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Peer to Peer Finance - How to Secure Funding! Blend Finance Peer 2 Peer lender interview with Danny - YouTube
Channel: Property With Andrew
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welcome back to our project here at the bank to聽
residential conversion in Northampton and i'm聽聽
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joined today by Danny who is from Blend聽
Finance now welcome Danny do you want to just聽聽
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introduce who blend finance are in the first聽
instance because you've funded this project and聽聽
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tell us what you do. Thank you andrew it's good to see this聽
project so yes we're Blend Network network we are聽聽
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a crowdfunding platform we provide development聽
finance bridging loan we support developers聽聽
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across the uk and we like supporting projects聽
like this one we usually enjoy coming to site聽聽
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we come easily once before the project um starts聽
and then once we come actually throughout the聽聽
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projects occasionally we just like to do our聽
visits we schedule with other things that we have聽聽
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going on and it's always good to see project
you know how far i'll let this money go and聽聽
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it looks good yeah well we started this I聽
think we did the drawdown the week before聽聽
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covid hit and we've worked through this聽
during the covid lockdown period which has its聽聽
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challenges in ways obviously your QS is in cardiff聽
and we've been in Lock Down yeah we've had to come up with聽聽
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different processes yeah but in in terms of if聽
somebody was applying for peer-to-peer lending聽聽
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or bridging finance development finance with blend聽
what sort of things should they look for what tips聽聽
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would you give somebody
I think number one聽is numbers so you you and real numbers guys so聽聽
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yeah make sure you understand your numbers聽
you i think it's very important for us to know聽聽
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you know what you think the costs are going to be聽
in terms of the project as well the exit i mean聽聽
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have a look at the exit because these are usually聽
things we look at and it helps us also structure聽聽
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a loan in a more favorable way towards the borrower聽
if we know you know what this what the exit is and聽聽
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we get feel so that the borrower knows and聽
understands exactly what they're getting into聽聽
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ultimately we're going to be the partners so聽
we want to make sure we're partnering up with聽聽
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somebody who's quite confident with what they're聽
doing so yeah yeah well you've been a brilliant聽聽
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partner in this i mean when we bought this it聽
was an ex-bank you've seen the commercial unit聽聽
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downstairs we're just in one of the upstairs聽
flats enjoying the views from the window聽聽
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and you've not personally been to this site聽
before morgan came last what do聽聽
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you think of this site and the location聽
in the business improvement district
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its quite exciting stuff i've looked actually聽
this project before on google earth and from聽聽
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from the information pack that we produce to our聽
lenders actually being on site really opens you聽聽
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up it gives you a different feeling definitely聽
been impressed with progress on site and you know聽聽
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i think it's it's a good good settings love the聽
view don't know we actually need to see the views聽聽
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we don't get to enjoy what we're聽
enjoying at the moment but i think聽聽
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yeah i mean it's quite it's good the layouts on聽
the flat seem quite nice and it's very good that's
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took a small dormer window out and replaced it with聽
a rather large dormer yes it's good in andrew yeah聽聽
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so it seems like you know you really care聽
about people you want to put in which is聽聽
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something always good to see they you know besides聽
there's that human aspect of being able to put聽聽
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someone who you know looking at what the ultimate聽
customer what is going to live in here you know聽聽
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they're going to enjoy the space so that was quite聽
good to see no absolutely well the key thing is聽聽
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from my perspective you want somebody here who's聽
going to take this on a longer term contract聽聽
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or that it's going to fly off the shelf and聽
sell fast if we build something small and pokey聽聽
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then you wouldn't achieve that and what we've聽
done i mean this flap here is 68 square meters so聽聽
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it's almost bang on the national space standard聽
of 70 square meters for a two bed house so it's聽聽
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a good size and gives people space to breathe聽
i mean blend you you've been brilliant with聽聽
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us we've worked with you guys over a while and聽
you're actually a sponsor of the great property聽聽
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meets channel as well which i thank you very聽
much for and you know what do you think you you聽聽
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review a lot of deals what do you think helps聽
