rubicon Posted October 9, 2015 Share Posted October 9, 2015 Got an email from a company looking help invest my monies by lending it to desperate BTL landlords i say desperate because the interest rate return is so favorable it must be highly risky see below Dear rubicon " xxxxxxxxxxxx is looking for private individuals and institutions to lend against first and second charges of UK Buy-to-let and commercial properties and earn up to 7-12% per year fully secured.Brief details of what we offer are as follows: 1. Minimum lending £12,000 and £1m maximum. 2. Lending period 1-5 years. 3. Interest rate 7-12% per year, payable monthly.4. Secured by 1st and 2nd legal charge on UK Buy-to-let and commercial properties with rent assignment. 5. Maximum LTV 75%. Should you be interested in lending to the UK Buy- to -Let landlords and earn a secure and steady income, please don't hesitate to contact us to discuss how we can take this further. Yours sincerely, DETAILS REMOVED BY A MODERATOR This screams desperation to me or are there a lot of companies trying to get first charge on crashing BTL empires? Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted October 9, 2015 Share Posted October 9, 2015 If a deal's too good to be true.... F**K 'EM Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted October 9, 2015 Share Posted October 9, 2015 You know when you see this, the bottom of the barallel has been reached. Sit back and enjoy the collapse... Quote Link to comment Share on other sites More sharing options...
janch Posted October 9, 2015 Share Posted October 9, 2015 Probably the type of scheme which will end up with Tony Hetherington of Mail on Sunday as a tale of woe where someone has lost their life savings..... Quote Link to comment Share on other sites More sharing options...
billybong Posted October 9, 2015 Share Posted October 9, 2015 (edited) Even at 7% it would pay most landlords to sell up and put the money in that "secured" investment "vehicle". Edited October 9, 2015 by billybong Quote Link to comment Share on other sites More sharing options...
Assume The Opposite Posted October 9, 2015 Share Posted October 9, 2015 You know when you see this, the bottom of the barallel has been reached. Sit back and enjoy the collapse... Why do I get flashbacks of the packaged debt (CDO's etc) sold to uninformed punters investors prior to 2008? Quote Link to comment Share on other sites More sharing options...
pipllman Posted October 9, 2015 Share Posted October 9, 2015 I would lend to a BTL at 12%, paid monthly, up to 35% LTV with first (and only) charge over the property and a personal guarantee from the LL too On condition that rent yield was 5% on the current value of the property Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted October 9, 2015 Share Posted October 9, 2015 3. Interest rate 7-12% per year, payable monthly. That should draw in the suckers looking for a return, it seems too good to be true and I'm guessing that will be the case. Quote Link to comment Share on other sites More sharing options...
Venger Posted October 9, 2015 Share Posted October 9, 2015 I would run and run and run away from anything like that, on principle and having read some property-forums where 'investors' found it was not all smiley happy easy money at all, but big financial pain for them. I'm not going to link to any place, because think you should keep far away from any such things, but we make our own market decisions. For people that borrow money, OPM comes with few risks. Even if someone gets security on a property of theirs, it can take many thousands in legal fees to force the sale of that property or gain possession if it was a first charge. To my mind, second charges are worthless in these instances. Quote Link to comment Share on other sites More sharing options...
Si1 Posted October 9, 2015 Share Posted October 9, 2015 (edited) I would run and run and run away from anything like that, on principle and having read some property-forums where 'investors' found it was not all smiley happy easy money at all, but big financial pain for them. I'm not going to link to any place, because think you should keep far away from any such things, but we make our own market decisions.It'll be invested in by the same personality type that believes you make your own luck by taking blind leveraged gambles. And when/if it goes pear shaped they'll compare it to the holocaust. Edited October 9, 2015 by Si1 Quote Link to comment Share on other sites More sharing options...
Blod Posted October 9, 2015 Share Posted October 9, 2015 Why oh why is BTL described as buy to let when its actually BORROW to let. Investing is where CAPITAL is used not funds borrowed. Quote Link to comment Share on other sites More sharing options...
long time lurking Posted October 9, 2015 Share Posted October 9, 2015 That should draw in the suckers looking for a return, it seems too good to be true and I'm guessing that will be the case. Kaupthing moment Quote Link to comment Share on other sites More sharing options...
Kinky John Posted November 15, 2015 Share Posted November 15, 2015 The sharks are circling the shoals of mackerel while the mackerel dream of being sharks. Some sort of karma thing is going on here ... good find! Quote Link to comment Share on other sites More sharing options...
winkie Posted November 15, 2015 Share Posted November 15, 2015 Quote Link to comment Share on other sites More sharing options...
