A Year of Virtual Training
A Year of Virtual Training This year has brought about many changes in the way we work, the shift to remote working has been a learning experience here at Brokerplan. The need to adapt the way we train and educate our partners has caused us to drastically shift our software and processes. A year ago, in March 2020, we held what was to be our final in-person training course at our head offices in Selby, North Yorkshire. After the lockdown was announced we suddenly had to explore new avenues as to how we could continue to train our new partners whilst there were restrictions on physical visits to the office. Luckily, we already had access to a virtual meeting facility that we had been using for our weekly lender webinars for established partners. Adapting this software to enable us to provide an in-depth training course spanning multiple days would prove to be quite the challenge, and has been an ongoing process of trial and improvement, as our business development manager Laura Fieldhouse explains: “We very quickly realised that we would have to change the format of the training for it to work online. We spread the training over five afternoon sessions, instead of training intensively for 2 and a half days. We created a workbook to guide people through the week and we have constantly asked for feedback. This has resulted in changes to the order of sessions, changes to breaks and also development of the content to make the training as enjoyable and interactive as possible!” Laura Fieldhouse Business Development Manager Our comprehensive business training covers FCA regulations and compliance requirements Business procedures & administration essentials Core commercial product training Lead generation and business development How to use our bespoke sourcing system ‘Lender Hub’ The fundamentals of case underwriting Developing Ancillary / Additional Revenue Streams Business Planning, Forecasting and Budgeting Want to learn more about Brokerplan? Call: 0333 405 6666 or Email: info@brokerplan.co.uk
Recent Deal Summaries
Recent Deal Summaries A recently completed deal, from one of our partners and it’s their first case. A bridging loan of £216,000 for a property development in Doncaster through Affirmative Finance landing them a £2,106 commission! Client had a property in a SIPP Pension that the beneficiaries wished to convert to and operate as a coffee shop, we managed to secure an asset finance loan with Eastern Credit to help the client with this project One of our partners recently secured a £340k Day 1 Development Bridge Loan for a client – Who’s project was a new build single dwelling. The deal with secured with lender Golden Tree. The commission generated on the deal was £3,400
Partner Closes First 2 Deals
Partner Closes First 2 Deals Martin Cook of Exel Finance is an AR that started with the network last year and even he won’t mind admitting that his has been a steep learning curve. He has however thrived from being able to self-manage some of his own cases and with a genuine dogged sense of never giving up this has helped him to close two deals that other brokers would have let slide. An established property development company in Lancashire A property development company that needed to obtain a loan as a result of sales of new build homes being delayed. The development project consisted of 3 high quality executive homes that had experienced massive delays due to COVID. They had received an offer of a CBILs loan from Oak North but the terms required 90% of the loan to be repaid on the sale of the first home, which was at that point only about one month away, which was not acceptable to the company. Martin read that Merchant Money might be willing to consider a CBILs loan on better terms and put an application to them for a secured CBILS loan. Martin received the support of Nick Newton, the BDM and also the CEO of Merchant Money who requested a zoom call with Martin to review the application. The loan was offered and completed quickly and gave the clients the £330,000 they needed. This was such a ground breaking loan for Merchant Money that as a result of this loan case they created a new product based on a developer exit bridge and have successfully gone to market with this. An established construction company in Lancashire This company was referred to Martin having approached their own bank, HSBC, for a CBILs loan. The bank’s decision was that the client could not afford to service a CBILs loan because of a loss in their latest accounts. Reverting with projections of contracts secured and a positive cash flow projection, the bank then concluded that the client didn’t need a CBILs loan! That is when Martin got involved. The case was Presented to 3 lenders: Iwoca, Funding Circle and Nucleus, who each in turn declined the case. Martin presented the case again to Merchant Money backed up with facts and figures as to why the company’s loss was not an accurate indication of its past trading history or future potential. Many questions were asked and Martin responded to every question and query put to him by the underwriters thoroughly and completely which eventually persuaded the lender to take a view and finally the credit team approved the loan for £250K. The client was delighted. Both the above were CBILS business loans that completed with Merchant Money and in the words of Nick Newton their BDM “ …. it really Is worth highlighting Martin’s efforts on these – even my underwriter commented on the thoroughness of answers and the overall packaging and I’ve never heard him say anything positive!” In addition, it’s worth noting that both the deals had a broker fee charged to the client on top of the lender’s procuration fee and a very healthy combined income on both these deals was achieved.