you and what did we do on our deal to make it聽聽
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easy for you to assess this and say yeah we'll聽
back that uh well as discussed before i think聽聽
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was quite what we liked about this particular聽
project is that we knew where the exit was we聽聽
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understand what the exit strategy was going to聽
be which really helped us the numbers stacked up聽聽
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which was very important for us and i think 50聽
percent so that was 50 of the project obviously聽聽
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we wanted back developers who have experience聽
who know what they're doing they're good with the聽聽
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numbers and that was the other thing that gave us聽
confidence obviously morgan has got a relationship聽聽
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with you we know you're quite well already now聽
we'll be like packing uh great property meet um so聽聽
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i think that was a combination that we usually we聽
always say 50 of the project is the actual project聽聽
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50 is the person um so yeah i thought i thought i聽
thought for our so far experience has been great聽聽
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and hopefully we're going to have a relationship聽
with the future that's also going to be聽聽
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as good as this one and yeah we look forward to聽
the next project actually well there's a lot of聽聽
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items in there at the moment and if you stay聽
tuned on this channel you'll see some of the聽聽
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other projects we've got coming up because there聽
is a lot in the pipeline and this one's a bank聽聽
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to commercial and residential conversion聽
so it's a mix use building but some of the聽聽
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ones we've got are quite monsters uh that will聽
sort of even make danny's eyes water and gold聽聽
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but at the end of the day we have to have a lot聽
of fun we have to take this seriously and there's聽聽
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been a lot of learnings along the way with both of聽
us in terms of how we went through legals and how聽聽
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the whole process progressed uh because this is聽
the first time i've done peer-to-peer lending and聽聽
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that was a learning experience for me a positive聽
one and i hate some drag because here we are聽聽
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students having fully funded here i i'm not quite聽
sure how quickly it was funded but it was minutes聽聽
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that it was funded in at the moment we're having聽
this issue where everything we put up um gets聽聽
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funded fairly quickly and we get quite a lot of聽
phone calls from lenders let me start on loans so聽聽
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yeah so we're looking actually quite actively聽
looking for projects to fund at the moment聽聽
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so there's a big tip 50 percentage 50 percent聽
is the project relationship is key so work give聽聽
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blend finance call speak to danny speak聽
to morgan or one of the other team there聽聽
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and make sure your numbers back up i think they're聽
the key things that i'm taking away from this聽聽
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and they're the key tips of advice聽
we'd like to share with you today聽聽
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so any parting words or wisdom from your聽
point of view uh yeah i mean just i mean聽聽
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just to reiterate before if if you do if you are聽
looking at the deal i think usually these two two聽聽
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ways of looking at it first of all to make sure聽
from your point of view uh the project stackable聽聽
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uh but then also just always have it back in聽
your mind if i present it to a family farmer聽聽
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how would they view it and i think that will help聽
you get more comfort on your project on how you聽聽
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look at it it's usually like a test i would say聽
stress test for for developers and for borrowers
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yeah brilliant well thank you very much thank you聽
danny for coming all the way up from london to聽聽
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project here in northampton so they don't just聽
uh stay in london they come out their office聽聽
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these are a real proper bankers and lenders they聽
come out and they meet you on site have a chat聽聽
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have lunch and get to know you as a person聽
and it's really good that that traditional聽聽
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relationship banking is still there and聽
relationship lending i call it banking聽聽
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it's peer-to-peer yeah i appreciate it it's funny聽
it's a traditional way of doing things people buy聽聽
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from people but you also back real projects and聽
uh this one's been a stunner the numbers were聽聽
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very good so it wasn't great so join us again聽
in the future stay tuned if you like this give聽聽
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danny a thumbs up to say you like his advice hit聽
the share button if you know somebody who'd like聽聽
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funding from blendfinance or danny and they can聽
benefit from this video and if you're not already聽聽
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hit the subscribe it's always good to find聽
out what our next video is because we've聽聽
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got some more case studies coming on hmos in聽
the near future ciao for now bye thank you
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you
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