Bland Unsight Posted November 15, 2015 Share Posted November 15, 2015 The sharks are circling the shoals of mackerel while the mackerel dream of being sharks. That's the whole BTL game summed up in fifteen well chosen words. Quote Link to comment Share on other sites More sharing options...
thewig Posted November 15, 2015 Share Posted November 15, 2015 The sharks are circling the shoals of mackerel while the mackerel write snidey letters to the fishermen. Some sort of karma thing is going on here ... good find! Quote Link to comment Share on other sites More sharing options...
bear.getting.old Posted November 16, 2015 Share Posted November 16, 2015 Why oh why is BTL described as buy to let when its actually BORROW to let. Investing is where CAPITAL is used not funds borrowed. +1 Someone ought to tell this to those idiots over at property 118. Look at these people actually thinking they are providing a service depriving FTB's of houses with their pyramid BTL highly geared bank funded 'businesses'! They are bleating about tax changes from the tories. Are we soon to go back to the days of a landlord actually being someone with the capital to be one instead of these people who watched to many episodes of 'homes under the hammer'.? Quote Link to comment Share on other sites More sharing options...
GreaterLondonFool Posted November 16, 2015 Share Posted November 16, 2015 I actually disagree that this is "too good to be true" and have some insights into a similar company where I invest in bridging finance paying c.10% pa returns with loan duration between 3 months to 12 months. Most of the investments are sub 60% LTV with a first charge, so whilst I am massively negative on London property right now, I also think it's unlikely that values will drop by 40% in six months. Whilst I think prices are overheated, it's a nicely hedged investment for my deposit while I sit on the sidelines. If prices fall by anything less than 40% then I get my 10% return, whereas if they do drop 40% or more, then my dream house will have also fallen hence less deposit required. When something looks like a no brainer, you definitely need to ask why. In the case of CDOs it was because risk was being mispriced. This bears no resemblance to packaged securities, it's a single investment into a single loan. The real driver here is regulatory pressure on banks driving a totally risk averse approach to lending, which means you get decent credit opportunities at attractive prices - in a normal market with no government intervention against banks they would have competed these returns down significantly. Quote Link to comment Share on other sites More sharing options...
MississippiJohnHurt Posted November 17, 2015 Share Posted November 17, 2015 Lend money to keep people like Ros and Mark Alexander afloat? Where do I sign up? Quote Link to comment Share on other sites More sharing options...
Blod Posted November 17, 2015 Share Posted November 17, 2015 Lend money to keep people like Ros and Mark Alexander afloat? Where do I sign up? Lend money to keep people like Ros and Mark Alexander afloat? Where do I sign up? Exactly, I'm willing to chip in, great comedy value. Quote Link to comment Share on other sites More sharing options...
eric pebble Posted November 17, 2015 Share Posted November 17, 2015 I actually disagree that this is "too good to be true" and have some insights into a similar company where I invest in bridging finance paying c.10% pa returns with loan duration between 3 months to 12 months. Most of the investments are sub 60% LTV with a first charge, so whilst I am massively negative on London property right now, I also think it's unlikely that values will drop by 40% in six months. Whilst I think prices are overheated, it's a nicely hedged investment for my deposit while I sit on the sidelines. If prices fall by anything less than 40% then I get my 10% return, whereas if they do drop 40% or more, then my dream house will have also fallen hence less deposit required. When something looks like a no brainer, you definitely need to ask why. In the case of CDOs it was because risk was being mispriced. This bears no resemblance to packaged securities, it's a single investment into a single loan. The real driver here is regulatory pressure on banks driving a totally risk averse approach to lending, which means you get decent credit opportunities at attractive prices - in a normal market with no government intervention against banks they would have competed these returns down significantly. PRIVATISED PREDATORY LIAR LOANS?!? Quote Link to comment Share on other sites More sharing options...
eric pebble Posted November 17, 2015 Share Posted November 17, 2015 Lend money to keep people like Ros and Mark Alexander afloat? Where do I sign up? S C U M of the worst order...... Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted November 17, 2015 Share Posted November 17, 2015 PRIVATISED PREDATORY LIAR LOANS?!? it seems they have learned nothing from 2007 and this madness will not stop till something seriously collapses in the UK. I'm fully expecting a UK bank holiday. if you have long hair, expect a new look. Quote Link to comment Share on other sites More sharing options...
Byron Posted November 17, 2015 Share Posted November 17, 2015 Dear Reader, We are a bunch of City Whizz Kids (Bankers, Lawyers, Accountants, Mortgage Brokers etc.) We were having a few jars at the local and realised that more and more BTL landlords are in deep doodoo and are having difficulty in refinancing their mortgages. Of course, most will go tits up but there is a slim opportunity to screw them over at high interest rates. Problem is, we do not have any money, or more accurately, we do not wish to risk our own cash. So, would you like to put up the readies? we will lend it to these overstretched idiots at ruinous interest rates and pay you up to 7% pa. Of course your cash will be safe just as long as these Landlords manage to keep paying. If the worst comes to the worst, you will lose everything, we shall be OK because we have no skin in the game Quote Link to comment Share on other sites More sharing options...
billybong Posted November 17, 2015 Share Posted November 17, 2015 All assuming they won't just take the money and skip the country. Quote Link to comment Share on other sites More sharing options...
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