Recent Case Studies
Recent Case Studies £30k Scaffolding Deal Deal placed with Bibby Financial Services Established scaffolding contractor trading 17 years needed additional scaffolding to help service pipeline of work. The business did make a loss in 2020 but latest management figures show a turnaround back to profitability, balance sheet remains strong, directors have clean credit searches and are homeowners. The deal was accepted on 3+33 profile with DG’s from both directors at our scaffolding rate net 14%. Documents were emailed for signing and once the originals were received and the client confirmed they had received all the goods on site and was happy for payment to be release both the broker and supplier were paid by same day transfer. Partner Commission £3,000
Regulated Bridging Case Study
Regulated Bridging Case Study The client already owned a property unencumbered, which was valued at £170,000 and wanted to spend £100,000 making it her forever home. However, the anticipated GDV was £210,000, so the maths didn’t really work. The client had already approached other brokers but weren’t happy with the rates received. Part of the application, would be to add her partner to the deeds. He had an unsatisfied CCJ, which also had to be taken into account. The introducer had already secured an AIP for the exit. After several rejections, West One Loans, could see the bigger picture and understand that the deal would work as the total borrowing was still relatively low loan to value. We secured terms at 0.9% per month and the case completed on 17th November, much to the applicants delight. Great support from Mark Hedley and Simon Boghurst at West One to a successful completion.
Canary Wharf BTL
Canary Wharf BTL Limited company application for the purchase of a BTL in Canary Wharf completed with the support of Landbay. The clients were first-time landlords and had purchased the property off-plan with a completion date set for March 2020. This had a restricted lender panel as the property was a new build in a block with 42 stories. The purchase price was £960,000 and a 20% deposit had been paid. Due to the rental income and restrictions applied following the coronavirus outbreak, the maximum loan available was £720,000 and the applicants had to increase their contribution. Following the valuation, the rental income was reduced from an anticipated £3500 to £2850 pcm. The lender then applied an additional restriction as they were first-time landlords and increased the stress test to 135% at pay rate as opposed to 125% which would have made the purchase impossible. The applicant has managed her father’s properties for some time and, as a compromise, the lender accepted confirmation that she had experience from this as an exception and reverted back to the originally agreed sum. Additional requirements: EWS1 form as the property is a block of flats (new legislation following the Grenfell disaster) Reinspection to ensure all works were complete prior to completion There were delays due to the lockdown and the building wasn’t completed until October. The original enquiry came in in December 2019.
