I have had the privilege of dealing with Paul Grant at Mike Phipps Finance for the purchase of a Quest re-sale.
I must admit that it is a very rare day that I can say that my experience has categorically exceeded my expectations. I say this with considerable industry experience in Banking and Finance having worked across three Australian Banking Corporations over 18 years, and another five years leading accommodation businesses dealing with numerous financers.
If you are looking to find a business partner that has deep industry understanding that will add value to your journey, then I could not recommend anyone else.
In fact, I look forward to conducting more business with Paul and Mike Phipps Finance as they are the No 1 operator in the industry. Thank you for all your time and support.
John Mackenzie - New Quest Franchisee
MR sales team are proud of their association with Mike in his past professional life and we were very happy to be involved with Mike in his new venture that resulted in the first management rights finance deal as Mike Phipps Finance.
Jake Clarke - Director
Management Rights Sales
“My firm and I have dealt with Mike Phipps over many years in relation to the financing of management rights.
Mike has a wealth of knowledge and experience in the field which, coupled with his
integrity and enthusiasm, ensures his clients are very well looked after.”
John Mahoney - Mahoney Lawyers
Our firm has dealt with Mike Phipps over many years assisting our mutual clients with the most tax effective lending options for their acquisition of management rights, motels, hotels, caravan parks and various other accommodation business opportunities.
Mike’s professionalism, integrity and personalised approach ensure our clients are always in good hands and get the best result every time.
Tony Rossiter
Holmans Accountants
"We’ve never looked back and appreciate the consistent support from you and your team throughout your time with your previous employer.
We wish you all the best with Mike Phipps Finance and have no doubt that you will guide many more new and experienced managers through the financial labyrinth of the Management Rights
industry for many years to come."
Gordon & Suzanne Higman
ATLANTIS MARCOOLA
Off the Plan (Greenfield Sites)
Start up purchases either off the plan or direct from the developer should be approached with a clear knowledge of the business model. In most cases lenders prefer experienced management rights operators although other complimentary experience is generally well regarded. Off the Plan purchase contracts will be predicated on a projected net profit which should be the subject of an accountant’s report, inclusive of projections and assumptions. The management rights contract should contain appropriate “claw back” provisions to ensure that any short fall in initial letting pool numbers is adjusted in terms of the purchase price. Generally the contract will specify an adjustment amount per unit for any letting pool shortfall. The purchaser then provides the stakeholder (usually the vendor’s solicitor) with a bank guarantee for the shortfall (retention amount) on the basis that provided the letting pool shortfall is made up within an agreed time frame (retention period) the balance purchase is paid via a call up of the bank guarantee. If there is still a shortfall at the end of the retention period (the adjustment date) the bank guarantee sum is partly allocated in line with the number of units achieved in the letting pool during the retention period.
You can download the information detailed within our ‘Management Rights’ section as a printable PDF for future reference. Click here to access the PDF document.
Frequently Asked Questions – Off The Plan Management Rights. You can download our ‘Off the Plan Management Rights FAQs’ as a printable PDF for future reference. Click here to access the PDF document.
Off the Plan contracts should specify a minimum letting pool number in order for the transaction to settle. Generally this is the minimum number of units required to make the proposition viable.
There are a number of industry experts who specialize in the marketing of Off the Plan management rights. We are happy to place potential purchasers in touch with these industry professionals.
More Questions?
Can’t find the information that you are looking for on our website? Get in touch with Mike Phipps Finance today, we will try to answer any industry related question that you may have.