree of security. If the developer fails though. The realisable value in a fire sale is likely to below book cost. Resulting in a capital loss to investors. There's also likely to be a considerable time lag in realising the property estate. Meaning that any distributable capital is locked in and not generating any return.  Borrowers may also hit problems in selling on completed developments. Resulting in cash flow problems and therefore issues in meeting interest and capital repayments. 

Aceace

Here's a new review of Loanpad from the specialist P2P analyst 4thway https://www.4thway.co.uk/candid-opinion/loanpad-profitable-after-tripling-loan-book/.

Aceace

Thrugelmir said:

Sea_Shell said:

With this P2P, you still (theoretically) have £5000, on paper, but the risk is you may be delayed (stopped) from withdrawing it, so it is "lost" to you.

Lost forever??

This platform specialises in lending to property developers with a close tie to a company called Handf for loan origination.

They did originally rely on Handf as their sole lending partner, but things have moved on a fair bit since then. They now have 7 lending partners and have plans to on-board more, so the risk of this single point of failure is now much reduced. 

Thrugelmir said:

The land/property provides a degree of security. If the developer fails though. The realisable value in a fire sale is likely to below book cost. Resulting in a capital loss to investors. 

They only lend up to 50% of the book value (current market value), not the Gross Development Value. So it's by no means certain that a capital loss would ensue. No guarantees of course. Since less than 1% of one's funds would be invested in each loan on average (5% max currently and falling), a partial capital loss on any single loan would most likely eat into one's interest rather than ones capital.

Obviously, multiple loan failures that resulted in less than 50% recoveries could cause capital losses.

Thrugelmir

Aceace said:

Thrugelmir said:

Sea_Shell said:

With this P2P, you still (theoretically) have £5000, on paper, but the risk is you may be delayed (stopped) from withdrawing it, so it is "lost" to you.

Lost forever??

This platform specialises in lending to property developers with a close tie to a company called Handf for loan origination.

They did originally rely on Handf as their sole lending partner, but things have moved on a fair bit since then. They now have 7 lending partners and have plans to on-board more, so the risk of this single point of failure is now much reduced. 

Thrugelmir said:

The land/property provides a degree of security. If the developer fails though. The realisable value in a fire sale is likely to below book cost. Resulting in a capital loss to investors. 

They only lend up to 50% of the book value (current market value), not the Gross Development Value. So it's by no means certain that a capital loss would ensue. No guarantees of course. Since less than 1% of one's funds would be invested in each loan on average (5% max currently and falling), a partial capital loss on any single loan would most likely eat into one's interest rather than ones capital.

Obviously, multiple loan failures that resulted in less than 50% recoveries could cause capital losses.

Bottom line is that majority of retail investors are attracted by the yield.  The question that needs asking is whether the risk premium is high enough. 

Sea_Shell

Well, I've opened an account, and deposited £250 for now.   

Just waiting for it to credit, and then I'll move it to the notice account.

Quite impressed looking round the full website, especially the daily updates of progress on loans/projects.

I can see how easily it would be to fall down the rabbit hole with this, and end up spending way too much time analysing all the data.   Obviously I will keep an eye on it, but it doesn't need constant monitoring.   (but i know i will in the early days!!)