Disagree. this will be much simpler than refinancing your house. You can also pay it off at any time without penalty. It sounds like an exciting new loan package that will give people a huge benefit over a lease. There is also no lien on your mortgage with this.
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Disagree. this will be much simpler than refinancing your house. You can also pay it off at any time without penalty. It sounds like an exciting new loan package that will give people a huge benefit over a lease. There is also no lien on your mortgage with this.
Chickenlittle
Banned
Never heard of a lien on your mortgage before but home equity line would also do better and can be paid off earlier. Not sure about Texas but Virginia there is no penalty for paying off mortgage faster. I am curious, is there a lien placed on the home for the loan? If not what is the collateral? Home could be sold without settlement agent or buyer aware of loan that would need to be paid off for the solar system. For that matter what does solar city do to secure their interest in the solar system on a lease? Do they rely on the sellers good will?
Thanks for letting us now. I really like this part:
Now, it's only been a few years, and I'll be interested in seeing what it's like 15 years from now, but as an investor and potential buyer this is great to see.
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You are welcome. As per Roth capital, this presentation was used for the latest convertible roadshow. Here is the reference. It has a few other interesting notes by the analyst as well:
http://www.streetinsider.com/Analys...+Recent+Meetings+with+Management/9888459.html
It's quite possible they're getting a lien or 2nd mortgage on the house including the solar system. That often qualifies it for home mortgage, not home equity because it is used to buy or build your home. I don't know what they're doing. Don't worry about the owner selling the house without paying it off. The note will be recorded with city/county records and can't be overlooked when the property is sold.
How could it be paid off faster, I thought you could pay off the Mypower loan whenever you want. Keep in mind all other loan options are still open to homeowners. For people who just purchased their home or are underwater in their mortgage this loan would make a lot of sense.
Chickenlittle
Banned
Great podcast with Lyndon Rive. Since the company is all about vertical integration, the last question was about buying an inverter company. Makes me wonder if they might try and get Enphase since they are the number one installer.....
SolarCity CEO Lyndon Rive Defends His Companys Long-Term Business Strategy : Greentech Media
SolarCity CEO Lyndon Rive Defends His Companys Long-Term Business Strategy : Greentech Media
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One thing to keep in mind is that this program also includes all repairs and maintenances to guarantee a certain output from the system throughout the life of the loan which creates an inherent value added. You could classify it as a Rent-to-own scheme but at the end of the day it opens up solar to a much larger market.
That's a very informative podcast. Thank you!
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One thing that struck me in the podcast: Rive says the Retained Value is net of tax equity guys but it is NOT net of debt. He said that debt is on the Balance Sheet that we can see so that's not netted out as part of Retained Value.
Does anyone know how to reconcile the Balance Sheet with the Retained Value?
The real answer that I am after is:
- What is the true 20-year retained value after "everything"
- How is it evolving on a quarterly basis
- How is it evolving on a quarterly basis "per share" (to account for equity dilution)
If I am reading the info right.
I compared from the end of year report last year to the numbers as of Jun 30th because that is what was used in the 10-Q which is where I am getting my "all in number" for debt and accounting for stock dilution (I think but I would love to have someone double check this)
The retained value after 20 years considering a 0 percent renewal rate is 1.245 billion as of Jun 30th. In December it was 660 million so it has almost doubled in 6 months. [Increase of 585 million ]
The retained value after 20 years considering a 90 percent renewal rate (which is what SCTY uses in their model) is 1.8 billion as of Jun 30th and it was 1.05 billion on Dec 31. [Increase of ~750 million]
The total liabilities and equity has increased by 333 million during this same time period. If you only look at liabilites it has increased 165 million in this period.
Its late and I need to do more research on the subject, But I would love anyone else to correct this data or expand on it.
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And yes +1 Sbenson that post was awesome Thank You
I think there a lot of benefits to offering these bonds to individual investors that have been overlooked thus far. the biggest one is that it lets SolarCity know where to expand next they will now have a map of everyone in the country who was willing to spend at least a thousand bucks in support of solar. This will give them a tremendous advantage compared to their competitors.
for instance if they had 300 people from Kansas City that had invested in these bonds and they were considering expanding into that areathey would know that there was potential demand from at least those 300 people. I don't think that it was a coincidence that the my power loan and these individual investor Bonds were rolled out at the same time.
for instance if they had 300 people from Kansas City that had invested in these bonds and they were considering expanding into that areathey would know that there was potential demand from at least those 300 people. I don't think that it was a coincidence that the my power loan and these individual investor Bonds were rolled out at the same time.
StapleGun
Member
In case anyone doesn't want to register to see the exact terms/rates, they are:
| 1 yr | 2.0% |
| 2 yrs | 2.5% |
| 3 yrs | 3.0% |
| 7 yrs | 4.0% |
Bummer. For those of us in the "sunshine state" if florida we cannot buy directly. Only through a broker. Pretty crazy to be the only state in the country demanding we also pay a middleman fee. Time to write our represntatives!
Were you interested in purchasing some? I am very curious how many people are buying these and their reasons for doing so.
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