Mortgage Business Accelerator: Duncan Kreeger, TAB

I have always been enterprising. I started my first business when I was 17.

Since then I have built and sold a £120m valuation business, managed over £400m in private equity, closed over £2bn in secured loans and managed a team of over of 100 people.

Overall improvement

I founded TAB in 2018. In my previous business, we were selling bridge loans. With TAB, I started doing something similar but with better technology, a better team and better products. And, because I’ve been here before, there weren’t too many surprises.

I knew, for example, that it would be a challenge to raise capital. Currently, TAB has two means of funding its bridge business: private investors who select loans that fit their risk parameters; and institutional funding.

We researched and tested modern approaches to how property was owned

Over the past year, we have acquired three lines of financing. It used to be that raising capital could be difficult.

Some of our loans can be bizarre and complicated. Our underwriters are able to understand the whole story, but it is more difficult to convey this information to investors, concisely and in simple terms so that they understand the risks.

We have adapted to this challenge by putting more effort into informing investors about loans.

Fractional ownership in ownership is not a well-trodden path. We had to create solid legal documentation

First, we hired an investor relations manager to deepen our relationship with investors and answer any questions. And second, we created a dedicated education area on our website – “TAB University” – where anyone could access a range of free information on real estate, finance and loans.

The real unknowns came from another part of the business.

I want to open up property investment to the masses via fractional property investments, which allow investors to own property from as little as £1,000 and benefit from the rental returns and capital growth of the UK property market.

We created a dedicated area on our website where anyone could access real estate, finance and loan information for free.

One of the biggest challenges in launching this product was creating an ownership structure for the property that met UK regulatory standards. I knew it wouldn’t be fun. But I didn’t expect it to be so difficult.

Robust documentation

Fractional ownership in ownership is not a well-trodden path. We had to create solid legal documentation to allow TAB to offer this product.

The process was long, expensive and complicated. Not only that, but I had to manage the process alongside running a successful transition business.

I started doing something similar but with better technology, better team and better products

To meet the challenge, we had to think outside the box. Alongside an experienced legal team, we had to research and test modern approaches to property.

We developed several scenarios in which we were able to test the regulatory landscape and, ultimately, we were able to build a structure that fit within the constraints.

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