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  • Peer to Peer Lending

    Peer to Fear and JaeVee’s

    Mispelling normally means miselling and there is a whole lot of fudge to hit the fan.

    The regulator doesn't even know where to start and how to act, except more and more Lendy’s will be Bendy’s in 2019 and beyond.

    There are a huge number of Peer to Fear companies to also .... fear.........plenty of slick offices and snakeskin oil sales people working from Wework and similar short leased premises in smart addresses with skinny jeans and trendy beards promising the world, but in a world of make believe of their own.

    Most of them have stumbled across property and make it up as they go along, with their investors oblivious to poor underwriting and flaky dealings as long as the qtly interest payment is made ( with the Peers and crowd funders paying this interest return by raising more funds from unsuspecting investors). There are so many........

    Few have been through any type of property downturn and are ill equipped to understand or deal with such things, never mind any experience of any macro economic correction.......that is long overdue.

    These “Dudes” believe prop tech will prop them up and give them a swift get out of jail card exit by being taken out by a bigger rival and masking their errors and poor underwriting of the past.

    There are so many short term loans that have been relabelled as medium or long term loans, because they are in default.

    Many are in London and when the music stops there definitely won’t be enough chairs to sit on.

    Choose your funding partner wisely, avoid the glorified brokers pretending to be funders and the Jaavee partners that want to flog you poor quality training sessions and who have a little less than zero on their balance sheets and no cash to fulfil promises.

    Start but researching the basics of what they have done, call the customers on their websites and check their company accounts out at Companies House, which is a free google click away.....

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    Peer to Peer lending on property is akin to the lamentable subprime mortgages sold prior to 2007.

    The only difference is the banks that provided the warehouse facilities to lenders took the hit when it all went wrong instead of the private investor who going to take the hit next time

     The loans are usually underwritten on equity and basic credit checks alone and with LTV often close to 75% For me the risks as an investor are unacceptable

    Will Peer to Peer lending survive the next property crash ?  I have to doubt it


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    Absolutely, it's going to be (one of) the next big scandals.

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    As Mark has posted here that he is owner and group MD of Go Develop I am presuming there are some changes in that sector.

    https://www.propertytribes.com/go-develo...375-2.html

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