£14k in a Week with Bridging Finance
£14k in a Week with Bridging Finance One of Brokerplan’s established partners Mark Everard of Michael’s Commercial Finance closed three bridging finance deals last week which earned them £13,829.50 in net income! These cases included: A regulated bridge for an elderly couple looking to downsize and move closer to their children – Their current property had not yet been sold and so the existing property and the new property were taken as security. This allowed them to secure better rates with a reduced loan-to-value (LTV) and allowed them to use the sale of the existing property as the repayment for the loan. Income – Broker Fee £1,500 & Proc Fee £4,009 A property purchase at auction with the client’s existing property portfolio to be used as additional security on the loan. With the client needing to complete within 3 weeks or risking losing the property, timing was key. The facility was arranged and completed within the given timescales and the client was able to continue with the purchase. Income – Broker Fee £2,469 & Proc Fee £5,292 A regulated ‘bridge-to-refurb’ on the client’s current property and use as a buy-to-let, A bridging loan was secured to finish off the refurbishment of the property and also provided the client with money for the deposit on their dream home. Income – Broker Fee £1,200 & Proc Fee £1,800 All of the above deals completed last week came to a total of £16,270 and provided the AR with a net income of £13,829.50! To find out how you too can become a successful commercial broker email info@brokerplan.co.uk to receive our brochure or call 0333 405 6666 to speak to a member of our business development team
Waterloo Lodge Re-Finance
Waterloo Lodge Re-Finance Refinance of a stunning holiday home in Scotland to raise funds to build additional similar properties. The security is a timber framed wooden clad holiday home in a relatively remote area on the West coast of Scotland. Bookings have always been good but this came to us at the start of a global pandemic, luckily this hasn’t had a lasting effect due to the staycation market. The client is an ex-pat living in the USA and he had previously lived in the property. Cambridge and Counties could see the potential in the project and were fully supportive from day 1. There were some complications and the client had to produce a lot of documentation before it went to offer as he was overseas. Cambridge and Counties originally offered a loan of £250,000 against a valuation of £450,000 but were able to increase that to £270,000 following underwriting. The client was offered and accepted terms of 4.5% OBR with a 2% arrangement fee. The AR charged 1.25% for his work which started in April and involved a lot of contact with the client at inconvenient times due to his overseas location. The total gross income was £6075.
Lockdown Case Studies
Lockdown Case Studies Scottish Development Company Recently completed on a loan worth a total of £584,500, gross income £8767.50 – this included a 1% broker fee. The applicants are experienced property developers who have developed the former Panmure Hotel in Monifieth in Scotland into 9 luxury apartments https://thorntons-property.co.uk/Panmure-Apartments-Tay-Street-Monifieth-New-Build Due to the slower property market during the pandemic, the clients decided to let two of the flats and finance them in order to repay JV investors. As part of the deal they also financed a property that they were taking in exchange on a different development. The purchasers were doing a straight swap with their current residential so the clients purchased their residential property on a BTL basis, thus adding that property into their portfolio. The following difficulties were overcome by excellent client management by the AR and coordinated working with the BDM at Paragon: Properties are in Scotland with a limited lender market Security was held in a development company – this was surpassed by setting up a new SPV with the development company as 100% shareholder The clients had no BTL experience – they had requested more properties initially but compromised on the maximum available by Paragon LTV was restricted at underwriting to 70% due to the in-experience The case was presented to us April and completed 11th August, however the actual application with Paragon wasn’t submitted until 3rd June, so was only actually a 10 week process including some complicated legals. We are hopeful that we will now be able to place additional properties from a different development for the clients with Paragon moving forward. Buy to Let Purchase Client purchased a 3 bed flat in Watford for £325,000, this included a share of the freehold. As a high rate tax payer, the client decided to purchase his first BTL in a limited company. As a prime case, following a full fact find with the client, the case was submitted to The Mortgage Works on 2.84% fixed for two years. The application was submitted on 10th June and completed 18th August in the middle of a pandemic. Gross total fee income £1689.37.
Brokerplan will be at the WORKING FROM HOME Virtual Show!
Brokerplan will be at the WORKING FROM HOME Virtual Show! The Brokerplan business development team will be in attendance at the upcoming Working From Home Show. The show will be held virtually and will run on Thursday 30th & Friday 31st July 2020. 2 DAYS | 25 SPEAKERS | 3 KEYNOTES | 4 STAGES | 50 EXHIBITORS What can I do at the Virtual Working From Home Event?You will be able to move between exhibitor booths, and hear from keynote speakers. Watch Seminars & Masterclasses Live Chat Functionality Request callbacks and set-up meetings with valuable suppliers Watch videos from key suppliers and see their products and services in action Download brochures, guides and information from individual exhibitors The event is for professionals and businesses building the future of home working, you can register to attend this virtual event for free here
