Case Study – Chesterfield Development
Case Study – Chesterfield Development Case Overview We were approached by a client wanting to buy an investment property in Chesterfield, a single dwelling with a large garden, on the market for £260k. The client was prepared to pay £280k but he only had £60k of his own money to put in. He was a contractor for a large development company but had not been involved in any builds himself, if anything this was more like a refurbishment as the house was mortgage-able day one but could have done with a spruce up. This looked a no-brainer.Not only could we only get him at best 80% of the purchase price (£208k) but at a yield of £650 pcm this wasn’t even a good investment buy. Then we dug a little deeper… The client had made an arrangement with the vendor 6 months ago who was in no hurry to sell. If the vendor would wait 6 months and sell to him he would pay over the asking price but only if the vendor cooperated with him in securing planning permission for a new build with separate access in the garden. A number of neighbours rs had done something similar and ultimately the client was successful but was now struggling to secure funds to buy the property having sunk £20k into the planning process. We suggested that he approached a solicitor about splitting the title to the land at purchase as this would save him money on tax later (by attributing the value now rather than when built), but more importantly it would allow us to put two loans into place day 1. A buy to let mortgage on the house without the garden at 80% The land loan element of a development bridge on the garden which would lend at 70% gross followed by all of the build costs. The new build would cost 80k to build and be worth 220k on completion. We got an 80% BTL lender to get their surveyor to value the house without the garden and it came out at £240k so the client could borrow £192k from them. The bridging lender valued the land with PP at 80k and he was able to borrow once fees and interest were deducted circa £40k net day 1 then all the build costs in tranches in arrears. This gave the client a total day 1 borrowing from both lenders of £232k which even on the inflated purchase price of £280k allowed him to complete with his £60k- just! When the new build was complete we were able to secure him a buy to let at 80% which on the £220k gave him £176k – more than enough to pay off the £136k bridge. In fact once the legal and other costs were factored in he had about £30k left over. The client now had two properties with £58k of equity in one and £44k of equity in the other. He had sunk £80k of his own monies in but had been left with just £50k in the project. The properties were earning him £650 +£600 pcm so a gross income of £14,700 per year. With plans to refurbish the first property at the end of the buy to let discount period and hopefully take even more cash out on an increased value he was a happy man. As was the AR. We had two buy to let’s where the Proc. Fee had been only 0.5% so £368k = £1,840. The £136k bridge had paid a Proc Fee of 1.5% so £2,040. The real earn though was in the broker fee as the client had agreed to a 1% FSA on the entire borrowing as we had effectively created the loan structure for him so at £504k total the client paid £5k. Just short of £9k in income for a project that on first assessment had seemed impossible. Prospects of future earning on the refurbishment of the house and a client looking to use the AR for his next project as added bonuses.
London Discovery Session Success
London Discovery Session Success Photographs from the day Previous Next Brokerplan & Your Mortgage Plus – Combined Discovery Session On Wednesday 25th September 2019, Brokerplan held our first-ever, one-off discover session at the Funding Circle offices in central London. Brokerplan’s John Kent and Lee Hesketh were joined by Nick Newton of Funding Circle to present on both the Brokerplan and Your Mortgage Plus opportunities.
Central London Discovery Day
Central London Discovery Day Here at Brokerplan, we are celebrating the growth of our network – We are proud to announce that we now have over 100 network members! We would like to invite you to join us for a one-off discovery session in central London to learn more about the network and how you can follow in the footsteps of some of our most successful partners. We will show you how to earn: £100k+ on a single deal £100k+ per annum as a commercial finance broker £100k+ as a residential mortgage broker (Your Mortgage Plus Franchise) Generate uncapped income by referring business to Funding Circle as part of the Brokerplan Network We are currently under-represented in the South-East and as an incentive, we are offering a Limited Time Only discount of £100 across all of our packages! Details Date: 25th September 2019 Time: All are welcome from 9am for Coffee, at 9:45am the presentations will start with an approximate finish time of 2pm. Address: 71 Queen Victoria Street, London, EC4V 4AY (Funding Circle Offices) Cost of a seat is £15 – Lunch providedWe will refund £100 if you decide to join Brokerplan Email us to book a place
Recent Partner Case Studies
Recent Partner Case Studies Here you can read some of our current network partner’s recently closed case deals and the commissions they earned.
Brokerplan are now on Instagram!
