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Post by bengilbert on Oct 26, 2015 17:29:31 GMT
For those not on the MoneyThing mailing list, Ed from MoneyThing has just announced a partnership with us at Broadoak Private Finance. Broadoak is a short-term property lender, and we'll be bringing deals to the MoneyThing platform. I'm here to answer questions you might have about the partnership - I'm a co-founder of Broadoak.
A few more details on how it will work:
-All loans will be secured by first charges on property in England and Wales, maximum loan-to-value of 70%.
-MT will have right of first refusal on deals which meet their criteria. We'll show them to MT before anyone else, and Ed will have the final call on which deals he wants on the platform.
-Broadoak will be investing at least 5% of the loan amount into every deal, on a first loss basis - we'll lose all our investment before investors lose any capital on a deal.
-Deal-specific interest rates of 9-12%, with investors earning interest immediately.
p2p has been at the centre of our vision for Broadoak's future ever since we started the company. We felt that, after getting to know the MT team, we'd found the right partner for taking this forward. I've been investing myself for years on a number of platforms and become quite a p2p advocate/bore. It's exciting for me to have more control on the origination side, but I'm always going to be wearing my lender hat when I look at deals.
Fire away with any questions you have.
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Post by bengilbert on Oct 26, 2015 17:31:15 GMT
PS I've put in a request to the mods to get myself identified on my profile as a representative of Broadoak and partner of MoneyThing.
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jonbvn
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Post by jonbvn on Oct 26, 2015 17:39:51 GMT
For completeness, here is a copy of the email from MT/Ed. I have the great pleasure in announcing a new Partner for MoneyThing specialising in 1st charge property bridging/development lending in England & Wales. Broadoak Private Finance Ltd (BPF), and specifically the two founders of BPF, bring a huge wealth of experience in this field of lending. Jamie Bleakley (Managing Director) has been in this industry for the last 15 years and recently made the move to form his own company, utilising his skills, contacts & passion to bring a fresh approach. Alongside Jamie, Ben Gilbert (Funds Distribution), an avid property investor and incidentally a P2P enthusiast, is someone who understands well the need for robust security implementation & close monitoring. Together, Jamie & Ben have formed BPF and are setting themselves apart by providing exceptional customer service with their borrowers during the whole take-on and loan cycle process. Crucially, they will always meet face-to-face with their borrowers and examine property before offering them a facility. Once the loan is in place, they maintain the face-to-face relationship throughout the loan term allowing them to establish early on if there is potential for a default situation. They are then able to assist the borrower to refinance or dispose in advance rather than discovering any issues at the end of the loan term. Jamie & Ben will be working closely with MoneyThing and will provide regular communication to you the Investor via email as well as contributing directly on the www.p2pindependentforum.com. Some of the other features of the partnership: BPF will give MT right of first refusal on all loans meeting MT criteria. BPF will take a minimum 5% stake in each loan on a 1st-loss basis. Loans up to 70% LTV on residential & commercial property in England & Wales. Ben Gilbert: "As a believer and investor in p2p myself, I’m excited by the chance to bring secure, rewarding loans to the MoneyThing investor community. We will only ever approve loans that we’re happy putting our own money into, which is exactly what we are going to do with every loan that is listed." Jamie Bleakley: "My first priority will always be the security of our investors’ money. With our careful underwriting, experience in bridging and the team of professionals we have supporting us, I’m confident that we’ll be able to offer MoneyThing investors a consistent pipeline of well-secured deals." Together, we are very excited to introduce you to the first of many deals within the next few weeks. |
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pom
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Post by pom on Oct 26, 2015 17:51:30 GMT
-Broadoak will be investing at least 5% of the loan amount into every deal, on a first loss basis - we'll lose all our investment before investors lose any capital on a deal. Money where mouth is - like it 
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adx
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Post by adx on Oct 26, 2015 17:56:12 GMT
So from a security point of view are we lending to Broadoak or direct to property owner?
