Originally Posted by
leesal
The lender would carry the full risk of capital risk, agents risk is that introductory client doesn't pay or repays early without refinancing (losing the commission stream).
The above question (between investing in 2 risks with/without interest flex at same interest rate) i wouldn't consider, as my objective is to build a diversified portfolio of loans where availability is a consideration. Thus the question is what is my overall system for risk selection, whether would consider investing in each of these loans on their own merits:
1. A1 loan at 7.99%
2. A2 loan at 10.99%
3. B1 loan at 14.54% with 25% interest flex
4. B2 loan at 17.99% with 25% interest flex
Generally speaking, I'm investing in 2,3,4. Although not with huge enthusiasm. My question is what is everyone else doing in terms of their risk selection criteria?