Brokerplan Are Now On Instagram View Profile Where to find us… Facebook Twitter Linkedin Youtube Instagram
Network Conference 2019
Network Conference 2019 Tuesday 18th June 2019 | Arden Hotel, Birmingham On Tuesday 18th June, Brokerplan held their first ever network conference. Joined by over 50 network partners and lenders, the event was a busy and exciting day for all. The conference included roundtable discussions with lenders, an awards presentation, motivational speaker and networking. Previous Next Award Winners To recognise the truly outstanding work that our network partners have achieved over the past year, Brokerplan held an awards ceremony during the conference. Below is a list of our 2019 winners and their award category. Best Newcomer – Mark Everard (Michaels Commercial) Most Completed Cases – Rob Griffin (Aspired Finance) Permanently Polite – Andrew Wattsford (Wattsford Commercial Finance) Best Case Submission – Chris Harrington (Ela’s Business Finance) Client Care – Carl Clarke (Focus Lending) Kind of Compliance – Bobby Paul (Abundant Finance) Most Determined – Joy Dowell (Hadrian Capital Finance) Laissez-faire – James Wallis (Aben Financial) Client Relations – Richard & Rachel Knowles (Element Finance) Best First Case – Justin Matravers (Choice Commercial Finance) Positive Perseverance – Mark Pilsbury (STAG Capital Finance) Broker of the Year – Darren Peacock (Peacock Finance) Roundtables Brokerplan were joined by lenders: Precise Mortgages, Close Brothers, Bibby Financial Services, Affirmative Finance, Shawbrook, Paragon, Cambridge & Counties, Redwood Bank, Lloyds Bank and Pension Led Funding. Lenders presented to our Network partners, discussing criteria, products, rates, case studies and commission structures. Previous Next Motivational SpeakerStuart Myers – World at your feet Conference attendees were treated to a presentation by Stuart Myers from World at your feet solutions. An inspiring and motivational presentation – more information about Stuart and his company here: https://www.facebook.com/worldatyourfeetsolutions/ Post-Conference Meal After the conference, Brokerplan staff were joined by partners and lenders for curry at a local restaurant.
Case Study – HMO Development
Case Study – HMO Development Development Finance Deal with Bridging Finance Client: Highly experienced multi-unit developer and landlord. Owns HMO properties with licenses. 2nd Deal (Returning Client) Purpose of Loan: Purchase & Development – £512,000 loan (Development Tranche 200k, initial Advance 312k) – 12-month loan Project: Development of former 18-bedroom, 2 storey care home Into a House of Multiple Occupancy (HMO) with four ‘cluster’ flats (2 per floor) of 5 and 6 beds – Each flat having shared kitchen/dining/sitting room, each bedroom with its own bathroom. Exit: Refinance on completion Partner Commission: £512,000 of funding was arranged with Mint Bridging for the client. 60% of the total case commission was paid to the partner – Which totalled £6,144
Case Study – CBM Cafe Purchase
Case Study – CBM Cafe Purchase Earlier this year one of Brokerplan’s network partners approached the case team to source funding via a commercial mortgage. The client who has an existing mobile catering business which they have grown over the last 14 years, intended to buy a freehold building consisting of a trading café and a self-contained residential flat, for a total consideration of £225,000. The client had a gifted deposit from family and had equity in their own property. The café’s current owners were retiring and winding down the business, leaving an opportunity for someone to take over the business and help it reach its full potential. £145,000 of funding was arranged with Natwest Bank for the client which has enabled them to purchase the café and flat. 60% of the total case commission was paid to the partner – Which totaled £1,566.
Case Study – Accountancy Acquisition
Case Study – Accountancy Acquisition Unsecured Business Loan for Accountant We were approached by an accountant who needed a loan for £500,000 to acquire the goodwill of an existing accounting practice. This would allow a significant synergy of staff and skills and the acquired business was to be fully incorporated into the existing accountancy business. The client already ran a profitable accountancy practice and although we suggested that either he or ourselves could approach a high street lender we were told speed was of the essence. The client had already approached a previous broker who had put together a quite competent package of lending for £275,000 with a “coalition of the willing”; a series of asset finance providers working together, but when we worked out what they were charging the client as a blended overall cost of finance it was over 14% APR over terms of 36 to 60 months. We structured a deal from a single provider instead that didn’t quite get to the same level (£250,000) but at a rate of 8.05% APR fully over 60 months, this enabled the client to negotiate with the vendor a higher level of deferred consideration (with the balance in 12 months) and so these funds proved to be enough. From application to approval took 1 working day but in the main due to the client timing his purchase with the vendor it then took a further 2 weeks but at the end of this 2 weeks the money was in the clients account. To win the business from the other broker the fee structure was minimised to a £4k earn but as an example of how to take business away from the competition who had, by our calculations, put in over £10k of fees into their proposal this shows solidly the speed of unsecured business lending. In addition – with this lender we can loan up to £500,000 and so when the client has to pay the balance of purchase in 12 months’ time then of course we are well placed to also provide that finance and of course …. earn further commission.
Case Study – BTL Fishguard
Case Study – BTL Fishguard Case Overview Type of Loan – Buy to Let Purpose of Loan – Refinance to Capital Raise Security – 2 bedroom terrace in Fishguard Value of Loan – £108,750 Details & Difficulties Time taken from submission to completion – New case came into the practice on the 5th February for assessment, application put through to Precise Mortgages on the 13th February and the cases completed on the 28th March. The security is adjacent to the applicants residential – Some lenders will refuse applications on this basis. One applicant had an outstanding tax bill that needed to be cleared prior to the offer. The valuation came in at £10,000 lower than anticipated so the available loan was reduced accordingly. Had to take a 5 year fixed rate due to the rental stress test. Partner Commission Gross Fees Generated – £1631.25 Lender – Precise Mortgages Any Subsequent Fees/Opportunities as a result – client also currently has a commercial application with us to refinance their commercial property