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star dust
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Post by star dust on Oct 26, 2015 17:58:57 GMT
Good news for MT, this will add another asset class and hopefully help scale up the overall offering. Well done MoneyThing Ed for your efforts in bringing on new partners. With regards to BPF (sorry uncletone yet another one!) my off the cuff question relates to the relationship chain. We lend to MT, how does the chain of funding work, who has an agreement with whom including the borrowers, and perhaps crucially who is the charge on the property registered to? In Edit: my typing must be too slow. X posting with adx and samford71 here. |
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Post by bengilbert on Oct 26, 2015 18:01:36 GMT
So from a security point of view are we lending to Broadoak or direct to property owner? The loans will be assigned to MoneyThing before being listed on the platform, and then MoneyThing assigns them to investors when they invest. You are not lending to Broadoak.
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unmadem
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Post by unmadem on Oct 26, 2015 18:11:59 GMT
What is your best guess on number of deals per annum ?
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Monetus
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Post by Monetus on Oct 26, 2015 18:30:46 GMT
Will loans generally be for a maximum of 12 months?
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ramblin rose
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“Some people grumble that roses have thorns; I am grateful that thorns have roses.” — Alphonse Karr
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Post by ramblin rose on Oct 26, 2015 18:46:04 GMT
For those not on the MoneyThing mailing list, Ed from MoneyThing has just announced a partnership with us at Broadoak Private Finance. Broadoak is a short-term property lender, and we'll be bringing deals to the MoneyThing platform. I'm here to answer questions you might have about the partnership - I'm a co-founder of Broadoak. Aha ( #lightbulbmoment  ) I knew the name Ben Gilbert was familiar when I read it in the email. All becomes clear. Good to have a loan originator who knows the experience from the point of view of the private lender. All very promising. I would say 'welcome aboard' but you know us already 
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Post by bengilbert on Oct 26, 2015 18:53:35 GMT
For those asking about the chain of funding, it is:
-BPF funds the loan
-MT purchases the loan from BPF. BPF assigns the loan to MT, including the right to demand, recover and receive all sums due under the loan
-Investors invest, and MT assigns loan parts to them
In some cases, MT will fund the loan directly when it draws down, and the assignment to MT will take place simultaneously with drawdown.
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Post by bengilbert on Oct 26, 2015 19:04:53 GMT
.... Fire away with any questions you have. Ben I've not done anything with MT at this point since too small. Who is my counterparty on deals ... MT, Broadoak or the borrower? Is the 5% held by Broadoak a separate sub tranche (2nd charge) or is an "unofficial" first-loss like Wellesey etc? We were expecting to invest via the MT platform, which would mean that in terms of the documentation the 5% would not form a separate sub tranche. Let me consult with Ed to see if there is a way of structuring this to make the segmentation clearer. Edit: clarified by Ed below. The second priority of the BPF investment will be detailed on the schedule within the deed of assignment (between MT and its investors)
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Post by bengilbert on Oct 26, 2015 19:15:05 GMT
Will loans generally be for a maximum of 12 months? Yes.
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Post by MoneyThing on Oct 26, 2015 19:19:24 GMT
Evening,
The relationship works in the same way as the Cash Shop partner loans whereby the borrower borrows from BPF (BPF hold the 1st charge on the property as loan originator). The loan is assigned to MT under a Deed of Assignment which gives MT the equitable interest in the underlying security and explicitly states the rate of interest. This assignment agreement is then mirrored with the MT investors (apportioned to individual % interest in the loan.
The 5% BPF hold on a 1st-loss basis will be done via the MT platform under the schedule (within the Deed of Assignment), which will detail the 'priority' whereby the investors (collective), being priority 1 and BPF being second.
Kind regards,
Ed
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Post by bengilbert on Oct 26, 2015 19:21:37 GMT
What is your best guess on number of deals per annum ? We are ambitious but I don't want to put a number on this just yet. Our focus is on making sure that the deals are all of high quality. Sorry for the waffly answer but it's the best I can do right now. We will do our best to give a clear picture of how the pipeline looks once we have a good handle on the appetite from the platform investors.
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) I knew the name Ben Gilbert was familiar when I read it in the email. All becomes clear. Good to have a loan originator who knows the experience from the point of view of the private lender. All very promising. I would say 'welcome aboard' but you know us already 
